The impact of cultural diversity on firm innovation: evidence from Dutch micro-data

Table 4 IV Estimations with the full sample

1st stage		Share of foreign born			Share of foreign born			Share of foreign born
		(1), (2), (3)			(4), (5), (6)			(7), (8), (9)
Number of foreign restaurants		0.724***			0.727***			0.531***
per 10,000 population in 1996		(0.198)			(0.198)			(0.147)
Log of ‘allochtoon’ in 1996		0.010***			0.008***			0.002***
		(0.001)			(0.001)			(0.001)
2nd stage	Innovative	Product	Process	Innovative	Product	Process	Innovative	Product	Process
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Diversity index	-	-	-	0.114***	0.107***	0.0313	-	-	-
				(0.0391)	(0.0368)	(0.0345)
ln(unique)	-	-	-	-	-	-	0.134*	0.136*	0.105
							(0.0788)	(0.0763)	(0.0697)
Share of foreign born	−0.623**	−0.545**	−0.325	−0.734**	−0.650**	−0.360	−1.177*	−1.122*	−0.837
	(0.275)	(0.264)	(0.242)	(0.308)	(0.297)	(0.271)	(0.673)	(0.654)	(0.595)
Share of 2nd generation	−0.172	0.113	−0.0956	−0.221	0.067	−0.108	−0.394***	−0.107	−0.240*
	(0.178)	(0.168)	(0.155)	(0.173)	(0.164)	(0.150)	(0.150)	(0.142)	(0.130)
Constant	−0.160**	−0.236***	−0.227***	−0.118	−0.196***	−0.215***	0.0800	0.0082	−0.0366
	(0.0768)	(0.0684)	(0.0670)	(0.0793)	(0.0706)	(0.0692)	(0.167)	(0.158)	(0.148)
Sector FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Observations	4582	4582	4582	4582	4582	4582	4582	4582	4582
R-squared	0.312	0.274	0.188	0.311	0.272	0.187	0.302	0.260	0.172
Hansen J statistic	1.530	1.299	0.001	1.992	1.718	0.004	3.234	2.994	0.212
p-value	(0.216)	(0.814)	(0.993)	(0.158)	(0.190)	(0.949)	(0.072)	(0.084)	(0.645)

Notes: These estimations include all other variables in Table 3. Robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1.