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  • July 2013
  • Article
  • Management Science

Ethnic Innovation and U.S. Multinational Firm Activity

By: C. Fritz Foley and William R. Kerr
  • Format:Print
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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.

Keywords

Technology Transfer; Innovation; Ethnic Networks; Patents; Diasporas; Ethnicity; Multinational Firms and Management; Competitive Advantage; Research and Development; Foreign Direct Investment; Innovation and Invention; United States

Citation

Foley, C. Fritz, and William R. Kerr. "Ethnic Innovation and U.S. Multinational Firm Activity." Management Science 59, no. 7 (July 2013): 1529–1544.
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About The Authors

C. Fritz Foley

Finance
→More Publications

William R. Kerr

Entrepreneurial Management
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More from the Authors
  • Migration Fear and Minority Crowd-Funding Success: Evidence from Kickstarter By: John (Jianqui) Bai, William R. Kerr, Chi Wan and Alptug Yorulmaz
  • Clay Ridge Capital By: Martin A. Sinozich and William R. Kerr
  • MicroStrategy’s Investment in Bitcoin By: C. Fritz Foley, Celine Chammas and Donal O'Cofaigh
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