In a new study, researchers from Duke University, the University of California-Berkeley, and the Kauffman Foundation show that there is a strong correlation between educational attainment in the STEM disciplines and innovation among immigrant founders of U.S.-based engineering and technology companies.
The authors say that “Education, Entrepreneurship and Immigration: America’s New Immigrant Entrepreneurs, Part II” follows the earlier report which showed that immigrants are helping to create more jobs in the hi-tech business, instead of taking away jobs from American workers.
The researchers used the D&B Million Dollar Database to obtain a listing of 2,054 hi-tech companies founded during 1995-2005, of which around 500, or 25.3 percent, were founded by immigrants. The companies had more than $1 million in sales, 20 or more employees, and company branches with 50 or more employees. Out of the 500 companies, 144 were surveyed and it was found that 96 percent of founders held bachelor’s degrees, 47.2 percent held master’s degrees and 26.8 percent held a doctorate degree. More than half (53 percent) of the immigrant founders completed their highest degrees from U.S. universities.
“Census data shows immigrants are better educated than average Americans,” says Vivek Wadhwa, co-author and adjunct professor at the Pratt School of Engineering. “No one can refute this data. If the U.S. wants to be a world leader in technology and innovation, then we have to support them.”
The study also found that very few immigrant founders came to the United States with the intention of starting a new company. Around 52 percent came to study, 39.8 percent came for a job opportunity and only 1.6 percent for the sole purpose of entrepreneurship. Immigrants from India, China and Taiwan were interviewed for the survey, but Indians founded more companies than any other group combined.
