Futures

The Impact of Immigrant Researchers and Imported R&D Services on Firm Productivity and Growth, (from page 20240526.)

External link

Keywords

Themes

Other

Summary

Over the last 50 years, global firms have increasingly sourced research and development (R&D) inputs from abroad, particularly through immigrant researchers and imported R&D services. A recent study on Danish firms reveals that those utilizing these foreign inputs tend to be larger and more productive. Access to foreign ideas enhances R&D efficiency and encourages firms to start offshore R&D, as immigrant researchers reduce information barriers. The analysis shows that without foreign ideas, R&D participation would significantly decline, highlighting the importance of these inputs for firm performance and aggregate productivity. Policies that facilitate access to immigrant researchers and R&D services can create synergistic benefits, enhancing overall productivity. The findings underscore the crucial role of high-skill immigration in boosting innovation and firm growth.

Signals

name description change 10-year driving-force relevancy
Global R&D Sourcing Firms increasingly leverage foreign ideas via immigrant researchers and imported R&D services. Shift from traditional domestic R&D to a globalized approach incorporating foreign ideas. In 10 years, firms may rely heavily on global networks for R&D, enhancing innovation and productivity. The need for diverse ideas and efficiency in R&D investments drives firms to seek foreign inputs. 4
Immigrant Researchers Impact Access to immigrant researchers boosts firms’ likelihood of offshore R&D and productivity. From limited domestic R&D to enhanced global collaboration through immigrant talent. In a decade, firms may become more integrated with global R&D networks due to immigrant contributions. The demand for specialized skills and knowledge drives firms to hire immigrant researchers. 5
R&D Policy Interdependence Policies liberalizing access to R&D inputs can have combined effects on productivity. From isolated R&D policies to interconnected strategies that enhance overall firm performance. In 10 years, cohesive R&D policies may lead to a more innovative and productive economy. The recognition of interdependencies in R&D inputs motivates comprehensive policy development. 4
Increased R&D Returns Firms incorporating foreign ideas see significantly higher returns on R&D investments. From modest domestic R&D returns to amplified productivity through global ideas. In a decade, firms may prioritize global R&D strategies to maximize returns and efficiency. The pursuit of competitive advantage and higher productivity drives firms towards foreign R&D inputs. 4
Barriers to Foreign Ideas Only large, productive firms access foreign ideas due to existing barriers. From limited access to foreign ideas for many firms to broader inclusion in R&D practices. In 10 years, reduced barriers could democratize access to foreign R&D, benefiting more firms. The push for inclusivity and competitiveness in innovation encourages reducing access barriers. 3

Concerns

name description relevancy
Dependence on Foreign Ideas Over-reliance on foreign-sourced R&D ideas could stifle domestic innovation and create vulnerabilities if global sourcing diminishes or halts. 4
Talent Concentration Risks The trend of employing immigrant researchers may lead to a concentration of talent in particular regions, impacting innovation dynamics globally. 3
Barriers to Accessing Foreign Ideas Limited access to foreign R&D inputs may hinder competitiveness for smaller firms, concentrating benefits among larger firms. 4
Economic Vulnerability to Policy Changes Changes in immigration or R&D policy could drastically affect firms’ productivity and economic stability due to dependence on these inputs. 5
Information Friction Risks The increasing reliance on immigrant researchers to reduce information frictions could create risks if this talent pipeline is disrupted. 3
Inequality in R&D Participation Rates Disparities in R&D participation rates may widen between large firms that can afford foreign inputs and smaller firms that cannot. 4
Global Competitiveness Concerns A shift in global trends or political climates may disrupt access to foreign R&D inputs, impacting national competitiveness. 5
Impact of Subsidy Effectiveness The effectiveness of R&D subsidies could diminish without access to foreign ideas, limiting productivity growth. 4

Behaviors

name description relevancy
Global R&D Sourcing Firms increasingly leverage foreign ideas through immigrant researchers and imported R&D services to enhance productivity and R&D efficiency. 5
Integration of Immigrant Researchers Firms employing immigrant researchers are more likely to engage in offshore R&D, reducing information frictions and enhancing R&D decisions. 4
Offshore R&D Expansion The trend of firms offshoring R&D activities is growing as access to foreign ideas becomes more critical for productivity gains. 4
Interconnected R&D Strategies Policies liberalizing access to foreign R&D inputs can lead to increased use of both immigrant researchers and imported R&D services. 5
High-Skill Immigration Impact The role of highly skilled immigrants is becoming crucial in shaping firm dynamics and productivity through R&D offshoring. 4

Technologies

description relevancy src
Utilization of foreign talent in R&D to enhance efficiency and productivity in firms. 5 5a865c83aaadda2cfe3931bf883af36f
Sourcing research and development services from abroad to augment domestic R&D efforts. 5 5a865c83aaadda2cfe3931bf883af36f
Adopting strategies to leverage international ideas and talent for innovation and productivity gains. 4 5a865c83aaadda2cfe3931bf883af36f

Issues

name description relevancy
Global R&D Sourcing Strategies Firms increasingly rely on immigrant researchers and foreign R&D services to enhance productivity and innovation. 5
Barriers to Accessing Foreign Ideas Only larger, more productive firms can access foreign R&D ideas, indicating significant barriers for others. 4
Impact of Immigrant Researchers on R&D Immigrant researchers facilitate the use of offshore R&D, enhancing firm performance and reducing information frictions. 4
Interdependence of R&D Inputs The relationship between hiring immigrant researchers and importing R&D services amplifies productivity gains. 4
Effectiveness of R&D Policies Access to foreign ideas is crucial for the success of R&D subsidies and innovation policies. 5
Growing Literature on High-Skill Immigration The interaction between highly skilled immigrants and R&D offshoring influences firm dynamics and productivity. 4