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The hypothesis is examined on the sample of 30 Organisation for Economic Co-operation and Development (OECD) countries. The statistical analysis, which includes factor analyses and simple cross-country regressions, generally provides support for the hypothesis. The innovation-focused strategy and democratic pluralism emerge as the main moderators of the positive relationship between diversity and innovativeness. Some support is also given for the growth-focused strategy as a moderator of that relationship. The results of the regressions demonstrate that the positive relationship between ethnolinguistic diversity and innovativeness is indeed a function of the right context.
The results reveal the double-edged sword nature of ethnic diversity. When accompanied by the right context, diversity leads to higher levels of innovativeness for countries. However, when the right context is not present, diversity brings negative results. This implies that once a country is diverse, the right context for diversity is a necessity. In such a situation, the right management of diversity benefits the country twofold. It allows the country to avoid the possible negative effects of diversity. It also enables the country to achieve the positive true potential of diversity in terms of higher creativity, openness to change, and innovativeness.
The results indicate that ethnolinguistic heterogeneity within a society adds to its capability for creativity and, therefore, to its innovativeness. Among the advanced industrial economies in particular, with all other circumstances being equal, this conclusion holds implications for the value of political unity. Secession is likely to fragment these economies, thus undermining some of the capacity of a multiethnic society to provide the full benefits of innovation.