Immigration Policy Levers for US Innovation and Startups

40 Pages Posted: 28 Apr 2020 Last revised: 21 May 2026

See all articles by Sari Pekkala Kerr

Sari Pekkala Kerr

Wellesley College

William R. Kerr

Harvard University - Entrepreneurial Management Unit

Date Written: April 2020

Abstract

Immigrants account for about a quarter of US invention and entrepreneurship despite a policy environment that is not well suited for these purposes. This chapter reviews the US immigration policy environment that governs how skilled migrants move to America for employment-based purposes. We discuss points of strain in the current system and potential policy reforms that would likely increase the rate of innovation and the number of startups due to immigrants in the country. Key areas include adjustments to the allocation of permanent residency visas, adjustments to the H-1B visa program, and the creation of an immigrant startup visa.

Suggested Citation

Kerr, Sari Pekkala and Kerr, William R., Immigration Policy Levers for US Innovation and Startups (April 2020). NBER Working Paper No. w27040, Available at SSRN: https://ssrn.com/abstract=3586172

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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