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Genetic diversity does not lead to economic success

Having discussed the advantages and disadvantages of diversity in the business context a lot it would be interesting to have a look at diversity from another point of view – like Oded Galor, professor of economics at Brown University did. In his research he found out, that more genetic diversity does not lead to a better economic development of societies. Although diversity is important e.g. for innovations, too much diversity leads to instability. That is why the effect of diversity on the economic development is so called hump-shaped: Societies in the middle of the curve have the highest level of growth whereas others, which are very diverse or very homogenous, show less economic development. Another interesting finding of Galor is that a change in the genetic diversity could have a great impact on the economic success: According to the authors model a one percent increase in the genetic diversity ofBolivia for instance would lead to a 41 percent increase in per capita income.

Looking at these interesting findings we are coming back to the business-view: Can we learn something here? Firstly we can see parallels to the idea that diversity needs to be properly managed to provide a contribution to business success. The culture and leadership style of a company has to provide the right framework conditions to make inspiration, innovation and creative thinking as a result of a diverse workforce possible. Also we should be aware that we need similarities as well to ensure a good cooperation within our teams. And lastly it seems as if diversity has a great impact: Is there a latent potential which we do not use as our staff is to homogenous?

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