The Chinese mosaic: Cultural diversity and creative cities

This paper identifies the extent to which cultural diversity induced by internal migration affects urban innovation in China. We measure cultural diversity by an index of "plurality" of provinces of origin. Using the 2000 and 2005 population census data, we find that innovative activities are higher in cities with a higher degree of cultural diversity. Further heterogeneity analysis shows that cultural diversity, not only of the highly skilled, but also of the low skilled, has a positive effect on innovation. Our study contributes to the scarce evidence on the effect of cultural diversity on innovation in developing countries.