Information technology (IT) is transforming the way we work and do business. Increasingly, organizations are adopting digital tools that enhance productivity and competitiveness. However, digital transformations can be costly in terms of financial and human resources as well as lost productivity. Many factors affect a business’s decision to adopt new IT, like access to capital, risk management, its workforce’s adaptability or industry regulations. But what about immigration policies? We don’t know yet, and that’s what Professor TieMei Li wants to find out.
Li has earned a Research Development Grant through the Telfer School of Management Research Grant program for her project, Do Immigration Policies Affect Information Technology Adoption?
This project proposes comparing Canada’s permanent residency program to the United States’ H-1B visa program for temporary workers to see whether each country’s immigration policy affects IT adoption in firms. While Canada’s program has historically been relatively broad and welcoming, the United States’ is significantly more restrictive. This results in different types of labour supply for each country.
For example, the H-1B program is geared toward professionals with specific expertise, such as IT workers. Meanwhile, Canada’s immigration policy provides a broader labour pool, especially for small and medium-sized enterprises. That sentiment was shared in The Economist’s article touching on immigration policy under former prime minister Justin Trudeau. As a result, are firms more or less inclined to adopt new technology?
Li’s answer to that question will promote a better understanding of how immigration’s effect on labour supply shapes technology adoption, especially in small and medium-sized enterprises, which are a significant part of Canada’s economy. According to Li, Canada continues to struggle with low productivity and weak investment in technology. Since technology investment is a key driver of productivity growth, it’s essential to understand if firms are using the abundant labour pool created by generous immigration policy instead of investing capital in digital transformation.
The research findings will be relevant for federal and provincial policymakers, economic development agencies and innovation agencies, as well as researchers in economics, public policy, management and labour studies.
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