Human Capital, Graduate Migration and Innovation in British Regions

Posted: 12 Mar 2009

See all articles by Alessandra Faggian

Alessandra Faggian

University of Reading - Department of Economics

Philip McCann

University of Reading - Department of Economics

Date Written: March 2009

Abstract

With the aid of a geographical information system, our paper constructs a three stage least squares simultaneous equation model to investigate the interrelationships between the interregional flows of human capital, and the innovation dynamism of a region. In order to do this, we model the interregional migration behaviour of high quality British university graduates from university into first employment, and we relate these human capital flows to both the labour market characteristics and the knowledge characteristics of the employment regions. This is done for all industries and separately for just high technology industries. Our results indicate that for England and Wales there is a two-way causality between the interregional human-capital employment-migration flows of recent university graduates and the innovation performance of regions. However, the results for Great Britain as a whole depend on whether London is included and Scotland is excluded. We find little or no support for the argument that the presence of local universities or small firms promotes regional innovation.

Keywords: Graduates, Migration, High technology

JEL Classification: I230, O180, R230

Suggested Citation

Faggian, Alessandra and McCann, Philip, Human Capital, Graduate Migration and Innovation in British Regions (March 2009). Cambridge Journal of Economics, Vol. 33, Issue 2, pp. 317-333, 2009, Available at SSRN: https://ssrn.com/abstract=1357948 or http://dx.doi.org/10.1093/cje/ben042

Alessandra Faggian (Contact Author)

University of Reading - Department of Economics ( email )

Reading, RG6 6AA
United Kingdom

Philip McCann

University of Reading - Department of Economics ( email )

Reading, RG6 6AA
United Kingdom
+44 (0)118 9314074 (Phone)

HOME PAGE: http://www.rdg.ac.uk/IEAS/staff/McCann.htm

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