Skills shortage has become a key policy issue in highly developed and innovation-oriented economies, with non …-negligible consequences on firms' innovation activities. We investigate the effect of skills shortage on firms' innovation openness, which is … considered to be one of the key drivers of innovation performance. We hypothesize that scarcity of personnel causes firms to …

. We exploit firm-level panel data on product and process innovation activities in the United Kingdom and find that the … large, low-skill labor supply (immigration) shock generated by the 2004 expansion of the European Union to Eastern European … countries increased process innovation and reduced product innovation. This implies that the innovation response to labor supply …

. We analyze Polish immigration in the context of the 2004 enlargement of the European Union and find a positive and … particularly interesting as Polish immigration to Germany was not based on selection by qualification in our period of analysis. …