Immigration, diversity and innovation in cities and regions

This chapter investigates the interplay between immigrant diversity and innovation, emphasizing the urban and regional dimensions where these effects are most pronounced. Cities and urban areas are pivotal to the generation, diffusion, and commercialization of innovations, while also serving as hubs of demographic diversity shaped by skilled migration. The chapter explores the theoretical links between diversity and innovation, particularly through mechanisms like knowledge spillovers. A review of the literature spans multiple scales, from firm-level dynamics to area-level impacts, and the limited studies addressing these processes across scales. Additionally, the chapter incorporates insights on wages, productivity, and broader economic immigration trends to contextualize diversity-innovation relationships. Concluding with key observations from current research, the chapter identifies significant gaps and suggests two critical directions for future study, offering a roadmap to deepen our understanding of how immigrant diversity fuels innovation in urban and regional contexts.