The Invisible Engine of American Dominance

The United States has long been recognized as a nation of innovators and entrepreneurs, where risk-taking and experimentation are encouraged from the outset. However, beneath this self-image lies a more complex reality: one that relies heavily on immigrant founders to drive innovation and growth.

According to a recent study, immigrants have founded or co-founded 59% of America’s privately held billion-dollar startups this year – a staggering number that underscores their outsized impact on the economy. Moreover, nearly 80% of unicorn companies have an immigrant founder or leader, generating $8.6 trillion in revenue and employing over 15 million people worldwide.

The key to immigrants’ success lies in their diverse experiences growing up in different cultures and healthcare systems. Unlike native-born Americans, immigrants often arrive with a fresh perspective on what is possible – as German founder Felix Haas notes, “a wider aperture for what’s broken.” This ability to see multiple versions of normal can be a powerful catalyst for change.

Haas’s own story exemplifies this idea. Growing up in Germany, he was accustomed to the precision and process-driven approach to innovation. However, when he came to the US and encountered the complex, fragmented healthcare system, he was shocked by its inefficiencies – and that shock became the foundation of his startup, Cedar.

Immigrant founders like Haas bring a crucial skillset to the table: an ability to take risks without being constrained by traditional thinking. Without a safety net, they’re more willing to bet on unproven ideas, and less afraid to fail publicly. As Haas notes, “If you have already left behind one country, one language, one set of assumptions about your own life, building a company that might not work is a smaller leap than it looks from the outside.”

While immigrant founders are an essential part of the US innovation engine, they’re also facing significant challenges. The lack of a dedicated startup visa is a persistent policy gap that threatens to derail the next wave of transformative technology – including AI research, where 59% of the world’s elite researchers are employed by US institutions.

For the US to maintain its edge in these fields, immigration policy must become more predictable and certain. Early-stage founders and researchers need real assurance that a path to stay exists before committing years of their life to building here. Anything less risks driving talent towards countries with clearer answers – and undermining the very engine of American dominance.

To address this issue, policymakers must prioritize clarity and certainty in immigration policy. This means creating dedicated paths for startups and researchers, as well as providing a more stable and predictable environment for innovation to flourish. Clear regulation is also essential; while it may be tempting to vilify rules and red tape, the truth is that clear regulations can be navigated – especially when contrasted with ambiguity and uncertainty.

The invisible engine of American dominance relies on immigrant founders to drive innovation and growth. However, it’s up to policymakers to create an environment that allows them to succeed – and for native-born Americans to learn from their unique perspectives and experiences. Only then can the US truly maintain its status as a global leader in innovation and entrepreneurship.