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

  • Luisa Gagliardi

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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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0097.

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Date of creation: Nov 2011
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Handle: RePEc:cep:sercdp:0097
Contact details of provider: Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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