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The nexus between labour mobility and innovation: an empirical analysis

Author

Listed:
  • Jitamitra Behera

    (Indian Institute of Technology Indore)

  • Akriti Jain

    (International Management Institute-New Delhi)

  • Ruchi Sharma

    (Indian Institute of Technology Indore)

Abstract

Labour mobility is a crucial feature of human nature and an effective medium of knowledge transfer. As the workers shift from one region to another, their embodied skills travel with them, and the diversities of skills make complementarities of ideas that encourage new methods of production or innovation in the destination. Further innovation boosts economic growth and smoothens the mobility path. In this way, a virtuous cycle takes place between migration and innovation, which has not been comprehensively explored in the existing literature. Especially in developing nations, such studies are a handful in number and are not at a consensus to derive the normative conclusion. As the relationship between migration and innovation has remained inconclusive due to the variation of skills and endowments, the study aims to investigate the migration-innovation nexus critically. The study explores the varied ways in which migration influences and is influenced by innovation. The empirical investigation employs panel dataset of migration and innovation, extracted from the World Development Indicators (WDI), from 2005 to 2015, utilizing a system-GMM estimation model to account for endogeneity issues. Results reveal a positive and significant influence of international migration on patenting output, with varied time lags and with variation across geographical regions, patenting and migrant receiving country clusters. Further, the study contributes valuable insights into complex dynamics and virtuous cycle of migration and innovation, which is appreciable for economic growth and development.

Suggested Citation

  • Jitamitra Behera & Akriti Jain & Ruchi Sharma, 2024. "The nexus between labour mobility and innovation: an empirical analysis," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 51(3), pages 551-584, September.
    • Handle: RePEc:spr:epolin:v:51:y:2024:i:3:d:10.1007_s40812-024-00305-4
    DOI: 10.1007/s40812-024-00305-4
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    More about this item

    Keywords

    Migration; Innovation; Patenting; Knowledge diffusion; System GMM;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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