Immigration has long been a hot-button issue in the United States, with debates raging over border policies and the impact of immigrants on the economy. However, a new study by economists William R. Kerr, Saheel A. Chodavadia, Sari Pekkala Kerr, and Louis J. Maiden sheds light on the vital role that immigrants play in producing jobs, innovation, and new businesses in the country. The findings of this research are not only important for policymakers but also for Americans who value expanded employment opportunities, especially in cutting-edge fields.
One of the key findings of the study is the significant contribution of immigrant entrepreneurs to the economy. Immigrants are overrepresented as founders of innovative firms and in the high-tech industry. In fact, some of the most valuable private and public companies in the U.S. have immigrant founders, highlighting the entrepreneurial spirit and innovation that immigrants bring to the table.
According to the National Foundation for American Policy, more than half of America’s startup companies valued at $1 billion or more have at least one immigrant founder. Additionally, nearly two-thirds of these billion-dollar companies were founded or co-founded by immigrants or the children of immigrants. This demonstrates the significant impact that immigrants have on driving innovation and creating successful businesses in the U.S.
The study also delves into the role of immigrant entrepreneurs in the field of artificial intelligence (AI). Immigrants have founded or co-founded nearly two-thirds of the top AI companies in the United States, showcasing their influence in shaping the future of technology and innovation. This highlights the importance of immigrants in driving progress and advancement in key sectors of the economy.
One of the most compelling examples of immigrant entrepreneurship is the story of Eric Yuan, the founder of Zoom Video Communications. Yuan’s experience as a university student in China inspired him to create a video conferencing application to communicate with his girlfriend, which eventually led to the creation of Zoom. Today, Zoom is valued at $19 billion and has over 7,000 employees, underscoring the transformative power of immigrant innovation.
Despite the significant contributions of immigrant entrepreneurs, there are still challenges that they face, particularly in navigating the U.S. immigration system. The lack of a startup visa makes it difficult for immigrant entrepreneurs to establish businesses in the U.S., leading many to first obtain permanent residence through other means before starting a business.
Overall, the research highlights the critical role that immigrant entrepreneurs play in driving innovation, creating jobs, and fueling economic growth in the United States. By recognizing and supporting the contributions of immigrants, policymakers can help ensure that the U.S. remains at the forefront of innovation and entrepreneurship in the global economy.
