Taiwanese entrepreneurs away from Silicon Valley no longer attractive?

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Many entrepreneurs are eager to gain access to the US market and invest in Silicon Valley's "innovation incubator". But now the form has reversed, Jerry Zhang is a Taiwanese entrepreneur, he has been in the U.S. technology industry for many years, but now made a decision to make many U.S. markets have strong hopes of foreign entrepreneurs are very strange, because he is determined to transfer the current business in the United States to overseas markets, more precisely, is now in the emerging economy booming period of China's mainland market.

In 2009, he created a mobile-payment company in America. Regardless of his ancestral home is Taiwan, Zhang after careful thinking that, compared to the current economic situation in the United States, the transfer of companies to the Chinese market will have a more promising future. Although the decision has surprised many, Zhang has resolutely chosen a more secure way to confront the typical difficulties that most immigrant entrepreneurs will stumble across. More than 20 years ago, he joined the United States of America, in the field of science and technology in the wave, gained a wealth of practical experience. It is noteworthy that the first company he founded was named Clarent Corp., a prominent client company including the World Network services company AT&T Worldnet, China Telecom (Weibo) Chinese EADS, and the Australian telecommunications company Telstra.

Zhang, a typical representative of the rapidly growing immigrant entrepreneur community, has begun to seek market development opportunities outside the United States, a phenomenon known as "talent reflux". I did an interview with the Kauffman Foundation because I wanted to do a research on the immigrant entrepreneur's Kauffman Foundation. It turns out that, from 2005 onwards, the overall proportion of companies operating by immigrant entrepreneurs in Silicon Valley companies in the United States fell from 52.4% to 43.9%. Remarkably, this return to talent is particularly strong among Taiwanese entrepreneurs.

According to our research findings, it is also from 2005 onwards that Taiwan has fallen from the fourth place in the list of American immigrant entrepreneur exporters to 22nd place. In other words, the proportion of entrepreneurial companies operating in Taiwan has shrunk from 5.8% to 1.1% during this period. However, by contrast, we found that in the past decade, the ranking of other immigrant entrepreneurs exporting countries has remained largely unchanged. The main reason for this recession in Taiwanese entrepreneurs is that, historically, Taiwanese immigrant entrepreneurs, unlike entrepreneurs from China and India, have played a pivotal role in the development of the US technology industry.

But where do Taiwanese entrepreneurs migrate to today? Jackie Yang, one of the co-founder of TransLink Capital, a Silicon Valley venture capitalist, has his own insights on the issue. Yang cited one reason why Taiwanese entrepreneurs have plummeted in the US: now many Taiwanese are just staying in Taiwan. Because of the rapid development of local education in Taiwan and the increasing recruitment opportunities, Taiwan has a good enough economic ability to retain highly skilled workers, despite the willingness of these highly qualified people to seek their own wealth overseas.

The US government has launched a STEM program to encourage students to major in science, technology, engineering and Mathematics (STEM), and to increase investment in science, technology, engineering and math education to foster students ' scientific and technological skills. However, the current situation is that only a very small number of Taiwanese students in the United States to participate in the STEM program study, so the United States overseas sources of talent to a large extent received by the reduction.

Now more and more Taiwanese entrepreneurs are starting to return to their countries. Given the impact of the "dotcom bubble" and the dire economic situation in the United States, many Taiwanese students who are trained in the United States and are participating in the STEM Learning Program have no intention of receiving follow-up education and are beginning to leave the United States. Historically, these students are likely to choose to stay in their own country and work with the industry skills they have learned in the United States. But that is not the point. For Taiwan's highly skilled migrants, their thirst for and demand for American residency has plummeted. In fact, since 2005, the number of "working immigrant green Cards" issued to Taiwanese immigrants each year has fallen to about 800 to about 2,160 a year, revealing that they are indifferent to Silicon Valley's technological development prospects and are no longer regarded as the only best platform for the development of innovative industries.

Yang points to another emerging trend. Many Taiwanese entrepreneurs are not just opting to return to their home country to seek development, but to move their business to mainland China. Now, the number of Taiwanese entrepreneurs choosing to go to mainland China is growing rapidly, as they feel that China's economic stability is the best place to start a business right now. In fact, the main reason for this shift is that the start-up capital requirements for the start-up of technology-based companies in China are relatively low, and Taiwanese immigrants are opening up business channels in mainland China with the innate advantage of cultural and linguistic harmony. For some industries, China's market response has been markedly more positive. Jerry Zhang Zhi chose to turn to China to set up mobile radius companies, mainly because of the growing demand for mobile devices and technology by consumers in the country.

Taiwan's economic dependence on the mainland has risen markedly in the 2009 global financial crisis, while Taiwanese entrepreneurs are taking advantage of the strategic market retreat strategy to help the company recover in a short period of time, on the premise of a broadly optimistic assessment of China's future development prospects. In addition, China will continue to attract a large number of Taiwanese entrepreneurs from the United States to transfer the past, which is bound to expand the U.S. technology industry, the return of talent to the United States caused by losses.

Immigrant entrepreneurs are in the midst of a general downturn in the national economy, and the Taiwanese case will raise a question to the public whether the United States is still capable of maintaining superior international competitiveness. The United States, especially in the "new China-oriented economy" competition, the urgent need to take measures to prevent such a return to the flow of talent continues to spread. However, as far as Taiwanese entrepreneurs stand, it is too slow to undo the situation.