The Supply Side of Innovation: H-1b Visa Reforms and Us Ethnic Invention

37 Pages Posted: 22 Feb 2010 Last revised: 1 Feb 2023

See all articles by William Kerr

William Kerr

Harvard University - Entrepreneurial Management Unit

William Fabius Lincoln

Claremont McKenna College - Robert Day School of Economics and Finance

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Date Written: February 2010

Abstract

This study evaluates the impact of high-skilled immigrants on US technology formation. We use reduced-form specifications that exploit large changes in the H-1B visa program. Higher H-1B admissions increase immigrant science and engineering (SE) employment and patenting by inventors with Indian and Chinese names in cities and firms dependent upon the program relative to their peers. Most specifications find limited effects for native SE employment or patenting. We are able to rule out displacement effects, and small crowding-in effects may exist. Total SE employment and invention increases with higher admissions primarily through direct contributions of immigrants.

Suggested Citation

Kerr, William R. and Lincoln, William Fabius, The Supply Side of Innovation: H-1b Visa Reforms and Us Ethnic Invention (February 2010). NBER Working Paper No. w15768, Available at SSRN: https://ssrn.com/abstract=1556565

William R. Kerr (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

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

William Fabius Lincoln

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

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