Migration and Innovation - Does Cultural Diversity Matter for Regional R&D Activity?

Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. Empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper aims at investigating the effects of diversity on innovation and at providing corresponding empirical evidence. We apply the knowledge production function approach to investigate the significance of cultural diversity of work force for innovation output. The regression analysis considers the determinants of regional innovation, focusing on the effect of diversity, for a cross-section of German regions in the period 1995 to 2000.

Migration and innovation: Does cultural diversity matter for regional R&D activity?

"Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. However, empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper investigates the significance of cultural diversity of the workforce on innovation output for a cross-section of German regions. The findings indicate that cultural diversity indeed affects innovative activity. The results suggest that differences in knowledge and capabilities of workers from diverse cultural backgrounds enhance performance of regional R&D sectors. However, education levels are also important. Diversity among highly qualified employees has the strongest impact on innovation output." (Author's abstract, IAB-Doku) ((en))Einwanderung - Auswirkungen, kulturelle Faktoren, Forschung und Entwicklung, Innovationspotenzial, Innovationsfähigkeit, regionale Faktoren, Arbeitskräftestruktur, regionale Herkunft, ausländische Arbeitnehmer, Wissensarbeit, Wissenstransfer, regionale Disparität, Arbeitsmigration - Auswirkungen, Migranten, Qualifikationsniveau, Patente - Quote, regionaler Vergleich

The Impact of EU Enlargement on European Border Regions

EU enlargement is supposed to entail profound impact on the location of economic activities in Europe. Although there is concern about the implications of enlargement for regional disparities in the EU, corresponding empirical results are still rare. The objective of this analysis is to provide empirical evidence on enlargement effects with a special focus on border regions in the EU27 since they are likely to play a critical role within the spatial dynamics initiated by integration. Departing from a three-region economic geography model we investigate whether changes in market access released by integration result in above-average integration benefits in internal border regions.

Spatial dependence of regional unemployment in the European Union

The findings of recent studies on adjustment processes suggest that regional labour markets in the EU and the US differ significantly. Low wage flexibility and limited labour mobility in European countries involve persistent unemployment differentials across regions. However, the spatial dimension of regional labour market problems is largely neglected in the corresponding analyses. In contrast, the present paper focuses on the spatial structure of regional unemployment disparities. Regions are tightly linked by migration, commuting and interregional trade. These types of spatial interaction are exposed to frictional effects of distance, possibly causing spatial dependence of regional labour market conditions. Spatial association of regional unemployment is analysed for a sample of European countries between 1986 and 1998 by measures of spatial autocorrelation and spatial econometric methods. The results point to a significant spatial dependence among regional labour markets in Europe. Regions marked by high unemployment as well as areas characterised by low unemployment tend to cluster in space. The findings suggest that different forms of spatial interaction with varying scope affect the evolution of regional unemployment in Europe.Die Resultate aktueller Untersuchungen regionaler Anpassungsprozesse deuten darauf hin, dass sich die Funktionsweise regionaler Arbeitsmärkte in der EU und den USA wesentlich voneinander unterscheidet. Geringe Lohnflexibilität und eine begrenzte Mobilität der Arbeitskräfte führen zu anhaltenden Unterschieden zwischen den regionalen Arbeitslosenquoten in Europa. Bisherige Studien vernachlässigen jedoch weitgehend die räumliche Dimension regionaler Arbeitsmarktprobleme. Im Gegensatz dazu konzentriert sich die vorliegende Untersuchung auf die räumliche Struktur entsprechender Disparitäten. Regionen sind eng durch Migration, Pendlerverflechtungen und interregionalen Handel miteinander verbunden. Es ist davon auszugehen, dass regionale Arbeitsmarktbedingungen durch räumliche Abhängigkeiten geprägt sind, weil Interaktionen zwischen regionalen Arbeitsmärkten friktionellen Effekten der geographischen Distanz ausgesetzt sind. Im Rahmen der empirischen Analyse wird die räumliche Abhängigkeit regionaler Arbeitslosigkeit in einigen EU-Staaten zwischen 1986 und 1998 untersucht. Hierzu werden Maße der räumlichen Autokorrelation und Methoden der räumlichen Ökonometrie angewendet. Die Ergebnisse weisen auf erhebliche räumliche Abhängigkeiten zwischen regionalen Arbeitsmärkten in Europa hin. Regionen mit hoher Arbeitslosigkeit bilden ebenso wie Gebiete mit günstigen Arbeitsmarktbedingungen räumliche Cluster. Die empirische Analyse lässt vermuten, dass verschiedene Formen räumlicher Interaktion mit unterschiedlichen Reichweiten die Entwicklung der regionalen Arbeitslosigkeit in Europa beeinflussen

Integration and labour markets in European border regions

"Border regions are likely to play a critical role within the spatial dynamics initiated by the enlargement of the EU. This paper deals with the effects of integration on labour markets in border regions. Within the framework of different theoretical approaches, the effects of integration on location conditions and labour market disparities along national borders are analysed. Furthermore, we investigate empirically the degree of labour market integration in European border regions. Measures of spatial association are used as indicators of the intensity of integration among neighbouring labour markets. The results of an analysis of per capita income and unemployment for the period 1995-2000 point to a measurable spatial segmentation of labour markets along national borders even among highly integrated EU15 countries. On average, border regions in the EU are characterised by a lower degree of labour market integration than non-border areas, due to significant border impediments that hamper equilibrating forces between labour markets on both sides of national frontiers." (Author's abstract, IAB-Doku) ((en))europäische Integration, Grenzgebiet, EU-Erweiterung, Arbeitsmarktentwicklung, regionaler Arbeitsmarkt, Standortfaktoren, grenzüberschreitende Zusammenarbeit, Einkommensentwicklung, Arbeitslosigkeit, Außenhandelsverflechtung, Arbeitskräftemobilität, Wirtschaftsgeografie, Europäische Union

The impact of Poland’s EU accession on labour supply in the German-Polish border region – What can we expect?

While barriers to trade between EU-15 and accession countries have been completely abolished on May 1st 2004, other integration impediments remain to exist in the enlarged EU. These will steadily decrease within the next years, e.g. by new member states joining the Schengen Treaty and Euro area. A significant outstanding integration step is the liberalisation of labour mobility between EU-15 and new member states which will be realised not later than 2011. In this context it is often argued that the free movement of labour could worsen labour market problems in the former EU-15, especially in regions neighbouring the new member countries. This paper provides an assessment of the impact of enlargement on labour markets in the German-Polish border region. As a starting point for the analysis, current labour market conditions and income disparities in the German-Polish border region are analysed. Furthermore, the paper summarises relevant implications of migration theories and gives an outlook on the development of factors determining cross-border labour migration in the German-Polish border region. Finally, different estimates of migration and commuting potential affecting labour markets in the German-Polish border region until 2020 are discussed.

Regional labor demand and national labor market institutions in the EU15

The labor market effects of the recent financial and economic crisis are rather heterogeneous across countries and regions. Such differences in labor market performance among industrialized countries are an issue of ongoing research. The objective of this paper is to analyse labor market disparities among European regions and to provide evidence on the factors behind these differences. Whereas previous research focused on effects of national labor market institutions, we also take structural characteristics of regions into account and investigate differences in labor demand responsiveness and their potential determinants. The data set covers the NUTS2 regions in the EU15 for the period 1980 to 2008. We apply an error correction model that is combined with a spatial modeling approach in order to account for interaction among neighboring labor markets. Our findings point to substantially distinct labor demand responses to changes in output and wages among European countries and regions. Moreover, the rate of adjustment to disequilibrium is subject to a signifcant variation across units of observation. Whereas evidence on the significance of region specific variables as explanatory factors is weak, labor market institutions, especially regulations that affect the determination of wages, explain an important fraction of the disparities. --Regional labor markets,labor demand,institutions,Europe,error correction model

Convergence and the effects of spatial interaction

Since the beginning of the 1990s, the issue of income convergence has received considerable attention in economic research. Although a vast number of empirical studies has emerged, evidence on the role of spatial interaction is still rather scarce. The present paper is an attempt to provide additional information on the spatial aspect of convergence. Spatial econometric methods are used to investigate regional convergence in West Germany. The results indicate that spatial interaction is an important element of regional growth. However, considering spatial effects does not alter the general conclusion that regional income growth is characterised by a process of convergence

Integration and Labour Markets in European Border regions

Border regions are likely to play a critical role within the special dynamics initiated by the enlargement of the EU. This paper deals with the effects of integration on labour market conditions in border regions. Within the framework of different theoretical approaches the effects of integration on location conditions and labour markets in border regions are analysed. Furthermore, we investigate empirically the degree of labour market integration in European border regions. Measures of spatial association are applied as indicators for the intensity of integration among neighbouring labour markets. The results of an analysis of per capita income and unemployment for the period 1995 to 2000 point at a measurable spatial segmentation of labour markets even among highly integrated EU15 countries. On average, border regions in the EU are characterised by lower degree of labour market integration than non-border areas due to significant border impediments that hamper equilibrating forces between labour markets on both sides of national frontiers. JEL classification: F22, J61, R23 Keywords: European Integration, Labour Market Disparities, Border Regions, Spatial Dependence

Migrationseffekte: Zuzug Hochqualifizierter stärkt Innovationskraft der Regionen. Kulturelle Vielfalt in der Erwerbsbevölkerung wirkt positiv auf die Zahl der Patentanmeldungen

Der IAB-Kurzbericht basiert auf einer Studie, in der die Auswirkungen der kulturellen Vielfalt der Beschäftigten auf die Innovationsleistung deutscher Regionen untersucht werden. Die Ergebnisse zeigen, dass die Beschäftigung ausländischer Arbeitskräfte durch erhebliche regionale Disparitäten gekennzeichnet ist. Erwartungsgemäß ist die kulturelle Vielfalt der Beschäftigung vor allem in den westdeutschen Ballungsgebieten sehr ausgeprägt. Besonders niedrig ist sie dagegen in Ostdeutschland, vor allem in der ländlichen Periphere. Die ökonometrische Analyse zeigt, dass von der kulturellen Vielfalt ein signifikanter Effekt auf die Patentintensität ausgeht: Regionen, die sich durch Beschäftigte mit vielfältigen kulturellen Hintergründen auszeichnen, sind erfolgreicher bei der Entwicklung neuer Produkte als andere Gebiete. Die Qualifikation der Arbeitskräfte ist allerdings für die Wirkung dieser Vielfalt nicht unerheblich. Die stärksten Effekte auf das Innovationsergebnis zeigen sich bei Hochqualifizierten. Die Ergebnisse unterstreichen, wie wichtig die Regelungen des Zuwanderungsgesetzes zum Zuzug Hochqualifizierter und zum Aufenthalt ausländischer Hochschulabsolventen sind, das 2005 in Kraft getreten ist