ABSTRACT

Demographic diversity (race, gender, etc.) is not obviously related to scientific progress or entrepreneurial success. But intuition, not to mention diversity as “the right thing to do,” strongly suggests that a diverse organization should also be a more successful and creative one. Yet this expectation often goes unfulfilled: “[T]hose who diversify these organizations still struggle to climb the corporate ladder,” writes a Stanford University report, continuing, “One explanation for this so-called “diversity–innovation paradox” is that the innovations they introduce are devalued when it comes to decisions about hiring and promotion. 1