Migration is often discussed as a socio-economic phenomenon, yet its role as a driver of technological innovation is less understood. We look at a special case: the migration of East German inventors to West Germany during the post-World War II period and its transformative effects on innovation. The division of Germany after World War II into democratic West Germany and socialist East Germany set the stage for significant migration. Between 1945 and 1961, approximately three million East Germans, including many skilled professionals, fled to the West, driven by repression and economic stagnation in East Germany. Among them were inventors and scientists, whose migration patterns and subsequent contributions to West German innovation are the focus of this study. This "domestic" migration was however made impossible after 1961.
To look at the regional impact of inventor migration in West Germany, we combine patent data from Patencity (link) and the CPDB (link) to build a novel dataset on patenting at the individual level in East and West Germany covering the full 20th century. This in particular allow to track inventors that migrated from East to West. We identified about 1,800 inventors that fled between 1945 and 1961. The graph above displays innovation in West Germany 1930-70 by East German inventors.
But of course their destination choice was not random. High-skilled migrants chose locations with the highest economic portential and therefore the results can often not be interpreted as a causal effect. So to evaluate the impact of this migration on subsequent innovation, we build a novel instrument based on name proximity between East German inventors and West German counties. The idea is that the last name contains some information about the cultural roots of an individual. Historical sources suggest that family and social ties were important drivers of migration back then. And indeed the prevalence of surnames is not homogenous. We thus instrument migration by surname proximity. But how to measure the relative prevalence of surnames by county? For this we used the register of missing and dead soldiers from WW1. One problem remains, the overrepresentation of certain family names among East German inventors could signal characteristics that correlate with future innovation. Therefore, we use various vintages of historical German address books including names, occupation, and location to confirm that the results are indeed driven by surname proximity of inventors, rather than a correlation with wealth or industrial development.
Our baseline result shows that increasing the number of migrant inventors by 1% per 100,000 inhabitants (based on the 1925’s population which is about 1 fourth of a standard deviation) increases the number of patents by about 9%. This effect lasted almost two decades and was particularly strong in chemistry, physics, and electricity - fields often driven by cutting-edge scientific knowledge.
While this study offers robust evidence, it also has limitations. The unique historical and geographical context of Germany during the Cold War may not fully generalize to other settings. Moreover, the focus on patents as a measure of innovation might overlook other forms of creative contributions. Future research could explore similar dynamics in different historical periods or regions, as well as the broader societal impacts of high-skilled migration.
The findings of the research project carry important policy implications. First, high-skilled migration can act as a catalyst for local knowledge economies. The study provides robust evidence that regions with an influx of skilled inventors benefited not only in the short term but also experienced lasting knowledge spillovers. Policies aimed at attracting and retaining high-skilled talent, such as simplifying visa processes and fostering inclusive innovation ecosystems, can replicate this success. Second, regions with historical ties to specific talent pools can utilize these connections to attract skilled professionals. Surname proximity in this study acted as a pull factor, suggesting that cultural and social networks play a critical role in migration decisions. Strategies to reinforce these networks can enhance regional innovation. This study underscores the potential of migration to transform economies and stimulate innovation. By fostering inclusive, well-supported pathways for talent mobility, policymakers can harness migration as a powerful driver of technological advancement and regional growth. As we face a future shaped by global mobility, understanding and leveraging the relationship between migration and innovation will be crucial.
This study is published as a working paper in the Berlin School of Economics Discussion Papers:
Bergeaud, A., Deter, M., Greve, M., & Wyrwich, M. (2025). Migration and Innovation: The Impact of East German Inventors on West Germany’s Technological Development. Berlin School of Economics. (https://doi.org/10.48462/opus4-5685)
