It’s my pleasure to announce the release of a new study of immigrant entrepreneurs in the U.S. high-tech sector, which I co-authored with David Hart and Spencer Tracy. The central finding of the study is that about 16 percent of the nationally representative sample of high-impact, high-tech businesses that we surveyed count at least one foreign-born person among their founding team.

Only about three percent of the founders of high-impact, high-tech companies are foreigners (60 out of 2034). 97 percent are U.S. citizens, and specifically 87 percent are U.S.-born, while the other 10 percent are naturalized U.S. citizens. Furthermore, most foreign-born founders lived in the US for decades.  These founders are statistically very similar to the average U.S. population in terms of birth and immigration status.

An interesting but unanswered aspect of the study is how these high-tech immigrants (many not new), part of the international creative class, help integrate U.S. business in a post-American world? Do they as some have claimed strengthen America in a post-American world, or is it a non-issue? If they strengthen our connection to the rest of the world through “brain circulation” is the flight of the creative class not a major public policy issue?

A second issue has to do with closing the borders. If America closed the borders to high impact entrepreneurs, would its own citizens fill the breach? Would more students become better high school students and go on to college and graduate school in engineering and the sciences? This is a much more difficult question to answer, but is again at the heart of public policy today.

Entrepreneurship seems to be the cure all for almost everything including the common cold. In a recent paper, the Kauffman Foundation found that the number of Fortune 500 companies and Inc 500 companies were founded in bear markets. A bear market is when stock prices are more or less falling and a bull market is one in which they are rising. Now this seems counter-intuitive at first. Would you not start a business when times are good? In bad times, if other firms are having trouble selling goods and services, why would you start another one? However, there is another aspect to this. If you lose your job you might have to start a business (a necessity entrepreneurship). But I do not think many of these would grow up to be Fortune 500 companies.

So how do we explain the Kauffman finding? Well, a quick look at bear and bull markets reveals a very interesting finding. Over the whole of the 20th century we found about three bear markets (the market rising) and about three bull markets (the market falling). Each is about 15 years, give or take a little. Keep in mind that a bear market does not mean recession. Recessions are short, but bear markets can last a very long time. In fact, the current bear market stated about 2001 so we are about halfway through if you take the more or less 15-year average. So it is not surprising if about half of businesses are started in bear markets. In fact, a quick look at the statistics suggests that the start-up rate of new firms is not very sensitive to recessions. They are around eight percent. They never fall by 50 percent and never rise by 50 percent.

So what does this finding tell us? Nothing I am afraid. It is business as usual. In good times and bad times Americans will start businesses. I would suggest that the creative class start-up rate is also very steady in the recession. The regional variation of this might also be very interesting.

Today, CEO-Read announced it’s “100 Best Business Books of All Time.” Among the top 100, The Rise of the Creative Class.

Congrats, Rich!

How has The Rise of the Creative Class shaped your area’s approach to community and economic development? Has the book changed your perspective on creativity and talent management? How? Share your stories with our team.

To learn more about the guide for the top 100, click here. The guide is set to be released in February 2009.

Here’s something interesting…

So Maclean’s did a nice article about a recent study measuring “Learning,” from the Canadian Council of Learning. The name of the article is “Canada’s Smartest Cities.”

But I wondered about the difference or connection between Smarts and Learning, so I did a search of the meaty 45-page report – and found zero (nada, zilch, l’oeuf) instances of the word “Smart.” The authors were plainly sensitive to the issues surrounding labeling something as “smart.”

I’ve wondered about this frequently. Is it elitist to value higher education?  By celebrating smartness, are we in essence devaluing those who have not had the opportunities or chosen the path to higher learning?

I confess, I enjoy being around smart people. I find a strong connection between well-educated people and those who are open, tolerant, inquisitive, far seeing, and inclusive. But I’ve also found some of the most maddening people in well-educated professionals – rude, selfish, entitled, unsympathetic, and petty. (They make me want to hang out in a trailer park, or some other low-rent neighborhood where anything goes.)

I still think that the educational attainment of city or community is one of the best measures of a place’s quality of life.  Generally, better-educated citizenry make tougher and better decisions for the future, and see value in making a community better for all, not just their peers.

I’m already lamenting the end of the shopping bag – the gorgeous kind, you know, with maybe satin or grosgrain handles, like from Hermes or Donghia or Laduree in Paris. The kind you may hold onto for years, can’t bear to toss.

And the whole ritual of having your purchase lavishly swathed in tissue paper, held in place with a beautiful sticker, and then gracefully placed in its coordinating carrier suddenly feels sinful.

That graphic/branding indulgence is coming to an end – I know it and ruefully admit I will really miss it. Carrying bags will always be with us but will reusables ever be as glamorous as their wasteful and glorious predecessors?

Sure, we are all declining shopping bags and bringing in our own, recycling the plastic ones, etc. In my store we keep reusing them (except for gift purchases of course), without the shame we might have felt a couple of years ago. All these new practices are good and necessary and I wholeheartedly support them but I can’t imagine what, if anything, will recreate that little note of luxury when our packaging becomes truly minimal?

Technology is great. Ever since the telegraph, we have been moving toward a global technology. At the heart of this technology are people, cities, and the Creative Class. And what do people do? They act entrepreneurialy. That means they create. Like all great civilizations, cities are at the heart of it and creative people in cities are what drives this. We now have data on entrepreneurship in global cities: click here to read the report.

This is the first ranking of entrepreneurial cities in the world! Where does your city rank? How creative is it? WoW.