Page 76 - IJPS-9-2

International Journal of
Population Studies Relationship between population aging and innovativeness

medium-educated migrants have an effect about half as particular relevance is the result associated with the net
strong as the average migrants. Only high-educated migrants migration rate.
exhibit a positive and more significant impact on innovation Immigration is often viewed as a temporary solution
compared to the average migrants. Due to the limitation in to address labor force shortages. However, according
our data, we were unable to distinguish among the type of to demographic theory, immigration alone may not be
migrants, and given that part of our sample was composed of sufficient to rejuvenate a population with fertility rates below
data from developing countries, our sample likely included replacement levels. Nevertheless, it is widely recognized
data of a significant portion of low-skilled migrants, that immigrants are generally highly entrepreneurial
particularly in developing countries. This could explain (OECD-EU, 2019; Parker, 2009; Dheer, 2018).
why the variable NMR is not significant in our analysis, as
low-skill migration may not contribute significantly to the Consistent with the previous empirical findings (Burchardi
innovation patterns we are examining. et al., 2020), our analysis suggested that the impact of
immigrants on technological advancement depends on their
Finally, our results suggested that other demographic
forces do not drive the effect of aging; thus, our answer level of human capital. When immigrants predominantly
comprise low-skilled individuals, they are more likely to
to RQ1 is positive. In addition, the coefficient associated engage in entrepreneurship out of necessity rather than
with aging is also characterized by the largest magnitude.
Hence, not only the effect of aging survives to the inclusion pursuing innovative ventures. Furthermore, the success of
of possible confounders, but it has a substantial impact on immigrant entrepreneurship may also be influenced by the
innovativeness. support provided by local institutions (Dheer, 2018).
The Arellano-Bond tests for all three models indicate In summary, while immigration can contribute to
that these are correctly specified. entrepreneurship and economic growth, its impact on
technological advancement depends on the composition
5. Conclusions of immigrants in terms of human capital and the level
of support provided by local institutions. Low-skilled
In 2007, with regard to the ability to innovate, the CEO and immigration may not significantly affect innovation, and
founder of Facebook, Mark Zuckerberg, at Y Combinator immigrant entrepreneurs’ success may vary depending on
Startup School event in Stanford, affirmed that “younger institutional support.
people are just smarter.” Even though the same Zuckerberg
represents a case of a very young innovator, the relationship Fortunately, the effect of aging could be, in principle,
between innovativeness and age is not as straightforward in counteracted by increasing the level of education and
literature as he postulated. In particular, older entrepreneurs allowing for more flexibility in business regulations. In
may be less likely to introduce technological innovation, addition, even though aged entrepreneurship may imply
but this may not be true for product innovations (Ruiu & lesser innovation in terms of technological advancement,
Breschi, 2019). this does not automatically mean that innovations
stemming from the Silver Economy are not possible.
Almost all developed economies have experienced a
robust aging process; the same process is also happening Overall, the key message that emerges from our analysis
in the developing ones. On the one hand, this reflects is that a policy in favor of mature-aged entrepreneurship
essential improvements in living standards and the is crucial for the growth of developed economies. On this
scientific conquests in health; on the other hand, the aging line, the European Union and the OECD-EU (2021) have
issue flags a potential concern for weakening economic recognized the importance of senior entrepreneurship. They
development if the intensity of entrepreneurship booming have emphasized the need to create an enabling environment
dwindles, leading to less innovation activities. Adopting a that supports older individuals in starting and running their
macroeconomic point of view, this paper investigated the businesses, including access to finance, business support
relationship between population aging and innovation services, training and skills development, networking
activities as proxied by the number of patent applications. opportunities, and overcoming age-related barriers
Our results obtained using data panel techniques seem to and stereotypes. European Union and OECD have also
confirm this association that aging is negatively related to emphasized the importance of promoting intergenerational
the number of patent applications. This relationship remains collaboration and knowledge exchange to leverage older
significant when we controlled for important contextual entrepreneurs’ experience, skills, and networks. In addition,
variables, such as the workforce’s education level, business they have highlighted the need to address specific challenges
regulation flexibility, economic development level, and faced by senior entrepreneurs, such as limited access
other possibly confounding demographic variables. Of to capital, age discrimination, and inadequate tailored

Volume 9 Issue 2 (2023) 70 https://doi.org/10.36922/ijps.0429