LGBTQ-Friendly Employee Policies and Corporate Innovation

58 Pages Posted: 8 Jun 2021

See all articles by Veda Fatmy

Veda Fatmy

University of Vaasa

Jukka Sihvonen

Aalto University

Sami Vähämaa

University of Vaasa

Date Written: June 1, 2021

Abstract

This paper contributes to the literature by examining whether LGBTQ-friendly employee policies foster corporate innovation. Using data on U.S. firms from 2003 to 2017, we document that LGBTQ friendliness has a positive influence on innovation intensity and quality. Specifically, our results demonstrate that LGBTQ-friendly firms produce more patents, have more patent citations, and are associated with higher innovation quality as measured by patent originality, generality, and internationality. Furthermore, our empirical findings indicate that LGBTQ friendliness is positively associated with the firm-level concentration of innovative talent. Overall, our results are consistent with the view that diversity considerations and inclusive corporate policies may lead to competitive advantages for the firm.

Keywords: LGBTQ policies, sexual minorities, employee policies, diversity management, corporate innovation, patents

JEL Classification: D22, G30, G39, J15, J70, J83, M14, M50, O30

Suggested Citation

Fatmy, Veda and Sihvonen, Jukka and Vähämaa, Sami, LGBTQ-Friendly Employee Policies and Corporate Innovation (June 1, 2021). Available at SSRN: https://ssrn.com/abstract=3857214 or http://dx.doi.org/10.2139/ssrn.3857214

Veda Fatmy

University of Vaasa ( email )

P.O. Box 700
FIN-65101 Vaasa, FI-65101
Finland

Jukka Sihvonen

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland

Sami Vähämaa (Contact Author)

University of Vaasa ( email )

P.O. Box 700
Vaasa, FI-65101
Finland
+358 29 449 8455 (Phone)

HOME PAGE: http://www.univaasa.fi/~sami

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