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Knowledge remittances: Does emigration foster innovation?

Author

Listed:
  • Fackler, Thomas A.
  • Giesing, Yvonne
  • Laurentsyeva, Nadzeya

Abstract

Does the emigration of skilled individuals necessarily result in losses for source countries due to a brain drain? Combining industry-level patenting and migration data from 32 European countries, we show that emigration positively contributes to innovation in source countries and does not increase asymmetries in innovation levels between more and less advanced countries. We use changes in the labour mobility legislation within Europe as exogenous variation to establish causality. In addition, by analysing patent citation data, we provide evidence that these positive effects are driven by knowledge flows triggered by migrants. While skilled migrants are not inventing in their home country anymore, they contribute to cross-border knowledge and technology diffusion.

Suggested Citation

  • Fackler, Thomas A. & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2020. "Knowledge remittances: Does emigration foster innovation?," Munich Reprints in Economics 84758, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:84758
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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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