Reliance on foreign-born talent for innovation is undeniable

Immigration is a divisive issue in Europe and the US at present, but the size and significance of its contribution, particularly in driving scientific progress, cannot be overstated. Just because politicians on either side of the Atlantic appear to have mismanaged immigration and border security, or failed to stop economic migrants and political activists from misusing asylum policies, does not mean that the historically strong link between foreign-born talent and innovation in diverse fields suddenly ceases to exist.
The connection is especially undeniable in this age of rapid advances in everything from robotic surgery and artificial intelligence to space exploration and quantum computing. Many immigrants excel in academia and research, with Nobel Prizes in science often being awarded to foreign-born researchers. For instance, more than one-third of US Nobel laureates in science since 2000 have been immigrants. The science and engineering departments of MIT, UC Berkeley, and Stanford have high percentages of foreign-born professors.
Countries with liberal immigration policies are veritable magnets, attracting not only foreign-born experts but also investments. They benefit from brain gain and knowledge transfer as these experts tend to bring diverse technical skills and fresh perspectives. Research shows that diverse teams are 35 percent more innovative and thus form a key driver of innovation in many industrially advanced countries. Companies with multicultural leadership also tend to see higher financial performance.
Few places exemplify the theory that tech-sector growth correlates with immigration policies as does America’s Silicon Valley. The meteoric rise of this part of northern California parallels the influx of global talent. US immigration policies have had a direct impact on tech innovation, with increased H-1B visa availability coinciding with periods of brain drain in Asian countries. Indian and Chinese engineers have been pivotal in Silicon Valley’s growth, and the networks they formed have fostered global technological partnerships and created cross-border opportunities.
Countries often lack enough local STEM graduates to meet tech demand, so foreign-born talent bridges the gap in AI, cybersecurity, and biotech. For instance, nearly 70 percent of graduate students in computer science and electrical engineering programs at US universities are international students. Cutting-edge fields such as cloud computing and AI in Silicon Valley and other tech hubs in the US rely heavily on immigrant researchers. Today, foreign-born Americans dominate US tech entrepreneurship. Immigrants or their children founded 45 percent of Fortune 500 companies.

Countries often lack enough local STEM graduates to meet tech demand, so foreign-born talent is crucial.

Arnab Neil Sengupta

More than 50 percent of unicorn startups in the US were founded by immigrants. US-based tech giants led by immigrants include Google, co-founded by Russia-born Sergey Brin; Tesla and SpaceX, led by South Africa-born Elon Musk; Intel, co-founded by Hungarian-born Andy Grove; and Microsoft and Google, both of whose CEOs (Satya Nadella and Sundar Pichai) happen to be Indian born.
Beyond the US, startups have a track record of thriving on foreign-born talent. Immigrant founders drive startup ecosystems in Berlin and London, while Canada’s Startup Visa Program attracts global entrepreneurs. Immigrant-friendly policies have fueled Canada’s tech growth. Similarly, Germany and Singapore have free zones driven by foreign expertise, with Singapore’s pro-immigration stance proving key to fintech innovation. Arab Gulf states’ burgeoning tech ecosystem also thrives on foreign professionals.
For China and India, if brain drain has been a net loss, reverse brain drain has been a blessing. Many tech workers have returned to these countries and established tech hubs such as Bengaluru. India’s startup ecosystem, now among the largest in the world, owes much to returning expatriate entrepreneurs. Similarly, China has benefited from returning scholars and engineers who have contributed to advances in AI, manufacturing, and biotechnology.
That said, reliance on foreign-born talent is not without its drawbacks. Developing nations often suffer from brain drain, losing their top minds to richer economies. This talent drain can hurt innovation and economic growth in home countries.
In host countries, foreign-born talent can sometimes strain local job markets. Critics argue that reliance on immigrant professionals might reduce opportunities for local STEM graduates. There are also concerns about wage suppression in tech industries, with employers sometimes favoring foreign workers who may accept lower pay.
Integration is another challenge. Cultural and language barriers can limit team cohesion and create silos within tech workplaces. Over-reliance on immigrant talent might also cause countries to neglect their local STEM education systems, failing to nurture homegrown talent.
Such dependence leaves countries vulnerable to sudden shifts in immigration policies, potentially disrupting tech ecosystems. Governments sometimes fear foreign access to sensitive technology sectors, citing concerns over espionage and intellectual property theft. Visa fraud remains an additional risk.
While the benefits of foreign-born talent in driving tech innovation are undeniable, addressing these challenges is essential to ensure long-term resilience in global high-tech ecosystems. Policymakers must strike a delicate balance between utilizing international expertise and nurturing local talent pools in order to secure a competitive edge in the innovation race.
Tech innovation thrives on diversity, adaptability and cross-border collaboration. As geopolitical tensions rise and immigration debates intensify from Washington to Berlin, it is crucial to remember that foreign-born talent remains an indispensable global engine of progress. The question is not whether countries with ambitious development visions can afford to welcome immigrant talent, but whether they can afford not to.

• Arnab Neil Sengupta is a senior editor at Arab News. X: @arnabnsg