IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v48y2019i3p706-718.html
   My bibliography  Save this article

Skilled migration and innovation in European industries

Author

Listed:
  • Fassio, Claudio
  • Montobbio, Fabio
  • Venturini, Alessandra

Abstract

This paper studies the effects of skilled migration on innovation –proxied by patent citations- in European industries between 1994 and 2005, using the French and the UK Labour Force Surveys and the German Microcensus. Highly-educated migrants have a positive effect on innovation, but the effect differs across industries. It is stronger in industries with low levels of overeducation, high levels of FDIs and openness to trade and, finally, in industries with higher ethnic diversity. The aggregate effect of the skilled immigrant is about one third the one of the skilled natives. We tackle the endogeneity of migrants with a set of external and internal instruments.

Suggested Citation

  • Fassio, Claudio & Montobbio, Fabio & Venturini, Alessandra, 2019. "Skilled migration and innovation in European industries," Research Policy, Elsevier, vol. 48(3), pages 706-718.
  • Handle: RePEc:eee:respol:v:48:y:2019:i:3:p:706-718
    DOI: 10.1016/j.respol.2018.11.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733318302737
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2016. "Global Talent Flows," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 83-106, Fall.
    2. Gianmarco I. P. Ottaviano & Giovanni Peri, 2016. "Rethinking The Effect Of Immigration On Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 2, pages 35-80 World Scientific Publishing Co. Pte. Ltd..
    3. repec:bla:presci:v:96:y:2017:i::p:s29-s49 is not listed on IDEAS
    4. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 303-364, April.
    5. Max Nathan, 2015. "Same difference? Minority ethnic inventors, diversity and innovation in the UK," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 129-168.
    6. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
    7. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    8. Benoît Mahy & François Rycx & Guillaume Vermeylen, 2015. "Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?," De Economist, Springer, vol. 163(2), pages 233-262, June.
    9. C. Fritz Foley & William R. Kerr, 2013. "Ethnic Innovation and U.S. Multinational Firm Activity," Management Science, INFORMS, vol. 59(7), pages 1529-1544, July.
    10. repec:taf:recgxx:v:89:y:2013:i:4:p:367-394 is not listed on IDEAS
    11. Thomas Kemeny, 2017. "Immigrant Diversity and Economic Performance in Cities," International Regional Science Review, , vol. 40(2), pages 164-208, March.
    12. Østergaard, Christian R. & Timmermans, Bram & Kristinsson, Kari, 2011. "Does a different view create something new? The effect of employee diversity on innovation," Research Policy, Elsevier, vol. 40(3), pages 500-509, April.
    13. repec:taf:regstd:v:52:y:2018:i:7:p:934-947 is not listed on IDEAS
    14. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    15. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    16. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2012. "Immigration and innovation in European regions," Chapters,in: Migration Impact Assessment, chapter 8, pages 261-298 Edward Elgar Publishing.
    17. Emanuele Bacchiocchi & Fabio Montobbio, 2010. "International Knowledge Diffusion and Home-bias Effect: Do USPTO and EPO Patent Citations Tell the Same Story?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(3), pages 441-470, September.
    18. repec:oup:jecgeo:v:17:y:2017:i:5:p:1009-1038. is not listed on IDEAS
    19. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    20. Luisa Gagliardi, 2015. "Does skilled migration foster innovative performance? Evidence from British local areas," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 773-794, November.
    21. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    22. Abdurrahman Aydemir & George J. Borjas, 2011. "Attenuation Bias in Measuring the Wage Impact of Immigration," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 69-113, January.
    23. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    24. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    25. Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. "Migration of skilled workers and innovation: A European Perspective," Journal of International Economics, Elsevier, vol. 96(2), pages 311-322.
    26. Max Nathan & Neil Lee, 2013. "Cultural Diversity, Innovation, and Entrepreneurship: Firm-level Evidence from London," Economic Geography, Taylor & Francis Journals, vol. 89(4), pages 367-394, October.
    27. Yannu Zheng & Olof Ejermo, 2015. "How do the foreign-born perform in inventive activity? Evidence from Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 659-695, July.
    28. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    29. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    30. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    31. Franco Malerba & Maria Mancusi & Fabio Montobbio, 2013. "Innovation, international R&D spillovers and the sectoral heterogeneity of knowledge flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(4), pages 697-722, December.
    32. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    33. Wintoki, M. Babajide & Linck, James S. & Netter, Jeffry M., 2012. "Endogeneity and the dynamics of internal corporate governance," Journal of Financial Economics, Elsevier, vol. 105(3), pages 581-606.
    34. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
    35. Sandra Nieto & Alessia Matano & Raúl Ramos, 2015. "Educational mismatches in the EU: immigrants vs natives," International Journal of Manpower, Emerald Group Publishing, vol. 36(4), pages 540-561, July.
    36. Annekatrin Niebuhr, 2010. "Migration and innovation: Does cultural diversity matter for regional R&D activity?," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 563-585, August.
    37. AnnaLee Saxenian, 2002. "Silicon Valley’s New Immigrant High-Growth Entrepreneurs," Economic Development Quarterly, , vol. 16(1), pages 20-31, February.
    38. Deng, Yi, 2007. "Private value of European patents," European Economic Review, Elsevier, vol. 51(7), pages 1785-1812, October.
    39. repec:taf:regstd:v:52:y:2018:i:5:p:702-714 is not listed on IDEAS
    40. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    41. Caligiuri, Paula & Bonache, Jaime, 2016. "Evolving and enduring challenges in global mobility," Journal of World Business, Elsevier, vol. 51(1), pages 127-141.
    42. Orly Levy & Schon Beechler & Sully Taylor & Nakiye A Boyacigiller, 2007. "What we talk about when we talk about ‘global mindset’: Managerial cognition in multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 231-258, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Innovation; Migration; Skills; Patents; Europe;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:48:y:2019:i:3:p:706-718. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/respol .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.