# Relationship between female employees and firm’s innovation: Evidence from Japanese companies

## TL;DR

This study shows that female employees contribute to innovation in Japanese companies, especially when they have long-term employment and feel secure.

## Contribution

The study introduces new insights on how female employment duration and perspectives influence firm innovation through technological fields.

## Key findings

- Longer female employment is positively related to firm innovation.
- Female participation increases the number of technological fields explored.
- Technological fields mediate the relationship between high-impact innovation and female employment.

## Abstract

This study investigates how female employees contribute to firm innovation by applying panel data Poisson regression models to data pertaining to 144 major Japanese manufacturing firms from 2004 to 2022. The results reveal the following: First, there is a positive relationship between longer female employment and innovation. Longer female employment may be attributable to female employees feeling more secure at their workplaces. Second, regarding women’s unique perspectives, this study suggests that female participation in innovation may increase the number of technological fields. Third, this study presents the mediating effects of technological fields on the relationship between high-impact innovation and the demographic of female employees. These findings suggest corporate management creates a system that allows female employees to play an active role in the workplace with long-term employment. The empirical results provide new insights into previous literature on corporate innovation, specifically technological innovation.