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Robert Guest

Sunday, Nov 27, 2011 11:00 PM UTC2011-11-27T23:00:00Zl, M j, Y g:i A T

Why we’re still No. 1

China is challenging our tech dominance, but we'll stay on top -- as long as we keep attracting immigrants

Statue of Liberty

 (Credit: Vahe Katrjyan via Shutterstock)

This article is an adapted excerpt from the new book "Borderless Economics," from Palgrave MacMillan.

Until recently, America’s technological preeminence was based on a simple formula: The world’s best brains came to the United States. Some came because their own governments were wicked and stupid enough to persecute them: Think of the Jewish physicists who fled Nazi Germany. More came because America was such a congenial place to conduct their research. Debate is free. Academics are well paid. And the process by which science is turned into new technologies — the country’s scientific “ecosystem,” if you will — is the world’s most sophisticated. Universities work hand in glove with industry. Students and professors often set up companies to commercialize their ideas. Venture capitalists provide investment and advice.

This model still works pretty well. Migrants make up about half of the workers in the United States with science or engineering qualifications, and accounted for two-thirds of the growth in that talent pool between 1995 and 2006. Half of the bosses of Silicon Valley start-ups in 2005 were migrants, and foreign-born workers at America’s most innovative firms file most of the patents: 72 percent at Qualcomm, 65 percent at Merck, 64 percent at General Electric and 60 percent at Cisco.

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