USA and Innovation

The May 2011 edition of the McKinsey Quarterly carried an article "Translating innovation into US growth: An advanced-industries perspective " which attempted to answer the question "Is America losing its innovation edge? " and opined that "The United States faces a future in which the elements of economic leadership are moving abroad. Reversing these trends will require the private and public sectors to collaborate."

I responded with a few comments of my own which have been included on the McKinsey Quarterly website:

Skilled immigrants are one of America’s greatest competitive advantages- the US has the unique advantage of having amongst its citizenry people from all parts of the globe. This “integrated diversity” is not yet fully utilized by corporations to its full potential. No other country operating in the global arena has this advantage. You may not find a Fijian or an Icelander in China or India but you would very well do in the US. And that’s a strength which needs to be leveraged.

Let us celebrate the "integrated diversity" of US and the pursuit of the "American Dream". Both of which contribute to the continued growth and prosperity of the US in a global economy.

More at Immigrants as Entrepreneurs: creating jobs, enhancing prosperity

What do you think? Is America losing the innovation edge? If yes, how do we get the edge back?

India, U.S. are pursuing same dream

An article by me published in the Rochester Democrat and Chronicle today.

http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=2007708200312

India, U.S. are pursuing same dream
Deepak SethGuest essayist

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(August 20, 2007) — Aug. 15 marked India's 60th Independence Day and hence the 60th anniversary of Indo-U.S. relations — a journey marked with lots of interesting twists and turns.
It started off on a high note with the U.S, Constitution inspiring the framers of India's constitution. But then, India veered onto a socialistic path with state control of enterprises and alignment, albeit loosely, with the Soviet Union during the Cold War. The United States also aligned itself with India's then-arch-rival Pakistan.

Since then, much water has flown down the Ganges and the Potomac. The United States now values India as a strategic partner. India has liberalized its economy. The two countries are on the brink of ratifying a nuclear collaboration treaty signed a couple of years ago. Some think this is due to India's growing economic clout as a nuclear power while others think it is a manifestation of America's desire to prop up India as a potential check to China's aspirations as a global superpower.

Trade between India and the United States is booming. A big chunk of Boeing's current order book comes from India. Immigrants from India founded more engineering and technology companies in the United States from 1995 to 2005 than immigrants from the United Kingdom, China, Taiwan and Japan combined. Of all immigrant-founded companies, 26 percent have Indian founders. Locally, in Rochester, India-born entrepreneurs including I.C. Shah (ICS Telecom), Dilip Vellodi (The Sutherland Group), Bal Dixit (Fireproof materials), Ram Shrivastava (Larsen Engineers) and Makhan Singh (restaurateur) have created hundreds of jobs and contributed significantly to the local economy. Indian doctors are strong pillars of the local health care system. As they have worked hard to realize their "American Dream," they have enhanced the prosperity of their adopted land. More than 2.5 million people from India now call America home.

In this era of globalization, the American Dream has become the Indian Dream. The American Dream has spread to all corners of the world due to the selfless actions of the thousands of U.S. volunteers helping with education, health care and disaster relief; the veterans who fought or gave their lives during the world wars to rid the world of oppression and tyranny; the writings of American thinkers and philosophers; American media; the American tourist and explorer who trudge the farthest reaches of the globe; the American researcher and inventor whose discoveries benefit all mankind; U.S. universities, which are a global magnet for students; and, yes, the U.S. corporation that has made the likes of McDonald's and Starbucks global icons.
India faces challenges of elephantine proportions in its march toward economic prosperity for all its citizens, but the world's largest democracy is living up to the dreams of 1947. And it is doing so in close alignment with a country that has championed democracy and freedom for more than 200 years: the United States.

Seth, of Brighton, is a native of India and member, Board of Contributors.

Immigrants as Entrepreneurs: creating jobs, enhancing prosperity

The immigration debate over the last few months has been focused on illegal immigration, the burdens it places on local economies and the plight of illegal immigrants. What has got sidelined is the continued contribution of legal immigrants in creating jobs and enhancing prosperity. Immigrants have been and continue to be the lifeblood of the US economy. By their entrepreneurial zeal and work ethic they have contributed to the unparalleled stature of the US as a colossus in the global economy.

A recent study report (released January 7, 2007) by a team of student researchers in the Master of Engineering Management program of the Pratt School of Engineering at Duke University led by Executive in Residence/Adjunct Professor Vivek Wadhwa, Research Scholar Ben Rissing, and Sociology Professor Gary Gereffi, has documented the economic and intellectual contributions of immigrant technologists and engineers to US competitiveness -- to understand the sources of US global advantage as well as what the US can do to keep its edge.

A key finding of the study was that there was at least one immigrant key founder in 25.3% of all engineering and technology companies established in the U.S. between 1995 and 2005 inclusive. Together, this pool of immigrant-founded companies was responsible for generating more than $52 billion in 2005 sales and creating just under 450,000 jobs as of 2005. The researchers also estimated, based on an analysis of the World Intellectual Property Organization (WIPO) patent databases, that foreign nationals residing in the U.S. were named as inventors or co-inventors in 24.2% of international patent applications filed from the U.S. in 2006. These immigrants come to the U.S. from all over the world to take advantage of the business, technology and economic opportunities in the country.

An interesting finding was that these immigrant-founded businesses are unevenly located across the country. California and New Jersey represented hot spots for immigrant-founded engineering and technology business; Surprisingly, New York despite being the state with the second highest percentage of the population being foreign-born (19.6% vs. 24.9% for California in 2000), only had nearly 25% of its companies established by immigrant key founders (vs. 38.8% for California, 37.6% New Jersey, Michigan 32.8%, even Georgia, Virginia, Massachusetts, Illinois and Arizona fared better). New York (5.2%) also featured third after California (34%) and New Jersey (7.3%) in a breakdown of states where immigrant founded engineering and technology companies are based. California with Silicon Valley appears to be the hotbed of creativity and entrepreneurism. New York has significant catching up to do. Some food for thought for the state's economic policy czars.

I was pleased to learn that immigrants from my country of origin (India) have founded more engineering and technology companies in the US in the past decade (1995-2005) than immigrants from the U.K., China, Taiwan and Japan combined. Of all immigrant-founded companies, 26% have Indian founders. Locally, in Rochester, Indian origin entrepreneurs like IC Shah (ICS Telecom) ,Dilip Vellodi (Sutherland group),Bal Dixit (Fireproof materials) ,Bhoopinder Mehta (Indus Group- hotels and restaurants),Ram Shrivastava( Larson Engineers),Makhan Singh (Restauranteur) have created hundreds of jobs and contributed significantly to the local economy. As they have worked hard to realize their "American Dream", they have enhanced the prosperity of their adopted land.

This research showed that immigrants have become a significant driving force in the creation of new businesses and intellectual property in the U.S. — and that their contributions have increased over the past decade. It also established that the key to maintaining US competitiveness in a global economy is to understand America’s strengths and to effectively leverage these. Skilled immigrants are one of America’s greatest advantages- the US has the unique advantage of having amongst its citizenry people from all parts of the globe. This “integrated diversity” is not yet fully utilized by corporations to its full potential. No other country operating in the global arena has this advantage. You may not find a Fijian or an Icelander in China or India but you would very well do in the US. And that’s a strength which needs to be leveraged.

Let us celebrate the "integrated diversity" of US and the pursuit of the "American Dream". Both of which contribute to the continued growth and prosperity of the US in a global economy.

Link to the Report : http://memp.pratt.duke.edu/downloads/americas_new_immigrant_entrepreneurs.pdf

Being "Sanjaya"ed .........

Sanjaya Malakar has brought the "Desi" (meaning "Asian Indian") face into the limelight in the USA as never before. Love him or Hate him, fans of American Idol seem to never get enough of him.

What is surprising though is the number of conspiracy theories that have started flying around to explain his continued stay on the show despite his mediocre singing talents. Well, sing he can't, though he definitely has a screen appeal for a particular demographic (pre-teen girls and doting grandmas).

The mainstream media has reported one conspiracy theory extensively - call center workers from India were calling in votes for Sanjaya. That one had me in splits. Showed the total ignorance of the media here about the "Indian as a group" psychology. They need to read about the "Indian crab" tale : when shipping Indian crabs , no lid is required on the container. As soon as one will try climbing up the others will pull it down.

I was surprised by the assumption or even more so an almost sacrosanct belief that voters always make rational choices. The "Freakonomics" authors will sure have a lot to say about that. Look at the history of general elections in almost any country and one can conclude that such a belief is a myth. People vote with their hearts and not their minds. Even more so once a wave gets created people would rather ride that wave than apply any wisdom of their own. Media consultants who are experts in creating such a buzz or wave are the part of all the presidential candidates' entourage these days.

Whenever a majority views a minority they always assume that the minority behaves like a herd - "All Indians will vote for Sanjaya". Why they would think so beats me. I am reminded of an experience from my childhood - riding through the Indian countryside and stopping at roadside farms one would see young kids tending their "herd" of buffaloes or cows. While I saw them as a herd, the farmer's kid was always able to identify each animal distinctly and more often than not have a unique name for each of them.

What bugs me the most is that this attitude gets carried over to the workplace also in many cases. People stereotype minorities and try to typecast them in particular roles . "Asians are good in math and science". "Marketing ,Sales, Communication is not Indians' forte". Every person is an individual and needs to be viewed and judged as such.

Sanjaya needs to sail or sink on his own merits and talent. His being of Indian descent has nothing to do with it. If America likes him and is willing to vote for him week after week he will win. Whether he wins or loses, the producers of "American Idol" are laughing their way to the bank. Nothing like some controversy to get those viewership ratings soaring. If none existed they would have created one.

All the best - Sanjaya !!! While you may not have the singing talent, you have shown the world how to keep smiling and fighting in the face of criticism and insurmountable odds. And America loves that.