Highly Skilled Immigrants

During the 1960s, Rheingold beer ran a series of TV commercials linking the ethnic mix of New York with the popularity of Rheingold. The ad campaign proudly announced that New York had more Greeks than there were in Athens, more Jews than in Tel Aviv, more Puerto Ricans than in San Juan, etc. The advertising idea was that a greater variety of people in New York drank Rheingold beer over any other beer. Today, Rheingold beer may be gone from the shelves , but the concept of diversity in a small region lives on in Silicon Valley. Indians play more cricket in Silicon Valley than anywhere else in the United States; and Chinese, Hebrew, and other foreign languages are commonly heard spoken.

Meanwhile, the influx of highly skilled technology workers has continued to increase. There are 200,000 foreign-born technology workers in Silicon Valley. A well-known Silicon Valley joke is that IC has been responsible for Silicon Valley success. IC is an acronym for both the integrated circuit and Indians and Chinese (including both mainland China and Taiwan), who comprise two- thirds of foreign-born workers and make up an estimated 40% of all skilled technology workers in Silicon Valley. Bay Area Indian immigrants have been one of America's most successful ethnic groups. Collectively, they've created companies estimated to account for $235 billion of market value. In an interesting twist of history, 500 years ago Columbus discovered the New World because he was looking for a quick route to the riches of India. In the beginning of this millennium , Indians have discovered that the trade route for riches to America is through Silicon Valley.

The influx of immigrants has also increased entrepreneurial activity in Silicon Valley. Chinese and Indians are estimated to be running 29% of the region's high-technology companies. It is interesting to note the frustration of other regions attempting to attract these workers, such as Germany. After much debate, the German government approved 30,000 visas for high-tech workers from India and other Asian countries . Yet, few came to take up the offer. ^[3] Foreign workers feel free and at home in Silicon Valley where so many of their highly skilled compatriots live in a very exciting and open society. This region's capability to easily absorb and integrate people from other cultures and ethnic groups is an important strength that is based on attitude, not just high compensation.

In a recent discussion with the authors of this book, Peter Hall observed this immigrant Diaspora phenomenon as being significant for many innovation regions throughout history: "The main discovery I made was the role of Diaspora in creativity. That creativity overwhelmingly came from the groups that had come from someplace else. They were self-made, feeling like they were not quite belonging ."