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How Much Does Immigration Boost Innovation? Author info | Abstract | Publisher info | Download info | Related research | Statistics Jennifer Hunt ()
Marjolaine Gauthier-Loiselle ()
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We measure the extent to which skilled immigrants increase innovation in the United States by exploring individual patenting behavior as well as state-level determinants of patenting. The 2003 National Survey of College Graduates shows that immigrants patent at double the native rate, and that this is entirely accounted for by their disproportionately holding degrees in science and engineering. These data imply that a one percentage point rise in the share of immigrant college graduates in the population increases patents per capita by 6%. This could be an overestimate of immigration's benefit if immigrant investors crowd out native investors, or an underestimate if immigrantes have positive spill-overs on investors. Using a 1950-2000 state panel, we show that natives are not crowded out by immigrants, and that immigrants do have positive spill-overs, resulting in an increase in patents per capita of about 15% in response to a one percentage point increase in immigrant college graduates. We isolate the causal effect by instrumenting the change in the share of skilled immigrants in a state with the initial share of immigrant high school dropouts from Europe, China and India. In both data sets, the positive impacts of immigrant post-college graduates and scientists and engineers are larger than for immigrant college graduates.
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Paper provided by McGill University, Department of Economics in its series Departmental Working Papers with number
2008-07.
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Length: 47 pages
Date of creation: Aug 2008Date of revision:
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Paper Gauthier-Loiselle, Marjolaine & Hunt, Jennifer, 2009.
"How Much Does Immigration Boost Innovation? ,"
CEPR Discussion Papers
7116, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2008.
"How Much Does Immigration Boost Innovation? ,"
NBER Working Papers
14312, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Hunt, Jennifer & Gauthier-Loiselle, Marjolaine, 2009.
"How Much Does Immigration Boost Innovation? ,"
IZA Discussion Papers
3921, Institute for the Study of Labor (IZA).
[Downloadable!] This paper has been announced in the following NEP Reports :
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.: William R. Kerr & William F. Lincoln, 2008.
"The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention ,"
Harvard Business School Working Papers
09-005, Harvard Business School.
[Downloadable!]
Paserman, Daniele, 2008.
"Do High-Skill Immigrants Raise Productivity? Evidence from Israeli Manufacturing Firms, 1990-1999 ,"
IZA Discussion Papers
3572, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: Bottazzi, Laura & Peri, Giovanni, 2003.
"Innovation and spillovers in regions: Evidence from European patent data ,"
European Economic Review ,
Elsevier, vol. 47(4), pages 687-710, August.
[Downloadable!] (restricted)
Other versions: William R. Kerr, 2007.
"The Ethnic Composition of US Inventors ,"
Harvard Business School Working Papers
08-006, Harvard Business School.
[Downloadable!]
Annekatrin Niebuhr, 2006.
"Migration and Innovation - Does Cultural Diversity Matter for Regional R&D Activity? ,"
ERSA conference papers
ersa06p31, European Regional Science Association.
[Downloadable!]
Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 108(3), pages 577-98, August.
[Downloadable!] (restricted)
Other versions: Morgan, Robert P & Kruytbosch, Carlos & Kannankutty, Nirmala, 2001.
" Patenting and Invention Activity of U.S. Scientists and Engineers in the Academic Sector: Comparisons with Industry ,"
The Journal of Technology Transfer ,
Springer, vol. 26(1-2), pages 173-83, January.
[Downloadable!] (restricted)
Ajay Agrawal & Devesh Kapur & John McHale, 2008.
"Brain Drain or Brain Bank? The Impact of Skilled Emigration on Poor-Country Innovation ,"
NBER Working Papers
14592, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999.
"The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 17(2), pages 318-50, April.
[Downloadable!] (restricted)
Hicks, Diana & Breitzman, Tony & Olivastro, Dominic & Hamilton, Kimberly, 2001.
"The changing composition of innovative activity in the US -- a portrait based on patent analysis ,"
Research Policy ,
Elsevier, vol. 30(4), pages 681-703, April.
[Downloadable!] (restricted)
Lynne G. Zucker & Michael R. Darby, 2006.
"Movement of Star Scientists and Engineers and High-Tech Firm Entry ,"
NBER Working Papers
12172, National Bureau of Economic Research, Inc.
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Jones, Charles I, 1995.
"Time Series Tests of Endogenous Growth Models ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 110(2), pages 495-525, May.
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Aghion, Philippe & Howitt, Peter, 1992.
"A Model of Growth through Creative Destruction ,"
Econometrica ,
Econometric Society, vol. 60(2), pages 323-51, March.
[Downloadable!] (restricted)
Other versions:
Aghion, P. & Howitt, P., 1990.
"A Model Of Growth Through Creative Destruction ,"
DELTA Working Papers
90-12, DELTA (Ecole normale supérieure).
Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction ,"
UWO Department of Economics Working Papers
8904, University of Western Ontario, Department of Economics.
Philippe Aghion & Peter Howitt, 1990.
"A Model of Growth Through Creative Destruction ,"
NBER Working Papers
3223, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction ,"
Working papers
527, Massachusetts Institute of Technology (MIT), Department of Economics.
Niebuhr, Annekatrin, 2006.
"Migration and innovation : does cultural diversity matter for regional R&D activity? ,"
IAB Discussion Paper
200614, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
[Downloadable!]
Lynne G. Zucker & Michael R. Darby & Jonathan Furner & Robert C. Liu & Hongyan Ma, 2006.
"Minerva Unbound: Knowledge Stocks, Knowledge Flows and New Knowledge Production ,"
NBER Working Papers
12669, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Zucker, Lynne G. & Darby, Michael R. & Furner, Jonathan & Liu, Robert C. & Ma, Hongyan, 2007.
"Minerva unbound: Knowledge stocks, knowledge flows and new knowledge production ,"
Research Policy ,
Elsevier, vol. 36(6), pages 850-863, July.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , 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.)
William R. Kerr, 2008.
"The Agglomeration of US Ethnic Inventors ,"
Harvard Business School Working Papers
09-003, Harvard Business School.
[Downloadable!]
William R. Kerr & William F. Lincoln, 2008.
"The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention ,"
Harvard Business School Working Papers
09-005, Harvard Business School.
[Downloadable!]
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