Monday, September 1, 2008

New York Times on the Innovation Gap

Click HERE

Sudhakar writes about the Indian article on a a similar topic.

The graduates of IIT the Indian Institute of Technology are now chosing to stay home rather than move to the USA.

Here is an article that appeared on Times of India in April.

The graduates from Indian Institutes of Technology, who founded many high tech firms in the US in the last century, are deciding to stay home.

This by itself may not be bad news in the short term, but if the grad schools do not produce enough high caliber graduates in this country, then innovation will suffer eventually. Not only that, the corporations here have to compete with better products and services from abroad, increasing the risk of business failure.

Already, the rats are jumping ship. Venture capitalists from the US are funding more ventures in China and India than here, as Judy Estrin has mentioned in her article.

As always, journalists always put some quack to counter that "opinion", instead of relying on their own investigative research. But wait! Journalism majors were never required to take Physics or Calculus in school. How would they even know where to begin?


Forget US, IITians prefer to stay home
15 Apr 2008, 0253 hrs IST, Sujata Dutta Sachdeva,TNN

They may be some of the most sought after techies in the US, but the Big Apple does not seem to hold its charm for IITians anymore. A study reveals the number of IITians opting to move to the US after graduation is steadily coming down. In the last five years, nearly 84% preferred to stay back and pursue a career in India.

The trend began from the class of 2002. Of the IITians who graduated in 2002 and later (including the class of 2008), only 16% went abroad. In comparison, between 1964 and 2001, 35% IIT graduates preferred to fly to the US.

Interestingly, 59% of IIT graduates before 2001 believed that the US and other developed countries provided better opportunities. However, in the last five years the mindset has undergone a change. Now, nearly 49% believe India is where the action lies.

The study 'Changing Career Destination and Career Choices for IITians' by Evalueserve, a KPO, also reveals, the techies believe India will become the most promising geography for them in the next 10 years.

What's more, the number of IITians who believed the US offered a "better standard of living", too has come down from 13% prior to 2001 to almost zero now.

And why not? After all, payrolls in the US have shrunk by 80,000, and the jobless rate has touched 5.1%, the highest since September 2005.

The techies have now realised that India offers more opportunities for them. No wonder, many of them are returning as well. The II sector is buzzing with stories of the returning prodigals who now prefer the home and hearth.

The Evalueserve study also shows 60% of IITians, who graduated before 2001, saw developed countries as the destination with the best career opportunities. However, the trend changed in the last five years. Now, 51% consider

India a preferred career location. In 2006, 90% IIT graduates chose to stay back and work here.

A substantial percentage (35%) of those who wanted to move to the US, did not go there. The reasons were many. While stringent visa regulations after 9/11 shattered dreams of many, high cost of living, limited scholarships, and high tuition fees unnerved others. Shrinking job opportunities and poor quality of life were among some of the major reasons.

Many are disillusioned with the overall quality of life in the US. Nearly 14% of the respondents say they stayed back because they were getting better job offers here. Another 9% felt that India offered better opportunities.

Most strikingly, when asked, '10 years down the line, which geography do you think will hold the most promise for success?' 72% chose India, with only 17% opting for the US, 5% for Europe and 2% for China. It's India Shining for IITians, finally.

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