Is Immigration Always the Problem?
- Prof George Batsakis
- Sep 30
- 5 min read
Immigration is a term frequently mentioned by politicians. From the Trump administration’s tightening of U.S. visa policies to more subtle restrictions in Europe and Asia, governments worldwide are seeking ways to limit the mobility of talented and skilled workers. The debate often revolves around fears of job competition, wage suppression, or pressures on welfare systems. Yet, an increasingly rich body of research shows that immigration, especially that of skilled workers, is not a threat but a critical asset for technologically advanced economies, boosting innovation and leading to long-term economic growth. By hindering the mobility of talent, restrictive immigration measures risk slowing technological progress, compressing competitiveness, and depriving both host and origin countries of substantial benefits.
Immigration as a Driver of Innovation
The relationship between immigration and innovation is neither new nor under-researched. In fact, we now have a good understanding of it in practical and measurable terms. For example, in their seminal study, Hunt and Gauthier-Loiselle (2010) show that immigrants patent twice as much as natives, mainly because they are more likely to hold degrees in science and engineering. Their analysis suggests that a one percentage point rise in the share of immigrant college graduates boosts patents per capita by around 15% when accounting for spillovers. Far from the threat of ‘replacing’ local inventors, skilled immigrants expand the overall frontier of technological discovery. Similarly, historical and contemporary evidence lead to the same conclusion: mobility is one of the most powerful channels for the diffusion of knowledge. Migrants bring not only technical expertise but also fresh ideas, networks, and innovative problem-solving perspectives. As noted in the paper by Moser et al. (2014), even when migration is forced (such as the flight of Jewish scientists and engineers from Nazi Germany), the resulting relocation has generated measurable spikes in innovation in host countries. Figure 1 below shows the increasing levels of innovation of immigrants in the U.S. across technologically advanced and dynamic sectors.
Productivity Gains from Mobility
Recent evidence goes further, showing that migration doesn’t just move already productive individuals across borders. Instead, it makes them even more productive. Pellegrino and colleagues (2023) analyze nearly one million inventors using international patent data and find that migrant inventors become about 23% more productive after they migrate. The sensitivity of the effect is consistent across different tests, suggesting that mobility itself enhances productivity, perhaps because migrants find better institutional fits, more advanced research ecosystems, or richer collaborative environments. This finding prompts us to deeply consider the debate surrounding the concept of “brain drain.” While it is true that origin countries risk losing talent, the story is more nuanced. Migrants often remain connected to their home countries, sending back what scholars call “knowledge remittances” through collaborations, return migration, or diasporic networks. These flows diffuse technology and know-how back to the origin countries, potentially offsetting the initial loss of human capital. This leads us to the assumption that the relationship is not zero-sum. In fact, well-designed migration systems can generate brain circulation (not only braid drain), benefiting both sides (origin and host countries).
The Costs of Restrictive Policies
Despite the above scientific evidence, many governments adopt policies that are uncertain or, worse still, hostile toward immigration. Visa caps, bureaucratic hurdles, or outright bans on entry may be politically convenient, but they impose hidden costs that hinder innovation and economic growth. For example, U.S. restrictions on H-1B visas have repeatedly reduced the inflow of scientists and engineers, precisely the workers most likely to generate patents and new technologies. On the other hand, Australia’s skilled visa program had measurable positive effects on regional innovation, illustrating how restrictive policies elsewhere may be costing entire economies untapped growth. Further, delays in granting permanent residency discourage talented foreign PhDs from staying in the U.S. Studies show that uncertainty about visa status decreases the rate of stays among Chinese and Indian graduates, directly hindering the country’s capacity to retain the very individuals driving technological advances. Figure 2 shows that H-1B denial rates peaked at 15% in fiscal 2018, during Trump’s first administration. That included 24% of new applications for initial employment and 12% of renewal applications for continuing employment. The Trump administration, in its second tenure, has started implementing even stricter immigration rules.
Beyond the High-Skilled Labour Force
One can say that it is accommodating to focus the debate on “elite” scientists and engineers. Yet innovation is not limited to labs or patent offices. It goes without saying that migrants of all skill levels contribute to the economy’s growth. Less-skilled migrants often fill essential roles in sectors such as construction, agriculture, and care work, enabling native workers to transition into higher-productivity activities. This can also be considered a form of innovation, as it frees up resources and reshapes economic structures. The broader point is that mobility fosters dynamism. Whether by sustaining critical research teams, filling complementary roles, or maintaining cultural diversity that spurs creativity, immigration helps economies restructure and reinvent themselves.
Suggesting a Policy Agenda for Growth
If the evidence is so clear, why do restrictive policies persist so increasingly nowadays? Partly, it is because the benefits of immigration, such as higher productivity, more patents, and stronger growth, are more long-term. On the other hand, the perceived costs that we are all aware of (e.g., job competition or cultural change) are immediate and are often presented as more important by politicians. Policymakers must therefore make the economic case more robust, focusing on arguments clarifying that openness to talent is a precondition for global competitiveness.
A forward-looking policy agenda might include:
Expanding skilled visa programs and reducing administrative delays to ensure that talent trained in host countries can remain and contribute.
Facilitating circular migration, enabling migrants to move back and forth and transfer knowledge across borders.
Investing in integration so that diverse teams can thrive in firms, universities, and research institutions.
Recognizing the complementarity of skills, valuing not only elite scientists but also the broader labour force that supports innovation ecosystems.
The Risk of Doing Nothing About It
The history of innovation is inherently linked to the history of migration. From Huguenot craftsmen spreading textile techniques in 17th-century Europe to today’s international networks of software engineers, biotech entrepreneurs, and digital nomads, the mobility of talent and people has always been the movement of ideas. Negating mobility is equivalent to taking a risk, that of standing still in a world where others are moving forward. By treating immigration primarily as a security or cultural issue, governments neglect its role as an economic engine. The evidence from multiple studies is convergent: immigrants invent more, boost the productivity of those around them, and contribute to the overall innovation of entire economies. Closing borders may win votes, but it sacrifices growth, prosperity, and competitiveness.
Sources
Hunt, J., & Gauthier-Loiselle, M. (2010). How much does immigration boost innovation?. American Economic Journal: Macroeconomics, 2(2), 31-56.
Moser, P., Voena, A., & Waldinger, F. (2014). German Jewish émigrés and U.S. invention. American Economic Review, 104(10), 3222-3255.
Pellegrino, G., Penner, O., Piguet, E., & de Rassenfosse, G. (2023). Productivity gains from migration: Evidence from inventors. Research Policy, 52(1), 104631.
