Do immigrant-owned high-tech firms innovate more than native-owned ones?
Core argument: Immigrant entrepreneurs in the U.S. high-tech sector outperform native counterparts on 15 of 16 innovation measures, including product and process innovation, with copyright and trademarks the exception, according to the Annual Survey of Entrepreneurs.
Immigrant entrepreneurs in the U.S. high-tech sector have consistently outperformed their native counterparts in 15 of 16 innovation measures, with the exception of copyright and trademarks. Data from the Annual Survey of Entrepreneurs reveals that immigrant-owned firms exhibit higher innovation rates across various metrics, including product and process innovation. This advantage persists regardless of the firm's age or the entrepreneur's education level. While controlling for demographic and human capital characteristics increases the observed differences, adjustments for finance, motivations, and industry reduce them. Nonetheless, immigrants maintain a significant edge in innovation activities, underscoring their critical role in driving technological advancement in the U.S.







Ed CommentOf course, we know the reason why—selection bias and genetics. Although I’m doubtful the denies ill ever admit it.