As part of the framework contract for the preparation of the annual European Competitiveness Reports led by WIFO, wiiw and other research partners examined the relationship between migration and the productivity performance of European economies. The core of the study consists in the use of detailed migration, labour, sectoral and regional statistics across the EU economies to study the impact of migrants' contribution to sectoral and regional productivity developments and to measure the extent of the utilisation of their skills. Among others, the study analyses the expected economic impact of a selective, skill-biased migration policy in the EU. In policy terms, different options will be discussed also with respect to the "blue card" initiative and other incentive devices at EU, national and regional levels.