Olena Ivus
Associate Dean (Graduate Programs), Associate Professor & E. Marie Shantz Fellow of Business Economics
- Adapted from: “Migration and Imitation”
- Based on Research by: Olena Ivus, Alireza Naghavi, Larry D. Qiu
- Journal: Economica
Key Takeaways
- The study shows that high-skilled migration from developing to developed countries reduces high-quality imitation in the South while boosting innovation in the North. This occurs as talented entrepreneurs migrate, focusing on creating high-quality products rather than imitating them.
- Strengthening intellectual property rights (IPR) in the South primarily limits low-quality imitation and can stifle innovation. In contrast, an open immigration policy for high-skilled workers not only fosters innovation in the North but also increases income for low-talent entrepreneurs in the South by shifting focus away from low-quality imitation.
- The findings indicate that allowing high-talent migration is more beneficial for global economic development than strengthening IPR. Migration leads to increased average product quality and overall income growth, whereas stronger IPR may raise Northern income at the expense of the South, without guaranteeing global income increases.
This research paper explores the complex relationship between migration policies and intellectual property rights (IPR) in the context of global trade. The authors develop a North-South trade model that examines how high-skilled migration from the South (developing countries) to the North (developed countries) affects innovation and imitation activities. They find that when the North adopts policies to attract high-talent individuals from the South, it can effectively reduce imitation of high-quality products in the South while simultaneously boosting innovation in the North. This contrasts with strengthening IPR in the South, which primarily limits low-quality imitation but can stifle overall innovation and economic growth.
The study reveals that allowing high-talent migration shifts entrepreneurial activities significantly. High-talent entrepreneurs are more likely to engage in innovative activities in the North, leading to higher-quality products being developed there. Conversely, this migration results in a contraction of high-quality imitation in the South, as fewer skilled individuals remain to engage in such activities. Interestingly, while migration increases competition for Northern innovators, it also enhances their ability to pre-empt high-quality imitation from the South. This dynamic creates a dual effect: it raises average product quality in both regions but redistributes income differently compared to strengthening IPR.
Ultimately, the findings suggest that a more open immigration policy for high-skilled workers is beneficial for global development. It not only helps to elevate income levels in both regions but also promotes a transition towards more entrepreneurial economies in the South. In contrast, strengthening IPR may lead to increased income in the North at the expense of the South, without guaranteeing overall global income growth. This research highlights the importance of considering migration policies alongside IPR regulations to foster innovation and economic development effectively across different regions.