Let Us Halt the Resurgence of Protectionism: Trade Openness, Innovation Ecosystem, and Workforce Diversity in the Knowledge-Based Economy

Abstract

AbstractProtectionist economies impede the free flow of capital and labor across national and corporate borders, which limits the production, access, and diffusion of knowledge required to create novel solutions. However, further investigation is needed into the knowledge and innovation pathways/mechanisms to stop or at least reduce protectionist trade policies in order to stimulate the innovation ecosystem and develop a diverse workforce. Through a sequential mediation of venture capital and collaborations, our study investigates the relationship between trade openness and workforce diversity by adopting the knowledge-based view and building on the four pillars of the knowledge-based economy. Utilizing archived data, our analysis verified this connection. The theoretical and practical implications are also discussed.