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Brain drain, R&D-cost differentials and the innovation gap

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  • Fabio Mariani

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This 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 persistence 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 strengthen 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.

Suggested Citation

  • Fabio Mariani, 2008. "Brain drain, R&D-cost differentials and the innovation gap," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00308746, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00308746
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00308746
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    References listed on IDEAS

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    Cited by:

    1. Abolfazl Shahabadi & Marzieh Salehi & Seyed Ehsan Hosseinidoust, 2020. "The Impact of Competitiveness on Brain Drain, GMM Panel Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 558-573, June.

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    More about this item

    Keywords

    Education; Brain drain.; Innovation; Brain drain;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; 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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