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Migration and innovation: The impact of East German investors on West Germany's technological development

Author

Listed:
  • Antonin Bergeaud
  • Max Deter
  • Maria Greve
  • Michael Wyrwich

Abstract

We investigate the causal relationship between inventor migration and regional innovation in the context of the large-scale migration shock from East to West Germany between World War II and the construction of the Berlin Wall in 1961. Leveraging a newly constructed, century-spanning dataset on German patents and inventors, along with an innovative identification strategy based on surname proximity, we trace the trajectories of East German inventors and quantify their impact on innovation in West Germany. Our findings demonstrate a significant and persistent boost to patenting activities in regions with higher inflows of East German inventors, predominantly driven by advancements in chemistry and physics. We further validate the robustness of our identification strategy against alternative plausible mechanisms. We show in particular that the effect is stronger than the one caused by the migration of other high skilled workers and scientists.

Suggested Citation

  • Antonin Bergeaud & Max Deter & Maria Greve & Michael Wyrwich, 2025. "Migration and innovation: The impact of East German investors on West Germany's technological development," CEP Discussion Papers dp2076, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp2076
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    References listed on IDEAS

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    2. 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.
    3. Donald R. Davis & David E. Weinstein, 2002. "Bones, Bombs, and Break Points: The Geography of Economic Activity," American Economic Review, American Economic Association, vol. 92(5), pages 1269-1289, December.
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    More about this item

    Keywords

    patents; migration; Germany; iron curtain; innovation;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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