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Immigration and Innovation

  • Richard Fabling


    (Reserve Bank of New Zealand)

  • Steven Stillman


    (Motu Economic and Public Policy Research)

  • David C. Maré


    (Motu Economic and Public Policy Research)

We combine firm-level innovation data with area-level Census data to examine the relationship between local workforce characteristics, especially the presence of immigrants and local skills, and the likelihood of innovation by firms. We examine a range of innovation outcomes, and test the relationship for selected subgroups of firms. We find a positive relationship between local workforce characteristics and average innovation outcomes in labour market areas, but this is accounted for by variation in firm characteristics such as firm size, industry, and research and development expenditure. Controlling for these influences, we find no systematic evidence of an independent link between local workforce characteristics and innovation.

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Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 11_05.

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Length: 23 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:mtu:wpaper:11_05
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  1. Thanh Le, 2008. "'Brain Drain' Or 'Brain Circulation': Evidence From Oecd'S International Migration And R&D Spillovers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(5), pages 618-636, November.
  2. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  3. Fabling, Richard, 2007. "Just How Innovative are New Zealand Firms? Quantifying & Relating Organisational and Marketing Innovation to Traditional Science & Technology Indicators," Occasional Papers 07/4, Ministry of Economic Development, New Zealand.
  4. Papps, Kerry L. & Newell, James O., 2002. "Identifying Functional Labour Market Areas in New Zealand: A Reconnaissance Study Using Travel-to-Work Data," IZA Discussion Papers 443, Institute for the Study of Labor (IZA).
  5. Richard Fabling, 2009. "A Rough Guide to New Zealand's Longitudinal Business Database," Global COE Hi-Stat Discussion Paper Series gd09-103, Institute of Economic Research, Hitotsubashi University.
  6. Jaakko Simonen & Philip McCann, 2007. "Firm Innovation: The Influence Of R&D Cooperation And The Geography Of Human Capital Inputs," Monash Economics Working Papers 29-07, Monash University, Department of Economics.
  7. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2008. "How Much Does Immigration Boost Innovation?," Departmental Working Papers 2008-07, McGill University, Department of Economics.
  8. Richard B. Fabling & Arthur Grimes, 2007. "Practice Makes Profit: Business Practices and Firm Success," Small Business Economics, Springer, vol. 29(4), pages 383-399, December.
  9. Michael Storper & Anthony J. Venables, 2003. "Buzz: Face-to-Face Contact and the Urban Economy," CEP Discussion Papers dp0598, Centre for Economic Performance, LSE.
  10. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
  11. Daniel Shefer & Amnon Frenkel, 1998. "original: Local milieu and innovations: Some empirical results," The Annals of Regional Science, Springer, vol. 32(1), pages 185-200.
  12. Alessandra Faggian & Philip McCann, 2006. "Human capital flows and regional knowledge assets: a simultaneous equation approach," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 475-500, July.
  13. Philip McCann & Jaakko Simonen, 2005. "Innovation, knowledge spillovers and local labour markets," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 465-485, 08.
  14. D P Angel, 1991. "High-technology agglomeration and the labor market: the case of Silicon Valley," Environment and Planning A, Pion Ltd, London, vol. 23(10), pages 1501-1516, October.
  15. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2008. "The Contribution of International Graduate Students to US Innovation," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 444-462, 08.
  16. Andersson, Martin & Karlsson, Charlie, 2004. "Regional Innovation Systems in Small & Medium-Sized Regions A Critical Review & Assessment," Working Paper Series in Economics and Institutions of Innovation 10, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  17. David C Maré & Steven Stillman, 2009. "The Impact of Immigration on the Labour Market Outcomes of New Zealanders," Working Papers 09_11, Motu Economic and Public Policy Research.
  18. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
  19. Kellie J. Archer & Stanley Lemeshow, 2006. "Goodness-of-fit test for a logistic regression model fitted using survey sample data," Stata Journal, StataCorp LP, vol. 6(1), pages 97-105, March.
  20. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  21. Lynne G. Zucker & Michael R. Darby, 2007. "Star Scientists, Innovation and Regional and National Immigration," NBER Working Papers 13547, National Bureau of Economic Research, Inc.
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