Does Cultural Diversity Help Innovation in Cities?

Innovation is an important driver of long-term national economic growth and an important goal of policy intervention (Romer 1990, Schumpeter 1962). Cities and urban economic diversity enable innovative activity (Jaffe and Trajtenberg 1999, Duranton and Puga 2001). A growing body of evidence also suggests that culturally diverse cities are more innovative, as they benefit from a wider range of international knowledge links, diverse decision-making and being able to attract more innovative people (Hunt 2008, Peri 2007, Niebuhr 2006).


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