Happy people work differently. They’re more productive, more creative, and willing to take greater r...

Happy people work differently. They’re more productive, more creative, and willing to take greater risks. And new researchsuggeststhathappinessmightinfluence__1__firm’swork,too. Companies located in places with happier people invest more, according to a recent research paper.__2__, firms in happyplacesspend more on R&D (researchand development).That’s becausehappiness is linked to the kind of longer-term thinking__3__formakinginvestmentsforthefuture. The researchers wanted to know if the__4__and inclination for risk-taking that come with happiness would__5__the way companies invested. So they compared U.S. cities’ average happiness__6__by Gallup polling with the investment activityofpubliclytradedfirmsinthoseareas. __7__enough, firms’ investment and R&D intensity were correlated with the happiness of the area in which they were__8__.Butisitreallyhappinessthat’slinkedtoinvestment,orcouldsomethingelseabouthappiercities__9__whyfirms there spend more on R&D? To find out, the researchers controlled for various__10__that might make firms more likely to invest–likesize,industry,andsales–andforindicatorsthataplacewas__11__tolivein,likegrowthinwagesorpopulation. Thelinkbetweenhappinessandinvestmentgenerally__12__evenafteraccountingforthesethings. The correlation between happiness and investment was particularly strong for younger firms, which the authors__13__to “less codified decision making process” and the possible presence of “younger and less__14__managers who are more likely to be influenced by sentiment.” The relationship was__15__stronger in places where happiness was spread more__16__.Firms seem to invest more in places where most people are relatively happy, rather than in places with happinessinequality. __17__thisdoesn’tprovethathappinesscausesfirmstoinvestmoreortotakealonger-termview,theauthorsbelieveit at least__18__at that possibility. It’s not hard to imagine that local culture and sentiment would help__19__how executives think about the future. “It surely seems plausible that happy people would be more forward-thinking and creative and__20__R&Dmorethantheaverage,”saidoneresearcher.
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