Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries
Recently, the role of returnees in the economic development of various East Asian nations has received much attention. The early literature on the relocation of the most highly trained individuals from a developing nation to a developed nation viewed the phenomena as a “brain drain.” Since the 1990s, a new strand of thinking has suggested that for developing nations this was actually a positive phenomenon; as these expatriates studied and then worked abroad, they absorbed technical expertise, managerial, and entrepreneurial skills. These theories stipulated that these expatriates then returned home, and ignited a virtuous circle of technological entrepreneurship leading to rapid economic development. Much of this literature gives returnees a critical role in the home country's take-off period of the local information and communications technology (ICT) industry. This interpretative essay examines the evidence for three of the most prominent East Asian economic success stories – Taiwan, China and India – to determine the actual role played by returnees in their ICT industries’ growth. The key question is whether returnees were critical for the initial development period, or whether they played an important role only in the later, expansionary phase of the industry. We find, contrary to the current literature that returnees were not critical, in the initial formation of these countries’ ICT industries, but did play an active role in the secondary developmental phase after indigenous entrepreneurs and policy makers had laid the groundwork for the industry.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rodrik, Dani, 2006.
"What's So Special About China's Exports?,"
CEPR Discussion Papers
5484, C.E.P.R. Discussion Papers.
- Mike Peng & Jessie Zhou, 2005. "How Network Strategies and Institutional Transitions Evolve in Asia," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 321-336, December.
- Ramana Nanda & Tarun Khanna, 2010.
"Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 19(4), pages 991-1012, December.
- Ramana Nanda & Tarun Khanna, 2007. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry," Harvard Business School Working Papers 08-003, Harvard Business School, revised Feb 2009.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
- Dai, Ou & Liu, Xiaohui, 2009. "Returnee entrepreneurs and firm performance in Chinese high-technology industries," International Business Review, Elsevier, vol. 18(4), pages 373-386, August.
- Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
- Blomström, Magnus & Kokko, Ari, 1996.
"Multinational Corporations and Spillovers,"
CEPR Discussion Papers
1365, C.E.P.R. Discussion Papers.
- Blomström, Magnus & Kokko, Ari, 1996. "Multinational Corporations and Spillovers," SSE/EFI Working Paper Series in Economics and Finance 99, Stockholm School of Economics.
- Alice H. Amsden & Wan-wen Chu, 2003. "Beyond Late Development: Taiwan's Upgrading Policies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011980.
- Charles Keely, 1975. "Effects of U. S. immigration law on manpower characteristics of immigrants," Demography, Springer;Population Association of America (PAA), vol. 12(2), pages 179-191, May.
- Devesh Kapur, 2001. "Diasporas and Technology Transfer," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 2(2), pages 265-286.
- Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July.
- Ben Kedia & Debmalya Mukherjee & Somnath Lahiri, 2006. "Indian business groups: Evolution and transformation," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 559-577, December.
- Filatotchev, Igor & Liu, Xiaohui & Lu, Jiangyong & Wright, Mike, 2011. "Knowledge spillovers through human mobility across national borders: Evidence from Zhongguancun Science Park in China," Research Policy, Elsevier, vol. 40(3), pages 453-462, April.
- Balaji Parthasarathy, 2004. "India's Silicon Valley or Silicon Valley's India? Socially Embedding the Computer Software Industry in Bangalore," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(3), pages 664-685, 09.
- Dan Breznitz, 2005. "Collaborative Public Space in a National Innovation System: A Case Study of the Israeli Military's Impact on the Software Industry," Industry and Innovation, Taylor & Francis Journals, vol. 12(1), pages 31-64.
- Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
- van der Putten, Frans-Paul, 2004. "Corporate Governance and the Eclectic Paradigm: The Investment Motives of Philips in Taiwan in the 1960s," Enterprise & Society, Cambridge University Press, vol. 5(03), pages 490-526, September.
- Lowe, Nichola & Kenney, Martin, 1999. "Foreign Investment and the Global Geography of Production: Why the Mexican Consumer Electronics Industry Failed," World Development, Elsevier, vol. 27(8), pages 1427-1443, August.
- Schiff, Maurice, 2005.
"Brain Gain: Claims about Its Size and Impact on Welfare and Growth Are Greatly Exaggerated,"
IZA Discussion Papers
1599, Institute for the Study of Labor (IZA).
- Schiff, Maurice, 2005. "Brain gain : claims about its size and impact on welfare and growth are greatly exaggerated," Policy Research Working Paper Series 3708, The World Bank.
- Dan Breznitz, 2005. "Development, flexibility and R & D performance in the Taiwanese IT industry: capability creation and the effects of state--industry coevolution," Industrial and Corporate Change, Oxford University Press, vol. 14(1), pages 153-187, February.
- Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
- Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
- Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 393-418, June.
- Breznitz, Dan, 2007. "Industrial R&D as a national policy: Horizontal technology policies and industry-state co-evolution in the growth of the Israeli software industry," Research Policy, Elsevier, vol. 36(9), pages 1465-1482, November.
- Douglas Fuller & Akintunde Akinwande & Charles Sodini, 2003. "Leading, Following or Cooked Goose? Innovation Successes and Failures in Taiwan's Electronics Industry," Industry and Innovation, Taylor & Francis Journals, vol. 10(2), pages 179-196.
- Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
- Douglas Fuller, 2010. "How law, politics and transnational networks affect technology entrepreneurship: Explaining divergent venture capital investing strategies in China," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 445-459, September.
- Dossani, Rafiq & Kenney, Martin, 2007. "The Next Wave of Globalization: Relocating Service Provision to India," World Development, Elsevier, vol. 35(5), pages 772-791, May.
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:42:y:2013:i:2:p:391-407. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.