Immigrant brain-drain challenges US innovation
Placing limits on foreign workers may be stifling innovation in the US. That’s the conclusion of a Kaufman Foundation study titled “America’s loss is the world’s gain,” conducted by Harvard professor Vivek Wadhwa.
"A substantial number of highly skilled immigrants have started returning to their home countries in recent years, draining a key source of brain power and innovation," says Robert E. Litan, VP of research and policy at the Kauffman Foundation, in a press release. "We wanted to know what is encouraging this much-needed growth engine to leave our country, thereby sending entrepreneurship and economic stimulus to places like Bangalore and Beijing."
The release states: “Immigrants historically have provided one of America’s greatest competitive advantages. Between 1990 and 2007, the proportion of immigrants in the US labor force increased from 9.3% to 15.7%,” adding, “Immigrants have contributed disproportionately in the most dynamic part of the US economy—the high-tech sector—cofounding firms such as Google, Intel, eBay, and Yahoo.” (By mentioning Intel I assume the foundation is alluding to Budapest-born Andrew Grove, although San Francisco-born Gordon Moore and Iowa-born Robert Noyce are the cofounders. Nevertheless, the foundation’s point stands.)
The foundation reports that immigrant inventors contributed to more than a quarter of US global patent applications and says that immigrant-founded US-based companies employed 450,000 workers and generated $52 billion in revenue in 2006.
Says study author Wadhwa, "While some have tried to associate the increase in foreign workers over recent years with the economic problems that have plagued the country, this data verifies the opposite effect. If the US government and the business community could find better ways to offer good jobs in tandem with less restrictive visa policies for talented immigrants, the US might be able to recapture many of these immigrants and their potential to help grow the US economy."
The two-year study focused on 1203 Indian and Chinese citizens who had studied or worked in the US for a year or more before returning home, primarily in the fields of management, technology, or science. Most had advanced degrees. Demands for their skills in their home countries as well as family considerations were the main factors prompting them to return home. A majority said they would like to start businesses within the next five years and said they believed that their own countries offered better career opportunities to launch startups.
Shakthivel commented:
Real innovation comes from Westerners ( USA + Europe). Immigrants from India & China others are more hardworking and discipline in order to survive which results in higher rate of business growth.
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