Brain drain, R&D-cost differentials and the innovation gap
This paper aims at explaining why countries with comparable levels of education still experience notable differences in terms of R&D and innovation. High-skilled migration, ultimately linked to differences in R&D costs, might be responsible for the persistence of such a gap. In fact, in a model where human capital accumulation and innovation are strategic complements, we show that allowing labor outflows may strengthen educational incentives in the lagging economy if migration is probabilistic in nature, but at the same time reduces the share of innovative production. Income (growth) might be consequently affected, and a positive migration chance is very unlikely to act as a substitute for educational subsidies.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published in Recherches Economiques de Louvain - Louvain economic review, De Boeck Université, 2008, 74 (3), pp.251-272|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00308746|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Acemoglu, D., 1994.
"Search in the Labor market: Incomplete Contracts and Growth,"
94-23, Massachusetts Institute of Technology (MIT), Department of Economics.
- Acemoglu, Daron, 1994. "Search in the Labour Market, Incomplete Contracts and Growth," CEPR Discussion Papers 1026, C.E.P.R. Discussion Papers.
- Docquier, Frédéric & Faye, Ousmane & Pestieau, Pierre, 2008.
"Is migration a good substitute for education subsidies?,"
Journal of Development Economics,
Elsevier, vol. 86(2), pages 263-276, June.
- DOCQUIER, Frédéric & FAYE, Ousmane & PESTIEAU, Pierre, . "Is migration a good substitute for education subsidies?," CORE Discussion Papers RP 2022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Docquier, Frederic & Faye, Ousmane & Pestieau, Pierre, 2008. "Is migration a good substitute for education subsidies ?," Policy Research Working Paper Series 4614, The World Bank.
- Benoit Mulkay & Bronwyn H. Hall & Jacques Mairesse, 2001.
"Firm Level Investment and R&D in France and the United States: A Comparison,"
2001-W2, Economics Group, Nuffield College, University of Oxford.
- Benoit Mulkay & Bronwyn H. Hall & Jacques Mairesse, 2000. "Firm Level Investment and R&D in France and the United States: A Comparison," NBER Working Papers 8038, National Bureau of Economic Research, Inc.
- Benoît Mulkay & Bronwyn H, Hall & Jacques Mairesse, 2000. "Firm Level Investment and R&D in France and the United States : A Comparison," Working Papers 2000-49, Centre de Recherche en Economie et Statistique.
- Janeba, Eckhard, 1998.
"Tax competition in imperfectly competitive markets,"
Journal of International Economics,
Elsevier, vol. 44(1), pages 135-153, February.
- Eckard Janeba, . "Tax Competition in Imperfectly Competitive Markets," Discussion Paper Serie A 513, University of Bonn, Germany.
- Russell Cooper & Andrew John, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, Oxford University Press, vol. 103(3), pages 441-463.
- Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001.
"Brain drain and economic growth: theory and evidence,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 275-289, February.
- Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
- Stark, Oded & Wang, Yong, 2002.
"Inducing human capital formation: migration as a substitute for subsidies,"
Journal of Public Economics,
Elsevier, vol. 86(1), pages 29-46, October.
- Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
- Guido Cozzi, 2003. "The Self-fulfilling International Allocation of Innovation," Levine's Bibliography 666156000000000189, UCLA Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00308746. 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: (CCSD)
If references are entirely missing, you can add them using this form.