Does a different view create something new? The effect of employee diversity on innovation
▶ The link between employee diversity and firm's likelihood to innovate is analyzed. ▶ The study relies on a unique set of databases consisting of a large scale innovation survey and a detailed linked employer-employee database. ▶ Diversity measures are based on a broad set of individuals instead of only focusing on top management team. ▶ A positive relation is found between diversity in education and gender on innovation, providing evidence on the importance of a diverse knowledge base among employees.