Brain Drain, R&D-Cost Differentials and the Innovation Gap
AbstractThis paper aims at explaining why countries with comparable levels of education still experience notable differences in terms of R&D and innovation. High skilled migration, ultimately linked to differences in R&D costs, might be responsible for the persitence of such a gap. In fact, in a model where human capital accumulation and innovation are strategic complements, we show that allowing labor outflows may strenghthen educational incentives in the lagging economy if migration is probabilistic in nature, but at the same time reduces the share of innovative production. Income (growth) might be consequently affected, and a positive migration chance is very unlikely to act as a substitute for educational subsidies.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2008031.
Date of creation: 01 Sep 2008
Date of revision:
Education; Brain Drain;
Other versions of this item:
- Fabio Mariani, 2008. "Brain Drain, R&D-Cost Differentials and the Innovation Gap," Recherches économiques de Louvain, De Boeck Université, vol. 74(3), pages 251-272.
- Fabio Mariani, 2008. "Brain drain, R&D-cost differentials and the innovation gap," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00308746, HAL.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- I2 - Health, Education, and Welfare - - Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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