U.S. Patents and Start-Ups Fall When We Exclude Tech Immigrants

(p. A19) The process of bringing skilled immigrants to the U.S. via H-1B visas and putting them on the path to eventual citizenship has been a political football for at least a decade. It has long been bad news for those immigrants trapped in this callous process. Now the U.S. economy is beginning to suffer, too.
Every year, tens of thousands of disappointed tech workers and other professionals give up while waiting for a resident visa or green card, and go home–having learned enough to start companies that compete with their former U.S. employers. The recent historic success of China’s Alibaba IPO is a reminder that a new breed of companies is being founded, and important innovation taking place, in other parts of the world. More than a quarter of all patents filed today in the U.S. bear the name of at least one foreign national residing here.
The U.S. no longer has a monopoly on great startups. In the past, the best and brightest people would come to the U.S., but now they are staying home. In Silicon Valley, according to a 2012 survey by Duke and Stanford Universities and the University of California at Berkeley, the percentage of new companies started by foreign-born entrepreneurs has begun to slide for the first time–down to 43.9% during 2006-12, from 52.4% during 1995-2005.

For the full commentary, see:
MICHAEL S. MALONE. “OPINION; The Self-Inflicted U.S. Brain Drain; Up to 1.5 million skilled workers are stuck in immigration limbo. Many give up and go home.” The Wall Street Journal (Thurs., OCT. 16, 2014): A19.
(Note: the online version of the commentary has the date OCT. 15, 2014.)

The 2012 survey is discussed further in:
Wadhwa, Vivek, AnnaLee Saxenian, and F. Daniel Siciliano. “Then and Now: America’s New Immigrant Entrepreneurs, Part VII.” Ewing Marion Kauffman Foundation, October 2012.

An in-depth discussion of the issues raised by Malone can be found in:
Wadhwa, Vivek. The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent. pb ed. Philadelphia, PA: Wharton Digital Press, 2012.

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