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Immigrant Entrepreneurs and Innovation in the U.S. High Tech Sector

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Immigrant Entrepreneurs and Innovation in the U.S. High Tech Sector

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Working Paper Number CES-19-06

Abstract

Immigrant Entrepreneurs and Innovation in the U.S. High Tech Sector
Download Immigrant Entrepreneurs and Innovation in the U.S. High Tech Sector [PDF - <1.0 MB]

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.

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Page Last Revised - October 8, 2021
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