Saturday, April 15, 2017

I worry this is also happening to Australia

Cute study finding that emigrants from Scandinavia in the latter half of the 19th century were disproportionately individualistic, thus (speculatively) leaving behind a more homogeneous population amenable to Scandinavian-style social democracy.

I worry this will also happen in Australia. There are a multitude of factors preventing Australia from being as innovative as the U.S., from tax laws and regulations that discourage venture capital, startups, and small businesses more generally, to a culture that is a bit more skeptical than celebratory of the crazy people who might actually want to do a startup. But not least on this list is brain drain, in which the best university students are encouraged to go to the U.S. for graduate school and innovative engineers move to Silicon Valley if at all possible.

Anecdotes prove nothing but are memorable, so: In an ironic demonstration of this pattern, my boyfriend Matt is an American aerospace engineer who is now working for his fourth Silicon Valley startup but who had the bad luck of getting attached to someone in a much more global job market who dragged him to Brisbane. He continues to work remotely for these firms* because there are only half a dozen locations in the world where he could work for the type of company he wants to work for (he is admittedly very picky)**. But his boss at Planet was an Australian who defected to the U.S. to work in aerospace but still won the 2014 "Advance Global Australian of the Year" award. Matt left that company a year ago and now has yet another Australian boss based in California at Swift Navigation.

Unfortunately, every sensible city in the world wants to promote innovation and entrepreneurialism in the hopes of becoming Silicon Valley 2.0, and they haven't yet succeeded, so I certainly don't have the answer either. I would think that medicare and a stronger welfare system would encourage startups in Australia (because leaving your regular job is comparatively low risk) but that's obviously not enough. It's great that Australia is so open to immigrants, so hopefully that will prevent Scandinavian homogenization. In the meantime, the U.S. would be well-advised to guard this comparative advantage by embracing the immigrants who want to come put their noncomplacent energy and talent to work.

* Note to students: study STEM so you will also have a skill set that gives you this kind of leverage.

** Anyone in Denver/Boulder hiring behavioral economists? :)


Lam said...

Vera L. te Velde said...

I should say, tenure-track academic jobs; I'm picky too :) Thank you though!