One-fourth US tech firms started by Indians

The US lawmakers may be seeking to restrict entry of skilled foreign workers to save jobs of their citizens, but a new research shows that Firms founded by immigrants coming from places like India are creating thousands of jobs every year in the country. The research, conducted by professors of Duke University and the University of California, also shows that an immigrant figures among the founders of every fourth engineering and technology firm in the country. Further, every fourth engineering and technology company founded by immigrants have Indians as its founders.

"There was at least one immigrant key founder in 25.3 per cent of all engineering and technology companies established in the US between 1995 and 2005 inclusive," says the report titled 'America's New Immigrant Entrepreneurs'. These entities generated over 52 billion dollars in 2005 sales, while creating just under 4,50,000 jobs as of 2005. Even as the findings of the research pitch for entry of more skilled foreigners, the US Congress has approved a proposal to restrict firms, receiving the government's bailout package, from hiring H1-B visaholders, if they are to replace Americans.

The research, conducted by Vivek Wadhwa, Ben Rissing and Gary Gereffi from the Duke University and AnnaLee Saxenian from the University of California, Berkeley, shows that Indians lead the tally of all the technology and engineering firms started by immigrants in the US between 1995 and 2005. Indian immigrants are followed by those from the UK, China and Taiwan. According to the report, majority of the Indian immigrants (46 per cent) founded software firms and 44 per cent started companies in innovation/ manufacturing-related services. Further, Indian immigrants mostly found technology and engineering firms in California.