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Silicon Valley’s New Immigrant High-Growth Entrepreneurs

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  • AnnaLee Saxenian

    (University of California, Berkeley)

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    Abstract

    This article examines the economic contributions of skilled Asian immigrants in Silicon Valley—both directly, as entrepreneurs, and indirectly, as facilitators of trade with and investment in their countries of origin. Skilled immigrants account for one third of the region’s engineering workforce and are increasingly visible as entrepreneurs and investors. Two thirds of the region’s foreign-born engineers were from Asia. Chinese and Indian immigrants in turn accounted for 74% of the total Asian-born engineering workforce. In 1998, Chinese and Indian engineers were senior executives at one quarter of Silicon Valley’s technology businesses. These immigrant-run companies collectively accounted for more than $26.8 billion in sales and 58,282 jobs. The region’s most successful immigrant entrepreneurs rely heavily on ethnic resources while integrating into the mainstream technology economy. The challenge for policy makers will be to recognize these mutually beneficial connections between immigration, investment, trade, and economic development.

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    Bibliographic Info

    Article provided by in its journal Economic Development Quarterly.

    Volume (Year): 16 (2002)
    Issue (Month): 1 (February)
    Pages: 20-31

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    Handle: RePEc:sae:ecdequ:v:16:y:2002:i:1:p:20-31

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    2. Roxana Gutiérrez-Romero, 2012. "Determinants of Spanish Firms' Life Cycle and Job Creation: A Pseudo-Panel Approach," Working Papers wpdea1209, Department of Applied Economics at Universitat Autonoma of Barcelona.
    3. William R. Kerr, 2008. "The Agglomeration of US Ethnic Inventors," Harvard Business School Working Papers, Harvard Business School 09-003, Harvard Business School.
    4. Chung, Henry F.L. & Tung, Rosalie L., 2013. "Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China," International Business Review, Elsevier, Elsevier, vol. 22(1), pages 18-31.
    5. William R. Kerr, 2007. "The Ethnic Composition of US Inventors," Harvard Business School Working Papers, Harvard Business School 08-006, Harvard Business School.
    6. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 28(3), pages 473-508, 07.
    7. Chaganti, Rajeswararao (Raj) S. & Watts, Allison D. & Chaganti, Radha & Zimmerman-Treichel, Monica, 2008. "Ethnic-immigrants in founding teams: Effects on prospector strategy and performance in new Internet ventures," Journal of Business Venturing, Elsevier, vol. 23(1), pages 113-139, January.
    8. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute for the Study of Labor (IZA).
    9. David Y. Choi & Martin Stack, 2005. "Who Adds Value to Ventures? Understanding the Roles and Relative Contributions of Key Advisors in High-Technology Startups," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, Pepperdine University, Graziadio School of Business and Management, vol. 10(3), pages 75-88, Fall.
    10. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, Federal Reserve Bank of Kansas City, number 2005arotfrire, December.
    11. Peri, Giovanni & Shih, Kevin Y., 2013. "Foreign Scientists and Engineers and Economic Growth in Canadian Labor Markets," IZA Discussion Papers 7367, Institute for the Study of Labor (IZA).
    12. Giovanni Peri & Kevin Y. Shih & Chad Sparber, 2014. "Foreign STEM Workers and Native Wages and Employment in U.S. Cities," NBER Working Papers 20093, National Bureau of Economic Research, Inc.
    13. William R. Kerr, 2008. "Ethnic Scientific Communities and International Technology Diffusion," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 518-537, August.
    14. Ernest Miguélez, 2014. "Inventor Diasporas and the Internalionalization of Technology," CReAM Discussion Paper Series 1425, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    15. Giovanni Peri & Kevin Shih & Chad Sparber, 2013. "STEMWorkers, H1B Visas and Productivity in US Cities," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013009, Norface Research Programme on Migration, Department of Economics, University College London.
    16. Paul Almeida & Anupama Phene & Sali Li, 2010. "Communities, Knowledge, and Innovation: Indian Immigrants in the US Semiconductor Industry," Working Papers, globADVANTAGE, Polytechnic Institute of Leiria 58, globADVANTAGE, Polytechnic Institute of Leiria.
    17. Chung, Henry F.L. & Rose, Ellen & Huang, Pei-how, 2012. "Linking international adaptation strategy, immigrant effect, and performance: The case of home–host and cross-market scenario," International Business Review, Elsevier, Elsevier, vol. 21(1), pages 40-58.
    18. Jean-Marie Nkongolo-Bakenda & Elie Chrysostome, 2013. "Engaging diasporas as international entrepreneurs in developing countries: In search of determinants," Journal of International Entrepreneurship, Springer, Springer, vol. 11(1), pages 30-64, March.
    19. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, Elsevier, vol. 41(1), pages 154-166.

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