Indolink.com reports on a study released today that breaks down the impact of Indian immigrants on several key U.S. economic sectors. Titled, “AmericaÂ’s New Immigrant Entrepreneurs,” the document is full of interesting pie and bar charts that reveal the disproportionate influence that Indian immigrants have had in the last couple of decades. However, I’m here for those of you who don’t like pie and bar charts (slackers).
The joint Duke University – UC Berkeley study reveals that Indian immigrants have founded more engineering and technology companies from 1995 to 2005 than immigrants from the U.K., China, Taiwan and Japan combined. The report also shows that Indians have overtaken the Chinese, albeit marginally, as the leading group of immigrant entrepreneurs in Silicon Valley.
The immigrant contributions must be viewed as part of a “U.S. global advantage” and provide a pointer to what “the U.S. must do to keep its edge,” the study says. In addition the study reveals that the patents awarded to non-citizen immigrants – typically foreign graduate students completing their PhDÂ’s, green card holders awaiting citizenship, and employees of multinationals on temporary visas – increased from 7.8% in 1998 to 24.2% in 2006.
It’s “a report that will without doubt rock the boat,” claims Vivek Wadhwa of Duke University, the primary author of the study. [Link]
• At least one key founder in 25.3% of the engineering and technology companies started in the U.S. from 1995 to 2005 was foreign-born, with 26% of all immigrant-founded companies having Indian founders.
• Indians have founded more engineering and technology companies in the US in the past decade than immigrants from the U.K., China, Taiwan and Japan combined.
• Nationwide, the immigrant-founded companies produced $52 billion in sales and employed 450,000 workers in 2005.
• States with an above-average rate of immigrant-founded companies include California (39%), New Jersey (38%), Georgia (30%), and Massachusetts (29%). Below average includes Washington (11%), Ohio (14%), North Carolina (14%) and Texas (18%). Indian immigrant-founders were well represented in California, Florida, Texas, and New Jersey
• Indian and U.K. entrepreneurs tend to be dispersed around the country, with Indians having sizable concentrations in California and New Jersey and the British in California and Georgia. Chinese and Taiwanese entrepreneurs strongly favor California with 49% of Chinese and 81% of Taiwanese companies located there.
• The mix of immigrants varies by state. Hispanics constitute the dominant group in Florida with immigrants from Cuba, Columbia, Brazil, Venezuela, Guatemala founding 35% of the companies. Israelis constitute the largest founding group in Massachusetts with 17%. Indians dominate New Jersey with 47% of all startups.
• Almost 80% of immigrant-founded companies in the US were within just two industry fields: software and innovation/manufacturing-related services.
• Immigrants were least likely to start companies in the defense/aerospace and environmental industries. They were most highly represented as founders in the semiconductor, computer, communications, and software fields. [Link]
<
p>The basic conclusion of the study is obvious. We NEED MORE IMMIGRANTS to maintain our edge as a nation. In case you doubt this check out this recent article in the Christian Science Monitor. Apparently the U.S. government has finally begun to accept the fact that if it doesn’t start making science and engineering a sexier option then we are headed for disaster. The Department of Defense is holding screenwriting classes to show people that studying science can lead to a glamorous job:
So what they’ve done for the past three years is convene a three-to-five-day screenwriting class at the venerated American Film Institute in Los Angeles. Called the Catalyst Workshop, it’s a lot like other screenwriting classes that have become a cottage industry across the nation. But here’s the twist – all participants in this one are actually scientists. Hardcore, PhD-laden, lab-certified scientists. Here’s the second twist – the training was all paid for by the Pentagon.
These screenwriting classes are indeed your Department of Defense tax dollars at work. Egregious example of DOD waste? Some bizarre recruiting promise? The cinematic equivalent of $700 toilet seats? Actually, it’s the Pentagon’s way of trying to enhance the nation’s science-and-technology adroitness. [Link]
Anyways, take a look at the report. The graphs make it a quick read with some nice insights.
Do you know the percentage of Indian immigrants are there in the US. Link “The Asian Indian population had risen more than two-fold in 2000, growing to 1.6 million or 0.6 percent of the total US population from 815,447 or 0.3 percent of the total population in 1990. “less than 1%. But this less than 1% of the population from India has been involved with (according to you) <6% of the startups. Seems like you have been interested in facts selectively.
As the population increases so will more Indians be involved in this. And better quality products. 450,000 jobs created is not impressive to Whom? you!!. As far as quality, I can’t think of any audio system better than Bose for the money it involves. Go read some reviews of Bose audio systems. I would just love to know your opinions about Lou Dobbs talking about Indians stealing jobs.
sorry missed this line. But this less than 1% of the population from India has been involved with (according to you) 6% of the tech startups.
Skewed to which side?. There is a fair chance the people who refused to provide information could have been immigrants!.
The definition of quality itself is blurred. It is more like the definition of beauty. It is not by the number of people who use a product or by number of people who like it or the revenue generated. Quality is defined by what consumers want. Consumers may want the opposite thing tomorrow. Walmart does not exactly sell high quality products. But it is the number one in revenue. Again the so called “high quality” products like “Ferrari” does not get that much revenue. I am not going to compare Yahoo to whatever Indians made or Russians. Again Oracle is trying to buy iflex
It is not due to lack of quality that oracle is offering a staggering $2 billion to buy iflex. And I-flex is not a call center, it is known for its high “quality” software for financial services companies. Just because you don’t know certain names doesn’t mean they don’t exist.
No Injuns beleive that. Only the media blows that trumpet to increase circulation – something picked right from the American media. If desis believed India was shining then VPie would still be PM
You are being dishonest yet again. Not surprising since what you, MyTake, KarmaByte et al are basically defending is dishonesty itself. I already quoted Narayana Murthy and Kanwal Rekhi, who should know better than you all what attracts capital:
“We are just toddling; hence we should stop terming ourselves as an IT superpower,” Murthy said…….Politicians, administrators and the media should stop saying that we are a superpower,” he said and added that the country has a long way to go, both in terms of quantity and quality of services.”
Do you really think that if this sort of “self-promotion” attracted capital Murthy would discourage it?
Firstly, you are comparing mainstream desi media with american supermarket tabloid journalism. This kind of stupid, deceitful “self-promotion” would not be tolerated in mainstream media anywhere in the developed world.
Secondly, its not just the mainstream indian media, but also major indian political parties that propagate these lies and exaggerations. It was the BJP that was behind the “India Shining” and “India is an IT Superpower” propaganda campaign for example:
http://www.bjp.org/NEM/feb_0604.htm
“India is today an IT superpower. The world respects us. It also fears our abilities.”
“India is shining.”
Do you who are defending/justifying this outrageous hyping really believe that non-desis are so much dumber than desis that they can be conned with silly boastings? That itself is a sure sign that you are out of touch with reality.
It is mostly indians themselves who are being hoodwinked. And its mostly the educated in the english-medium psuedo-elite that seem to fall for this nonsense hook, line and sinker. That does not speak well of the indian educational system. A modern educational system should train students to think rationally and objectively, about everything. The fact that even educated desis are so susceptible to being conned by patent falsehoods is alarming.
Really? Is that why Murthy has built a Glass Pyramid and his own hotel inside infosys campus to improve “image” and get more offers to people who visist him.
I bet that is not “self promotion”. Every “non desi” who goes to infosys campus goes through all the garbage and poor people. So why is “murthy” “self promoting” himself with glas pyramids and mini eiffel towers and own five star hotel inside the campus?
You still have not provided any quotes of them saying this promotion doesn’t attract capital. Your exagerating their statements to mean something you want them to mean…you are a mirror image of certain excitable people in the media.
Anyway, just look at the last tech booms in the US. How over-promoted were some of these internet compaines. Think of Henry Boldget and Mary Meeker and the press that fawned over them. Think of the amount of intenet or genomic start-ups that went bust. They all attracted loads of capital.
Certianly. Such irrational exuberence has its downside (market crash, inflation, recession, –which is what Murthy and Rekhi are probably worried about) but supressing investment is not one of them.
Firstly, I have already provided quotes from which anyone who understands english and logic can easily deduce where Narayana Murthy and Kanwal Rekhi stand on this issue. Secondly, it isn’t just “certain excitable people in the media” who are BSing/jive-talking, it is much if not most of the mainstream desi media, and worse, it was the ruling political party of India at that time, the BJP, which took the hyping and delusions of grandeur to idiotic levels with bombastic boasts like: “India is today an IT superpower. The world respects us. It also fears our abilities.”
What part of “India is a bit player, it is just learning and it is not an IT superpower. The IT industry is very broad, with applications, platforms, products, hardware…. and India is a very narrow player” and “Politicians, administrators and the media should stop saying that we are a superpower” he said and added that the country has a long way to go, both in terms of quantity and quality of services.” didnt you understand? It is obvious that they discourage such “self-promotion” for the simple reason that it is a lie. Not because of “market crash, inflation, recession, –which is what Murthy and Rekhi are probably worried about” as you are feverishly imagining.
According to the study genius, not according to me. How did you manage to conclude from that study that Indians are involved in 25% of tech startups??
And that 6% figure is also deceptive. That does not mean that 6% of founders, CEOs, Presidents, and CTOs of american tech startups are indians. Only that at least one indian immigrant was involved in 6% of startups according to this (shoddy) survey. For example in the most prominent american tech company with an indian founder, Sun, Vinod Khosla was just one of 4 founders. 94% of tech startups, including the most successful ones, had no indian involvement at all in their founding. Yet we have the desi media making laughably tall claims, based on this survey, such as: “Indians Dominate Tech Sector in U.S.”!
So, where were these “dominant” indians during the CES and Macworld Expo? There was the iconic Steve Jobs, founder and CEO of Apple who is half-arab, there was Jerry Yang chinese founder and CEO of Yahoo, and the overwhelming proportion of the rest were american-born whites. Where were the supposedly dominant indians hiding?
Doordarshan:
Actually, in the very article you cite, Murthy gives his reason for wanting to stop calling India an IT superpower:
So Murthy is concerned that Americans are starting to consider India a threat and this may lead to a political retaliation.
Yes, it is easy. In the very article you cite Rekhi explicitly states where he stands. India is not an IT superpower but:
And you should be happy that the TOI calls his prudent observations “obvious”
These prudent observations, pointing out India great strides are not yet enough to declare her a “superpower” are a good counter measure to the excitable persons on either side of this issue.
Jeez, such stubborn dishonesty. What part of “We are just toddling; hence we should stop terming ourselves as an IT superpower” didnt you follow?
And that despite India’s very low market share. This is another reason not to thump your chest. Why taunt those who butter your bread? Isnt that self-defeating? So why are you defending the hype/self-promotion?
And since you are well aware of the reasons for Murthy’s discouragement of the hype, why were you dishonestly speculating that his reasons involved “market crash, inflation, recession”?
The part where he says excessive self-promotion doesn’t attract capital. You’re reading far too much into his comments, the same way some in the press read far too much into India’s recent economic gains.
Show me where I defended the self-promotion. Once again, just like the press you so loathe, you’re reading too much into my comments.
good point. It was just specualtion since this is one of the well know dangers of self-promotion and irrational exuberence, to use Alan Greenspan’s term. But after closer reading, I see his real concern is Anerican fears of an Indain “threat” to their business may lead to a political retaliation.
Why are you dishonestly speculating that Murthy’s discouragement of a particular hype (India as IT SUperpower) means he’s saying self-promotion does not attract capital? No where does he say that, and it can’t be inferred, unless you are a member of the same excitable press you’re using this thread to rail against.
BTW, Doordarshan, since I see you’re a bit pre-occupied with the fact that some believe India is an “IT superpower,” back in the roaring 1990’s I worked in the Sales & Trading division of a global investment bank, Salomon Smith Barney (now Citigroup Capital Markets), and one of the first books they gave us to read was:
Extraordinary Popular Delusions & the Madness of Crowds
And boy, back in those days, there was a lot of self promotion attracing a lot of money, maybe not smart money, but money nonethelss.
Doordarshan: Damn those Veggie Dhoti wearing Injuns launched four satellites into space on a single PSL space vehicle. I refuse to acknowledge it as a major achievement, because it wasn’t advertised all over your sorry ass
If defeat comes in the form of increased investment, bring it on. We’ll “taunt”, “hype”, “self-promote”, “thump our chests”, live by means of “stubborn dishonesty” and maybe we’ll give the investors some value for their money if we deem it necessary >:)
Give me the name of a tech company started just by one single person. Hmmm, can’t think of a single one. First get your facts right. Apple was not just started by steve jobs(Steve Wozniak? is not an half arab), and yahoo was founded by two guys and only one of them was chinese. How about microsoft. And one more thing even one of the major venture capitalist that funded google was Ram shriram.
You are an old man who wants to believe India is a disgusting, poor, good for nothing country. Go ahead, you are the one who is fooling yourself, its so sad.
Some of you need to get your facts straight. A 50% response rate for a survey like this is fantastic. Ask any statistician. The sample size was about 4 times larger than it needed to be. The fact that Indians, who constitute 0.6% of the population start about 7% of the technology startups is amazing.
It seems that many of you have been left out and have not achieved any meaningful success. Don’t be so resentful of other that have, please! Let’s take pride in the accomplishments of the community.
Having done grad school in the late 90s at a non-ivy league school with a 94305 zip code, I have to reluctantly second some of the points that doordarshan makes. I was there at the time when everybody on campus was starting a company.
I think that Indian FOBs have developed a great ability to talk through their arses. Indeed, I found that start-ups with other asian entrepreneur founders were much more technology focused. Believe me, many FOB Indian “TECHNOLOGY GUYS” free-rode on the backs of techies who were non-Indian. It is for this reason that I absolutely hate the bastardized the-farm-meets-bhendi-baazar accent since I have heard it in so many pitches. My mind switches off and I immediately go into self-preservation mode!
Just my $0.02. Sorry to all the trolls on here but I won’t be debating this with any of you. Peace.