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Immigration and Innovation

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Author Info

  • David Mare

    ()
    (Motu Economic and Public Policy Research)

  • Richard Fabling

    ()
    (Reserve Bank of New Zealand)

  • Steven Stillman

    ()
    (Motu Economic and Public Policy Research, IZA and CReAM)

Abstract

We combine firm-level innovation data with area-level Census data to examine the relationship between local workforce characteristics, especially the presence of immigrants and local skills, and the likelihood of innovation by firms. We examine a range of innovation outcomes, and test the relationship for selected subgroups of firms. We find a positive relationship between local workforce characteristics and average innovation outcomes in labour market areas, but this is accounted for by variation in firm characteristics such as firm size, industry, and research and development expenditure. Controlling for these influences, we find no systematic evidence of an independent link between local workforce characteristics and innovation.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1110.

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Date of creation: May 2011
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Handle: RePEc:crm:wpaper:1110

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Keywords: Innovation; Immigration; Local labour market;

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References

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  1. Daniel Shefer & Amnon Frenkel, 1998. "original: Local milieu and innovations: Some empirical results," The Annals of Regional Science, Springer, vol. 32(1), pages 185-200.
  2. D P Angel, 1991. "High-technology agglomeration and the labor market: the case of Silicon Valley," Environment and Planning A, Pion Ltd, London, vol. 23(10), pages 1501-1516, October.
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  4. Jaakko Simonen & Philip McCann, 2007. "Firm Innovation: The Influence Of R&D Cooperation And The Geography Of Human Capital Inputs," Development Research Unit Working Paper Series 29-07, Monash University, Department of Economics.
  5. Hunt, Jennifer & Gauthier-Loiselle, Marjolaine, 2009. "How Much Does Immigration Boost Innovation?," IZA Discussion Papers 3921, Institute for the Study of Labor (IZA).
  6. Fabling, Richard, 2007. "Just How Innovative are New Zealand Firms? Quantifying & Relating Organisational and Marketing Innovation to Traditional Science & Technology Indicators," Occasional Papers 07/4, Ministry of Economic Development, New Zealand.
  7. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  8. Richard B. Fabling & Arthur Grimes, 2007. "Practice Makes Profit: Business Practices and Firm Success," Small Business Economics, Springer, vol. 29(4), pages 383-399, December.
  9. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2008. "The Contribution of International Graduate Students to US Innovation," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 444-462, 08.
  10. David C Maré & Steven Stillman, 2009. "The Impact of Immigration on the Labour Market Outcomes of New Zealanders," Working Papers 09_11, Motu Economic and Public Policy Research.
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  12. Andersson, Martin & Karlsson, Charlie, 2004. "Regional Innovation Systems in Small & Medium-Sized Regions A Critical Review & Assessment," Working Paper Series in Economics and Institutions of Innovation 10, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  13. Thanh Le, 2008. "'Brain Drain' Or 'Brain Circulation': Evidence From Oecd'S International Migration And R&D Spillovers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(5), pages 618-636, November.
  14. Kellie J. Archer & Stanley Lemeshow, 2006. "Goodness-of-fit test for a logistic regression model fitted using survey sample data," Stata Journal, StataCorp LP, vol. 6(1), pages 97-105, March.
  15. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  16. Richard Fabling, 2009. "A Rough Guide to New Zealand's Longitudinal Business Database," Global COE Hi-Stat Discussion Paper Series gd09-103, Institute of Economic Research, Hitotsubashi University.
  17. Michael Storper & Anthony J. Venables, 2003. "Buzz: Face-to-Face Contact and the Urban Economy," CEP Discussion Papers dp0598, Centre for Economic Performance, LSE.
  18. Alessandra Faggian & Philip McCann, 2006. "Human capital flows and regional knowledge assets: a simultaneous equation approach," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 475-500, July.
  19. Philip McCann & Jaakko Simonen, 2005. "Innovation, knowledge spillovers and local labour markets," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 465-485, 08.
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  21. Papps, Kerry L. & Newell, James O., 2002. "Identifying Functional Labour Market Areas in New Zealand: A Reconnaissance Study Using Travel-to-Work Data," IZA Discussion Papers 443, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Ceren Ozgen & Thomas de Graff, 2013. "Sorting out the impact of cultural diversity on innovative firms. An empirical analysis of Dutch micro-data," Norface Discussion Paper Series 2013012, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Richard Fabling & Maré, David C, 2013. "Firm-level Hiring Difficulties: Persistence, Business Cycle and Local Labour Market Influences," Working Papers 13_06, Motu Economic and Public Policy Research.
  3. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2011. "Immigration and Innovation in European Regions," IZA Discussion Papers 5676, Institute for the Study of Labor (IZA).
  4. Dr Max Nathan, 2013. "The Wider Economic Impacts Of High-Skilled Migrants: A Survey Of The Literature," NIESR Discussion Papers 11607, National Institute of Economic and Social Research.
  5. Max Nathan, 2011. "Ethnic Inventors, Diversity and Innovation in the UK: Evidence from Patents Microdata," SERC Discussion Papers 0092, Spatial Economics Research Centre, LSE.
  6. Max Nathan, 2013. "Top Team Demographics, Innovation and Business Performance: Findings from English Firms and Cities 2008-9," SERC Discussion Papers 0129, Spatial Economics Research Centre, LSE.
  7. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2013. "Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch firms," Norface Discussion Paper Series 2013003, Norface Research Programme on Migration, Department of Economics, University College London.
  8. Rashidi, Sheida & Pyka, Andreas, 2013. "Migration and innovation: A survey," FZID Discussion Papers 77-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  9. Mok, Penny & Mason, Geoff & Stevens, Philip & Timmins, Jason, 2012. "A Good Worker is Hard to Find: Skills Shortages in New Zealand Firms," Occasional Papers 12/5, Ministry of Economic Development, New Zealand.
  10. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  11. Sebastian Benz & Mario Larch & Markus Zimmer, 2013. "The Structure of Europe:International Input-Output Analysis with Trade inIntermediate Inputs and Capital Flows," Ifo Working Paper Series Ifo Working Paper No. 161, Ifo Institute for Economic Research at the University of Munich.

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