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Skilled migration and innovation in European industries
Authors:Claudio Fassio  Fabio Montobbio  Alessandra Venturini
Institution:1. School of Economics and Management & Centre for Innovation, Research, and Competence in the Learning Economy (CIRCLE), Lund University, Lund, Sweden;2. Department of Economics and Statistics Cognetti De Martiis, University of Turin, Lungo Dora Siena 100, A - 10153, Torino, Italy;3. ICRIOS, Bocconi University, Via Roentgen 1, 20136, Milano, Italy;4. BRICK, Collegio Carlo Alberto, Piazza Arbarello 8, 10122, Torino, Italy;5. Migration Policy Center, European University Institute, Via Boccaccio 151, 50133, Firenze, Italy;6. Department of Economic Policy, Università Cattolica del Sacro Cuore, via Necchi 5, 20123, Milan, Italy
Abstract:This paper studies the effects of skilled migration on innovation –proxied by patent citations- in European industries between 1994 and 2005, using the French and the UK Labour Force Surveys and the German Microcensus. Highly-educated migrants have a positive effect on innovation, but the effect differs across industries. It is stronger in industries with low levels of overeducation, high levels of FDIs and openness to trade and, finally, in industries with higher ethnic diversity. The aggregate effect of the skilled immigrant is about one third the one of the skilled natives. We tackle the endogeneity of migrants with a set of external and internal instruments.
Keywords:O31  O33  F22  J61  Innovation  Migration  Skills  Patents  Europe
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