Talent Flows and the Geography of Knowledge Production: Causal Evidence from Multinational Firms

78 Pages Posted: 11 Jan 2022 Last revised: 23 Dec 2022

See all articles by Dany Bahar

Dany Bahar

Brown University - Watson Institute for International and Public Affairs; Harvard University - Center for International Development (CID)

Prithwiraj Choudhury

Harvard University - Business School (HBS)

Sara Signorelli

University of Amsterdam

James Sappenfield

The Brattle Group

Date Written: December 2022

Abstract

Leveraging a unique dataset merging patent data with all work-related migration reforms
that took place in 15 countries over 26 years, we show that reforms discouraging inventor
mobility decrease the patenting of MNE subsidiaries within a country, while reforms encouraging
it have a positive but much smaller effect. Additionally, reforms adopted in the U.S.
affect innovation in other countries in the opposite direction, highlighting the existence of a
global competition for talent. Finally, we find that policies easing migration have facilitated
about half of the shift in global innovation toward emerging markets.

Keywords: Migration, Patents, Technology, Policy Evaluation

JEL Classification: J61, K37, O33, O34, O38

Suggested Citation

Bahar, Dany and Choudhury, Prithwiraj and Signorelli, Sara and Sappenfield, James, Talent Flows and the Geography of Knowledge Production: Causal Evidence from Multinational Firms (December 2022). Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 22-047, Available at SSRN: https://ssrn.com/abstract=4005693 or http://dx.doi.org/10.2139/ssrn.4005693

Dany Bahar

Brown University - Watson Institute for International and Public Affairs ( email )

111 Thayer Street
Box 1970
Providence, RI 02912-1970
United States

Harvard University - Center for International Development (CID)

One Eliot Street Building
79 JFK Street
Cambridge, MA 02138
United States

Prithwiraj Choudhury (Contact Author)

Harvard University - Business School (HBS) ( email )

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

Sara Signorelli

University of Amsterdam

James Sappenfield

The Brattle Group ( email )

44 Brattle Street
3rd Floor
Cambridge, MA 02138-3736
United States

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