EconPapers    
Economics at your fingertips  
 

IMMIGRATION AND INNOVATION IN EUROPEAN REGIONS

Ceren Ozgen (), Peter Nijkamp and Jacques Poot
Additional contact information
Ceren Ozgen: Department of Spatial Economics, VU University Amsterdam

No 2011008, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

Abstract: The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants' location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald's restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality.

Keywords: immigration; cultural diversity; economic growth; innovation; spatial autocorrelation (search for similar items in EconPapers)
JEL-codes: J61 O31 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-eur, nep-ino, nep-mig, nep-sbm and nep-ure
Date: 2011-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46) Track citations by RSS feed

Downloads: (external link)
http://www.norface-migration.org/publ_uploads/NDP_08_11.pdf (application/pdf)

Related works:
Chapter: Immigration and innovation in European regions (2012) Downloads
Working Paper: Immigration and Innovation in European Regions (2011) Downloads
Working Paper: Immigration and Innovation in European Regions (2011) Downloads
Working Paper: Immigration and Innovation in European Regions (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nor:wpaper:2011008

Access Statistics for this paper

More papers in Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London Contact information at EDIRC.
Bibliographic data for series maintained by Norface Migration Administrator ().

 
Page updated 2019-08-20
Handle: RePEc:nor:wpaper:2011008