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  • May 2016
  • Article
  • Journal of Economic Geography

Return Migration and Geography of Innovation in MNEs: A Natural Experiment of Knowledge Production by Local Workers Reporting to Return Migrants

By: Prithwiraj Choudhury
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Abstract

I study whether return migrants facilitate knowledge production by local employees working for them at geographically distant R&D locations. Using unique personnel and patenting data for 1,315 employees at the Indian R&D center of a Fortune 500 technology firm, I exploit a natural experiment where the assignment of managers for newly hired college graduates is mandated by rigid HR rules and is uncorrelated to observable characteristics of the graduates. Given this assignment protocol, I find that local employees with returnee managers file disproportionately more US patents. I also find some evidence that return migrants act as a 'bridge' to transfer knowledge from the MNE headquarters to the local employees working for them.

Keywords

Innovation; Innovation and Invention

Citation

Choudhury, Prithwiraj. "Return Migration and Geography of Innovation in MNEs: A Natural Experiment of Knowledge Production by Local Workers Reporting to Return Migrants." Journal of Economic Geography 16, no. 3 (May 2016): 585–610.
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About The Author

Prithwiraj Choudhury

Technology and Operations Management
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