Migration and growth in a Schumpeterian growth model with creative destruction

This paper incorporates endogenous migration into a second-generation Schumpeterian growth model to study how migration, innovation, and growth interact with one another. The paper finds that migration always enhances the rates of innovation and growth of the receiving economy, but implementing pro-innovation policies in the receiving economy does not lead to more migration when the gap in technical knowledge between countries is fixed over time. However, when the technology gap is allowed to adjust endogenously, the paper finds that implementing pro-innovation policies in the receiving economy shrinks immigration flows and reduces the cross-country gap of technology.