Names, diversity and innovation

Diversity of a country is often measured by the amount and spread of nationalities that live there. But also within a country, regions vary in their traditions and culture. Cultural homogeneity within communities is mixed up by (internal) migration, that, like international migration, increases diversity of a place. In a novel approach I therefore look at diversity in German municipality associations measured by different family names and investigate the effect it has on the number of generated patents. I show that cultural diversity and openness of a place affect its economic performance positively in terms of innovation also when referring to intra-country differences.