Just How Important is Immigration to Innovation and Growth?
The other day I picked up my copy of the Financial Times from my driveway (funny how I can get the Financial Times of London delivered every morning practically to my doorstep, but can’t get home delivery of the Akron Beacon-Journal at all–even though I live just 30 miles from Akron…) and found an article there headlined “Talent shortage spurs US calls for foreign-worker visa reform,” a topic that followers of TechFutures know is near and dear to my heart.
I was musing over how to work this in as a follow-up to my earlier post on regionalism and the city as boutique; you see, one of the things I left out of that post was that the regions that are prospering around successful boutique cities are also ones that are benefitting from an increase in population–much of which, by the way, is foreign immigration, not simply US resident relocation. Boutique cities benefit most from highly diverse, strongly first-generation immigrant populations.
Then, in my email, I discovered a wonderful note from local attorney Richard Herman at AskLawyer.net. I asked Richard if I could use some of what he sent me in a post; Richard did me one better by composing his own post, which follows below. It’s important stuff; well worth reading and, even more important, doing something about–like letting your Senators and Representatives in Washington as well as your state and local government officials know just how important immigration is to our future as a country.
Here is Richard’s post:
The U.S. Senate will vote on Wednesday to decide whether to move forward on Comprehensive Immigration Law Reform (including H1B visa and high-tech immigration provisions), or to shelve it for another year or more.
Unfortunately, Northeast Ohio is generally silent on the issue, and seemingly uninterested in how such legislation might include special provisions to assist the region out of its economic slump.
Last week, CompeteAmerica (coalition of U.S. technology companies, tech trade associations, and city chambers of commerce) submitted the following letter to Congress advocating for H1B visa relief: http://www.aila.org/content/default.aspx?docid=22304
Eaton is the only Northeast Ohio entity which signed the letter.
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Earlier posts by Chris have highlighted the economic development opportunity of welcoming immigrant technologists and entrepreneurs into Northeast Ohio.
Here are a couple of ideas that might help transform the immigration and business climate in Northeast Ohio.
I.) “High Skill Immigration Zones”
Congress is currently debating Comprehensive Immigration Law Reform. The President is pushing for immigration law change, not only to provide a path to legalize millions of undocumented workers, but also to place greater emphasis on high-tech immigration (e.g., increasing H1B visa caps, increase numbers of employment based immigrant visas, etc.)
This might be a good time to propose to Congress/Administration the creation of “High Skill Immigration Zones” in parts of the country that are struggling to making the transition to a knowledge-based economy (e.g., Rust Belt Cities such as Cleveland, Pittsburgh, Detroit, Buffalo, etc.), and which are progressively depopulating and destabilizing.
As you know, these cities have incredible infrastructure that was built for 2 to 3 times the existing population. This infrastructure is now being wasted on too few people who cannot support the costs of maintaining the infrastructure.
Immigration of technology and entrepreneurship talent can be leveraged to help turn-around and boost the economy of Cleveland and other Rust Belt cities (similar theory to EB-5 and Regional Center Designation) through the creation of “High Skill Immigration Zones.”
These “High Skill Immigration Zones” might permit local governments to seek U.S. Citizenship and Immigration Service licensure to offer special immigration incentives for companies and immigrant workers who are in, or willing to move, into the targeted geographic zone.
We already have some precedent in the Immigrant Investor Green Card Program — 50% lower investment required in distressed urban areas; local governments can also apply for incentive-laden license to attract immigrant investors (Regional Center Designation—-which the Administration seems more eager than predecessors in marketing/supporting the program).
The incentives offered within the “high skill immigration zone” might include:
* exemption from H1B cap,
* relief from Green Card backlogs (which particularly hurt professional
workers from China and India),
* work authorization for the H-4 spouses and children of H1B visa
holders, etc.
* work authorization for graduating international students extended to 2
years (without need for H1B sponsor)
This proposal simply extends the logic of the EB-5 Investor Green Card Program (and particularly the Regional Center Designation) to a proposed “High Skill Immigration Zones” which offers special immigration incentives to companies heavily dependent on high-end immigrant talent.
While the former program grants local/state governments the opportunity to apply for special incentives which attract Dollars to catalyze job creation in highly-distressed urban and rural areas, the latter proposal focuses on granting special incentives to local governments which seek to attract High-Tech Companies and High-Tech Labor Pool to catalyze job creation in highly distressed cities.
If Comprehensive Immigration Law Reform is partly meant to reflect a shift towards a pro-growth economic agenda (as opposed to an emphasis on family reunification), then it might be logical (although perhaps politically intractable) to extend that philosophy to empower local governments with the immigration incentives necessary to attract technology companies heavily dependent on international talent to relocate or co-locate to these special zones.
Immigrant tech talent is a driver of wealth-creation in Silicon Valley and other tech-rich regions.
Is it unreasonable to suggest a redistribution of this talent wealth by creating immigration incentives that would attract some of the most dynamic high-growth employers, who are heavily dependent on immigrant talent, to some of the most distressed cities in the U.S.?
Without this special “assist” from the federal government, it will be very difficult in the next 25 years for gutted cities like Cleveland to attract and grow a workforce sufficient to support the industries of the future.
If U.S. immigration policy created special “rewards” for the employers and immigrant employees, particularly designing those “rewards” to help disadvantaged and struggling urban centers, then the U.S. would be getting a “double benefit”: attracting more immigrant talent to the U.S., benefiting the entire U.S. economy; attracting more high-growth companies and tech talent to help revive moribund cities.
If Cleveland and similarly-situated cities n the U.S. were permitted to seek licensure as a “high skill immigration zone,” technology companies from all over the U.S. (and possibly the world) would consider in a heartbeat to co-locate in the zone: creating new jobs, innovation, tax dollars, etc., if it would ensure their freedom to hire international talent as it wishes. An influx of companies and immigrant tech workers would create a critical mass, and cluster of tech activity, that would begin to organically grow and create new businesses and jobs for American-born.
The creation of a new program to permit “High Skill Immigration Zones” is a long-shot, but it might be worthwhile to float the idea to various stakeholders and lobbyists.
II.) NEO Welcoming Center for New Immigrants: Including an Initiative to Recruit Immigrant Tech Talent Living in Silicon Valley.
Some cities have created a Welcoming Center to assist new immigrant arrivals connect and integrate with the community, to recruit immigrant talent and entrepreneurs, and to educate the mainstream community on the benefits that immigrants bring to a community.
Northeast Ohio should build its own Welcoming Center.
It has been reported by Nortech and BioEnterprise that there are over 5,000 unfilled technology and health care jobs in Northeast Ohio.
Northeast Ohio’s Welcoming Center could lead a recruitment initiative within the immigrant technology community living in Silicon Valley and other tech rich regions.
Besides jobs that are going begging, what can we offer?
Northeast Ohio has some of the most beautiful suburbs in the United States. Many of these suburbs provide inexpensive, safe, idyllic environments to raise a family. Cities like Solon, Twinsburg, Strongsville, and Brecksville are experiencing a rapid influx of Indian, Chinese, Taiwanese, and Russian immigrants. Most of them are professional people.
If a tech recruitment company in Silicon Valley would partner with NEO employers who have vacant high-skilled jobs, partner with mayors of Solon, Twinsburg, Strongsville, Brecksville, etc., and partner with NEO business, civic and immigrant leaders, then the region could recruit immigrant tech talent in Silicon Valley (and other tech cities) looking for an inexpensive, family-friendly, immigrant-friendly alternative destination.
A $100,000 salary in Silicon Valley leaves the worker and her family unable to afford the purchase of a decent house.
If the mayors of Solon, Strongsville, Brecksville/Broadview Heights, Twinsburg got together, they could tout their success in welcoming and integrating affluent Indians, Chinese, and Russian professionals.
They could show video clips of large homes with big yards, with a price tag of only $300,000! They could show video clips of successful, civic-minded immigrant individuals who play an integral role in building a warm, intercultural, connected community.
Regardless of changes to immigration law, a collaborative but surgical approach to recruiting immigrant technology professionals (already living in the U.S., less likely to have H1B cap issues) might be very productive for tech employers in Greater Cleveland and Akron.
The focus should be on building and communicating the welcome package:
Good Jobs
Beautiful/Inexpensive Homes
World-Class Educational Resources for Families
Community that Values/Celebrates Global Diversity
There is a ripe opportunity to connect with some of the immigrant-based technology associations, which are heavily based in California, but also some have chapters throughout the U.S., in order to recruit tech workers.
Some of these organizations include:
Chinese Institute of Engineers (CIE/USA) (www.cie-sf.org)
Promotes Communication and interchange of information among Chinese Engineers and scientists
Chinese Software Professionals Association (www.cpsa.com)
Promotes technology collaboration and facilitates information exchange in the software profession.
Monte Jade Science and Technology Association (MJSTA) (www.montejade.org)
Promotes the cooperation and mutual flow of technology and investment between Taiwan and the United States
Silicon Valley Chinese Engineers Association (SCEA)
Network of Mainland Chinese engineers to promote entrepreneurship and professionalism among members and establish ties to China.
Silicon Valley Indian Professionals Association (SIPA) (www.sipa.org)
Forum for expatriate Indians to contribute to cooperation between United States and India
The Indus Entrepreneur (TiE) (www.tie.org)
Fosters entrepreneurship by providing mentorship and resources.
Chinese Information and Networking Association
Hua Yuan Science and Technology Association
Jewish High Tech Community
Silicon Valley Chinese Wireless Technology Association (SVCWireless)
Vietnamese Silicon Valley Network
Asian American Manufacture Association http://www.aamasv.com/
Chinese American Semiconductor Professional Association www.caspa.com/
Silicon Valley Chinese Overseas Business Association www.scoba.org/
Cnetwork www.cnetwork.org/
Chinese Information & Networking Association
HuaYuan Science and Technology Association www.huayuan.org/
Hong Kong Association of Northern California
Hong Kong Economic and Trade Office
Japanese American Chamber of Commerce of Silicon Valley
Japan Society of Northern California
Korean Trader Organization of Northern California
North America Chinese Semiconductor Association
Silicon Valley Chinese American Computer Association
National Association of Asian American Professionals, SF www.naaapsf.org/
China-U.S. Technology Association www.chinaustech.org
InterFrench Silicon Valley Chapter is the largest French-speaking
professional network of Silicon Valley. www.SiliconFrench.com
L’Executive Club is the largest for French-speaking executives.
www.LExecutiveClub.com/
Asian American Manufacturing Association (AAMA) www.aamasv.com
Asian-Silicon Valley Connection (ASVC) www.asvc.org/
Japan Society www.usajapan.org/
Keizai Society www.keizai.org/
TEC International, An International Organization of CEO’s (TEC) www.teconline.com
EuroCircle www.eurocircle.com
Asian Business Association
Asian Business League of San Francisco
Asia-Silicon Valley Connection
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The lamp of Northeast Ohio’s Statue of Liberty is burned out.
Let’s re-ignite it and welcome the talent, energy, entrepreneurship and diversity that immigrants can inject into a shrinking city.
In light of the compelling data that shows that immigrant engineering and technology talent are turbo-chargers for economic growth in a knowledge-based economy, it is clear that a policy of inclusion for international talent should be incorporated into all aspects of business, civic, education, and social life in Northeast Ohio.
Building a world-class, competitive region in NEO will require a coordinated approach to recruiting, welcoming, and retaining immigrant innovators and entrepreneurs.
Intercultural and tolerant regions with hyper global connectivity will prosper in the 21st century.
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You can contact Richard directly at law@asklawyer.net.
Thanks, Richard!