Join Hands to Build a Smarter India: Sign in | Join now
News

Indians Founded Most High-Tech Startups In U.S.

Tuesday, 02 October 2012, 22:21 Hrs   |    1 Comments
17
23
39
7
Print Email


Washington: High-tech startups founded by immigrants from India have grown phenomenally in US amidst a decline in immigrant entrepreneurs considered a critical source of fuel for the US economy, according to a new study.

The proportion of immigrant-founded companies in the US has slipped from 25.3 percent to 24.3 percent since 2005, according "America's New Immigrant Entrepreneurs: Then and Now", a Kauffman Foundation survey published Tuesday.

The drop is even more pronounced in Silicon Valley, where the percentage of immigrant-founded startups declined from 52.4 percent to 43.9 percent.

The exceptions to this downward trend were immigrants from India, the study noted. Although founders in the study hailed from more than 60 countries, 33.2 percent of them were Indian, up from about 7 percent in 2005.

Indians, in fact, founded more of the engineering and technology firms than immigrants born in the next nine immigrant-founder countries combined.

After India, immigrant founders represented China (8.1 percent), the United Kingdom (6.3 percent), Canada (4.2 percent), Germany (3.9 percent), Israel (3.5 percent), Russia (2.4 percent), Korea (2.2 percent), Australia (2.0 percent) and the Netherlands (2.0 percent).

While immigrant entrepreneurship has stagnated, the rates of Indian and Chinese startups have increased, the survey found.

In 2005, Indians and Chinese entrepreneurs accounted for 26.0 percent and 6.9 percent of immigrant-founded companies, respectively.

Immigrant-founded firms were most likely to be located in traditional immigration gateway states: California (31 percent), Massachusetts (9 percent), Texas (6 percent), Florida (6 percent), New York (5 percent) and New Jersey (5 percent).

Indian founders tended to establish businesses in California, New Jersey and Massachusetts, and Chinese founders showed a propensity to start companies in California and Maryland.

"For several years, anecdotal evidence has suggested that an unwelcoming immigration system and environment in the US has created a 'reverse brain drain.' This report confirms it with data," said Dane Stangler, director of Research and Policy at the Kauffman Foundation.

"To maintain a dynamic economy, the US needs to embrace immigrant entrepreneurs."

"The US risks losing a key growth engine just when the economy needs job creators more than ever," said one of the study's authors, Vivek Wadhwa, director of research at the Centre for Entrepreneurship and Research Commercialisation at the Pratt School of Engineering, Duke University.


Source: IANS
Experts on SiliconIndia
Sunil  Bhat
Project Management
HCL Infosystems Limi
Haresh  Motirale
Founder Director
Brandniti
Jeya  Padmanaban
President
JP Research, Inc.
Sonal  Rochani
President
Shakti Foundation
Chetan  Nagaonkar
Managing Director
eStomi Technologies
Deepak  Gupta
Business Analyst
Wipro Technologies
Sarvesh  Vaidya
Senior Director - HR
Tangoe
Aarthi  G R
HRM Specialist
PlasmaGen
SIGN UP FOR STARTUP DIGEST
Write your comment now
 
Reader's comments(1)
1: proud to be an indian
Posted by:Jeevan George - 02 Oct, 2012
SPOTLIGHT
SiliconIndia About Us   |   Contact Us   |   Help   |   Community rules   |   Advertise with us   |   Sitemap   |  
News:       Technology   |   Enterprise   |   Gadgets   |   Startups   |   Finance   |   Business   |   Career   |   Magazine  |   Newsletter   |   News archive  
Cities:        CEO   |     Startup   |   Mobile   |   CIO   |   Women   |   BI   |   HR   |   SME   |   Cloud   |   Marketing   |   QA   |   Java   |   Web Developer  
Community:      Members   |   Blogs   |   Indian Entrepreneurs   |   Gyan   |   Advice   |   Community   |   Find   |   Events   |   CXO Insights  
Job Board:      Jobs   |   Freshers   |   Companies   |   HR Speak   |   Forum  
Online Courses:   Web Developer   |   Java Developer   |   CCNA Training   |   SEO   |   SAS   |   SQL Server 2005   |   J2EE
Education:   MBA   |   MCA   |   Engineering   |   Training Institute
Life:          Real Estate   |   Travel   |   Finance   |   Gadgets   |   Movie Reviews   |    Jokes  
Send your feedback and help us continue to improve SiliconIndia
© 2014 InfoConnect Web Technologies India Pvt Ltd. all rights reserved