High-Skilled Inventor Emigration as a Moderator for Increased Innovativeness and Growth in Sending Countries

24 Pages Posted: 27 Mar 2019

See all articles by Jisong Kim

Jisong Kim

University of Suwon

Nah Youn Lee

Duke University - Fuqua School of Business

Date Written: March 30, 2019

Abstract

This study investigates the effect of high-skilled inventor emigration rate on growth rate of the country of origin (COO). Inventor emigrants represent the human capital that can generate highly innovative work. The social network they form spurs knowledge diffusion and technology transfer back to their COOs, which in turn affects innovation and growth in their home countries. We run dynamic panel estimation for 154 countries during 1990–2011, and empirically show that a positive and statistically significant effect exists for the interaction of inventor emigration and trade. The result indicates that the direct negative impact of the brain drain can be mitigated by the positive feedback effect generated by the high-skilled inventor emigrants abroad. When coupled with an active trade policy that reinforces growth, countries can partially recoup the direct effect of the human capital loss. We stress the importance of international trade for successful technology transfer to occur, and offer insights for policies that can utilize the benefits of the rich social network of their high-skilled emigrants.

Keywords: High-skilled Inventor Emigration, Technology Transfer, Innovativeness, Growth Rate, Externalities, Networks

JEL Classification: O15, O33, O50

Suggested Citation

Kim, Jisong and Lee, Nah Youn, High-Skilled Inventor Emigration as a Moderator for Increased Innovativeness and Growth in Sending Countries (March 30, 2019). East Asian Economic Review Vol. 23, No. 1 (March 2019) 3-26, DOI: http://dx.doi.org/10.11644/KIEP.EAER.2019.23.1.354 . Available at SSRN: https://ssrn.com/abstract=3360938 or http://dx.doi.org/10.2139/ssrn.3360938

Jisong Kim (Contact Author)

University of Suwon ( email )

Suwon-City, Gyeonggi
United States

Nah Youn Lee

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
15
Abstract Views
93
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information