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Does Skilled Migration Foster Innovative Performance? Evidence from British Local Areas

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  • Luisa Gagliardi

Abstract

What is the effect of an increase in the stock of human capital on the innovative performance of a local economy? This paper tests the hypothesis of a causal link between an increase in the average stock of human capital, due to skilled migration inflows, and the innovative performance of local areas using British data. The paper examines the role of human capital externalities as crucial determinant of local productivity and innovative performance, suggesting that the geographically bound nature of these valuable knowledge externalities can be challenged by the mobility of skilled individuals. Skilled migration becomes a crucial channel of knowledge diffusion broadening the geographical scope of human capital externalities and fostering local innovative performance.

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  • Luisa Gagliardi, 2011. "Does Skilled Migration Foster Innovative Performance? Evidence from British Local Areas," SERC Discussion Papers 0097, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:sercdp:0097
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    More about this item

    Keywords

    Innovation; migration; education; externalities;
    All these keywords.

    JEL classification:

    • 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
    • I2 - Health, Education, and Welfare - - Education
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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