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From Underdogs to TigersThe Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel$
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Ashish Arora and Alfonso Gambardella

Print publication date: 2005

Print ISBN-13: 9780199275601

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199275601.001.0001

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Sojourns and Software: Internationally Mobile Human Capital and High-Tech Industry Development in India, Ireland, and Israel

Sojourns and Software: Internationally Mobile Human Capital and High-Tech Industry Development in India, Ireland, and Israel

Chapter:
(p.236) 9 Sojourns and Software: Internationally Mobile Human Capital and High-Tech Industry Development in India, Ireland, and Israel
Source:
From Underdogs to Tigers
Author(s):

Devesh Kapur

John McHale

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199275601.003.0009

This chapter analyzes the role of international flows of human capital in the growth of the software industry in the 3Is. Although skilled emigration is usually seen in such threatening ‘brain drain’ terms, its effects are multi-faceted and poorly understood. Overall, the evidence strongly suggests that the benefits of skilled migration have outweighed the costs for the three countries. The Indian experience in Silicon Valley, for example, shows how the diaspora can be a valuable national asset in facilitating international commerce, especially where the business is transactionally complex and reputation concerns are paramount. The highly skilled Indian emigration has played a key part in the development of an internationally competitive Indian software sector. The Irish experience shows how one decade's lost human capital can, under the right conditions, become a skill reservoir that can be tapped to ease resource constraints and sustain economic expansion as domestic labor markets tighten.

Keywords:   brain drain, brain circulation, reputation intermediary, diaspora, labor market, immigration

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