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41. Skilled Immigration, Task Allocation and the Innovation of Firms

Author:
Anna Maria Mayda, Gianluca Orefice, and Gianluca Santoni
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper analyses the impact of skilled migrants on the innovation (patenting) activity of French firms between 1995 and 2010, and investigates the underlying mechanism. We present district-level and firm-level estimates and address endogeneity using a modified version of the shift-share instrument. Skilled migrants increase the number of patents at both the district and firm level. Large, high-productivity and capital-intensive firms benefit the most, in terms of innovation activity, from skilled immigrant workers. Importantly, we provide evidence that one channel through which the effect works is task specialization (as in Peri and Sparber, 2009). The arrival of skilled immigrants drives French skilled workers towards language-intensive, managerial tasks while foreign skilled workers specialize in technical, research-oriented tasks. This mechanism manifests itself in the estimated increase in the share of foreign inventors in patenting teams as a consequence of skilled migration. Through this channel, greater innovation is the result of productivity gains from specialization.
Topic:
Business, Immigrants, Innovation, and Skilled Labor
Political Geography:
Europe and France

42. Risks and Benefits of i-Voting in Public Opinion: Evidence from Poland

Author:
Izabela Kapsa and Magdalena Musial-Karg
Publication Date:
03-2022
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
Apart from benefits, internet voting security is most frequently discussed by opponents and supporters of this form of electoral participation. Although this voting method is not available in Poland, the debate on the implementation of i-voting appears in each election. The COVID-19 pandemic showed a great need to implement additional remote voting methods in the elections, and increasingly more countries are considering the introduction of i-vote in the future. Although there is no plan for the nearest future in Poland, citizens' opinions suggest that this voting procedure would meet many of its users. The paper's main aim is to analyse Poles' opinions about the risks and benefits of internet voting. The results of our own studies are based on a survey among Poles regarding their views on internet voting. The main goal is to verify if Poles more often highlight the benefits than risks of i-voting, and if the opinions about risks and benefits of i-voting differ depending on respondents’ sex, age, education and domicile.
Topic:
Security, Elections, Voting, Innovation, and Political Participation
Political Geography:
Europe and Poland

43. The Five ‘I’s of EU defence: Inclusive integration for effective investment, innovation and institutions

Author:
Dylan Macchiarini Crosson and Steven Blockmans
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
At the crossroads of industrial policy and the Common Security and Defence Policy (CSDP), the European Union’s (EU) defence initiatives are accelerating with the political backing of both the EU institutions and key Member States. Russia’s war in Ukraine has played a seminal role in the introduction of taboo-breaking proposals to strengthen EU defence capabilities. In order to be effective, the EU must adopt the mantra of ‘inclusive integration’, recognising that increased cooperation amongst Member States, candidate countries, and like-minded partners makes the Union stronger. Policy actions under this mantra should thus aim to complete the regulatory framework of the European Defence Technological and Industrial Base, continue providing the right incentives for joint capabilities development, address the needs of Member State armed forces, maintain the EU’s technological cutting edge and guarantee continued political momentum.
Topic:
Defense Policy, European Union, Investment, Institutions, Innovation, and Russia-Ukraine War
Political Geography:
Europe

44. The Geopolitics of Digital Technology Innovation: Assessing Strengths and Challenges of Germany’s Innovation Ecosystem

Author:
Tyson Barker and David Hagebölling
Publication Date:
08-2022
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The COVID-era public and private investment influx into Germany’s digital technology R&D is reversing amid inflation, fiscal consolidation, and geopolitical pressures coming from the Zeitenwende. Germany’s future in an EU that is among the top-tier technology powers requires a profound and rapid transition of the country’s R&D strengths into data-intensive, systems-centric areas of IoT and deep technology that are linked to the domestic manufacturing base. New policy approaches in three areas – money, markets, and minds – are needed. New technologies such as robotics, artificial intelligence (AI), advanced material science, biotech, and quantum computing tend to have broad general-purpose applications. But uncoordinated funding vehicles, universities’ civil clauses, and restrictive visa and onboarding guidelines for skilled foreign workers slow innovation in these sectors and hamper German geo-technological competitiveness. In the mid-term, Germany could look at a scheme to bundle the Future Fund together with new institutional investment in a sort of embryonic German Sovereign Wealth Fund, with a proportion of funding specifically geared toward strategically important VC endeavors.
Topic:
Science and Technology, Geopolitics, Innovation, and Digitization
Political Geography:
Europe and Germany

45. How to make I.T. in Greek Manufacturing: Evidence and Policy Recommendations

Author:
Sofia Anyfantaki
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Greece has so far failed to shift its production structure towards more complex, high value-added activities, incorporating knowledge-intensive practices. Given the country’s low performance in innovation and knowledge diffusion relative to EU peers, we focus on two specific problem areas of Greek industry: skills and management practices. First, we provide an in-depth look at skills indicators to identify the scope for action, particularly in addressing mismatch. Second, we use firm-level data from the World Management Survey to give an overview of management practices in Greek industry and explore the quality of these practices and their association with productivity. We have two novel findings: first, we document that Greece has the highest overskilling for professional occupations in the OECD; second, we show that Greek firms do best in areas requiring unitary decision making, and worst in areas requiring teamwork and synergies. We complement our analysis with data from a new survey and examine structural characteristics of innovation and technology adoption. The collection of our empirical findings provides valuable input into concrete policy proposals to increase productivity in Greek manufacturing.
Topic:
Science and Technology, Manufacturing, Innovation, Industry, and Information Technology
Political Geography:
Europe and Greece

46. Blending the physical and virtual: a hybrid model for the future of work

Author:
Monika Grzegorczyk, Mario Mariniello, Laura Nurski, and Tom Schraepen
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The pandemic has shown that many workers can efficiently work remotely, with benefits for wellbeing and even productivity. The European Union should develop a framework to facilitate hybrid work.
Topic:
European Union, Work Culture, Innovation, Strategic Competition, Pandemic, and COVID-19
Political Geography:
Europe and Global Focus

47. What is Wrong with the German Economy? The Case for Openness to Technology and Human Capital

Author:
Philipp Lamprecht
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Advanced economies like Germany need to focus more on attracting foreign high-skilled labour and become better at importing foreign technology and business models. This might not sit well with current thinking of economic sovereignty in Berlin, but it is a necessary step for improving technology-penetration, competitiveness and productivity. Supply of high-skilled labour is getting more difficult to obtain and the cost of generating and adopting new ideas is increasing. Policymakers need to create the right conditions to open their markets to foreign technology and high-skilled labour. But openness alone is only a necessary condition – not a sufficient one. Policymakers also need to focus on creating the right environment domestically to attract a specialised and highly-skilled labour force, despite fierce competition from around the globe. The crucial question is to what extent companies make use of innovation capacities that can be obtained from international recruitment. Our analysis focuses on what German policymakers can do to increase openness for, and its attractiveness to, the high-skilled labour. Germany’s policy framework should focus on public policy initiatives aimed at increasing the incentives and removing obstacles for firms to attract the global high-skilled labour force. To stay attractive, Germany’s policies should also target issues of bottleneck regulation to facilitate field-testing new technologies and to support innovation sandbox processes of companies. And German policies should focus on the regulatory environment, notably the type of regulations that policymakers pursue. Many current regulations in Germany do not sufficiently allow for experimentation of technologies and ideas.
Topic:
International Political Economy, Science and Technology, Labor Issues, Regulation, Human Capital, Innovation, and Skilled Labor
Political Geography:
Europe and Germany

48. Covid-19 and the Danger of Self-sufficiency: How Europe’s Pandemic Resilience was Helped by an Open Economy

Author:
Johan Norberg
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
During the Covid-19 pandemic, Europe has benefitted strongly from being an open economy that can access goods and services from other parts of the world. Paradoxically, some politicians in Europe think that dependence on foreign supplies reduced the resilience of our economy – and argue that Europe now should wean itself off its dependence on other economies. In this Policy Brief, it is argued that self-sufficiency or less economic openness is a dangerous direction of policy. It would make Europe less resilient and less capable of responding to the next emergency. It is key that people, firms and governments can get supplies from other parts of the world. It is diversification, not concentration of production, that will make Europe more resilient when the next emergency hit. We don’t know where the next crisis will come from. Nature will throw nasty surprises at us, and we will make stupid mistakes, some of which will have devastating consequences. What we do know, though, is that we stand a better chance to fight the next emergency if we get richer and improve our technology. The best policy for resilience is one that encourages specialisation and innovation – and, when the emergency hit, allow for people to improvise in search for solutions. For that to happen, we need openness to goods, services and technology from abroad.
Topic:
Health, International Political Economy, Innovation, Economic Cooperation, Pandemic, and COVID-19
Political Geography:
Europe and Global Focus

49. EU Horizon 2021-2027 – innovation momentum for Europe

Author:
Katarína Svitková
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Europeum Institute for European Policy
Abstract:
Our Associate Research Fellow Katarína Svitková wrote the first article for the new EUROPEUM publications series: 2021–2027 Horizon Europe. In a policy brief Katarína summarises the objectives of Horizon 2021-2027 and introduces the "Innovation” pillar of the European Union funding scheme for the following years. One year on, despite some less-than-smooth negotiations regarding the structural funds and the COVID-19 vaccine rollout, Europe is recovering. Horizon Europe has officially launched its new funding period and the EU member countries are preparing to benefit. Amidst domestic pressure, the UK Government’s is fighting hard to maintain access to the framework. The COVID-19 vaccination is underway throughout the continent, and the EU-leaders-agreed Just Transition Fund is another step towards what is to become a truly transformative period for the European industry and climate. As the dust settles in the aftermath of Brexit and COVID-19, it is time to review the ample opportunities for growth and innovation made possible by Horizon Europe. The 2021 – 2027 program was officially launched this past February, with a number of programs and calls currently opening for the first funding period.
Topic:
European Union, Innovation, and COVID-19
Political Geography:
Europe

50. Innovating through knowledge: European Institute of Innovation and Technology 2027 – and why it matters

Author:
Katarína Svitková
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Europeum Institute for European Policy
Abstract:
Our Associate Research Fellow Katarína Svitková has written the second article of the new publication series EUROPEUM: 2021–2027 Horizon Europe. In her policy brief, Katarína presents the European Institute of Innovation and Technology (EIT) as one of the main components of the Horizon Europe Innovation Pillar and describes its program and objectives. Innovation through research and development has been a long-term objective throughout the European funding frameworks. With the start of the 2021 –2027 cycle of Horizon Europe, EU’s innovation institutions are continuing, but also setting more ambitious priorities and launching new components and programs. Continuing EUROPEUM’s series on EU innovation momentum, this article presents the European Institute of Innovation and Technology (EIT) as one of the major components of the Horizon Europe Innovation pillar.
Topic:
Science and Technology, European Union, and Innovation
Political Geography:
Europe