The Influence of Gender Diversity in Inventor Teams on Technological Innovation in the Korean Automobile Industry: Evidence from Patent Data

Abstract

Purpose – The aim of this study is to examine the relationship between gender diversity in coinventing teams and technological innovation. We reason that a diverse range of perspectives and experiences brought about through gender diversity can lead to more creative problem-solving and decision-making, resulting in more innovative outputs. Additionally, we will examine the moderating effect of the coinventors’ experiences on this relationship. Design/Methodology/Approach – This study uses detailed information from patents registered by Korean automobile companies in the USPTO between 1994 and 2019. We employ OLS regression to test our hypotheses at the team level, incorporating firm and year fixed effects and other relevant factors affecting a team’s technological output. The dependent variable, technological innovation in a team’s output, is measured using three different indicators: knowledge diversity, knowledge novelty, and broad impact. Findings – Our study finds that team-level gender diversity has a significant positive effect on technological innovation, as evidenced by all three dependent variables. We also uncovered that the positive impact of gender diversity on innovation is amplified when all team members have more experience, compared to less experienced teams. Together, these results corroborate our claims. Research Implications – Our study holds important implications for STEM fields, which form the backbone of various industries. Our research suggests that, despite traditional gender roles and stereotypes that may discourage women from pursuing careers in these fields, increasing gender diversity in R&D can bring benefits by enhancing various dimensions of technological innovation. Furthermore, our findings indicate that automobile companies can use gender diversity to drive greater innovation and gain a competitive advantage.