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Human capital, graduate migration and innovation in British regions

Human capital, graduate migration and innovation in British regions With the aid of a geographical information system, our paper constructs a three stage least squares simultaneous equation model to investigate the interrelationships between the interregional flows of human capital, and the innovation dynamism of a region. In order to do this, we model the interregional migration behaviour of high quality British university graduates from university into first employment, and we relate these human capital flows to both the labour market characteristics and the knowledge characteristics of the employment regions. This is done for all industries and separately for just high technology industries. Our results indicate that for England and Wales there is a two-way causality between the interregional human-capital employment-migration flows of recent university graduates and the innovation performance of regions. However, the results for Great Britain as a whole depend on whether London is included and Scotland is excluded. We find little or no support for the argument that the presence of local universities or small firms promotes regional innovation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Cambridge Journal of Economics Oxford University Press

Human capital, graduate migration and innovation in British regions

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References (70)

Publisher
Oxford University Press
Copyright
The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.
ISSN
0309-166X
eISSN
1464-3545
DOI
10.1093/cje/ben042
Publisher site
See Article on Publisher Site

Abstract

With the aid of a geographical information system, our paper constructs a three stage least squares simultaneous equation model to investigate the interrelationships between the interregional flows of human capital, and the innovation dynamism of a region. In order to do this, we model the interregional migration behaviour of high quality British university graduates from university into first employment, and we relate these human capital flows to both the labour market characteristics and the knowledge characteristics of the employment regions. This is done for all industries and separately for just high technology industries. Our results indicate that for England and Wales there is a two-way causality between the interregional human-capital employment-migration flows of recent university graduates and the innovation performance of regions. However, the results for Great Britain as a whole depend on whether London is included and Scotland is excluded. We find little or no support for the argument that the presence of local universities or small firms promotes regional innovation.

Journal

Cambridge Journal of EconomicsOxford University Press

Published: Nov 18, 2008

Keywords: Graduates Migration High technology

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