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Why foreign STEM PhDs are unlikely to work for US technology startups.

Michael Roach1, John Skrentny2

  • 1Charles H. Dyson School of Applied Economics and Management, SC Johnson College of Business, Cornell University, Ithaca, NY 14853; michael.roach@cornell.edu.

Proceedings of the National Academy of Sciences of the United States of America
|August 7, 2019
PubMed
Summary

US visa policies may hinder foreign STEM PhDs from joining startups, impacting innovation. Permanent residency appears to facilitate startup employment for foreign graduates.

Keywords:
PhD career pathsSTEM workforceentrepreneurial workforceimmigration policyindustrial R&D

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Area of Science:

  • Science, Technology, Engineering, and Mathematics (STEM)
  • Immigration Policy
  • Entrepreneurship

Background:

  • National innovation and economic competitiveness depend on retaining US-trained Science, Technology, Engineering, and Mathematics (STEM) PhDs.
  • Startup visas are gaining attention for stimulating entrepreneurship and job creation in tech sectors.
  • The influence of visa policies on foreign PhDs' employment in technology startups is not well understood.

Purpose of the Study:

  • To investigate how visa policies affect foreign PhDs' employment in technology startups.
  • To compare the career paths of foreign and US PhDs in startups versus established firms.
  • To identify factors influencing the disparity in startup employment between foreign and US PhDs.

Main Methods:

  • A longitudinal survey of 2,324 foreign and US PhDs from US research universities.
  • Analysis of individuals' preferences and characteristics during graduate school.
  • Tracking subsequent employment in startups or established firms.

Main Results:

  • Foreign PhDs are 56% less likely than US PhDs to work in startups after receiving an offer, despite similar application and offer rates.
  • Visa sponsorship differences between startups and established firms partially explain this disparity.
  • Permanent residency facilitates foreign PhDs' transition to startup employment after initial work in established firms.

Conclusions:

  • US visa policies may inadvertently deter foreign STEM PhDs from joining the startup ecosystem.
  • This can limit startups' access to a crucial talent pool, potentially hindering innovation and economic growth.
  • Policy adjustments could improve startups' access to foreign STEM talent and boost economic competitiveness.