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The Nexus Between Migration, Innovation And Economic Development In Eu-28

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  • SINOI Elena-Alexandra

    (Doctoral School of Economics and Business Administration, West University of Timisoara, Timisoara, Romania)

Abstract

In an increasingly interconnected world, international migration became a topic of great interest from economic, social, cultural and political point of view, with complex effects on both origin and destination country. The international labour force mobility generates both opportunities and challenges that any nation should take into consideration, in order to obtain maximum of benefits, as well as mitigating the negative effects that can arise from the migration movements. Therefore, migration is a process that needs to be managed and not a problem that needs to be solved. Highly qualified immigrants boost innovation output, their cultural diversity may produce positive spill-overs, especially in host countries and represent an important channel for transferring technology from destination countries back to origin countries. This research investigates the extent to which immigration along with financial support in R&D and investments in higher education influence innovation and eventually, economic development, for 104 NUTS 1 macro-regions in the EU, over the period 2003 to 2012. The study is based on the development of econometric models on panel data, using a set of indicators specific to the process of immigration, innovation and economic development. The research uses classical models with fixed effects (non-spatial models), measures the global and local spatial autocorrelation of the data set and at last spatial autocorrelation models are generated. The econometric estimations of the international migration impact on intellectual assets (measured by the number of patents) highlight a positive nexus, strengthened when taking into account different factorial combinations related to the economic dimension, such as: financial support in research and development (especially in the business sector and in the whole sector), investment in tertiary education, personnel employed in knowledge intensive sectors, as well as the share of scientists and engineers in population. In order to boost knowledge creation and per capita GDP, EU should not only attract scientists and engineers migrants, but also provide further financial support in research and development.

Suggested Citation

  • SINOI Elena-Alexandra, 2019. "The Nexus Between Migration, Innovation And Economic Development In Eu-28," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 423-433, December.
    • Handle: RePEc:ora:journl:v:1:y:2019:i:2:p:423-433
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    References listed on IDEAS

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    More about this item

    Keywords

    international migration; innovation; economic development; EU-28;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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