At first glance, it seems obvious that brain drain is a significant cost to emerging economies. However, some academic observers (e.g., Mountford, 1997; Beine, Docquier and Rapoport, 2001) have argued that brain drain is beneficial. They posit that the possibility of migration encourages investment in education because of the potential high returns abroad from educated migrants. Arguably, brain drain can thus eventually increase income equality in the country of origin.
Our unique competitiveness data, however, enlighten this picture. In some countries there seems to be a correlation between their position in the overall competitiveness ranking and their ranks in the brain drain indicator. The USA ranks 1st in the overall ranking and 4th in brain drain, Switzerland 2nd and Germany 6th in both rankings. In the mid rankings, Australia reaches the 17th spot and the 18th respectively. Elsewhere, South Africa ranks 52nd in the competitiveness ranking and 51st in brain drain.
It is necessary to consider that any given criterion does not function in a vacuum. There are several other variables that impact outcomes. For example, attracting highly skilled foreign labour may compensate for the decline of home-grown human capital.
The data thus suggests that one of the greatest challenges that countries face to maintain or advance their competitiveness levels is to ensure a flowing and sustainable human capital accumulation. The challenge is not only to invest and develop local talent but also to provide opportunities for that talent to realize its full potential and to continuously improve the set of skills available. In addition, the data shows that, ultimately, countries that accumulate their home-grown human capital with a balanced intake of overseas talent are able to achieve higher levels of competitiveness. In this sense, brain drain seems to deprive countries of the necessary human capital which would enable them to safeguard their competitiveness.
Employees with cognitive differences have much to offer, but navigating the workplace can be challenging. How can employers create an inclusive environment?
A balanced assessment of the past eight years is that, in terms of trade policy, America has turned protectionist, implementing significant measures to restrict domestic market access to foreign (non-US) imports.
By clearly communicating an inspiring corporate vision, businesses can boost employee engagement
Here are five practical tips to boost employee well-being in the workplace and avoid burnout and low staff morale. Build a resilient workforce for sustainable productivity.
Skills are becoming obsolescent faster than ever, and potential leaders get little time to achieve mastery. So, how important is experience for career success?
Key minds behind the Hinrich-IMD Sustainable Trade Index – Deborah Elms, Chuin Wei Yap, Christos Cabolis, and Simon Evenett – explain how decision-makers can benefit from looking at industrial policy in granular detail, given its resurgence and th...
Here’s how returning to the office can rebuild social connections, boost creativity and collaboration, and foster long-term organizational success
Discover how CHROs, like Nadim Penser at Epiroc, transform HR from a support function to a strategic leader driving business growth and diversity initiatives.
Reimagining how we think about skills and untapped sources of talent will help to avoid a dystopian future of work.
Howard Yu, LEGO® Professor of Management and Innovation at IMD, recommends six books that will inspire you and help maximize your talent.
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications