Advanced Search
MyIDEAS: Login to save this paper or follow this series

Immigration and Innovation in European Regions

Contents:

Author Info

  • Ceren Ozgen

    (VU University Amsterdam)

  • Peter Nijkamp

    (VU University Amsterdam)

  • Jacques Poot

    (National Institute of Demographic and Economic Analysis (NIDEA), University of Waikato, Hamilton, New Zealand)

Abstract

The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants' location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald's restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regio nal accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://papers.tinbergen.nl/11112.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-112/3.

as in new window
Length:
Date of creation: 09 Aug 2011
Date of revision:
Handle: RePEc:dgr:uvatin:20110112

Contact details of provider:
Web page: http://www.tinbergen.nl

Related research

Keywords: immigration; cultural diversity; economic growth; innovation; spatial autocorrelation;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series 1117, CESifo Group Munich.
  2. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, American Economic Association, vol. 86(1), pages 54-70, March.
  3. Hunt, Jennifer & Gauthier-Loiselle, Marjolaine, 2009. "How Much Does Immigration Boost Innovation?," IZA Discussion Papers 3921, Institute for the Study of Labor (IZA).
  4. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2010. "Meta-analyses of labour-market impacts of immigration: key conclusions and policy implications," Environment and Planning C: Government and Policy, Pion Ltd, London, Pion Ltd, London, vol. 28(5), pages 819-833, October.
  5. Niebuhr, Annekatrin, 2006. "Migration and innovation: Does cultural diversity matter for regional R&D activity?," HWWI Research Papers 3-1, Hamburg Institute of International Economics (HWWI).
  6. de Graaff, Thomas & Nijkamp, Peter, 2010. "Socio-economic impacts of migrant clustering on Dutch neighbourhoods: In search of optimal migrant diversity," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 44(4), pages 231-239, December.
  7. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
  8. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  9. Glaeser, Edward L. & Rosenthal, Stuart S. & Strange, William C., 2010. "Urban economics and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 67(1), pages 1-14, January.
  10. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
  11. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
  12. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, Elsevier, vol. 31(6), pages 899-933, August.
  13. William R. Kerr, 2009. "Breakthrough Inventions and Migrating Clusters of Innovation," NBER Working Papers 15443, National Bureau of Economic Research, Inc.
  14. Esther Vaya Valcarce & Enrique Lopez Bazo & Rosina Moreno Serrano & Jordi Surinach Caralt, 2000. "Growth and externalities across economies. An empirical analysis using spatial econometrics," Working Papers in Economics, Universitat de Barcelona. Espai de Recerca en Economia 59, Universitat de Barcelona. Espai de Recerca en Economia.
  15. Ian R. Gordon & Philip McCann, 2005. "Innovation, agglomeration, and regional development," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 5(5), pages 523-543, October.
  16. Zvi Griliches, 1990. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
  17. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention," NBER Working Papers 15768, National Bureau of Economic Research, Inc.
  18. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, Elsevier, vol. 47(4), pages 687-710, August.
  19. Giovanni Prarolo & Elena Bellini & Gianmarco I.P. Ottaviano & Dino Pinelli, 2009. "Cultural Diversity and Economic Performance: Evidence from European Regions," Working Papers, Fondazione Eni Enrico Mattei 2009.63, Fondazione Eni Enrico Mattei.
  20. Hunt, Jennifer, 2010. "Which Immigrants Are Most Innovative and Entrepreneurial: Distinctions by Entry Visa," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7699, C.E.P.R. Discussion Papers.
  21. Jesse M. Shapiro, 2003. "Smart Cities: Explaining the Relationship between City Growth and Human Capital," Urban/Regional, EconWPA 0309001, EconWPA.
  22. Richard Fabling & Steven Stillman & David C. Maré, 2011. "Immigration and Innovation," Working Papers, Motu Economic and Public Policy Research 11_05, Motu Economic and Public Policy Research.
  23. Giovanni Peri, 2005. "Skills and Talent of Immigrants:A Comparison between the European Union and the United States," Working Papers, University of California, Davis, Department of Economics 524, University of California, Davis, Department of Economics.
  24. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, The MIT Press, edition 3, volume 1, number 0262061953, December.
  25. repec:fth:harver:1473 is not listed on IDEAS
  26. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
  27. Aura Reggiani & Pietro Bucci & Giovanni Russo, 2011. "Accessibility and Impedance Forms: Empirical Applications to the German Commuting Network," International Regional Science Review, , , vol. 34(2), pages 230-252, April.
  28. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 14(2), pages 18-29, Summer.
  29. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, Elsevier, vol. 118(1-2), pages 27-50.
  30. Bernard Fingleton & Enrique López-Bazo, 2006. "Empirical growth models with spatial effects," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 85(2), pages 177-198, 06.
  31. Francesca Mazzolari & David Neumark, 2009. "Immigration and Product Diversity," NBER Working Papers 14900, National Bureau of Economic Research, Inc.
  32. Gordon H. Hanson, 2008. "The Economic Consequences of the International Migration of Labor," NBER Working Papers 14490, National Bureau of Economic Research, Inc.
  33. Lynne G. Zucker & Michael R. Darby, 2007. "Star Scientists, Innovation and Regional and National Immigration," NBER Working Papers 13547, National Bureau of Economic Research, Inc.
  34. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 3-22, Spring.
  35. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, Springer, vol. 12(4), pages 355-387, December.
  36. Mario Larch & Janette Walde, 2006. "Lag or Error? - Detecting the Nature of Spatial Correlation," Computing in Economics and Finance 2006, Society for Computational Economics 484, Society for Computational Economics.
  37. Jens Suedekum & Katja Wolf & Uwe Blien, 2014. "Cultural Diversity and Local Labour Markets," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 48(1), pages 173-191, January.
  38. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2008. "The Contribution of International Graduate Students to US Innovation," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 16(3), pages 444-462, 08.
  39. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 127-138, Spring.
  40. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dgr:uvatin:20110112. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.