Immigrants launched over half of Silicon Valley startups

More than half of Silicon Valley's start ups of the last decade were founded by at least one immigrant, according to Benjamin Pimentel, a staff writer for the San Francisco Chronicle. Citing a Duke University study, the article says that nationwide, about one-fourth of start ups have immigrant founders.

I guess we should call this in-sourcing. This should come as no surprise. I believe the better parts of America's history are filled with stories of people who came here because this is supposed to be the land of opportunity, and they took advantage of those immigrants. This survey is well-timed. The US Congress next week will take up changes in US immigration laws and many feel it portends to be an ugly discussion.

This issue is relevant to Global Neighborhoods because technology may make it less necessary for the world's best and brightest visionary technologists to cluster here in Silicon Valley. In short, the flattening world may mean that the Andy Grove, Vinod Khosla and Sergey Brin, Alexander Hamilton, Andrew Carnegie of the future may not have to come here, robbing America of its ability to attract so many of the world's best and brightest.

Comments

[Justin Thorp]

Shel, you may wanna check out the blog of the company 37Signals. I know their leader Jason Fried has written multiple times about how their development team is spread across the world. They don't believe that recruiting talented people should be limited to those in the geographic areas. A lot of the tools that they have built and are now know for were made to help with that long distance collaboration. If I find the entries, I'll send them your way.

[Deepak]

To an extent its happening in India. Back when I moved here, everyone from my alma mater came to the US and most stayed. Now, not everyone comes here, especially some of the more entrepreneurial ones. Others go back. Still a long way to go before the world truly becomes "flat", but its on its way. Now if only people would understand that location is not a hindrance to productivity

[Niti Bhan]

Its been called the 'post-geographic' world by my friend Brad Nemer[at Moto], especially for multinationals whose employees must cooperate and co-create across time zones and continents, yet they share a common culture, that of belonging to their common employer that brings them together regardless of country of origin.

Otoh, the increasing rise in opportunities in home countries coupled with the increasing barriers to entry to hubs of innovation like the silicon valley does seem to point towards what you're saying, Shel. "... robbing America of its ability to attract so many of the world's best and brightest." The message being sent to those of us outside is "don't give me your tired, your poor etc", don't even give me your best and brightest.

In the three years I signed off on I-20's for international students, I saw the decline in numbers of those who were able to actually matriculate in the Masters and PhD programs, traditionally the main source of immigrant entreprenuers, innovators and wealth creators in the US.

[shel israel]

Niti,
From what I can make out, you are one of those best and brightest. It will be a shame when we start losing people like you.

[Damien Mulley]

Would you think that all these immigrants are very productive as with them being new to the country they have nothing to do but throw themselves into their work as they haven't established outside ties/distractions yet?

Also while with the world flattening there is nothing to stop Silicon Valley from extending itself to other countries like India, a large motivator for people to move to the U.S. and Silicon Valley is the American way of life with better living conditions and a hell of a lot more freedoms.

Would the type of people that thrive in Silicon Valley be as productive in their native countries?

[David Dalka]

I don't understand the focus on founders all the time. The teams founders assemble are typically far more important than the founder themselves!

[Niti Bhan]

Damien, it depends. Taking the points that you raise one by one:

1. The majority of the high tech entreprenuers who came here as students may have put in the long hours, but from what I've heard, particularly from those who qualified from IITs, that the work load here seemed easier in comparison and you'll note from the number of activities, social clubs etc across campuses that our asian students have very active social lives. A great many also bring their families with them, and choose to live in locales where they congregate close to coworkers, friends, regional grocery stores etc. Expats [i've been one since I was 4, in multiple countries], for the most part make far more of an effort to celebrate festivals and occasions that may not be mainstream in their new culture. imho only, I've seen obssessive coders too but is that necessarily an immigrant trait?

I wouldn't be surprised if the reason you may note many new immigrants throwing themselves in their work is that they have come here to build a better life for their families and children, I know of a Bosnian corporate lawyer, a close friend, who can only find work as a doorman in Chicago due to language issues, but puts his heart and soul into sending his kids to private school.

2. There are aspect of silicon valley that have certainly been emulated or recreated elsewhere but I've seen some analyses of the unique environment of the Bay Area [will dig up if required] that seem to imply that its inimitable without larger and deeper changes in society, culture, government regulations, funding availability etc. imho again.

3. Which segues into your third question, which I can only answer subjectively, as a woman, yes San Francisco, if not much of the United States does have opportunities if only stemming from the simple fact that I can leave the home unaccompanied without fear of molestation or rape after 7pm. Much more to this than that of course, but that's just one example. But only for the sake of argument, I would question the current "American way of life" as one necessarily held up as everyman's dream? unless one becomes an american citizen and then of course, any way of life you choose is an american way of life. The dream is a myth in today's socioeconomic reality, to be honest, don't you think?

[shel israel]

Damien,
What freedoms do we have in America that you do not have in Ireland?

[Deepak]

Niti's already put it quite well. I'll add a personal viewpoint to it

I certainly didn't come here for a way of life, nor did most people I know. I came because higher education in the US is par none. I am still here cause the most interesting work is here, my friends are here and I've built a life on the west coast (I wouldn't mind living in Nice for few years someday)

Here is the difference. 10 years ago, people didn't go back cause they had no options back home. Now that's changing, at least for some industries, so those, quite a few actually, who'd rather go with the way of life in India, going back is a viable option and they're beginning to take it.

[Niti Bhan]

Heck, Who wouldn't want a maid or two, dhobi and driver, nanny and gardner, not to mention cook, dishwasher and bottleopener? Total for about $500 a month ? That's the Indian way of life to anyone educated and savvy enough to be an entreprenuer in the Valley. Of course going back is a viable option.

[joel]

So the remaining slightly less than one half are Native Americans?

[Damon Billian]

Hi Shel,

I think that Damien was referencing that immigrants from certain countries, such as China or Vietnam, didn't live in democracies and/or may not have the same freedom(s) to thrive in their native land. Even growing economies (like India) have social mobility issues for the bulk of the population...

Damien: "Would the type of people that thrive in Silicon Valley be as productive in their native countries?"

Shel: "Damien,
What freedoms do we have in America that you do not have in Ireland?"

Note: I am not defending Damien because we have similar names;-)

[shel israel]

Damon,
I was not assaulting damien. It was a straightforward question. I do not know the answer.

[Damon Billian]

Hi Shel,

I know that you weren't:)

Anyway, there is some evidence that a lot of immigrants - even in other countries than the USA - were able to be more of a success when they moved away from their home country. I know that many Chinese people moved away from China to places like Indonesia with a lot of success (they even had race riots in Indonesia because of it).

http://en.wikipedia.org/wiki/Jakarta_Riots_of_May_1998

Note: China is obviously changing a great deal now. Historically, however, many Chinese didn't have the opportunity to create new businesses in their native land because of communism.

[Niti Bhan]

The overseas chinese community in the ASEAN migrated in the late eighteen hundreds just as they did to the US and other places to find work, if not earlier. The Peranakan for example have been around the region since the 16th century, historically the descendants of the nobility and soldiers who accompanied a Chinese princess sent as a bride to the raja of malacca. Communism came much much later to the region.
http://en.wikipedia.org/wiki/Overseas_Chinese#Current_numbers

One of the best books on migration and its attendant socioeconomic impact historically has been Joel Kotkin's Tribes: How Race, Religion and Identity Determine Success in the New Global Economy
http://www.amazon.com/Tribes-Religion-Identity-Determine-Success/dp/0679752994