Ethnic Innovation and U.S. Multinational Firm Activity

35 Pages Posted: 29 Aug 2011 Last revised: 15 Apr 2016

See all articles by C. Fritz Foley

C. Fritz Foley

Harvard Business School; National Bureau of Economic Research (NBER)

William Kerr

Harvard University - Entrepreneurial Management Unit

Multiple version iconThere are 2 versions of this paper

Date Written: August 2011

Abstract

This paper studies the impact that immigrant innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the share of a firm's innovation performed by inventors of a particular ethnicity are associated with increases in the share of that firm's affiliate activity in their native countries. Ethnic innovators also appear to facilitate the disintegration of innovative activity across borders and to allow U.S. multinationals to form new affiliates abroad without the support of local joint venture partners. Thus, this paper points out that immigration can enhance the competitiveness of multinational firms.

Suggested Citation

Foley, C. Fritz and Kerr, William R., Ethnic Innovation and U.S. Multinational Firm Activity (August 2011). NBER Working Paper No. w17336. Available at SSRN: https://ssrn.com/abstract=1918666

C. Fritz Foley (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-495-6375 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
13
Abstract Views
603
PlumX Metrics