What is the US Comparative Advantage in Entrepreneurship? Evidence from Israeli Migration to the United States

59 Pages Posted: 29 Apr 2019 Last revised: 18 Mar 2021

See all articles by Annamaria Conti

Annamaria Conti

University of Lausanne; University of Lausanne - Faculty of Business and Economics (HEC)

Jorge Guzman

Columbia University - Columbia Business School

Date Written: April 22, 2019

Abstract

We investigate underlying sources of the US entrepreneurial ecosystem's advantage compared to other innovative economies by assessing the benefits Israeli startups derive from migrating to the US. Addressing positive sorting into migration, we show that migrants raise larger funding amounts and are more likely to have a US trademark and be acquired than non-migrants. Migrants also achieve a higher acquisition value. However, their patent output is not larger. We conclude that the US entrepreneurial ecosystem's advantage vis-à-vis other innovative economies arises from several sources producing sizeable gains for startups. These sources are investor availability, and large consumer and acquisitions markets.

Keywords: Entrepreneurship, Entrepreneurial Ecosystem, Startups, Location Choices, Performance Outcomes

JEL Classification: F21, F22, L22, L23, L26, M13, O32, O34

Suggested Citation

Conti, Annamaria and Conti, Annamaria and Guzman, Jorge, What is the US Comparative Advantage in Entrepreneurship? Evidence from Israeli Migration to the United States (April 22, 2019). Available at SSRN: https://ssrn.com/abstract=3376131 or http://dx.doi.org/10.2139/ssrn.3376131

Annamaria Conti (Contact Author)

University of Lausanne ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland

University of Lausanne - Faculty of Business and Economics (HEC) ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland

Jorge Guzman

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

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