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Immigration, Innovation, and Growth

Author

Listed:
  • Konrad B. Burchardi

    (Institute for International Economic Studies)

  • Thomas Chaney

    (Sciences Po)

  • Tarek A. Hassan

    (Boston University, NBER, and CEPR)

  • Lisa Tarquinio

    (Boston University)

  • Steohen Terry

    (Boston University)

Abstract

We show a causal impact of immigration on innovation and dynamism in US counties. To identify the causal impact of immigration, we use 130 years of detailed data on migrations from foreign countries to US counties to isolate quasi-random variation in the ancestry composition of US counties that results purely from the interaction of two historical forces: (i) changes over time in the relative attractiveness of different destinations within the US to the average migrant arriving at the time and (ii) the staggered timing of the arrival of migrants from different origin countries. We then use this plausibly exogenous variation in ancestry composition to predict the total number of migrants flowing into each US county in recent decades. We show four main results. First, immigration has a positive impact on innovation, measured by the patenting of local firms. Second, immigration has a positive impact on measures of local economic dynamism. Third, the positive impact of immigration on innovation percolates over space, but spatial spillovers quickly die out with distance. Fourth, the impact of immigration on innovation is stronger for more educated migrants.

Suggested Citation

  • Konrad B. Burchardi & Thomas Chaney & Tarek A. Hassan & Lisa Tarquinio & Steohen Terry, 2020. "Immigration, Innovation, and Growth," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-339, Boston University - Department of Economics.
    • Handle: RePEc:bos:iedwpr:dp-339
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    Cited by:

    1. Parag Mahajan, 2021. "Immigration and Local Business Dynamics: Evidence from U.S. Firms," Working Papers 21-18, Center for Economic Studies, U.S. Census Bureau.
    2. Cristelli, Gabriele & Lissoni, Francesco, 2020. "Free movement of inventors: open-border policy and innovation in Switzerland," MPRA Paper 120099, University Library of Munich, Germany, revised Jan 2024.
    3. Winichakul, K. Pun & Zhang, Ning, 2024. "Enter stage left: Immigration and the American arts," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 329-347.
    4. Michael A Clemens, 2022. "The economic and fiscal effects on the United States from reduced numbers of refugees and asylum seekers," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(3), pages 449-486.
    5. Takeda, Kohei, 2022. "The geography of structural transformation: effects on inequality and mobility," LSE Research Online Documents on Economics 118050, London School of Economics and Political Science, LSE Library.
    6. Viviana Fernandez, 2024. "Immigrants and the entrepreneurial process: cross-country evidence," International Entrepreneurship and Management Journal, Springer, vol. 20(2), pages 761-805, June.
    7. Guan, Chenghua & Xu, Wanting & Yang, Peijin & Xiao, Yao & Rasul, Byann, 2025. "How does large-scale internal migration affect innovation? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 218(C).
    8. Benjamin Balsmeier & Lee Fleming & Matt Marx & Seungryul Ryan Shin, 2020. "Startups, Unicorns, and the Local Inflow of Inventors," NBER Working Papers 27605, National Bureau of Economic Research, Inc.
    9. repec:osf:osfxxx:8nfx5_v1 is not listed on IDEAS
    10. Brian C. Fujiy, 2024. "The Geography of Inventors and Local Knowledge Spillovers in R&D," Working Papers 24-59, Center for Economic Studies, U.S. Census Bureau.
    11. Capoani & Chabert & Izzo, 2024. "Understanding the Relationship Between Immigration and Innovation: A Systematic Review and Meta-Analysis," Journal of Economics, Race, and Policy, Springer, vol. 7(2), pages 122-136, June.
    12. Kevin A. Bryan & Heidi L. Williams, 2021. "Innovation: Market Failures and Public Policies," NBER Working Papers 29173, National Bureau of Economic Research, Inc.
    13. Agostina Brinatti & Xing Guo, 2023. "Third-Country Effects of U.S. Immigration Policy," Staff Working Papers 23-60, Bank of Canada.
    14. Leonardo Bursztyn & Thomas Chaney & Tarek Alexander Hassan & Aakash Rao, 2021. "The Immigrant Next Door: Exposure, Prejudice, and Altruism," Working Papers 2021-16, Becker Friedman Institute for Research In Economics.
    15. Achyuta Adhvaryu, Cesar Anzola-Bravo Ana María Tribín-Uribe & Leonardo Bonilla-Mej�a, Juan Carlos Castro-Fern�ndez Oscar �vila-Montealegre & �nderson Grajales-Olarte, Alexander Guar�n Luz A. Fl�rez & , 2020. "Migración desde Venezuela en Colombia: caracterización del fenómeno y análisis de los efectos macroeconómicos," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, issue 97, pages 1-74.
    16. Tommaso Giommoni & Gabriel Loumeau, 2022. "Taxation with a Grain of Salt: The Long-Term Effect of Fiscal Policy on Local Development," CESifo Working Paper Series 9997, CESifo.
    17. Jeremy Ferwerda & Nicholas Adams-Cohen & Kirk Bansak & Jennifer Fei & Duncan Lawrence & Jeremy M. Weinstein & Jens Hainmueller, 2020. "Leveraging the Power of Place: A Data-Driven Decision Helper to Improve the Location Decisions of Economic Immigrants," Papers 2007.13902, arXiv.org.
    18. Ryo Takahashi, 2024. "From the Holy Land to the Homeland: The Impact of Anime Broadcasts on Economic Growth," Working Papers 2402, Waseda University, Faculty of Political Science and Economics.
    19. Nicola Fontana & Marco Manacorda & Gianluca Russo & Marco Tabellini, 2025. "Emigration and Long-Run Economic Development: Evidence from the Italian Mass Migration," Trinity Economics Papers tep1125, Trinity College Dublin, Department of Economics.
    20. Nover, Justus, 2023. "Local labor markets as a taxable location factor? Evidence from a shock to foreign labor supply," ZEW Discussion Papers 23-012, ZEW - Leibniz Centre for European Economic Research.
    21. Bolortuya Enkhtaivan & Jorge Brusa & Zagdbazar Davaadorj, 2020. "A Gap in Brain Gain for Emerging Countries: Evidence of International Immigration on Non-Resident Patents," JRFM, MDPI, vol. 14(1), pages 1-23, December.
    22. Tabellini, Marco & Gagliarducci, Stefano, 2021. "Faith and Assimilation: Italian Immigrants in the US," CEPR Discussion Papers 15794, C.E.P.R. Discussion Papers.
    23. Thomas Gries & Margarete Redlin & Moonum Zehra, 2022. "Educational Assimilation of First-Generation and Second-Generation Immigrants in Germany," Journal of International Migration and Integration, Springer, vol. 23(2), pages 815-845, June.

    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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