The Grass is Indeed Greener in India and China for Returnee Entrepreneurs
Source: Kauffman Foundation
By: Vivek Wadhwa, Sonali Jain, AnnaLee Saxenian, Gary Gereffi, Huiyao Wang
Anecdotal evidence indicates that large numbers
of skilled workers have returned home from the
United States to countries such as India and China.
There are no hard data available, but most authorities
agree that the numbers returning per year are in
the tens of thousands. For example, the Chinese
Ministry of Education estimates that the number of
overseas Chinese who returned to China in 2009
having received a foreign education reached 108,000:
a sharp increase of 56.2 percent over the previous
year. In 2010, this number reached an all-time high of
134,800.
Our earlier research had estimated that,
as of October 2006, waiting for a yearly allocation of
120,000 permanent-resident visas were 1,055,084
employment-based principals in the focal employment
categories and their family members residing in the
United States. We had speculated that these workers
might get frustrated at the wait and return to their
home countries, producing a “reverse brain drain.”
In 2008, our surveys of 1,203 Indian and Chinese
immigrants who had worked in or received their
education in the United States and returned to their
home countries revealed that, although restrictive
immigration policies had caused some returnees to
depart the United States, the most significant factors in
the decision to return home were career opportunities,
family ties, and quality of life. We learned that a
majority of these returnees to India and China aspired
to start businesses within five years.
We decided to research this further by surveying
a select group of Indian and Chinese immigrant
professionals who had returned from the United States
to their home countries and started businesses there.
We wanted to learn the following:
- Why did these entrepreneurs return from the United States to India and China?
- What are their perceptions of the entrepreneurial climate in their home countries?
- According to them, what are the advantages and disadvantages of working in India and China over working in the United States?
- Do they maintain transnational ties to the United States upon return?
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