We study immigrants’ effects on firm-level innovativeness. Managers, innovators, and other employees are considered as separate groups both in firm employment and in local areas. For each, we estimate the effects of foreignness, the share of immigrants in each group, and diversity, while...

This paper explores offshoring of firms’ research and development functions. Our analysis employs a previously untapped and unique Eurostat International Sourcing Survey. The results are easy to summarize. First, the magnitude of R&D offshoring is small. Second, a large majority of R&D is...

The characteristics of product and process innovators among Finnish manufacturing firms with Community Innovation Survey (CIS) data are studied. Results of bivariate probit estimations suggest that, while the product and process innovations are related, they are largely driven by different...

Radical innovations require risk-taking. However, it is hard to find an objective measure for innovation investments that would take riskiness into account. In this paper, we investigate how a simple measure of firms’ innovation investments, namely the employee share of managers and...

Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms with good prospects for innovation. Aggregate...