Tags: Kauffman | reverse | brain | drain

Study Raises Concerns About 'Reverse Brain Drain'

Wednesday, 03 Oct 2012 02:31 PM

By Michelle Smith

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
There might be yet another threat to the U.S. economy: Increasingly strict immigration laws are prompting a “reverse brain drain,” according to a study from the Kauffman Foundation, which reveals the proportion of foreign entrepreneurs in the United States is declining.

The findings show that over the past six years, the proportion of new companies founded by foreign-born individuals slipped to 24.3 percent from 25.3 percent.

The drop is even more pronounced in the nation's preeminent start-up community, Silicon Valley, where the percentage of new firms with at least one immigrant founder dropped to 43.9 percent from 52.4 percent in 2005.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

This reversal raises concerns since for decades foreign entrepreneurship in the United States was booming.

A study from the National Foundation of American Policy last year found that nearly half of the country's top venture-backed, early-stage companies were founded by at least one foreigner, the Washington Post reports.

However, unfriendly immigration policies are weighing on these results. One might assume that the primary problem is vast numbers of innovative foreigners who are finding it difficult to enter the country. But on the contrary, the issue seems to be that talented and educated foreigners who are already here find it hard to stay.

“The data show the significance of the reverse brain drain — immigrants educated or trained in the U.S. who can't get green cards,” Vivek Wadhwa, who co-authored the study and wrote a companion book, tells Bloomberg Businessweek.

Some warn the U.S. policy of shipping highly educated individuals overseas is not only shortsighted, but a real economic threat, as American entrepreneurs are certainly not picking up the slack. Native-born company startup rates have remained relatively flat over the last 16 years and declined in 2011, Businessweek says a recent Kauffman index reveals.

“If we wait five years to fix the immigration system, the undocumented, illegal workers will still be here, but the high-skilled immigrants will be long gone,” Wadhwa tells the Post. “They’ll be back home building the next Googles and Intels in other countries, and we will wake up five years from now and wonder how we let this happen.”

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Goldman Sachs Tells Court: 'We're No Boys Club'

Wednesday, 22 Oct 2014 18:11 PM

Goldman Sachs Group on Wednesday attacked evidence offered by attorneys for former female employees in a U.S. federal se . . .

Stocks Decline Amid Price Data as Oil Tumbles to 2-Year Low

Wednesday, 22 Oct 2014 17:06 PM

U.S. stocks dropped, halting a four-day rally, while the dollar advanced as the cost of living in America unexpectedly r . . .

Bank of America Customers Double-Charged in Apple Pay Snafu

Wednesday, 22 Oct 2014 16:52 PM

About 1,000 Bank of America Corp. debit transactions made using Apple Inc.'s new mobile-payment system were mistakenly d . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved