Immigration boosts innovation and wages in the US. The positive dynamic impact of immigration on innovation and wages dominates the short-run negative impact of increased labor supply. Increased immigration to the US since 1965 is estimated to have increased innovation and wages by 5%.
The alarm comes from changes in the way taxpayers’ money is invested by UK Research and Innovation (UKRI), which recently published its plan on how to disburse £38.6bn of public research and development funding over the next four years. Change is always unsettling, and as the UKRI’s chief executive, Ian Chapman, says, there will always be those who lose out when change happens. Difficult choices must be made.
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