California’s tech founders are being wooed by foreign countries due to a broken U.S. immigration system. However, the Golden State’s new global talent program has the potential to reverse this trend.

California's tech founders are being wooed by foreign countries due to a broken U.S. immigration system. However, the Golden State's new global talent program has the potential to reverse this trend.

California’s Immigrant Exodus: How it’s Impacting Technological Success

California is renowned for its thriving tech industry, but it could have been an even greater story of technological success if it had not been for its restrictive immigration policies. In their 2012 book, “The Immigrant Exodus,” authors Vivek Wadhwa and Alex Salkever shed light on how the United States’ national immigration policy forced talented founders and engineers to move away, creating a giant sucking sound of immigrant techies leaving the country. While other nations actively create special visas and recruitment programs to attract STEM talent and founders, the U.S. has made it exceptionally difficult for immigrants to work and live there.

The opportunity cost of this backward policy can be seen in the rise of unicorns in countries like India and China, where many immigrant techies have found new opportunities. In Canada, their recently launched “Cannuck program” specifically tailored for non-citizen technology workers holding U.S. H1-B visas received an overwhelming 10,000 applications within just two days.

Recognizing the need to attract and retain international talent within its borders, California Governor Gavin Newsom has taken matters into his own hands. Newsom has allocated a budget of $2 million for a Global Entrepreneur in Residence (GEIR) pilot program at the University of California (U.C.). This program aims to sponsor visas for talented graduates and promising technologists, enabling them to build startups under U.C. guidance and contribute to high-tech industries such as semiconductors.

The U.C. GEIR program serves two main objectives. Firstly, it aims to retain foreign-born graduates who may otherwise take their skills elsewhere due to visa obstacles. Secondly, it strategically targets expertise in semiconductor research and manufacturing to align with the federal CHIPS Act’s $53 billion investment in boosting America’s chipmaking capabilities. Despite the U.S. having experts in semiconductor design and tooling, it lacks cutting-edge expertise in the latest fabrication technologies. Currently, its share of global semiconductor manufacturing capacity stands at just 12%, compared to 37% in 1990. Korea and Taiwan have raced ahead in recent years, attracting the best talent in this area.

The U.C. GEIR program selects accomplished foreign graduates from STEM programs, providing them with mentorship, resources, and the opportunity to launch their own companies. As “entrepreneurs in residence,” participants collaborate with U.C. researchers, leveraging their technical skills to develop their ventures. U.C. sponsors their work visas, allowing them to continue working on their startups.

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This model draws inspiration from successful initiatives in other regions. For example, the Global Entrepreneur in Residence program at UMass Boston has seen remarkable results since its launch in 2015, with founders in the program raising over $1 billion in funding, launching 70 new startups, and creating thousands of jobs, generating $500 million for Massachusetts’s economy. Michigan has also implemented a similar program, experiencing rapid growth with support from private and state funding.

Political advisor Craig Montuori understood the potential impact and founded the Global EIR Coalition to promote best practices among cities and states, expanding the regional economic effects of international entrepreneurs and fostering innovation-based economic growth. He recognizes the value of attracting and retaining talented immigrants who have the ability to build world-changing companies.

Ironically, both state programs have focused on attracting U.C. graduates and technologists from California. Given that California boasts the world’s largest talent pool, it’s no surprise that these programs have been successful in recruiting from within the state.

Immigration reform at the national level in the U.S. remains a challenge, as highlighted by Soundarya Balasubramani, an Indian immigrant and product manager at Salesforce, in her book “Unshackled.” Balasubramani’s book delves into the outdated and complex immigration system that high-tech workers face when seeking legal employment status in the United States. Despite these hurdles, she highlights the resilience of high-skilled immigrants who continue to find ways to work, start companies, and contribute to society within the existing system.

California, with its enviable position as the fifth-largest economy in the world, has often set the de facto national policy for the United States. If the U.C. GEIR program proves effective, it could set the stage for a smarter high-skilled immigrant policy that supports California’s own tech industry and revitalizes the U.S. economy as a whole. This program could also aid California’s semiconductor manufacturing industry, tapping into the funds offered by the CHIPS Act, which provides $52 billion in subsidies and tax credits for semiconductor manufacturing.

Areas like artificial intelligence (A.I.) could benefit greatly from the U.C. GEIR program. Immigrant founders and children of immigrants already dominate the leading U.S.-based A.I. companies, accounting for 77% and 42% respectively, according to the National Foundation for American Policy. By attracting international A.I. talent, California could maintain its position as a global tech leader.

California’s move to forge its own path in attracting and retaining talented immigrants reflects its understanding of the economic value they bring. Talented immigrants are like economic unicorns—a source of immense value that can help create high-paying jobs and foster world-leading companies. Rather than waiting for national policy reform, California is taking proactive steps to secure its future prosperity.

Note: The opinions expressed in this article are solely those of the authors and do not necessarily reflect the views of ANBLE.

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• alex salveker
• california exodus
• california net migration
• gavin newsom
• immigrant entrepreneurs
• startups
• tech
• tech careers
• uc graduate pay
• uc startup program
• uc startup visa
• uc student fees
• us green card
• us h1-b visa
• us visa delays
• visa
• vivek wadhwa