From Brain Drain to Brain Circulation: Transnational Communities and Regional Upgrading in India and China

Abstract

By 2000, over one-third of Silicon Valley’s high-skilled workers were foreign-born, and overwhelmingly from Asia. These U.S.-educated engineers are transforming developmental opportunities for formerly peripheral regions as they build professional and business connections to their home countries. In a process more akin to “brain circulation” than “brain drain,” these engineers and entrepreneurs, aided by the lowered transaction costs associated with digitization, are transferring technical and institutional know-how between distant regional economies faster and more flexibly than most large corporations. This article examines how Chinese- and Indian-born engineers are accelerating the development of the information technology industries in their home countries—initially by tapping the low-cost skill in their home countries, and over time by contributing to highly localized processes of entrepreneurial experimentation and upgrading, while maintain close ties to the technology and markets in Silicon Valley. However, these successful models also raise several questions about the broader relevance of brain circulation outside of several key countries, and regions of those countries, within the global South.