Immigrant Entrepreneurs and Innovation in the US High-Tech Sector
Chapter in NBER book The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship (2020), Ina Ganguli, Shulamit Kahn, Megan MacGarvie, editors (p. 149 - 171)
We estimate differences in innovation behavior between foreign versus U.S.-born entrepreneurs in high-tech industries. Our data come from the Annual Survey of Entrepreneurs, a random sample of firms with detailed information on owner characteristics and innovation activities. We find uniformly higher rates of innovation in immigrant-owned firms for 15 of 16 different innovation measures; the only exception is for copyright/trademark. The immigrant advantage holds for older firms as well as for recent start-ups and for every level of the entrepreneur’s education. The size of the estimated immigrant-native differences in product and process innovation activities rises with detailed controls for demographic and human capital characteristics but falls for R&D and patenting. Controlling for finance, motivations, and industry reduces all coefficients, but for most measures and specifications immigrants are estimated to have a sizable advantage in innovation.This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
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Immigrant Entrepreneurs and Innovation in the U.S. High-Tech Sector, J. David Brown, John S. Earle, Mee Jung Kim, Kyung Min Lee