Tolerance, agglomeration, and enterprise innovation performance: a multilevel analysis of Latin American regions

摘要

In this article we examine the effect regional tolerance has on the innovation performance of firms in regions of seven Latin American countries. We hypothesize that tolerance positively influences the innovation performance of firms by attracting human talent and lowering barriers for face-to-face interaction leading to knowledge exchange within a region. This effect is magnified in regions with high agglomeration economies. The empirical analysis which relies on a multilevel design shows that regional differences in tolerance matter for product innovation.