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Does skilled migration foster innovative performance? Evidence from British local areas

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  • Gagliardi, Luisa

Abstract

What is the effect of an increase in the stock of human capital due to skilled immigration on the innovative performance of recipient economies? Combining firm†level micro†data with area†level labour force information, this paper investigates the impact of skilled international migration inflows on firms' product and process innovation in British local labour market areas. The paper supports the evidence in favour of a causal link between immigration and innovation. Results also show that the nature of the innovative process and the typology of innovative activities performed by local firms play a key role in the relation between immigration and innovation.

Suggested Citation

Handle: RePEc:eee:paresc:v:94:y:2015:i:4:p:773-795
DOI: 10.1111/pirs.12095
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JEL classification:

  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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