IDEAS home Printed from https://ideas.repec.org/p/cel/dpaper/29.html
   My bibliography  Save this paper

Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital

Author

Listed:
  • Alessandra Venturini

    ()

  • Claudio Fassio
  • Sona Kalantaryan

Abstract

The objective of this paper is to analyse the role of migrants in innovation in Europe. We use Total Factor Productivity as a measure of innovation and focus on the three largest European countries – France, Germany and the United Kingdom – in the years 1994-2007. Unlike previous research, which mainly employs a regional approach, we analyse the link between migration and innovation at the sectoral level. This allows us to measure the direct contribution of migrants in the sector in which they are actually employed. Moreover, it allows a distinction between the real contribution of migrants to innovation from possible inter-sectoral complementarities, which might as well foster innovation. We control for the different components of human-capital, such as age, education and diversity of origin. To address the possible endogeneity of migration we draw on an instrumental variable strategy originally devised by Card (2001) and adapt it at the sector level The results show that overall migrants are relevant in all sectors, but some important differences emerge across sectors: highly-educated migrants show a larger positive effect in the high-tech sectors, while middle- and low-educated ones are more relevant in manufacturing. The diversity of countries of origin contributes to innovation only in the services sectors, confirming that in empirical analyses at the regional or national level the diversity measure might capture the complementarity between sectors rather than the contribution of different national skills and should not guide the migration policy which instead should follow the demand for labour not a general attraction highly skilled migrants.

Suggested Citation

  • Alessandra Venturini & Claudio Fassio & Sona Kalantaryan, 2015. "Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital," Discussion Papers 29, Central European Labour Studies Institute (CELSI).
  • Handle: RePEc:cel:dpaper:29
    as

    Download full text from publisher

    File URL: https://celsi.sk/media/discussion_papers/CELSI_DP_29_NEW_2txxHME.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Ceren Ozgen & Cornelius Peters & Annekatrin Niebuhr & Peter Nijkamp & Jacques Poot, 2014. "Does Cultural Diversity of Migrant Employees Affect Innovation?," International Migration Review, Wiley Blackwell, vol. 48, pages 377-416, September.
    3. Strom, Steinar & Venturini, Alessandra & Villosio, Claudia, 2013. "Wage Assimilation: Migrants versus Natives and Foreign Migrants versus Internal Migrants," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201341, University of Turin.
    4. Dolado, Juan J & Goria, Alessandra & Ichino, Andrea, 1994. "Immigration, Human Capital and Growth in the Host Country: Evidence from Pooled Country Data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 193-215.
    5. Malerba, Franco & Orsenigo, Luigi, 1996. "Schumpeterian patterns of innovation are technology-specific," Research Policy, Elsevier, vol. 25(3), pages 451-478, May.
    6. 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.
    7. Moses Abramovitz, 1956. "Resource and Output Trends in the United States Since 1870," NBER Chapters,in: Resource and Output Trends in the United States Since 1870, pages 1-23 National Bureau of Economic Research, Inc.
    8. Alexander M. Danzer & Firat Yaman, 2013. "Do Ethnic Enclaves Impede Immigrants' Integration? Evidence from a Quasi-experimental Social-interaction Approach," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 311-325, May.
    9. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, July.
    10. 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.
    11. 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.
    12. 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.
    13. Helen McGuirk & Declan Jordan, 2011. "Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses," European Planning Studies, Taylor & Francis Journals, vol. 20(12), pages 1945-1960, June.
    14. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    15. 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.
    16. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    17. 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.
    18. Fassio, Claudio & Montobbio, Fabio & Venturini, Alessandra, 2015. "How Do Native and Migrant Workers Contribute to Innovation?," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201507, University of Turin.
    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. Stefano Breschi & Francesco Lissoni & Gianluca Tarasconi, 2014. "Inventor Data for Research on Migration and Innovation: A Survey and a Pilot," WIPO Economic Research Working Papers 17, World Intellectual Property Organization - Economics and Statistics Division.
    21. Torben Schubert & Martin Andersson, 2015. "Old is gold? The effects of employee age on innovation and the moderating effects of employment turnover," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(1-2), pages 95-113, March.
    22. Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
    23. Günter K Stahl & Martha L Maznevski & Andreas Voigt & Karsten Jonsen, 2010. "Unraveling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 690-709, May.
    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. Valentina Bosetti & Cristina Cattaneo & Elena Verdolini, 2012. "Migration, Cultural Diversity and Innovation: A European Perspective," Working Papers 469, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    26. Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute of Labor Economics (IZA).
    27. von Hippel, Eric, 1976. "The dominant role of users in the scientific instrument innovation process," Research Policy, Elsevier, vol. 5(3), pages 212-239, July.
    28. Benjamin F. Jones, 2010. "Age and Great Invention," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 1-14, February.
    29. Moses Abramovitz, 1956. "Resource and Output Trends in the United States Since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1.
    30. Alessandra Venturini, 2015. "How do Native and Migrant Workers Contribute to Innovation? A Study on France, Germany and the UK," Discussion Papers 30, Central European Labour Studies Institute (CELSI).
    31. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2013. "Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch Firms," IZA Discussion Papers 7129, Institute of Labor Economics (IZA).
    32. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
    33. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2013. "The impact of cultural diversity on firm innovation: evidence from Dutch micro-data," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    34. Dirk Dohse & Robert Gold, 2014. "Determining the Impact of Cultural Diversity on Regional Economies in Europe," WWWforEurope Working Papers series 58, WWWforEurope.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:joitmc:v:3:y:2017:i:4:p:21-:d:130975 is not listed on IDEAS
    2. Gouranga Gopal Das & Sugata Marjit, 2018. "Skill, Innovation and Wage Inequality: Can Immigrants be the Trump Card?," CESifo Working Paper Series 7082, CESifo Group Munich.
    3. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    4. Michael Landesmann & Sandra M. Leitner, 2018. "Immigration and Innovation," wiiw Working Papers 158, The Vienna Institute for International Economic Studies, wiiw.
    5. repec:eur:ejesjr:100 is not listed on IDEAS
    6. Andrea Goldstein & Alessia Amighini & Andrea Goldstein & Alessandra Venturini, 2016. "International Migration Policies: Should They Be A New G20 Topic?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(4), pages 93-110, July.

    More about this item

    Keywords

    migration; innovation; highly skilled migrants; low skilled; migrants; patent;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cel:dpaper:29. 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: (Martin Kahanec). General contact details of provider: http://edirc.repec.org/data/celsisk.html .

    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.