Entrepreneurship and Innovation Update - November-December, 2014

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Latest Research

A guide to the President’s immigration executive action. On November 20 and 21, President Obama announced his “immigration accountability executive action,” which includes a series of measures that are first steps towards common-sense reforms to an outdated immigration system. On November 25, the American Immigration Council published A Guide to the Immigration Accountability Executive Action that includes information about the various components of executive action, including changes related to entrepreneurship and innovation.

International Students Contribute to U.S. Innovation, Adding Billions to Economy. A new report from the Institute of International Education found that for the 2013-2014 academic year, the number of international students at colleges and universities in the U.S. increased by eight percent to a record high of 886,052. Another new report from NAFSA—the Association of International Educators—released to coincide with International Education Week finds that for the 2013-2014 academic year, international students and their families at colleges and universities across the U.S. contributed $26.8 billion to the U.S. economy and supported 340,000 jobs. As a November 19 post on Immigration Impact describes, these numbers indicate nearly a 12 percent increase in dollars contributed to the economy and an 8.5 percent increase in job support and creation from the previous academic year. Additionally, the report was picked up by national and local media, including PRI’s The World and PBS NewsHour.

Immigrants continue to disperse, with the fastest growth in the suburbs of metropolitan areas. A new report from the Brookings Institution’s Metropolitan Policy Program examines recently released census data to compare immigrant settlement in U.S. metropolitan areas in 2013 with 2000. The report found that, although large immigrant gateways witnessed the greatest growth in their foreign-born population in the last thirteen years, smaller places experienced the most rapid growth. Additionally, a new report from the Pew Charitable Trusts using county level data finds that immigrants have moved beyond traditional gateways and immigration is driving population growth in the Sun Belt, Pacific Northwest, and Mountain States while slowing population decline in Middle America.

Smarter tourist visa laws would boost economy and create jobs. A new report from the Partnership for a New American Economy explores the economic impact of expanding the Visa Waiver Program to six new countries, including Brazil, Hong Kong, Israel, Poland, South Africa, and Turkey. Such program expansion would result in $7.66 billion in additional tourist spending and 50,000 American jobs within five years. “The competition for tourism dollars is stiff, and our current visa policies are putting us at a disadvantage,” John Feinblatt, Chairman of the Partnership for a New American Economy, said. “The Grand Canyon is a great destination, but so is the Eiffel Tower and Big Ben, so let’s not have long visa lines, fees and forms discourage visitors from coming here.”

News Updates

President’s Immigration Accountability Executive Action includes components for foreign entrepreneurs, researchers, high-tech, and students. A November 20 piece for the Washington Post observes that executive action will increase opportunities for foreign students and recent graduates from U.S. schools to work in high-tech jobs in the U.S., while another provision will make it easier for foreign-born entrepreneurs to start businesses in the U.S. USA Today notes that, regarding high-tech workers, the new plan “will allow for so-called ‘portability’—making it easier for them to switch jobs when they’re in the United States.” Additionally, “The new changes will also open the door for spouses of foreign workers to get their own jobs, and change requirements for applying to make it easier to enter the country.”

For foreign entrepreneurs, immigration executive action includes a creative solution. While other countries have launched startup visas for foreign entrepreneurs, the U.S. currently has no such visa. As a result, entrepreneurs who may have started their companies in the U.S. are choosing to launch them elsewhere. A December 5 article on Immigration Impact describes a memo from the Department of Homeland Security, authorizing new ways for foreign entrepreneurs to have more opportunities to come to the U.S. and start businesses here. Proposals include use of the National Interest Waiver in the Immigration and Nationality Act (INA), and parole, or parole-in-place, for inventors, researchers, and founders of start-up enterprises, using the “significant public benefit” parole authority of the INA.

One immigration change expands programs for foreign students studying STEM fields at U.S. universities. A November 21 article in Science observes that the immigration changes the White House recently announced include a component for foreign students graduating from U.S. universities with science, technology, engineering, and mathematics (STEM) degrees. A Department of Homeland Security memo describes new rules “to expand the degree programs eligible for OPT [Optional Practical Training] and extend the time period and use of OPT for foreign STEM students and graduates.” The changes also seek to improve program oversight rules and “safeguard the interests of U.S. workers in related fields.”

New fund aims to help immigrant entrepreneurs. “Leave it to a pair of entrepreneurs to create a workaround for America’s broken immigration policy,” a November 13 article for CNN Money stated. “With no startup visa available in the U.S., it’s all but impossible for foreign entrepreneurs to start their own business.” Immigrant startup founders in the U.S. often face obstacles for fundraising. But a new Silicon Valley-based angel fund and accelerator is tackling the issue, the Wall Street Journal describes. Unshackled Fund, founded by Nitin Pachisia and Manan Mehta, plans to employ such founders themselves and provide them with work space. As Forbes notes, “Their target founder is someone with a big idea but circumstances that hinder his or her ability to jump into the project.”

Integration conference highlights economic opportunity and immigrant entrepreneurship. The seventh annual National Immigrant Integration Conference was held December 14-16 in Los Angeles. The gathering of hundreds of people from around the country looked at all aspects of integration and inclusion, including the role of entrepreneurs and the economy. One panel session focused on entrepreneurship as a component of integration in welcoming cities, and included representatives from the American Immigration Council, Citi Community Development, the Los Angeles Mayor’s Office of Immigrant Affairs, East LA Community Corporation, and the Metro Louisville Office of Globalization. Another session focused on immigration reform to strengthen the U.S. economy, and included representatives from the Partnership for a New American Economy, the U.S. Chamber of Commerce, FWD.us, and the Illinois Business Immigration Coalition.

Immigration is both a local and global development issue. In a November 7 piece for The Avenue, Neil Ruiz of the Brookings Institution’s Metropolitan Policy Program describes the local and global development contexts and impacts of skilled international migration. Locally, many international students studying in the U.S. come from fast-growing large cities. In the U.S. cities and metro areas in which they study, these students “are a potential major source of high-skilled labor for local markets, and could help American companies connect to these large markets abroad”—an important consideration given the recent changes concerning foreign students announced as part of executive action on immigration.

Mayors launch Cities United for Immigration Action. On December 1, at least 25 mayors from around the country formed Cities United for Immigration Action, a coalition to support and implement executive action on immigration. “Our cities recognize and celebrate the contributions of immigrants to our nation, and we welcome immigrants in our communities,” the group, which includes mayors from Houston to New York, said in a statement. As of December 18, almost fifty cities had joined the coalition.

Foreign entrepreneurs click in Los Angeles. A November 3 piece in the Los Angeles Business Journal discusses why more immigrant entrepreneurs are choosing Los Angeles for their startup businesses. As the piece notes, “an infrastructure has been erected around the local technology industry in the shape of venture capital funds, startup accelerators and networking groups that make it possible for outsiders to take full advantage of the area’s vast resources.” “Entrepreneurs can tap into networking, fundraising contacts and hiring assistance,” said Paul Bricault, co-founder of Venice’s Amplify LA accelerator and a venture partner at the Santa Monica office of Greycroft Partners.

Detroit’s immigrants sustain city as immigration debate consumes Washington. “While debate rages in Washington over what to do with an estimated 11 million unauthorized immigrants,” A November 20 article in BloombergBusinessweek observes, “the Motor City and Michigan Governor Rick Snyder want to attract foreign-born settlers to move past a record bankruptcy and repopulate an emptied landscape.” Foreign-born business owners, immigrant professionals, and refugees have “helped sustain Detroit throughout the loss of two-thirds of its population since 1950,” the article observes. Steve Tobocman, director of Global Detroit, said one reason is because “foreign-born residents tend to be younger, more educated and more likely to start businesses than Michigan’s general population.”

Nashville’s Office of New Americans helps all Nashvillians. In an October 30 op-ed in The Tennessean, Ralph Schulz, president of the Nashville Area Chamber of Commerce, and Renata Soto, executive director of Conexion Americas, describe how Nashville’s new Mayor’s Office of New Americans “will provide a much-needed link between the public and Metro [Government] to help ensure all Nashvillians, including new Americans, have the resources and support they need to thrive.” One of the first in the Southeast U.S., the Nashville Mayor’s Office of New Americans “places Metro Nashville at the front of the pack when it comes to welcoming and embracing new Americans.” In early December, President Obama spoke about immigration from Nashville, a new immigrant destination that is pursuing a variety of immigrant welcoming and integration initiatives.