Immigration and Innovation

24 Pages Posted: 9 May 2011

See all articles by David C. Maré

David C. Maré

Motu Economic and Public Policy Research Trust; University of Waikato - Economics

Richard Fabling

New Zealand Productivity Commission

Steven Stillman

Free University of Bozen-Bolzano; IZA Institute of Labor Economics

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Abstract

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.

Keywords: local labour market, immigration, innovation

JEL Classification: O31, R30

Suggested Citation

Maré, David C. and Fabling, Richard and Stillman, Steven, Immigration and Innovation. IZA Discussion Paper No. 5686, Available at SSRN: https://ssrn.com/abstract=1835326 or http://dx.doi.org/10.2139/ssrn.1835326

David C. Maré (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

PO Box 24390
Wellington, 6021
New Zealand
64-4-9394250 (Phone)

HOME PAGE: http://www.motu.org.nz

University of Waikato - Economics

New Zealand

Richard Fabling

New Zealand Productivity Commission ( email )

New Zealand

Steven Stillman

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bozen-Bolzano (BZ), Bozen 39100
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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