Social Tolerance and Firm Innovation

Document Type

Article

Publication Date

3-2026

Publisher

Elsevier

Source Publication

The North American Journal of Economics and Finance

Source ISSN

1062-9408

Original Item ID

DOI: 10.1016/j.najef.2026.102602

Abstract

This study examines the relationship between social tolerance and firm innovation. We find that firms located in states with higher levels of social tolerance are more innovative. We also find that firms in areas with higher degrees of social tolerance attain higher diversity scores. In addition, the relationship between social tolerance and firm innovation is stronger for firms located in states with higher levels of social capital and for firms with weaker diversity initiatives. Collectively, our findings support the notion that social tolerance, representing the openness and inclusiveness of a local community, plays a significant role in firm innovation.

Comments

The North American Journal of Economics and Finance, Vol. 83 (March 2026). DOI.

Link to Full Text

Share

COinS