Migration, Cultural Diversity and Innovation: A European Perspective

37 Pages Posted: 17 Oct 2012

See all articles by Valentina Bosetti

Valentina Bosetti

Bocconi University; CMCC - Euro Mediterranean Centre for Climate Change

Cristina Cattaneo

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Elena Verdolini

Fondazione Eni Enrico Mattei (FEEM), CMCC - Euro Mediterranean Centre for Climate Change

Date Written: October 17, 2012

Abstract

This paper analyses the effect of skilled migration on two measures of innovation, patenting and citations of scientific publications, in a panel of 20 European countries. Skilled migrants positively contribute to the knowledge formation in host countries as they add to the pool of skills in destination markets. Moreover, they positively affect natives' productivity, as new ideas are likely to arise through the interaction of diverse cultures and diverse approaches in problem solving. The empirical findings we present support this prediction. Greater diversity in the skilled professions are associated with higher levels of knowledge creation, measured either by the number of patents applied for through the Patent Cooperation Treaty or by the number of citations to published articles. This finding is robust to the use of different proxies for both the explanatory variables and the diversity index in the labour force. Specifically, we first measure diversity with a novel indicator which uses information on the skill level of foreigners’ occupations. We then check our results by following the general literature, which measures skills by looking at the foreigners’ level of education. We show that cultural diversity consistently increases the innovation performance of European Countries.

Keywords: Cultural Diversity, Innovation, Skilled Migration, Knowledge Production Function, Europe

JEL Classification: F22, J24, O31

Suggested Citation

Bosetti, Valentina and Cattaneo, Cristina and Verdolini, Elena, Migration, Cultural Diversity and Innovation: A European Perspective (October 17, 2012). FEEM Working Paper No. 69.2012. Available at SSRN: https://ssrn.com/abstract=2162836 or http://dx.doi.org/10.2139/ssrn.2162836

Valentina Bosetti

Bocconi University

Via Gobbi 5
Milan, 20136
Italy

CMCC - Euro Mediterranean Centre for Climate Change

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Cristina Cattaneo (Contact Author)

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Elena Verdolini

Fondazione Eni Enrico Mattei (FEEM), CMCC - Euro Mediterranean Centre for Climate Change ( email )

C.so Magenta 63
Milano, 20123
Italy

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