MPX – Growth/Innovation High skilled workers are key to innovation and the economy—absent reforms, US economic leadership declines
Johnson, American Immigration Council executive director, 2015 (Benjamin, “The Power and Potential of High Skilled Immigration,” American Immigration Council, 5/17/2015, http://immigrationimpact.com/2015/03/17/the-power-and-potential-of-high-skilled-immigration/, IC)
Today, foreign workers fill a critical need—particularly in the Science, Technology, Engineering, and Math fields. Now more than ever, we need an honest conversation about reforms that can improve and strengthen the admission of these immigrants into our labor force. But to do that, we must move the current immigration debate beyond the stereotypes, myths, and hyperbole that distract from that conversation, and which seek to pit native-born workers against their foreign-born colleagues.∂ The U.S. job market is not a “zero-sum game” in which workers must fight each other for a fixed number of jobs. The United States has the most dynamic and powerful economy the world has ever known, and immigrants of all types and skills, from every corner of the globe, have worked shoulder to shoulder with native-born workers to build it.∂ The overwhelming weight of research shows that in our dynamic labor market, skilled immigrants complement their U.S.-born counterparts. Skilled immigrants’ help create new jobs and new opportunities for economic expansion. Indeed, foreign workers positively impact the wages and employment opportunities of native-born workers across our economy.∂ The important role that skilled immigrants play in our economy extends far beyond the world of computers and high tech, and skilled immigrants are helping to reshape communities far beyond Silicon Valley. They are making enormous contributions in almost every aspect of our economy, including manufacturing, medical research, healthcare delivery, and agriculture. Their contributions have helped rebuild economies in places like Des Moines, Iowa; Tuscaloosa, Alabama; and Raleigh, North Carolina.∂ For me, the bottom line is this:∂ In today’s global economy, where other countries are spending billions of dollars to compete with America’s ability to attract immigrants, we cannot take this issue for granted. If we continue to ignore the need for immigration reform or adopt policies that discourage skilled immigrants from helping America to innovate, lead, and create more high-paying jobs we run the enormous risk that America will be left behind, without a robust innovation and entrepreneurial sector.∂ Innovation is the key to growing the U.S. economy and creating jobs. In turn, the key to innovation is attracting, growing, and retaining a skilled workforce. Foreign-born workers, especially STEM workers, have been and will continue to be a critical part of this equation.
Boosting high-skilled immigration is key to innovation
Nowrasteh 14 – MS @ London School of Economics
(Alex, “Boost Highly Skilled Immigration,” http://www.cato.org/publications/cato-online-forum/boost-highly-skilled-immigration)
A third major benefit from highly skilled immigrants is their high rate of entrepreneurship. The founding of new firms is an important contributor to innovation and job growth in the United States. In 2013, immigrants were nearly twice as likely to start a business as U.S.-born Americans. Between 1995 and 2005, 25.3 percent of all technology and engineering firms established in the United States had at least one immigrant founder. Immigrants from India, China, the United Kingdom, and Taiwan tended to be the most entrepreneurial. In Silicon Valley, 43.9 percent of technology and engineering startups had at least one immigrant co-founder between 2005 and 2012.9∂ Several conclusions can be drawn from this research. The impact of immigrant workers on TFP are notoriously difficult to measure and papers attempting to do so are open to methodological challenges. However, much research finds that immigrant workers increase TFP and there is no major study or academic research that has found that immigrants reduce it. Increased patents and innovation are likely the main way by which immigrants affect TFP while task specialization is an additional factor. Studies on immigrant innovation through patents are generally convincing as an increase in the supply of scientists and engineers has historically increased the supply of research and development in the United States.10 One influential paper by Jones estimated that as much as 50 percent of U.S. productivity growth between 1950 and 1993 could be attributed to growth in the share of scientists and engineers – two sectors likely to expand if skilled immigration was liberalized.11∂ Furthermore, highly-skilled immigrants are very entrepreneurial, contributing to innovation and productivity growth through the creation of new firms in the high-tech sector. New firms are a major source of job growth and innovation as they often take risks that larger, established firms are unwilling to bear.∂ The contributions of highly skilled immigrants to innovation, productivity growth, and entrepreneurship are likely great in proportion to their numbers. However, the restrictiveness of America’s immigration policy has severely limited the potential of our economy to benefit even further. There are several policy reforms that could increase high-skilled immigration and thus the overall economic gains.
High-skilled immigration reform is key to competitiveness
Fitz 12 – JD @ UVA, Vice President of Immigration Policy at American Progress, where he directs the organization’s research and analysis of the economic, political, legal, and social impacts of immigration policy in America and develops policy recommendations designed to further America’s economic and security interests
(Marshall, “How to Attract the World’s Best Talent While Ensuring America Remains the Land of Opportunity for All,” American Progress, https://www.americanprogress.org/issues/technology/report/2012/01/19/10945/immigration-for-innovation/)//BB
Yet despite the critical importance of such immigrants to the nation’s economic success in the increasingly competitive global economy, our current high-skilled immigration system is a two-fold failure: Arbitrary restrictions prevent American companies from effectively tapping the full potential of this talent pool, while inadequate safeguards fail to prevent against wage depression and worker mistreatment. The reforms outlined in this paper will help establish a 21st century immigration system that reaps the fruits of admitting the world’s best and brightest to promote economic competitiveness, while upholding our responsibilities in a global economy.∂ Of course, our current immigration policies have failed the country on many fronts beyond the high-skilled policy arena. And the urgent need for comprehensive, systemic reforms is beyond question. The national debate has understandably focused up to this point on the most visible and most highly charged issue—ending illegal immigration. And a holistic strategy that combines enforcement with a requirement that current undocumented immigrants register, pay a fine, learn English, and pay back taxes will spur economic growth to the tune of $1.5 trillion in cumulative GDP over 10 years. Overhauling our immigration system and restoring the rule of law is indisputably a national economic and security imperative.∂ But reforms to our high-skilled immigration system are not only important to enhance the coherence and integrity of our immigration policies, they are also an important component of any national strategy to foster innovation and competitiveness. Science, technology, and innovation have been—and will continue to be—keys to U.S. economic growth. The United States must remain on the cutting edge of technological innovation if we are to continue driving the most dynamic economic engine in the world, and U.S. companies must be able to recruit international talent to effectively compete in the international innovation arena.
High-skilled immigration is key to innovation, entrepreneurship and education---all drive growth
Nowrasteh 10 – MS @ London School of Economics
(Alex, “H-1B Visas: A Case for Open Immigration of Highly Skilled Foreign Workers,” https://cei.org/sites/default/files/Alex%20Nowrasteh%20-%20H1-B%20Visas.pdf)//BB
Highly skilled immigrants are an enormous net benefit to the American∂ economy. Their achievements are astounding, especially in relation to∂ their numbers. But the achievements do not just accrue to the immigrants∂ themselves. The spillover effects of increased technological innovation,∂ entrepreneurship, and high rates of education are enough to safely justify∂ removing all caps and restrictions on H-1B visas.∂ Restrictions on the entry of highly skilled immigrants hinder∂ the growth of certain industries, reduce economic growth, and slow∂ technological development. The government cannot pick winners among∂ highly skilled immigrants before they enter the country, so the number∂ allowed entry should be as great as possible, the requirements for entry as∂ low as possible, and the burdens eliminated to the greatest extent possible.
High skilled workers are key to technological and scientific innovation
Nowrasteh, Cato Institute Immigration Policy Analyst, 2010 (Alex, “H-1B Visas: A Case for Open Immigration of Highly Skilled Foreign Workers,” Competitive Enterprise Institute, October 2010, https://cei.org/sites/default/files/Alex%20Nowrasteh%20-%20H1-B%20Visas.pdf, p. 8-10, IC)
Immigrants contribute to America’s ongoing technological success. While far from perfect, patents can serve as a rough measure of a country’s level of technological innovation. A 2005 World Bank study found that foreign graduate students working in the United States file an enormous number of patents.23 Additionally, a quarter of international patents filed from the U.S. in 2006 named a non-U.S. citizen working in the U.S. as the inventor or co-inventor.24
Increased usage of computers and information technology services are responsible for virtually all of the growth in labor productivity and two-thirds of the growth in total factor productivity between 1995 and 2002.25 H-1Bs are heavily concentrated in those sectors and have been instrumental in many recent technological advances.26 Technological improvements, largely driven by the rate of innovation and invention, can be approximately measured by looking at the rate of patent issuance. In many sectors—particularly in those involving emerging technologies— the more patents that get filed, the quicker and broader the pace of technological advancement.27
An increase in patents would help GDP growth.28 The elasticity of America’s GDP in the late 1990s was about 0.113, which means that a relatively small increase in the number of highly skilled foreign workers and their resulting patents have a disproportionately large effect on GDP. The influx of immigrant college graduates in the 1990s increased U.S. per capita GDP by 1.4 percent to 2.4 percent. GDP in the first quarter of 2000 was $11 trillion.29 In that year, patents filed by immigrant college graduates contributed between $155 billion and $265 billion to GDP.30
Foreign graduate students studying in the U.S.—many of whom qualify for but are denied H-1B visas due to the cap—are prolific inventors. On average, each additional foreign graduate student results in 0.63 patent applications.31 Additionally, 24.2 percent of international patents filed from the U.S. listed a foreign skilled worker as an inventor or co-inventor.32 That figure is up from 7.2 percent in 1998.33 This army of foreign graduate student innovators gives the U.S. a significant comparative advantage in the training and export of specialists in higher education, partly because of the numbers of skilled foreign workers and foreign students enrolled at U.S. universities.34
Technological growth and change is highly dependent upon spillovers of knowledge. Today’s inventions and innovations are usually built upon those of yesteryear. Speeding up this process are the knowledge of those inventions and the concentration of inventors. Contact between inventors, especially geographic proximity, is a prime ingredient for rapid and valuable technological advancement.35 Highly skilled foreigners accelerate and expand this process.
The contribution of foreign-born workers to scientific progress outside of the intellectual property sphere is also staggering. Forty percent of all science and engineering PhDs working in the U.S. are foreign-born.36 Since the year 2000, one-third of the Americans who received the Nobel Prize in physics37 and one-third of Americans who received the Nobel Prize for medicine and physiology between 1901 and 2005 were born abroad.38 Five of the eight Americans who received the Nobel Prize for sciences in 2009 were born abroad.39 Given this, it is reasonable to assert that excluding highly educated foreigners would harm groundbreaking, frontier research and development in the United States.
Immigration is key to future STEM industries—we have studies
Kerr, Harvard Business School Professor, 2013 (William R., “U.S. HIGH-SKILLED IMMIGRATION, INNOVATION, AND ENTREPRENEUSHIP: EMPIRICAL APPROACHES AND EVIDENCE,” National Bureau of Economic Research, August 2013, http://www.nber.org/papers/w19377.pdf, p. 8-9, IC)
Placing these first two themes together, it becomes clear that immigration acts in two different ways for the United States. First, it provides the United States with a number of exceptional superstars for STEM work. Second, immigration acts through the sheer quantity of workers that it provides for STEM fields. These workers are often well trained for STEM roles, but, conditional on that education, the immigrants are of a similar quality level to U.S. natives. The pieces are not at odds with each other, as amid a large STEM workforce of more than two million workers, the exceptional tail does not move the averages of the groups very much. While it is difficult to prove which of these channels is more important, we have the general feeling that the quantity aspect of high-skilled immigration is the stronger factor in terms of its potential impact for STEM work in the United States.
To close, we also note a parallel set of work that considers the quantity and quality of immigrant student enrollments in STEM fields. This dimension is important as university and graduate school admissions shape, in large part, the United States’ future STEM workforce. Bound et al. (2009) and similar studies document how immigrants account for an exceptional share of STEM students, especially among graduate students, in levels that exceed those noted for the workforce above. Grogger and Hanson (2013) describe the selectivity of foreign-born STEM Ph.D. students in the United States. Studies evaluating the production of innovation within universities also tend to find a special role for immigrant students (e.g., Chellaraj et al. 2008, Stephan 2010, Gurmu et al. 2010, Stuen et al. 2012, Gaule and Piacentini 2012). 6
Expert consensus votes negative—net positive effect on the economy
Kane, Stanford’s Hoover Institution research fellow, 2014 (Tim, “There’s a better way to do immigration reform,” LA Times, 10/20/14, http://www.latimes.com/opinion/op-ed/la-oe-kane-immigration-work-visa-reform-20141021-story.html, IC)
Such rules are politically appealing, but they are more likely to chill guest work opportunities and reduce economic dynamism than to protect jobs. Research shows that the U.S. economy is stronger on balance with immigration, just as it is with free trade, which is why so many of the surveyed experts are bullish on the “likely effects of an expanded and more efficient U.S. guest worker program for all skill levels five years after enactment.” Ninety-four percent of the experts said it would increase GDP. All but one thought U.S. exports would increase (51%) or at least stay the same. On balance, our experts thought there would be no effect on unemployment among U.S. workers.
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