Template-Type: ReDIF-Paper 1.0 Author-Name: Richard Fabling Author-X-Name-First: Richard Author-X-Name-Last: Fabling Author-Email: richard.fabling@rbnz.govt.nz Author-Workplace-Name: Reserve Bank of New Zealand Author-Name: Steven Stillman Author-X-Name-First: Steven Author-X-Name-Last: Stillman Author-Email: steven.stillman@motu.org.nz Author-Workplace-Name: Motu Economic and Public Policy Research Author-Name: David C. Maré Author-X-Name-First: David C. Author-X-Name-Last: Maré Author-Email: dave.mare@motu.org.nz Author-Workplace-Name: Motu Economic and Public Policy Research Title: Immigration and Innovation. Abstract: We combine firm-level innovation data with area-level Census data to examine the relationship between local workforce characteristics, especially the presence of immigrants and local skills, and the likelihood of innovation by firms. We examine a range of innovation outcomes, and test the relationship for selected subgroups of firms. We find a positive relationship between local workforce characteristics and average innovation outcomes in labour market areas, but this is accounted for by variation in firm characteristics such as firm size, industry, and research and development expenditure. Controlling for these influences, we find no systematic evidence of an independent link between local workforce characteristics and innovation. Length: 23 pages Creation-Date: 2011-05 File-URL: https://motu-www.motu.org.nz/wpapers/11_05.pdf Number: 11_05 Classification-JEL: O31; R30 Keywords: Innovation; Immigration; Local labour market Handle: RePEc:mtu:wpaper:11_05