The role of immigrant scientists and entrepreneurs in international technology transfer

This thesis characterizes the important role of US ethnic scientists and entrepreneurs for international technology diffusion. Chapter 1 studies the transfer of tacit knowledge regarding new innovations through ethnic scientific communities in the US and their ties to their home countries. US ethnic research communities are quantified by applying an ethnic-name database to individual patent records. International patent citations confirm knowledge diffuses through ethnic networks, and manufacturing output in foreign countries increases with an elasticity of approximately 0.3 to stronger scientific integration with the US frontier. To address reverse-causality concerns, reduced-form specifications exploit exogenous changes in US immigration quotas. Consistent with a model of sector reallocation, output growth in less developed economies is facilitated by employment gains, while more advanced economies experience sharper increases in labor productivity. The findings suggest tacit knowledge channels partly shape the effective technology frontiers of developing economies. Chapter 2 further exploits this heterogeneous technology diffusion through ethnic networks to test the importance of Ricardian technology differences for international trade. Panel regressions find technology growth increases manufacturing exports.