3. Share of All High Tech Firms
Started by Immigrants
From 1995-2005, researchers found the following:
National Rate = 25.3%
Silicon Valley Rate = 52.4%
Michigan Rate = 32.8%
Michigan ranked #3 in the country, behind only
California and New Jersey.
4. Global Michigan Vision
“We will establish an exciting new
initiative to encourage immigrants
with advanced college degrees to
come to Michigan to live and work.
. . Immigration made us a great
state and country. It is time we
embrace this concept again as a
way to speed our reinvention.”
--Governor Rick Snyder
State of the State Address
January 19, 2011
6. Creating Prosperity
“The richest regions are those
with the highest proportion
of immigrants.”
President’s Commission on
Immigration, 1953
7. Great Lakes Movement
and Global Initiative
• Global Pittsburgh
• Global Cleveland
• Welcome Dayton
• Chicago Council
Global Affairs’
Midwest Immigrat.
Task Force
• North Dakota / NW
Minnesota EB-5
Regional Center
• Iowa Immigration
Education Coalition
• Idaho Project 60
• Global St. Louis
8. Great Lakes Movement
and Global Initiative – Iowa
• CJ (Korea) invested
$325M in Ft. Dodge
corn processing facility
resulting in 200 jobs
• In 2011, Iowa exported
over $13B in global
exports products
• Machinery - $3.8B and
Agriculture - $2.9B are
top export products
10. Great Lakes Movement
and Global Initiatives – Dayton, OH
• 2011 Welcome Dayton plan
spearheaded by City of
Dayton’s Human Relations
Council.
• Goal to officially make
Dayton an “immigrant
friendly” city.
• Strategy to inventory and
coordinate in-place efforts
through city-endorsed
Welcome Dayton
Committee.
13. Roadmap
I. Global Michigan Menu
1. Business Attraction and
Retention
2. Quality of Place
3. Talent Attraction/Retention
II. “American Success Stories”
14. Global Michigan Menu
I. Business Attraction/Retention: Attract
international investment and businesses
that create jobs.
– EB-5 Investor Visa Programs
– Nearshoring
– Homeshoring
15. EB-5 Individual Investors
• In order to obtain an EB-5 green card,
investor must:
– invest $1,000,000. Alternatively; and
– create or preserve at least 10 jobs for U.S.
workers.
• Investment can be in new or existing
"Troubled Business“, which is an enterprise
that has been in existence for at least two
years and has incurred a net loss during a
two year period—must be at least 20 % of its
net worth.
16. EB-5 Regional Centers
• Connecting existing EB-5 regional centers
to Upper Peninsula investment
opportunities.
• Identify Targeted Employment Areas
(TEAs) in Upper Peninsula.
• Other Rural Models to emulate:
– Vermont
– Idaho
17. EB-5 Rural Models – Vermont
• Jay Peak resort secured
$250M of foreign equity
capital to transform
struggling ski-only facility to
year round resort.
• Investment represented 330
investors from 55 countries.
• 3,000 direct and indirect
jobs through life of the
program.
18. EB-5 Rural Models – Idaho
• Idaho has access to a global
market for a variety of
industries, including:
– Agriculture/food processing,
wood products, machinery,
chemicals, electronics
manufacturing, silver and
other mining.
– High tech outfits include
Micron, Sun Microsystems
and Hewlett-Packard.
19. Nearshoring Opportunity in the
Upper Peninsula?
• Nearshoring = Hiring
of international
talent in a nearby
country
• Microsoft 2007
• Sault St. Marie
• Logistics, healthcare,
IT, shipping?
20. Homeshoring
• Homeshoring = New
or returning
manufacturing or
service sector jobs
that were or would
otherwise be located
overseas.
• Michigan is uniquely
positioned.
21. Global Michigan Menu
II. Quality of Place: Make the region more
welcoming to immigrants and foreign
investment.
– Cultural Ambassadors
– Welcoming America/Michigan
– Welcome Mat
– Exporting
22. Cultural Ambassadors
• Modeled after program
developed by Ann Arbor
SPARK
• Goal - to leverage
existing international
populace to attract
international talent and
businesses, and
promote integration
24. • Dedicated to advancing the basic principles
upon which the United States was founded,
establishing the equality and dignity of all
people, including immigrants.
• Creating opportunities for neighbors to get
together and learn about each other.
• Use of mass communications, as well as
targeting receiving communities.
26. Immigrant Impact on Exports
• 10% increase in immigrant population from a
specific country was linked to a 6% increase
in exports to home country.
• Immigrants lower transaction costs by
removing cultural and communication
barriers. Exporters can make global
connections locally, rather than having to
travel abroad or rely upon overseas contacts.
27. State Trade Export Promotion
(STEP)
• Eligible companies can request up to $25k
in assistance to expand export operations
• Funds can be used for
– Overseas trade missions and trade show
participation
– Foreign market sales trips
– Foreign language translation services for
marketing materials
28. Upper Peninsula Market
• Recent 2012 MSU Center for Community
and Economic Development study found
majority of Eastern UP small/medium
enterprises wanted to expand exports
• Lack of market knowledge and financial
barriers most common reason for failure
to export
29. Export Strategy
• Utilizing Cultural Ambassadors and
cultivating international student retention
• Taking advantage of STEP and similar
programs
30. Global Michigan Menu
III. Talent Retention: Keep international
student talent in the region.
– International Student Retention
– Other Welcoming Efforts
• Cultural Ambassadors
• Welcoming Michigan
• Connecting with Leadership Programs
• Welcome Mat
31. Rank in US Total
FOREIGN STUDENTS IN MICHIGAN #8 24,668
(up 3.3%)
ESTIMATED FOREIGN STUDENTS EXPENDITURE IN
MICHIGAN (in millions of dollars)
---
$705.7
Intl. Students in Michigan, National Rank and
Economic Impact
Institution City Total
University of Michigan Ann Arbor 5,995
Michigan State University East Lansing 5,748
Wayne State University Detroit 2,263
Western Michigan University Kalamazoo 1,390
Michigan Tech. University Houghton 1,114
Michigan Institutions with the Highest Number of Foreign Students
Percent of Michigan’s Foreign Students in STEM Fields of Study: 38.4%
Percent of U.S. Undergraduate Students in STEM Fields of Study: 13.7%
32. International Students in the U.P.
• Northern Michigan University: 119
(2011-2012)
• MichiganTechnological University:
1,114 (2010-2011)
• Lake Superior State University: 359
(2005-2006)
33. In the U.P. Alone: International
Student Economic Contribution
Institution Tuition &
Fees
Living
Expenses
U.S. Support Total
Northern
Michigan U.
$1,159,100 $1,695,600 ($379,900) $2,474,800
Michigan
Tech
$23,140,600 $18,511,800 ($12,911,100) $28,741,300
*LSSU $4,229,400 $5,394,900 ($22,378,700) $7,315,600
Community
Colleges
$30,600 $86,200 ($5,300) $111,400
TOTAL: $38,643,100
34. International Students at
Michigan Tech:
Bachelors
International Students
Domestic Students
Masters
International Students
Domestic Students
PhD
International Students
Domestic Students
38. Tom Friedman – “World is Flat”
“Dear America, please remember how you got
to be the wealthiest country in history.
…the formula was very simple: build this really
flexible, really open economy, tolerate
creative destruction so dead capital is quickly
redeployed to better ideas and companies,
Pour into it the most diverse, smart
and energetic immigrants from every
corner of the world and then stir and
repeat, stir and repeat, stir and
repeat.”
This slide dispels the stereotype about how people may think about jobs and job growth in the “industrial” heartland.
This slide shows the percentage of high tech firms started by immigrants.
Source: Vivek Wadhwa, AnnaLee Saxenian, Ben Rissing, and Gary Gereffi “America’s New Immigrant Entrepreneurs” Duke University and University of California-Berkeley, January 4, 2007, found at http://ssrn.com/abstract=990152.
Governor Snyder’s January 19, 2011 State of State Address
We will establish an exciting new initiative to encourage immigrants with advanced college degrees to come to Michigan to live and work. I have asked the Department of Civil Rights to work with the MEDC on this effort.
We need to be a place that openly encourages innovators and entrepreneurs to come to our state. The evidence is clear that advanced college degree immigrants can make a tremendous difference in creating a positive economic activity environment that benefits us all.
To give you some additional background, for example, about on half of the startups in Silicon Valley have a foreign national founder.
Immigration made us a great state and country. It is time we embrace this concept again as a way to speed our reinvention.
Global Michigan is designed to impact key areas of economic growth in the global economy. Specifically, Global Michigan’s emphasis on immigration and global connections can have tremendous impact on:
Talent – Survey after survey have indicated that the most significant factor impacting a company’s decision on where to locate and expand is access to talent. Thus, the MEDC has made attracting, developing, and retaining talent as a top priority. Global Michigan believes that increasing Michigan’s appeal to international talent can attract and retain Michigan businesses, but also can foster culturally diverse communities that attract and retain talented Michiganders, ending our state’s brain drain to Chicago, New York, California and other regions.
Export and Trade – President Obama, in his 2009 State of the Union Address, called for doubling America’s exports in five years – that is, starting with $1.55 trillion in sales to overseas buyers in 2009, and ending in 2014 with $3.1 trillion or more. Two years later American exporters are on track to meet the goal. In fact, exports are a significant reason we are seeing the signs of a national economic recovery. In 2010 and 2011, exports contributed more than 46 percent to the growth of the U.S. economy. Nominally, total U.S. exports grew by more than 16 percent between 2009 and 2010, but the rate moderates to 11 percent, when adjusted for inflation.
A quick look at an especially successful part of the world – the three Baltic Republics, Finland, and Russia – and then some more systematic data. Here are U.S. exports to the three Baltic republics in 2010 and 2011, pushed along by sales of cars, tractors, rare earth metals, vacuum pumps, chicken and planes:
2009: $800 million
2010: $1.0 billion
2011: $1.8 billion
The three have thus already met the goal of doubling their American imports. Larger neighbor Finland is just short of doubling its buying of American cars, foods, medicines, communications equipment, zinc, ethanol, and batteries since 2009. Russia, with its WTO accession tariff-cutting set to kick in this summer, is up 50 percent. And while this region is unusually enthusiastic, it isn’t unique.
FDI - Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills, and as such can provide a strong impetus to economic development. The U.S. has received over $1.7 trillion in foreign direct investment in the last decade, creating more than 5.5 million jobs, including over 2 million manufacturing jobs.
Global Detroit report info on 20th Century immigration and 21st Century immigration. UP history of immigration.
The economic transition Michigan faces in the coming years is similar to the one it made a century ago. The incredibly important role that Detroit played to the nation’s innovation, industrial might, and economic prosperity in the 20th Century has been compared to the role that Silicon Valley has played in modern times. The innovative and entrepreneurial spirit embodied by Henry Ford, Ransom Olds, the Dodge Brothers, and dozens of other auto, engineering, science, and industrial leaders fueled Detroit’s emergence as the “Arsenal of Democracy.” At the time, in the 1900 Census, 33.8 percent of Detroit’s population was foreign born. That entrepreneurial spirit drove America to become the world’s unrivaled industrial leader.
In 2010, Silicon Valley’s population was more than 36.3 percent foreign born, almost 300 percent of the national average of 12.5 percent. New York, Boston, Austin, Seattle, San Francisco, and Miami, as well as Toronto and Vancouver are all known as regions with high immigration.
CJ executive John Kang said that the company chose Fort Dodge primarily because Iowa has cheap corn. And there’s a facility nearby to help process that corn to make its product. The company was also interested in transportation logistics and access to qualified workers, which Kang said is still a concern.
For the CJ project, assets such as corn, processing facilities, transport and available land were marketed heavily by local officials, as well as Governor Terry Brandstad.
http://www.theworld.org/2011/12/foreign-money-fort-dodge-iowa/
Source for Exports: International Trade Administration http://www.trade.gov/mas/ian/statereports/states/ia.pdf
Mission: to educate Iowans about immigrants and inform the development of common-sense immigration policies that enhance Iowa’s economy and quality of life, preserve families, and affirm the dignity of immigrants.
Alliance of chamber of commerce, major corporations, labor, and others. Iowa sees immigrants as critical to growing rural food processing businesses, as well as their growing health care, insurance, and financial services industries in the Des Moines-Ames region.
Study commissioned in early 2009. Over 150 local interviews. Visits to Cleveland, Pittsburgh, Philadelphia and conversations with New York City, Kitchener/Waterloo, etc.
May 2010 report available at www.globaldetroit.com
Over $4 million in philanthropic funding:
Welcoming Michigan
Global Talent Retention Initiative
ethnic media
Nearshoring – HomeShoring and Re-Shoring
Microenterprise
Welcome Mat
Study commissioned in early 2009. Over 150 local interviews. Visits to Cleveland, Pittsburgh, Philadelphia and conversations with New York City, Kitchener/Waterloo, etc.
May 2010 report available at www.globaldetroit.com
Over $4 million in philanthropic funding:
Welcoming Michigan
Global Talent Retention Initiative
ethnic media
Nearshoring – HomeShoring and Re-Shoring
Microenterprise
Welcome Mat
The State of Idaho’s Invest Idaho, LLC was established to attract investments in technology and other emerging sectors. “[Invest Idaho LLC] plans to attract $50 million from qualified foreign investors as part of its initial phase, which will be used to set up a fund that could subsidize dozens of projects . . . bringing ideas out of university labs and startup garages, and helping small business test new products or markets.”
According to Rick Ritter, Invest Idaho’s chief operating officer and CEO of Idaho TechConnect, “Too many good ideas in the state are getting bypassed by risk-averse banks and the angel funds and venture capital firms that are looking for massive rates of return as the economy begins to recover. None of those guys want to play with the kinds of folks we’re talking about. . . That doesn’t mean we don’t have ideas. In times of economic downturn we actually have more ideas, but less money than we had before.” 213
State officials backed Invest Idaho’s efforts, with the Idaho Department of Commerce helping the company with its application to USCIS, as well as providing introductions to potential investors through its foreign trade offices. Governor C.L. ‘Butch’ Otter has highlighted the EB-5 program as a ‘key element’ in his effort to attract new foreign investment to Idaho as part of Project 60, his plan to grow the state’s annual gross domestic product to $60 billion from $52 billion.
Idaho Department of Commerce Strategic Plan 2011-2014
Global Detroit Report paragraph
http://www.dfm.idaho.gov/Publications/BB/StrategicPlans/SP2011/Commerce_SP.pdf
http://lmi.idaho.gov/Default.aspx?TabID=766&AspxAutoDetectCookieSupport=1
The global economy is dynamic and complex. Certain industries are discovering that rationale for offshore facilities is waning. Intellectual property concerns, quality control issues, rising labor costs, and a reclamation of the “Made in America” message have all factored into the shifting of certain IT and manufacturing jobs back to the U.S. Michigan is well positioned because it has a high percentage of both knowledge workers and manufacturing workers, as well good connectivity and infrastructure to other markets.
Started by Governor Rick Snyder at Ann Arbor SPARK in 2009.
10 ethnic identity teams; cultural resources for business and professional class; greet foreign investors, companies and trade partners; international student retention events.
Volunteer networks with minimal operating costs – maximizing limited resources.
Michigan thrives when we bring the best of what has been and the best of what can be together to create a stronger, more vibrant Michigan for all. At Welcoming Michigan, we seek to build mutual respect among foreign-born and U.S.-born people who call Michigan home today. Together. It’s better.
Welcoming Michigan is the only statewide initiative that seeks to transform the immigration conversation to one of respect and dignity towards all Michiganders. We plan to accomplish this by creating opportunities for neighbors to get together and learn about each other. Bringing immigrants and non-immigrants together to share their stories is one way to foster greater understanding. And building relationships between neighbors will help us create stronger and safer communities.
Gov. Rick Snyder, Governor of Michigan
“For the overwhelming majority of immigrants, the opportunity to begin again—and flourish—is what made Michigan great. We need to continue to harness this thirst for success and the work ethic that makes success possible, to help Michigan grow once again.”
Steve Tobocman, Director, Global Detroit, former House Majority Floor Leader
“Welcoming Michigan not only represents the values (hospitality, kindness, and friendliness) of the midwestern state in which I was raised, but it actually creates the kind of welcoming environment essential for economic growth in a global economy. If Michigan is to compete, we have to welcome the investment, the jobs, the workers, and the ingenuity of immigrants and refugees. Welcoming Michigan is the foundation of a global economic growth strategy to return prosperity to our state.”
Recent research on Sweden’s vast export growth from 2002-2007 (a five-year period that saw that nation’s exports double, much as President Obama hopes to see in the U.S.) suggests that for every 10 percent increase in the number of immigrants to Sweden from a specific country, Swedish exports increased to that country by 6 percent. Furthermore, the study found for every additional 12,000 immigrants, Swedish exports increased by approximately $1 billion dollars.
The Upper Peninsula has 6,000 immigrants. Doubling that could mean a $1 billion investment.
David Landes, “Immigration Increases Foreign Trade Study,” The Local, September 17, 2009
The International Monetary Fund predicts that 87 percent of the world’s economic growth over the next five years will occur outside of the U.S. Much of this growth will occur in developing countries, as the percent of global GDP coming from traditionally developed countries continues to decline. Since many developing countries lack the formal trade institutions seen in traditionally developed countries, the home-country links that immigrants provide are vitally important to trading with them.
Leigh Miller-Villegas, “Commerce Officials: U.S. Should Boost Small Business Exports.” Global Atlanta. November 23, 2010.
Karen Klein, “Small Business Should Focus on Exports.” Business Week. December 21, 2010.
Overseas trade mission participation
Overseas trade show participation
Foreign market sales trip
Subscription to U.S. Department of Commerce services
Foreign language translation services for export marketing materials and web site assets
-Rex LaMore, J.D. Snyder, Sara Bowers, Jeff Hagan, “Eastern Upper Peninsula Manufacturing Companies Exporting Survey Results and Analysis,” Northern Michigan and Eastern Upper Peninsula Knowledge Economy Strategies Project Co-Learning Report #4, August 15, 2009.
-Michigan State University Center for Community and Economic Development “East Michigan and Eastern Upper Peninsula SME Exporting Survey Analysis and Annotated U.S. Export Assistance Directory,” Research and Strategy Briefing Papers on Developing Global Niche Markets for SMEs in East Michigan and the Eastern Upper Peninsula, February 23, 2012
From 2010-2011 NAFSA Report: The Economic Benefits of International Education to the United States for the 2010-2011 Academic Year: A Statistical Analysis
Community colleges are Bay de Noc in Escanaba and Gogebic in Ironwood
No recent data on LSSU – the LSSU figures are from 2005-2006 – since, then, the annual contribution from international students at Michigan Tech and Northern has almost DOUBLED, so we can actually expect that the amount at LSSU would follow the same trend… putting the real total at around $45 million
Relates back to previous discussion proportional degree attainment of int’l vs. domestic students
Immigrants students at Michigan Tech make up
-6.8% of undergrad student body
-40.5% of masters students
-55.3% of PhD students
Data is from 2009-2010 report from Michigan Tech “Diversity Facts 2010”
A123 Systems. Batteries in Black and Decker Power Tools. Working on developing a viable battery-powered car.
The largest lithium ion automotive battery production facility in North America in Livonia, Michigan with the capacity to produce over 300,000 hybrid vehicles a year for Chrysler, Delphi and other global automotive manufacturers. Company hopes to hire 3,000-4,000 engineers, researchers and production workers.
Chronicled in Immigrant, Inc. by Richard Herman – A123 is the story of a Taiwanese researcher, whose research was discovered by an Venezuelan entrepreneur, funded by an Indian venture capitalist – all 3 of who are immigrants.
Kanwal Rekhi (born 1945) is an Indian-American engineer, businessman and millionaire philanthropist.
In 1969 he received a Master of Science degree from Michigan Technological University.
Founded EXCELAN at age 36 (bought by Novell). Pioneered Ethernet networking technology, one of the basic building blocks of the Internet and was also credited for the commercial growth of the internet protocol TCP/IP.
Kanwal has been a major donor to Michigan Tech,[1] including a gift of $5 million for new computer science facilities.
http://en.wikipedia.org/wiki/Kanwal_Rekhi
