FT : Indians Lead Way In US Tech Start-Ups

Saturday, January 6, 2007

Foreign-born entrepreneurs – a large proportion of them Indian – were behind one in four U.S. technology startups over the past decade, according to a study published this week.  Researchers at Duke University estimated that 25% of technology and engineering companies started from 1995 to 2005 had at least one senior executive — a founder, chief executive, president or chief technology officer — born outside the United States.  Immigrant entrepreneurs’ companies employed 450,000 workers and generated $52-billion (U.S.) in sales in 2005, according to the survey.  California led the nation, with foreign-born entrepreneurs founding 39% of startups, even though they make up only 25% of the state’s population.  In New Jersey, 38% of tech startups were founded by immigrants, followed by Michigan (33%), Georgia (30%), Virginia (29%) and Massachusetts (29%).

Immigrants were most likely to start companies in the semiconductor, communications and software niches.  They were least likely to enter the defence sector.  One of the study’s biggest surprises was the extent to which Indians led the entrepreneurial pack.  Of an estimated 7,300 U.S. tech startups founded by immigrants, 26% have Indian founders, CEOs, presidents or head researchers, the study found.  Indian immigrants founded more tech startups from 1995 to 2005 than people from the four next biggest sources — United Kingdom, China, Taiwan and Japan — combined.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: