Migration and Industry: Entrepreneurship, Innovation, Diaspora Networks

Abstract

This chapter discusses the role of immigration in fostering entrepreneurship, innovation, and diaspora networks from a historical perspective, with specific case studies drawn from four sectors—textiles, construction, diamonds, and information technology. Immigration has been crucial in creating and sustaining several industries while transnational connections have enabled the diffusion of industries across the world and facilitated international and intra-industry trade. Migration networks and histories, preferences of native workers, demographic shifts, and legislations are important factors that explain why some industries have a higher share of immigrants than others. Immigration is also prone to political backlash based on cultural and economic anxieties that often pit governments against industries in governing international mobility. Immigration is thus closely linked with industry dynamics in major destination countries such as the US, Western Europe, and the Persian Gulf countries, as well as major source regions such as India and China.