Mounting corporate innovation performance: The effects of high-skilled migrant hires and integration capacity

• Published in: Research policy Vol. 49; no. 9; p. 104034
• Main Authors: Laursen, Keld, Leten, Bart, Nguyen, Ngoc Han, Vancauteren, Mark
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.11.2020
• Subjects: High-skilled migration; Immigrant/firm cultural match; Innovation; Integration capacity; Innovation; High-skilled migration; Immigrant/firm cultural match; Integration capacity
• ISSN: 0048-7333; 1873-7625
• DOI: 10.1016/j.respol.2020.104034

•Examines relationship between high-skilled migrant hiring and firm-level innovation.•High-skilled migrant hires add more to firm-level innovation than high-skilled natives.•Effect of high-skilled migrant hiring depends on firms’ cultural diversity.•Effect of high-skilled migrant hiring depends on firms’ integration capacity.•Hiring high-skilled migrants results in firms entering new technology fields. We adopt an organizational learning approach to examine how firms’ recruitment of high-skilled migrants contributes to subsequent firm-level innovation performance. We argue that due to migrants’ often different experience from that of native high-skilled workers, their perspectives on problem-solving and access to non-overlapping knowledge networks will also differ. The implied complementarity between these worker types makes migrant hires a particularly valuable resource in the context of firm-level innovation. We refine our diversity hypothesis further by predicting that migrant hires who add to the firm's cultural diversity should contribute more to firm innovation performance than new high-skilled migrant hires who do not add cultural diversity. Finally, we conjecture that firms with high integration capacity as a function of prior experience of employing high-skilled migrants should derive more innovation-related benefits from migrant hiring than firms with a low integration capacity. We track the inward mobility of high-skilled workers empirically using patents and matched employer-employee data for 16,241 Dutch firms over an 11-year period. We find support for our hypotheses.