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Research Studies Find Skilled Immigrants Spur Innovation in Academia, Industry

November 28, 2012

Two recent academic research articles found that innovation at institutions of higher education and domestic firms are significantly impacted by an increase in the immigration of skilled and qualified immigrants. An article from Stuen et al. found the quality of immigrant students was the determining factor in their contribution to the production of knowledge at academic science and engineering laboratories. In an unpublished article from Kerr et al., the authors examined the impact of skilled immigrants on the employment structures and innovation rates of U.S. firms. The authors of these articles also provide several recommendations to increase the number skilled immigrants that include making student quality the key criterion for receiving a visa, repealing 2001 legislation that limited the number of student visas and business taking a more active role in advocating for immigrations polices (e.g., H-1B visa reform) that attracted skilled workers to the United States.

In an article from The Economic Journal,  the authors found highly qualified immigrant students contribute significantly to the production of knowledge at science and engineering (S&E) laboratories at 2,300 institutions of higher education between 1973 and 1998. However, due to an emphasis on financial wealth in the visa process, many high-skilled qualified immigrants do not have the opportunity to study at U.S. institutions. Rather than relying largely on demonstration of financial wealth sufficient to support graduate study, the authors call for immigration reforms that would make indicators of student quality (e.g., TOEFL scores and standardize test scores) the key criterion for issuing of a student visa. The report also found that student visa restrictions established in 2001are found to be particularly costly for academic innovation. To address this issue, the authors propose that policymakers should increase the number of visas offered to qualified immigrant students in S&E.

In industries with high patenting activity, an increase in skilled immigrant workers is associated with greater rates of innovation by firms, according to recent research. The authors found that new contributions by skilled immigrants was the primary driver of patenting activity at those firms. Collaboration of foreign-born and domestic-born workers also contributed to the increase in patents. Using U.S. census data, the report also did not find evidence of any displacement of U.S. skilled workers already with the firm. The authors conclude that U.S. firms must take a much bigger role in advocating for immigration polices (e.g., H-1B visa reform) that attract skilled workers to the United States.

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