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Brain Drain, R&D-Cost Differentials and the Innovation Gap

Author

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  • Fabio Mariani

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. JEL Classification: F22, O3, I2, J24.

Suggested Citation

  • 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.
    • Handle: RePEc:cai:reldbu:rel_743_0251
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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.

    More about this item

    Keywords

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    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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