Immigration Fuels US Innovation
· business
Immigration’s Unappreciated Gift: Innovation on American Soil
A recent study has shed new light on the relationship between foreign-born workers and innovation hubs in the US. The research examines the impact of immigrants on productivity from 1880 to 1920, revealing that international migrants not only contributed significantly to American growth but also spurred innovation by choosing areas where their skills complemented native workers.
The findings are stark: without the inflow of immigrant workers during this period, aggregate GDP per capita would have been a staggering 8.2% lower by 1940. This statistic challenges those who advocate for restrictive immigration policies, such as White House Deputy Chief of Staff Stephen Miller, who has praised the 1924 Immigration Act’s reduction in immigrant flows.
Miller’s nostalgia for a bygone era overlooks the fact that national origins legislation in the 1920s harmed labor force growth and restricted the entry of skilled workers from countries like Poland and Eastern Europe. This legacy can still be seen today: research by economists Petra Moser and Shmuel San shows that restrictive immigration quotas in the 1920s significantly reduced invention in the US, including among American-born scientists.
The impact of immigrant workers on innovation is evident in Silicon Valley, where a recent National Foundation for American Policy study found that 59% of US billion-dollar companies have an immigrant founder or cofounder. Many of these companies are located in the San Francisco Bay Area, where labor economist Mark Regets notes that “clusters of people with specific skills really matter for innovation.”
Immigrants are essential to both labor force growth and productivity growth, particularly given the aging US workforce. Economic growth relies on immigration to boost its numbers – a fact that the Trump administration’s policies would significantly hinder, reducing the projected number of workers in the US by 6.8 million by 2028.
Miller’s argument is not just misguided; it’s also selective in its historical context. He touts the 1920s as a period of “net zero migration,” ignoring the significant scientific achievements produced by immigrants during this time, including 16 Nobel Prize winners in physics and 15 in medicine between 1945 and 1974.
The statistics are clear: immigration has been, and continues to be, a driving force behind American innovation. By restricting immigrant flows, policymakers risk stifling the very engine of growth that has defined this country’s prosperity for centuries.
Reader Views
- TNThe Newsroom Desk · editorial
The narrative that immigration hinders innovation is a tired trope, and this study finally puts some numbers behind its debunking. However, we should be cautious not to oversimplify the relationship between immigration and growth. Not all immigrant workers are created equal; research has shown that highly skilled migrants have a disproportionate impact on innovation, while low-skilled immigrants may actually displace native workers in certain sectors. Policymakers must navigate these complexities when crafting legislation that balances labor force needs with the potential consequences of mass migration.
- DHDr. Helen V. · economist
While the study's findings on immigration's contribution to US innovation are compelling, we must consider the nuances of this relationship in the context of labor market institutions. The article highlights the significance of immigrant workers in spurring invention, but what about their impact on wages and job displacement? As our economy continues to grapple with the effects of automation and demographic shifts, policymakers should prioritize not only increasing immigration quotas but also investing in retraining programs for native-born workers to adapt to a rapidly changing job market.
- MTMarcus T. · small-business owner
While the study's findings are convincing, they only scratch the surface of immigration's impact on US innovation. What's often overlooked is how immigrants bring not just skills, but also cultural perspectives and languages that enrich our workforce. This diversity is crucial for creating products and services that cater to a global market. In my own experience running a small business, I've seen firsthand how immigrant workers have helped me tap into new markets and adapt to changing consumer needs.