Understanding the Relationship Between Immigration and Innovation: A Systematic Review and Meta-Analysis

Abstract

The relationship between immigration and innovation has become an urgent topic of discussion in the USA and in the European Union due to the current migration patterns and the crucial role played by innovation as a driver of growth in modern economies. The present study is a systematic review regarding the investigation of the status of the research on immigration, ethnic diversity, and their impact on innovations, especially at the firm’s organisational level. With a focus on high-skilled immigrants, a closer examination of the link between migration and economic performance of the private sector has been conducted during the research. The paper will focus on the elements that impact the contributions of migrants towards the total level of innovation of host countries. Cultural diversity, demographic agglomeration forces, and the educational backgrounds of newcomers are identified as drivers of innovation which influence patenting activity. Additionally, the research provides an overview of the positive influence of migration on innovation spillovers, taking into account its ability to isolate the channels concerning education history and labour supply that lead to this beneficial effect. The evidence suggests that immigrants contribute to the overall level of economic growth and innovation in destination countries, as spillovers of entrepreneurial capabilities and scientific and technological knowledge appear to be fundamental to innovation in host countries. Nonetheless, policy-makers are presented with expected outcomes, as well as no evidence to suggest that migration is detrimental to a strong research and development sector.