In the ever-evolving landscape of global innovation, the United States continues to benefit significantly from the contributions of highly skilled immigrants. A new study from the National Bureau of Economic Research (NBER) provides compelling evidence that immigrants play a crucial role in driving American innovation, fostering economic growth, and enhancing the productivity of U.S.-born individuals. The findings underscore the importance of adopting more welcoming immigration policies to maximize the nation’s competitive edge in the global market.

The Scale of Immigrant Contributions to U.S. Innovation

The NBER study, conducted by economists from prestigious institutions such as Harvard, Stanford, and U.C.-Berkeley, highlights that while immigrants constitute 16% of all U.S. inventors, they account for 23% of total innovation output. This innovation is measured by the number of patents, patent citations, and the overall economic value of these patents. These figures suggest that immigrants contribute disproportionately to technological advancements in the country.

Additionally, the study reveals that immigrants are responsible for 36% of aggregate innovation, with two-thirds of this impact stemming from their collaborations with U.S.-born colleagues. These collaborations foster knowledge spillovers, enhancing the innovative capacities of native-born inventors. Such findings challenge the narrative that immigrants merely compete with U.S.-born workers, demonstrating instead that they create substantial positive externalities that elevate the entire ecosystem.

Why Are Immigrants So Innovative?

Several factors contribute to the exceptional innovative capacity of immigrant inventors. One key factor is their ability to introduce new ideas and leverage diverse backgrounds and global networks. The study finds that immigrant inventors are about twice as likely to collaborate with foreign inventors compared to their U.S.-born counterparts. This international collaboration facilitates the importation and diffusion of global knowledge, strengthening America’s position as a leader in science and technology.

Furthermore, immigrant inventors tend to be more prolific in their patenting activities. Their patents are 10% more likely to be cited outside the United States than those of U.S.-born inventors, signifying a broader global impact. Over time, these inventors assimilate into the U.S. innovation ecosystem, gradually expanding their collaborations with native-born colleagues and enriching the country’s technological advancements.

Immigrants as Entrepreneurs: Turning Innovation into Economic Success

Beyond individual contributions to patents and research, highly skilled immigrants are also pivotal in translating innovation into economic growth through entrepreneurship. A 2022 study by the National Foundation for American Policy (NFAP) found that 55% of billion-dollar startups in the United States had at least one immigrant founder.

For example, Noubar Afeyan, the co-founder and chairman of Moderna, is a prime illustration of immigrant-driven innovation. Born to Armenian parents in Lebanon, Afeyan immigrated to Canada as a teenager before pursuing a Ph.D. in biochemical engineering at MIT. He has been instrumental in founding multiple billion-dollar companies, including Moderna, a leader in mRNA vaccine technology.

Similarly, Hari Balakrishnan, an immigrant from India, earned a Ph.D. in computer science at U.C. Berkeley before becoming a professor at MIT. He co-founded Cambridge Mobile Telematics, a company that enhances road safety through advanced analytics and is valued at over $2.5 billion.

The Study Likely Understates Immigrant Contributions

While the NBER study provides strong evidence of immigrant contributions, its methodology likely understates the full impact. By relying on Social Security numbers to identify immigrants, the study excludes individuals who arrived in the U.S. before age 20. This omission means that many innovators who came as young children or teenagers—such as Gene Berdichevsky, an early Tesla employee and co-founder of Sila Nanotechnologies—are not counted in the study’s findings.

Moreover, many of America’s top young innovators are first-generation immigrants. In the 2016 Intel Science Talent Search, one of the nation’s most prestigious high school science competitions, 83% of the finalists were the children of immigrants. This trend suggests that America’s future innovation pipeline is heavily influenced by immigrants and their families.

The Economic Case for Skilled Immigration

Other research supports the NBER study’s conclusion that skilled immigration enhances U.S. innovation. A separate study by economists Gnanaraj Chellaraj, Keith E. Maskus, and Aaditya Mattoo found that an increase in foreign graduate students in STEM fields significantly boosts patent applications and awards. Specifically, a 10% rise in foreign graduate students leads to a 4.5% increase in patent applications and a 6.8% rise in university patents.

Similarly, research by Madeline Zavodny, an economics professor at the University of North Florida, found that areas with more foreign-born STEM workers experience higher patenting rates, faster productivity growth, and higher earnings for U.S.-born workers. This evidence suggests that restricting the flow of skilled immigrants—through visa caps or other barriers—could weaken the U.S. economy.

Policy Implications: The Need for Pro-Immigration Policies

Despite overwhelming evidence of the benefits of skilled immigration, restrictive policies continue to hinder America’s ability to attract and retain top global talent. In 2022, for example, Senator Charles Grassley (R-IA) blocked a proposal to exempt foreign nationals with STEM Ph.D.s and master’s degrees in critical industries from annual green card limits. Businesses and universities widely supported the measure, arguing that it would have strengthened the nation’s technological leadership.

The NBER study provides yet another reason to rethink such policies. Innovation and technological progress are fundamental to economic growth, and immigrants have proven to be indispensable in driving these advancements. By fostering a more welcoming immigration system, the U.S. can maintain its leadership in global innovation, enhance economic prosperity, and create new opportunities for native-born workers.

Conclusion: Embracing Immigrant Talent for a Stronger America

The data is clear: highly skilled immigrants are a driving force behind U.S. innovation and economic success. Their contributions extend beyond their own patents and startups, positively influencing their native-born collaborators and expanding the nation’s technological frontiers. Given these undeniable benefits, the U.S. must adopt policies that attract and retain the best global talent rather than hinder their participation in the economy.

As competition for global talent intensifies, the United States must recognize the indispensable role of immigrants in sustaining its innovative edge. A forward-thinking immigration policy—one that embraces highly skilled individuals—will be key to maintaining America's position as a global leader in science, technology, and entrepreneurship for decades to come.