The role of collaboration networks for innovation in immigrant-owned new technology-based firms

Abstract

AbstractThis paper answers calls for a better understanding of the importance of domestic collaboration networks for innovation in immigrant- and native-owned firms. With a specific focus on the domestic networks established with other firms, research institutions, and business associations, we question whether cultivating such social capital with diverse actors is linked to better innovation performances for immigrant-owned firms. We investigate this research question by exploiting a unique matched-pair sample of immigrant and native domestic entrepreneurs who are active in high-tech mainstream (non-ethnic) markets. Our results show that universities and research institutions, along with business associations, are more important for innovation in immigrant-owned firms. In addition, we discover that immigrant entrepreneurs' acculturation to the host country's culture acts as a substitute for interactions with business associations. These findings contribute to the academic and policy knowledge on the link between immigrant entrepreneurship and innovation in developed countries.