High-skilled immigration fuels regional entrepreneurship, new US study suggests. When the number of high-skilled immigrants in a metropolitan area doubles, entrepreneurship in that region increases by 6% within three years.
High-skilled immigration fuels regional entrepreneurship, study suggests
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I’ve linked to the news release in the post above. In this comment, for those interested, here’s the link to the peer reviewed journal article:
High-skilled immigration enhances regional entrepreneurship
https://www.pnas.org/doi/10.1073/pnas.2402001121
A new study published in the Proceedings of the National Academy of Sciences highlights a significant relationship between high-skilled immigration and regional entrepreneurship in the United States. By analyzing newly awarded H-1B visas, the researchers found that when the number of high-skilled immigrants in a metropolitan area doubles, entrepreneurship in that region increases by 6% within three years. These findings suggest that policies promoting high-skilled immigration could boost regional economic growth by fostering new business creation.
The results showed a clear positive relationship between the arrival of high-skilled immigrants and regional entrepreneurship. The researchers found that a doubling of H-1B immigrants in an MSA led to a 6% increase in the number of new businesses within three years. This effect was observed even after accounting for the quality of entrepreneurship, indicating that high-skilled immigrants not only contribute to the quantity of startups but also help increase the number of high-potential ventures.
One of the study’s key findings was that this positive effect on entrepreneurship was only observed for new high-skilled immigrants. Continuing H-1B visa holders, who were already living and working in the United States, did not have a significant impact on regional entrepreneurship.
Similarly, the arrival of unskilled immigrants on H-2B visas, who typically work in temporary non-agricultural jobs, did not contribute to increases in entrepreneurship. These results highlight the specific role that new high-skilled immigrants play in driving regional economic dynamism, rather than the broader immigrant population.