Immigrants unlock a virtuous cycle of innovation.

The third pillar of a green free trade agreement should be the unencumbered movement across borders of highly talented people working in green industries. In the United States, immigrants generate more patentable ideas and technologies than do native-born workers—and these immigrants are more likely to found companies, which create jobs that benefit everyone. Skilled immigrants complement rather than replace skilled native-born workers. Immigrants were central to the success of the IT industry and will likely be pivotal for green technology as well.

As green technology becomes the locus of innovation, the sector will attract the best global talent, as IT has. In industries that are undergoing rapid technological change, the strongest firms flourish and attract skilled labor. Companies tend to innovate as their employees gather and exchange ideas in proximity to employees of other firms. As companies become more productive, they draw more skilled labor. This virtuous cycle of innovation and growth achieves its maximum potential when the most talented workers are allowed to move across national borders through relaxed immigration controls. But in the United States, for instance, the H-1B program does not go far enough. Had the United States allocated more visas in recent decades, the ITA would likely have been more effective. Congress should avoid this mistake by doubling or tripling the annual allocation of H-1Bs.