Ethnic diversity, entrepreneurship and competitiveness in a global city

Abstract

The article assesses the proposition that ethnic and linguistic diversity is a potential source of competitive advantage at the city/regional level. Seven potential links between ethnic diversity and competitiveness are proposed on the basis of previous literature, although the article focuses on three: ethnic diversity as a source of creativity and innovation; the role of diaspora-based networks; and linguistic diversity, using a combination of secondary material and original case studies. The overall conclusion is that although a number of plausible hypothesized links between diversity and competitiveness are proposed, and evidence is presented to support them, further systematic research is required before the frequency of occurrence of such diversity/ competitiveness connections can be determined and their importance in economic development fully assessed.