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Brain drain, R&D-cost differentials and the innovation gap

Fabio Mariani ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper aims at explaining why countries with comparable levels of education still experience notable differences in terms of R&D and innovation. High-skilled migration, ultimately linked to differences in R&D costs, might be responsible for the persistence of such a gap. In fact, in a model where human capital accumulation and innovation are strategic complements, we show that allowing labor outflows may strengthen educational incentives in the lagging economy if migration is probabilistic in nature, but at the same time reduces the share of innovative production. Income (growth) might be consequently affected, and a positive migration chance is very unlikely to act as a substitute for educational subsidies.

Keywords: Innovation; Brain drain; Education; Brain drain. (search for similar items in EconPapers)
Date: 2008
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00308746
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Published in Recherches Economiques de Louvain - Louvain economic review, De Boeck Université, 2008, 74 (3), pp.251-272

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Journal Article: Brain Drain, R&D-Cost Differentials and the Innovation Gap (2008) Downloads
Working Paper: Brain Drain, R&D-Cost Differentials and the Innovation Gap (2008) Downloads
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