Talent is universal, opportunity is not. BCG’s Innovation Without Borders Series explores how global migration can create opportunities for individuals, companies, and societies.
Innovation without borders is a broad concept encompassing both the challenges and opportunities for businesses and societies that stem from global migration. Although we live in a world in which the movement of people is much more tightly restricted than is the transit of capital and goods, there’s plenty of impetus for global migration:
More than 280 million people—3.6% of the world’s population—today live in countries other than where they were born.
More people would be open to migrating; 50% of workers would take a job abroad, according to a recent BCG survey.
Labor shortages are at an all-time high across the world's 30 largest economies, resulting in an excess cost of approximately $1 trillion per year—above $3 billion per day, and equal to more than 1% of world GDP.
The annual economic contribution of migrants could reach $20 trillion by 2050.
Those are compelling drivers, but while 95% of executives tell us they plan to embrace global migration and talent, only 5% do so in a manner that is truly strategic and generates real impact. The hesitation? Culture. Executives worry about the cultural changes that may arise and the challenges that come with leading and uniting globally diverse teams.
Businesses can, however, leverage and embrace global talent and innovation strategies to drive action—an effort that is both achievable and valuable. BCG’s research on global migration reveals that companies that view global diversity as part of their DNA are more than twice as likely to be world-class innovators and fast-growing companies. Given the Ukraine War and ongoing conflicts in Afghanistan, Syria, and elsewhere, it’s critical to remember that not all migration is voluntary; this makes the moral obligation of expanding global migration opportunities all the more urgent.
Through our research into the strategies and operational best practices of globally diverse firms, we developed the novel benchmarking tool BCG Globally Diverse Teams – Scan, which allows companies to quickly determine their current starting point and assess their high-impact levers to drive forward action.
Public talent investment funds come with a clear business case for action: attracting and retaining global top talent generates a substantial return on investment.
BCG’s Global Talent Migration Index can help countries tap the full economic potential of both immigration and emigration—and track their performance over time.
By 2040, that workforce will reach an all-time high—but will be found in new places. Government leaders must build bridges to tomorrow's talent hubs.
Global migration generates enormous opportunities in terms of both economic value and human values. It’s time to explore the immense benefits of human migration.
Of all the economic differences between two randomly chosen human beings, 66% are due to one factor only: where they were born.
Many companies aspire to global diversity, but only a few achieve it. Here’s how leading organizations overcome cultural obstacles to build globally diverse teams.
Opening doors for skilled global talent would ignite innovation growth. It’s not politicians but business leaders who hold the keys to make this happen.
As migration accelerates cities must recruit for the economy they want, not the economy they have.
Global migration is both a humanitarian and a business imperative. Our consulting experts help organizations realize the benefits of human migration and innovation without borders.
Senior Advisor
Munich
