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International Talent Inflow and R&D Investment: Firm-level Evidence from China

Author

Listed:
  • Hao Wei

    (Department of International Economics, Beijing Normal University, China)

  • Ran Yuan

    (Department of International Economics, Beijing Normal University, China)

  • Laixun Zhao

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Using firm-level R&D data with regional international talent data, we find that international talent increases the R&D investment of Chinese manufacturing firms, a result that is further confirmed with patent data and under a number of robustness checks. These findings stem from two mechanisms: international talent boosts human capital accumulation and provides a diversified labor force. Further, the R&D promoting effect is stronger if firms are located in eastern China rather than in other regions, of small and medium-sized rather than large-sized, of domestic ownership rather than foreign ownership. The policy implication is, the introduction of international talent can be a new way to promoting R&D investment, especially for skilled-labor constrained countries.

Suggested Citation

  • Hao Wei & Ran Yuan & Laixun Zhao, 2019. "International Talent Inflow and R&D Investment: Firm-level Evidence from China," Discussion Paper Series DP2019-17, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2019-17
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    More about this item

    Keywords

    International talent inflow; Manufacturing firms; R&D; Patent application;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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