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The impact of patent protection on R&D. Evidence using export markets

Author

Listed:
  • Joel Blit

    (Department of Economics, University of Waterloo)

  • Mikal Skuterud

    (Department of Economics, University of Waterloo)

  • Jue Zhang

    (Department of Economics, University of Waterloo)

Abstract

We examine the effect of changes in skilled-immigrant population shares in 98 Canadian cities between 1981 and 2006 on per capita patents. The Canadian case is of interest because its `points system’ for selecting immigrants is viewed as a model of skilled immigration policy. Our estimates suggest that the impact of increasing the share of university-educated immigrants on patenting rates is smaller than the impact that both native-borns have in Canada and immigrants have in the U.S.. The modest contribution of Canadian immigrants to innovation is largely explained by the fact that only about one-third of Canadian STEM-educated immigrants find employment in STEM jobs (relative to two-fifths of the Canadian-born and one-half of immigrants in the U.S.). Consistent with this, we find a large and significant effect of STEMeducated immigrants when we also condition on STEM employment. Our results suggest potential benefits from giving employers a role in the selection of skilled immigrants.

Suggested Citation

  • Joel Blit & Mikal Skuterud & Jue Zhang, "undated". "The impact of patent protection on R&D. Evidence using export markets," Working Papers 17011, University of Waterloo, Department of Economics.
  • Handle: RePEc:wat:wpaper:17011
    as

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    File URL: https://uwaterloo.ca/economics/sites/ca.economics/files/uploads/files/immigrants_patents_2017_12_09_1.pdf
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    References listed on IDEAS

    as
    1. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    2. Beckstead, Desmond & Gellatly, Guy, 2006. "Innovation Capabilities: Science and Engineering Employment in Canada and the United States," The Canadian Economy in Transition 2006011e, Statistics Canada, Economic Analysis Division.
    3. Mikal Skuterud & Mingcui Su, 2012. "The influence of measurement error and unobserved heterogeneity in estimating immigrant returns to foreign and host-country sources of human capital," Empirical Economics, Springer, vol. 43(3), pages 1109-1141, December.
    4. Andrew Clarke & Mikal Skuterud, 2013. "Why do immigrant workers in Australia perform better than those in Canada? Is it the immigrants or their labour markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1431-1462, November.
    5. Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, vol. 19(2), pages 241-259.
    6. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2012. "Immigration and innovation in European regions," Chapters,in: Migration Impact Assessment, chapter 8, pages 261-298 Edward Elgar Publishing.
    7. Philip Oreopoulos, 2011. "Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Thirteen Thousand Resumes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(4), pages 148-171, November.
    8. Andrew Clarke & Mikal Skuterud, 2016. "A comparative analysis of immigrant skills and their utilization in Australia, Canada, and the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 849-882, July.
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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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