Gender equality and firm innovation

This study investigates the relationship between gender equality and innovation using micro establishment-level data pertaining to 72 countries and the Global Gender Gap Index as a proxy for gender equality. We find that female-owned firms are more innovative in economies with low gender inequality. Interestingly, male-owned firms are also beneficiaries of gender equality. Further, we identify three channels through which innovation is associated with gender equality—access to finance, human capital, and gender diversity and labour force participation.