Tag: brain drain

Working with entrepreneurs in the CEL Entrepreneur Consulting Team (CELect) Course has been an incredibly valuable learning experience, and has helped engage me in concrete opportunities to develop as a professional. By locating the course at T-REx, (a startup incubator located in the The Railway Exchange Building) Washington University has developed one of its first connections in recent history with downtown St. Louis, which is an intangible but very valuable relationship for the university.

The importance of this development was first brought to my attention about a month ago.  During a discussion with a non-profit leader in the city, I came to realize that in the eyes of many, Washington University has done little to engage with the St. Louis community outside of the University City or Clayton area. With other universities such as St. Louis University involving itself more in the city, and a growing population of young people entering St. Louis, it seems like the perfect time for Wash U to act as a positive force for innovation and sustainable development. The new CELect class is a spring board for a stronger future commitment to downtown St. Louis and to the growing entrepreneurial community in the city.

Now the question is, what is the incentive for the University?

I think the value-add for Wash U is based in the idea of “brain drain”. High quality universities such as Wash U and SLU attract thousands of brilliant youth to St. Louis every year, yet a very small number of these students stay in St. Louis after graduation. I would argue that this occurs, in part, because students are not exposed to the professional or entrepreneurial opportunities available to them within the city. With low costs of living and a great social atmosphere, a young graduate could affordably play a crucial and rewarding role in redeveloping the economy here in St. Louis.

With more direct connections between Wash U, the city of St. Louis, and the bourgeoning tech, biotech, business, and social venture industries, students will more easily realize the opportunities around them. This would create a stronger local alumni network, and create a community of reciprocity within the city.

I am excited to be a part of a course attempting to break this divide, and I hope to see the CELect course and Wash U further leverage the incredible resource of T-REx, as well as Downtown St. Louis as a whole.

-Micajah Dudley is a senior studying International Business. He consulted for Observable Networks, an IT security company and winner of an Arch Grant.

The bulk of our discussions in class have been centered around the sources of strength of Israel’s entrepreneurial and business culture–for example: the influx of educated immigrants from Eastern Europe, technology and leadership training from the IDF, and a unique, “get it done” business mentality.

The main threat to Israel’s continued success seems to be external, in the form of the country’s ever-hostile neighbors. However, there are also a slew of secondary foreign concerns that present problems for the continued success of Israel’s businesses and startups.

Israel has been suffering from an increasingly high rate of brain drain, or highly educated Israelis leaving the country to study or work elsewhere. In 2011 up to 14% of Israeli STEM Ph.D. holders had been gone from the country for three years, with only 4% returning after having been gone for more than three years (Kalman). This trend is also present with non-Ph.D. degrees, although less prevalent. Although Israel may do an excellent job of fostering entrepreneurial growth, it needs to retain the source of innovation.

One could argue that this trend is only slightly troubling, as Israel has in recent years been attracting large amounts of talent from other countries, but increasing reliance on foreigners for continued business growth is a strategy that will almost certainly fail.

This increased reliance on foreign input is also problematic in Israel’s venture capital industry. 31% of Israel’s startups in 2010 relied on foreign funding, increasing to 52% in 2012 (Orbach). Furthermore, the Israeli government extended several tax breaks to foreign investors in the early 2000s, but has failed to extend the same benefits to domestic funds. For a country that fared extremely well during the recession, this increased reliance on foreign capital is troubling as it increases the country’s exposure to global financial shocks.

It is concerning that our class seems to focus heavily on the strengths (numerous as they are) that support Israel’s entrepreneurial success, while glossing over the weaknesses. Addressing these weaknesses more thoroughly would create a more balanced understanding of the state of Business and Entrepreneurship in Israel.

Kalman, Aaron. “Israelis with advanced degrees more likely to leave country.” The Times of Israel. N.p., 27 Dec. 2012. Web. 12 Feb. 2013. .

Orbach, Meir. “Foreign high-tech investments outdo Israeli investors.” Ynet News. N.p., 26 Mar.2012. Web. 5 Feb. 2013. .

Miquel
Class of 2013