Richard Herman

Immigrant Entrepreneurs &

Innovators

Why New Immigration Law Is Key to Creating American Jobs

Greater Raleigh Chamber of Commerce

March 12, 2012

Rust Belt (my home) Is Hemorrhaging

Jobs & People �  MICHIGAN

¡  Over last 10 years, lost ¡  790,000 jobs

¡  Detroit: over last 60 years, lost 50% of population (1.8 million to 900,000)

¡  Percentage of immigrants dropped from 30% to 10%

�  OHIO

¡  Over last 10 years, lost 525,000 jobs

¡  Cleveland: over last 60 years, lost 60% of population (950,000 to 396,000) (17% in 10 yrs)

¡  Percentage of immigrants dropped from 30% to 5%

In 2011, with the Rust Belt & U.S. economy stuck in first

gear, it’s time we remember……..how to drive

the economy …..FAST

we welcome the job-creators

When it comes to job growth, STARTUP companies aren’t everything……..

they’re the ONLY THING!

•  ALL net job creation in America over last 25 years comes from STARTUPS --- creating 40 million new jobs

•  New Firms add an average of 3 million jobs in first year

•  Older companies lost 1 million jobs annually

•  --- Kauffman Foundation

STARTUPS: New employment paradigm

So WHO are behind the startups in America?

USA: Immigrants Driving the New Economy

& Urban Revitalization

¡ * Immigrants twice as likely as native-born ¡  to start a business; ¡ * Immigrants founded more than 50% of the

high-tech companies in Silicon Valley; ¡ * Immigrants are more likely to earn an

advanced degree, invent something, and be awarded a U.S. patent;

Immigrant-Founded Companies

�  � 

Compiled by Richard Herman, www.ImmigrantInc.com

* 40% of Fortune 500 companies were founded by an immigrant or child of an immigrant

* These companies employ 10 million people worldwide, and generate $4,200,000,000,000 in revenue per year

Immigrants Start Companies & Create Jobs

2011 study by Partnership for a New American Economy

Ford Google Intel GE Budweiser Home Depot AT&T McDonald’s U.S. Steel Boeing IBM Dow Disney Kraft UPS Apple Procter & Gamble Estee Lauder Hertz Levi’s DuPont Pfizer Bank of America Heinz

7 of 10 most valuable brands in the world were created by U.S. immigrants

or children of U.S. immigrants

 

*   25%  OF  ALL  PUBLIC ,  VENTURE-­‐  BACKED  F IRMS   IN  U.S .   FOUNDED  BY    IMMIGRANTS  

 *  ADD  HIGH  TECH  LABEL,  PERCENTAGE  

 INCREASES  TO  40%    *  MARKET  CAP  OF  $500  B ILL ION   -­‐ -­‐ -­‐

 PUBLIC ,  VENTURE  BACKED    IMMIGRANT  COMPANIES  

The venture capitalists know a deal when they see one

“To immigrate is an entrepreneurial act”

--Ed Roberts, Founder

MIT Entrepreneurship Center

* Immigrants filing patents at twice rate of American-

born.

* Immigrant patent filings: 72% Qualcomm, 65% Merck,

64% GE, 60% Cisco

Immigrants Are Driving U.S. Innovation

Immigrants Can Drive Exports

� Research in Sweden demonstrates that a 10 percent increase in immigrant population was linked to a 6 percent increase in bilateral trade with the immigrants’ home country.

Intl Students Who Stay = Jobs for U.S.

For every 100 international students who stay after earning U.S. advanced degrees in science, technology, engineering or math a CREATE 262 JOBS IN AMERICA

2011 Study by American Enterprise Institute & Partnership for New American Economy:

Foreign Students in North Carolina, National Rank and Economic Impact

Rank  in  US   Total  

FOREIGN  STUDENTS  IN  NORTH  CAROLINA   #17   12,824  

(up  4.2%)  

ESTIMATED  FOREIGN  STUDENTS  EXPENDITURE  IN  NORTH  CAROLINA    (in  millions  of  dollars)  

$304  

Percent of Foreign Student’s in STEM Fields of Study: 36.1% Percent of U.S. Undergraduate Student’s in STEM Fields of Study: 13.7%

N. Carolina Institutions with the Highest Number of Foreign Students

InsLtuLon   City   Total  North  Carolina  State  University     Raleigh   3,235  Duke  University  &  Med  Center   Durham   2,485  

University  of  N.  Carolina   Chapel  Hill   1,674  University  of  N.  Carolina   CharloKe   1,300  

Immigrants have created millions of jobs for Americans, and will create millions more….

if we let them --- in advanced manufacturing, clean energy, biotech, advanced materials, exports….

Can Immigrants Help Save the Rust Belt & U.S. Economy?

But…. Isn’t “Immigrant”

a Dirty Word?

Immigration and Crime FACTS

�     San  Diego,  Phoenix,  El  Paso,  and  Austin    �     Immigrant  Incarceration  Rates  are  one-­‐fifth  the  incarceration  rates  of  people  born  in  the  U.S.    

Immigrants largely compliment, not displace, American-born workforce. Immigrant workers usually work in high-skilled or lower skilled jobs, where U.S. has a shortage of workers.

Today, there are about 3 million unfilled jobs in America

We don’t talk about immigrants as the Dream-Keepers, the Job-Creators,

the Bedrock of Family-Values, the ENGINE that

makes America work!

A New Local/National Movement: Welcoming Immigrants to Spur

Economic Growth

Chicago Mayor’s Office for New Americans

Global Philly

U.S. Immigration & Its Job-Creation Capacity:

BROKEN

Immigration Policy Is Not Aligned with Nation’s Economic Development Needs

Malawi = India (nationality quotas: each country allocated 7% of employment based green cards per year, regardless of their nation’s population) .

Discriminate Against Highly Skilled. Of 1 Million Green Cards issued per year, only 4-5% or given to highly skilled (advanced degreed) or investor immigrants

These quotas are nearly 60 years old ----- they have no

relationship with the needs of America’s New Economy

Skilled immigrants, many of whom want to start their own company in the U.S., have to wait up to 8 years

for a Green Card

We treat them like DIRT, instead of the GOLDEN-

JOB-CREATORS!

This is what NYC Mayor Bloomberg calls:

“National Suicide.”

And not just PhD immigrants ----- all hard-

working immigrants with a dream.

It’s all connected.

$1.5 trillion added to GDP in next 10 years

….If we legalize the 11 million undocumented persons in U.S.

Study at UCLA, 2010

“The richest regions are those with the highest proportion of immigrants.”

President’s Commission on Immigration, 1953

Want to Win? Build the most

powerful teams on the planet

(just like NBA)

The Staple Act

The Dream Act

U.S. HOUSE OF REPRESENTATIVES PASSED

BILL 389 TO 15

NOVEMBER 29, 2011

Fairness for High-Skilled Immigrants Act

U.S. Rep. Tim Griffin, Arkansas (R)

Republican-Sponsored Bill: “BRAIN Act”

Poll of Likely Iowa Republican

Caucus Members

* Immigration Enforcement is not the top-tier, hot button issue

* 72% are open to allowing intl students

educated in U.S. to enter workforce after graduation

* 64% open to streamlining process for

employers to hire unfilled seasonal and permanent jobs

* 71% open to increasing opportunities

for foreign entrepreneurs move to U.S. to start a new business

“We all agree that current immigration system is

broken”

“Tall Fences, Wide Gates”

Frank Luntz pollster & author

“What Americans Really Want”

Talent is the New Oil. Drill, Baby, Drill!

“World Is Flat” Guy, Tom Friedman

“Pour into the America the most diverse, smart and energetic immigrants from every corner of the world and the stir and repeat, stir and repeat, stir and repeat.”

We Are All Immigrants

Key to Success: “think like an immigrant” Omid Kordestani

Want  Jobs?          Tap  the  Immigrant  Dividend    Welcome  the  Job-­‐Creators  by  Reforming  Immigration  Law  &  Changing  Perceptions

For  More  Info:        � www.ImmigrantInc.com