Set skilled workers free: the mobility of workers and innovation in Brazil

Skilled workers mobility is an important means by which knowledge can be transferred across regions, leading to positive effects on innovation and interactive learning. In this paper, we aim to analyse whether the interregional mobility of skilled workers has impact on innovation at the regional level. We use microdata on employment in Brazil to track the mobility of skilled workers, focusing on STEM occupations. We apply the knowledge production function approach to assess the impact of mobility on regional innovation, focusing on the interregional mobility of skilled workers in an emerging country such as Brazil. Our results show that the mobility of skilled workers has a positive impact on regional innovation and that the circulation of skilled workers can generate positive externalities due to the presence of new knowledge in a region and by increasing opportunities for interactions.