India accounts 1/3rd US tech start-ups

“Of the total of immigrant-founded companies between 2006 and 2012,33.2 per cent had Indian founders,up about seven per cent from 2005,” said the “America’s New Immigrant Entrepreneurs: Then and Now” report.

Indians have founded more such companies than immigrants born in the next top seven countries combined,says the 32-page report released by Kauffman Foundation,showing that the proportion of immigrant-founded companies nationwide has

slipped from 25.3 per cent to 24.3 per cent since 2005.

The drop is even more pronounced in Silicon Valley,where the percentage of these startups declined from 52.4 per cent to 43.9 per cent,it said.

According to the report,the top 10 countries which sent immigrant entrepreneurs during this period were India (33.2 per cent),China (8.1 per cent),the UK (6.3 percent),Canada (4.2 per cent),Germany (3.9 per cent),Israel (3.5 per cent),Russia (2.4 per cent),Korea (2.2 per cent),Australia (2 per cent),and the Netherlands (2.0 per cent).

Indians tend to dominate the immigrant-founding groups of the top six states with the greatest representation of immigrant founders.

The states with highest concentration of such companies were California (31 per cent),Massachusetts (nine per cent),Texas (six per cent),Florida (six per cent),New York (five per cent),New Jersey (five per cent).

Of Indian-founded companies,26 per cent were founded in California and eight per cent in Massachusetts.

Similarly of Chinese-founded companies,40 per cent were founded in California and 16 per cent in Maryland.

While immigrant groups tended to concentrate mostly in California,German immigrants demonstrated a preference for starting businesses in Ohio (22 per cent),followed by California (17 per cent).

Authored by Vivek Wadhwa,Anna Lee Saxenian and F Daniel Siciliano,the report says Indians account for the greatest number of immigrant founders across California,Massachusetts,Texas,Florida,New York,and New Jersey.

The study shows an even more pronounced trend of Indian-led immigrant entrepreneurship since 2005,particularly for Massachusetts.

In 2005,Indians comprised 10 per cent of immigrant founders in Massachusetts,second only to Israelis (17 per cent).

Indians now account for the greatest number of immigrant founders in the state at 28 per cent,whereas Israelis rank second at 16 per cent.

The southern states of Florida and Texas each show a greater proportion of immigrant founders from South American and Latin American countries,the report said.

Furthermore,Indians are dominant founders of companies in all seven industries — biosciences (35 per cent) computers and communications (28 per cent),innovation and manufacturing services (29 per cent),semiconductors (32 per cent),software

(33 per cent),environmental (39 per cent),and defence and aerospace (23 per cent).

In the biosciences and innovation and manufacturing services industries,China follows next with 10 per cent in both industries.

In semiconductors,Israel contributes 11 percent of the companies,while the UK accounts for 12 per cent of such companies in software,it said.

In defence and aerospace,immigrants from the Netherlands made up the second-greatest number of immigrant founders.

The report says in 2005,Indian founders accounted for a significant proportion of such companies in all industries.

“Since then,Indians have become primary leaders in all industries. It is interesting to note that although China remains a notable contributor across all industries,Taiwanese immigrants have become a very small minority,” it said.

In the Silicon Valley,while Indians accounted for one-fourth of all immigrant startups for the period between 1995 to 2005,it has now increased to nearly one-third for the period between 2006 and 2012.

Trailing behind Indian founders in the creation of Silicon Valley startups are immigrants from China (5.4 per cent),the UK (5.4 per cent),Japan (4.8 per cent),and Canada (4.1 per cent).

Since 2005,the percentage of businesses founded by Chinese immigrants has declined from 12.8 per cent to 5.4 per cent,and those founded by Japanese immigrants from 13.6 per cent to 4.8 per cent.

Immigrants found 24% US tech start-ups

(Reuters)

A new study showing that immigrants founded one quarter of U.S. technology start-up companies could fuel calls to relax immigration rules ahead of next month’s U.S. presidential elections,where the economy and immigration are key issues.

The study America’s New Immigrant Entrepreneurs: Then and Now,shows that 24.3 percent of engineering and technology start-up companies have at least one immigrant founder serving in a key role.

The study paid particular attention to Silicon Valley,where it analyzed 335 engineering and technology start-ups. It found 43.9 percent were founded by at least one immigrant.

High-skilled immigrants will remain a critical asset for maintaining U.S. competitiveness in the global economy,wrote the authors of the study,sponsored by the Kauffman Foundation,a non-profit organization that promotes entrepreneurship.

One of the authors,Singularity University’s Vivek Wadhwa,called for a visa designed for entrepreneurs.

If we had a startup visa,we would have tens of thousands of new startups nationwide,he said via email.

In recent years,the number of start-ups overall in Silicon Valley has mushroomed,as entrepreneurs have found it easier to access seed or early capital,the study found.

Those opposed to relaxing immigration rules,including many unions,argue that immigrants displace higher-paid U.S. workers in key technology professions such as software engineering.

And while many lawmakers support allowing more immigrant entrepreneurs into the country,powerful Washington lobbies do not want to relax rules for one group without addressing the broader issue of illegal immigration.

Immigration is a flashpoint among Hispanic voters,a key voting block that both President Barack Obama and his Republican rival Mitt Romney are courting.

President Obama recently told TV network Univision he considers the lack of comprehensive immigration reform his biggest failure during his first term in office.

Romney has promised to put in place an immigration reform system and has said he believes the Republican party is the rightful home of Hispanic voters.

Some 40 million people living in the U.S.,or 13 percent of the population,were born overseas,according to the U.S. Census Bureau.