Immigration Policy Levers for U.S. Innovation and Startups

Abstract

Immigrants account for about a quarter of US invention and entrepreneurship despite a policy environment that is not well suited for these purposes. This chapter reviews the U.S. immigration policy environment that governs how skilled migrants move to America for employment-based purposes. We discuss points of strain in the current system and potential policy reforms that would likely increase the rate of innovation and the number of startups due to immigrants in the country. Key areas include adjustments to the allocation of permanent residency visas, adjustments to the H-1B visa program, and the creation of an immigrant startup visa.

Keywords: immigration, entrepreneurship, invention, innovation, startups, venture capital, high-tech, H-1B

JEL Classification: O31, F22, F23, J15, J44, J61, L26, M13, O32, O33