Suren G. Dutia

Diaspora Networks
A New Impetus to Drive Entrepreneurship

In the early 1800s, John Ford and his son, William Ford, left their Irish homeland
to come to America in search of greener pastures in the New World. What ensued
was beyond the imagination of the elders of the Ford family. William’s eldest son,
Henry Ford, established one of the greatest business empires in the world. Henry’s
innovations revolutionized the way people would use transportation in their daily
生活. The effects of his innovations were felt all over the world and, most impor-
急切地, in his ancestral home—Ireland.

One summer day in 1912, Henry visited Ireland to reconnect with his roots.
Conscious of Ireland’s low development level Henry felt a strong emotional draw
to apply the knowledge and ideas he had accumulated to revitalize the depressed
area of Cork, where he traced his family roots. His decision to expand his compa-
ny in his homeland was based on his emotional desire to reconnect and contribute
to the development of his ancestral land. Henry’s story illustrates the significance
of a Diaspora bond in global entrepreneurship.1

This article examines how Diaspora entrepreneurs are uniquely placed to iden-
tify market opportunities in their home countries and are able to use this informa-
tion to create and invest in new ventures, spurring job creation and economic
生长. This article also advocates for a stronger element of Diaspora entrepre-
neurship in aiding sustained economic development efforts, and provides sugges-
tions on Diaspora engagement policies to utilize this asset effectively.

The premise that entrepreneurship will translate directly into high levels of
economic growth and lead to innovation is intrinsically tied to Diaspora entrepre-
neurship. The phenomenon of Diaspora entrepreneurship has been gaining con-
siderable attention because it represents a rich resource that leads to promising
prospects for economic growth. Consider the scale of the capital flows in a
Diaspora network. 在 2010, worldwide remittance flows are estimated to have
exceeded $440 十亿. Of that amount, developing countries received $325 十亿,
which represents an increase of 6 percent from the 2009 等级. Recorded remit-
tances in 2009 were nearly three times the amount of official aid and almost as

Suren Dutia is a Senior Fellow at the Kauffman Foundation and the Skandalaris
Center at Washington University in St. 路易斯, and serves on the boards of several
entrepreneurial ventures. Previously, he served as the CEO of TiE Global and chair-
man and CEO of Xscribe Corporation.

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Suren G. Dutia

large as foreign direct investment (FDI) flows to developing countries.2 If emerg-
ing entrepreneurs from the Diaspora are leveraged optimally, they can help reduce
overt unemployment, alleviate poverty, and raise the standard of living across the
地球.

这

Diaspora bonds characterized by ethnic and social affiliations have played an
important and strategic role in shaping cross-border trade and commerce activi-
ties and promoting global entrepreneurship. 历史上, the term was used to
describe the exile of Jews from
their ancestral homeland, 以色列.
顺便,
term has
evolved and has been applied to
explain the potent economic
force that the Israeli Diasporas
have come to represent. 其他
historical Diaspora networks
include Phoenician trading net-
works distributed throughout
the ancient Mediterranean,3 15-
century Chinese business out-
posts in Southeast Asia, 和
origin of international finance
through Diaspora-based bank-
ing networks spanning 16-cen-
tury Europe.4

Conscious of Ireland’s low
development level, Henry felt a
strong emotional draw to apply
the knowledge and ideas he
had accumulated to revitalize
the depressed area of Cork,
where he traced his family
根. His decision to expand
his company in his homeland
was based on his emotional
desire to reconnect and
contribute to the development
of his ancestral land.

In today’s context, the size
of Diaspora networks and the
global reach that they extend
due to inexpensive air travel and
communications channels are
redefining their potential. 在
one point, Diasporas were inter-
nationally dispersed networks, but now they have evolved and have become more
interdependent than ever before. The unprecedented movements of Diasporas on
such a large scale have set a global demographic trend that marked the 20th and
21st centuries.5 It looks as though this trend will continue as processes of urbaniza-
tion and globalization continue their advances, and the full impact of climate and
population changes take effect.6 Today, there are 215 million first-generation
migrants around the world representing 3 percent of the world’s population.7 If
migration continues to grow at the same pace as over the past 20 年, some ana-
lysts predict that there could be 405 million international migrants by 2050.8

的确, the number of “transnational citizens” who have permanent residences
and engage in businesses in both their adopted countries and their countries of ori-
gin are on the rise. These trends fundamentally illustrate that Diaspora networks
offer a huge global reach and are potentially the new and pervasive tool of global

创新 / Unleashing Ideas

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Diaspora Networks: A New Impetus to Drive Entrepreneurship

development and entrepreneurship. Understanding these trends is necessary in
designing an effective Diaspora strategy.

是

Activated Expatriates

As the huge potential of Diaspora networks is being recognized, it is also
important to extend the general concept of Diaspora, currently limited to cultural,
种族的, or religious groups bound by shared cultural norms and traditions, to be all
encompassing. The notion of Diaspora needs to expand from its traditional sense
to consider cross-national and international social capital networks. The more
conventional networks, such as The Boston-Israel Business Forum that connects
Israeli entrepreneurs with Jewish members in the area, are fast expanding to
broaden the definition to include pro-
fessional, expatriate, and other affili-
ated networks.

今天, the size of Diaspora
networks and the global
reach that they extend due
to inexpensive air travel
and communications
channels are redefining
their potential.

A
Diaspora network made up of indi-
viduals who have ventured into inter-
national markets and have become a
bridge for their peers from that home
country who would like to engage
with the international market they
now represent. Due to common cul-
tural ties, a level of trust exists that
allows for the formation of business
relationships that may be useful in
accessing new international markets.
Examples include international trade experts and representatives who set up shop
overseas to support firms looking to establish a presence in that country.
Partnership for Growth (P4G), facilitated by Richard Boly, 一个美国. diplomat and
director of the Office of eDiplomacy while serving in Italy, is a program aimed at
promoting economic dynamism in Italy by sharing relevant experiences from the
美国.

Another category of a Diaspora network, termed “boomerang expatriates,” are
individuals who, due to their extensive work overseas, have attained strong rela-
tionships and insights into working in overseas markets. These individuals, 之上
returning home, leverage their ties to these markets to assist emerging firms and
entrepreneurs with interest in doing business in these countries.

There also are the NGO and multinational expatriate Diasporas of individuals
who work with these organizations to establish affinities and strong ties in foreign
国家. These ties are leveraged to first support the multinationals, and also can
be drawn to supporting new entrepreneurial initiatives. Many of these individuals
serve in different capacities with multiple firms, or emerge to consult with new
ventures seeking to break into foreign markets. An example is IntEnt, based in the
荷兰. 成立于 1996, it provides support to Diaspora entrepreneurs in
the Netherlands who would like to set up new businesses in Surinam, 加纳,
火鸡, 摩洛哥, 埃塞俄比亚, 阿富汗, or Curacao.

创新 / 体积 7, 数字 1

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Suren G. Dutia

The biggest edge Diaspora entrepreneurs have is their ability to establish social
links through cultural and linguistic commonalities. With intimate understanding
of cultural and social norms, distinct business cultures, and local languages,
Diaspora entrepreneurs form trusted bonds and unlock opportunities often closed
or unknown to other entrepreneurs. These networks also can be used to gain
knowledge about market opportunities and infrastructural gaps. 例如, 在
中国, the concept of Guanxi is commonly practiced. Guanxi describes the basic
dynamic in personalized networks of influence and is a central idea in Chinese
business practices. A Diaspora network can greatly enhance this cultural under-
standing and accelerate business opportunities.

The biggest edge Diaspora
entrepreneurs have is their
ability to establish social
links through cultural and
linguistic commonalities.

The roles of Diasporas in developing knowledge-based sectors in China, 印度,
爱尔兰, and Israel are now well known.9 For example, most of the foreign direct
investment that flows into China is ini-
tiated by the Chinese Diaspora. 的
$105 billion of FDI in 2010, two-thirds came from places where the popula- tion is mostly ethnic Chinese.10 These Diaspora networks have facilitated capital flows and connections to com- mercial networks, enabled technology and knowledge transfers, and spear- headed development of special eco- nomic sectors in their native countries. The other well-known example is of Silicon Valley’s immigrant entrepreneurs, who led the dot-com phenomenom in the 1990s by starting technology businesses that generated economic gains and employment in the United States and also created a tight-knit network and estab- lished businesses in their homelands. Today they are contributing to the creation of new hubs of technology and skills in their home countries. As these entrepre- neurs collaborate with former classmates and colleagues in once-dormant economies such as India and China, they are providing access to the markets and know-how that are critical to success in today’s global economy. This also is appli- cable to “immigrants” who once worked and were educated in the United States and the United Kingdom and have returned to their home countries. This group of expatriates take advantage of their links and connections to the United States and have spurred technological innovations and economic activities. Another advantage of a Diaspora network is the ease of connecting with prospective partners in both their home countries and chosen country of destina- 的. Through these connections, opportunities for investment, 贸易, and out- sourcing are available. Strategic partnerships also are formed by leveraging politi- cal and financial resources necessary in the transfer of knowledge and technology from developed to developing countries. Diaspora entrepreneurs also may lever- age their access to relatively cheap labor and, 在某些情况下, large talent pools in their countries of origin into a competitive advantage in manufacturing or knowl- 68 创新 / Unleashing Ideas Downloaded from http://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023 Diaspora Networks: A New Impetus to Drive Entrepreneurship edge-process outsourcing (such as information systems integration and insurance underwriting).11 Akin to all other types of entrepreneurs, Diaspora entrepreneurs thrive by rec- ognizing and taking advantage of opportunities. In pursuit and realization of their entrepreneurial ambitions, members of the Diaspora display personal attributes such as risk-taking, optimism, resilience, 决心, persistence, creativity, and adaptability. Members of the Diaspora have successfully utilized these traits and leverage their unique positions within the nodes of the network to foster busi- ness development, 创造就业机会, and innovation. While the entrepreneurial spirit inherent among Diaspora members remains the key to success, an ecosystem of government agencies, philanthropic organiza- 系统蒸发散, multilateral institutions, and Diaspora associations aid Diaspora entrepre- neurs in comprehending market dynamics in their countries of origin, seeking financial resources for their entrepreneurial activities, and providing tools to nav- igate and negotiate through the system. Nine of the ten largest investors in China in the mid-1990s, reaching $200 十亿 1995, were overseas Chinese investors
engaged in a variety of cooperative relationships through their Diaspora network.12
A country that has a robust Diaspora engagement policy in place acts as a conduit
to activate the Diaspora network in tangible and intangible ways.

A combination of economic, 政治的, and financial factors also helps a
Diaspora network to flourish. A Diaspora member will be more confident of
exploiting his ties to his country of origin if the destination is recognized for its
political stability, established legal system, good governance practices, a well-con-
nected infrastructure, and sound financial institutions. 此外, an economy
poised for growth and development opportunities make it an attractive destination
for Diaspora entrepreneurs to explore business opportunities. According to
research comparing entrepreneurship in more than 40 国家, higher levels of
entrepreneurship are positively correlated with higher levels of economic develop-
ment.13

Given these insights, I am of the opinion that engagement with Diasporas is an
important strategic function in today’s networked world. To ignore and miss out
on capitalizing this thriving group of entrepreneurs would result in undesirable
consequences for any country’s economic growth. On a macro level, 政府
should invest in establishing a pro-business climate with favorable policies that
encourage the flow of FDIs, and have regulatory reforms that will liberalize their
economies and encourage free trade. Governments also should establish a robust
and efficient legal system, sound financial institutions, and a critical mass of
human and social capital to entice Diaspora entrepreneurs to their home coun-
尝试. By ensuring access to quality education, 基础设施, and public services,
regulating excesses, and providing a safety net when the market fails, policymak-
ers can create an ecosystem that will support and facilitate high levels of entrepre-
neurship activities. The following recommendations are some approaches that can
be taken to engage Diaspora entrepreneurs:
(西德:129) Identify Diaspora-affiliated organizations such as Endeavor, TiE, OPEN, IIBN,

创新 / 体积 7, 数字 1

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Suren G. Dutia

The African Diaspora Marketplace, TAN, GlobalScot, ChileGlobal, Mexican
Talent Network, 和别的, and work with these platforms to integrate and
engage the network in the broader development of countries, especially emerg-
ing countries. It is essential to note that the way these affiliated organizations are
engaged must be in line with the countries’ local conditions and requirements.
(西德:129) Organize Diaspora business forums, present opportunities for communication
with the Diaspora members and government officials to enable greater cooper-
化.

(西德:129) Draw and put in place formal structures designed to reach the right set of partic-
ipants through governmental agencies. Resources also should be available
through initiatives and interest-based organizations to budding entrepreneurs in
the form of mentoring, networking for contacts, skills for building, and scaling
an enterprise, as well as access to capital.

实际上, the Diaspora network can be engaged effectively by involving members
in the planning and development of high-tech industries. Government-backed
右&D and world-class research facilities and universities should attract Diaspora
entrepreneurs to invest in their home countries.14 The Diaspora entrepreneurs’
knowledge will be instrumental in establishing these technology parks, counseling
governments on the market opportunities and gaps in attracting capital, and build-
ing global businesses interlinked to different markets and networks. 此外,
these Diaspora entrepreneurs can provide valuable knowledge transfer to local
entrepreneurs and employees. Millennium Science Initiatives (MSI) in Chile and
Latvia offer models for engaging Diaspora members in efforts to channel incre-
mental government R&D resources into centers of excellence.15 High-tech indus-
trial parks in emerging economies often strive to attract high-achieving Diaspora
members with the intention of creating a “culture within a culture” that is more
conducive to entrepreneurship.16

We should also seek to initiate dialogues with Diaspora professionals to iden-
tify potential areas of economic growth, and allocate and deploy the right
resources from the Diaspora network to these areas. 印度, 例如, has iden-
tified heath care-related export services and medical tourism as important busi-
ness opportunities, attracting customers from high-priced health care countries
that are looking for alternatives. India seeks to leverage its medical workforce to
meet the global demand for health care-related services, and sees the Diaspora as
an important ally in this effort.17

Members of the Diaspora network are attuned to identifying opportunities and
often move quickly to take advantage of them. By their nature, Diaspora entrepre-
neurs with their close links to their countries of origin understand the opportuni-
ty and have affiliations and “cultural” capital that will aid these activities. 他们还
bring knowledge and understanding acquired outside the country that may help
them to see possibilities that are not apparent to people who have never lived else-
在哪里.

在本质上, governments should make Diaspora entrepreneurs feel welcome in
their countries of origin. Entrenched business interests may not welcome out-

创新 / Unleashing Ideas

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Diaspora Networks: A New Impetus to Drive Entrepreneurship

侧者, even of a common origin, especially if they threaten to shake up established
practices—such as the cozy relationships between government ministries and
industrial conglomerates in East Asia or the oligarchies that dominate many other
developing economies.18 Given the network value of a Diaspora, many govern-
ments are actively pursuing Diaspora entrepreneurs and honoring their achieve-
评论, as well as integrating them
as important economic agents.

Engagement with Diasporas
is an important strategic
function in today’s networked
世界. To ignore and miss out
on capitalizing this thriving
group of entrepreneurs would
result in undesirable
consequences for any
country’s economic growth.

A significant approach to fos-
tering Diaspora entrepreneurship
is to provide a visa framework
that makes it easy for Diasporas
to travel between their country of
origin and their new home coun-
尝试. A progressive visa framework
includes multiple reentry travel
visas, long-term visas, and dual
国籍
that will enable
Diaspora entrepreneurs to engage
in investments, business opportu-
实体, ventures, and technology
expertise.
此外, 我们
should pursue the implementa-
tion of pro-trade policies, 例如
lowered taxes on imported raw materials and equipment, a favorable tax systems
for businesses, and facilitating the setup of new businesses to promote cross-bor-
der entrepreneurial activities.

By intentionally facilitating and energizing Diaspora networks, international
and local businesses can extend their capacity by capitalizing on a wider range of
expert actors who are specialized in key technical and market domains that repre-
sent skillsets generally not available, thereby allowing for the formation of varied
entrepreneurial and business ventures.

总之, the benefits of a vibrant Diaspora network are enormous, and any
policymaker who fails to devise a Diaspora strategy will be losing out on the poten-
tial economic development and job creation opportunities that it brings. An ener-
gized Diaspora network is a rich resource for international entrepreneurs to tap.
These networks allow government and policymakers to easily and efficiently
receive insight and input. By intentionally engaging with these networks, real-time
and actionable insight may be gained on how new ventures may be started and
scaled over international divides.

Promoting entrepreneurship abroad by engaging, designing, and implement-
ing a comprehensive Diaspora strategy network constitutes an immense source of
“soft power.” Diaspora networking is the new impetus to drive entrepreneurship
and has the capacity to convert the brain drain into brain gain and brain circula-
的. Diasporas, through their confluence of education, 网络, and access to

创新 / 体积 7, 数字 1

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023

Suren G. Dutia

capital in home countries, are particularly advantageous for global entrepreneurs
due to their international presence and the wide range of resources they can poten-
tially make available to entrepreneurs. To effectively use Diaspora as a tool, 政策-
makers need to create a favorable business climate through trade liberalization
改革, encourage flows of FDIs, ensure good governance through transparent
financial and legal frameworks, and engage the network through an ecosystem that
promotes entrepreneurship.

1. Adapted from T. Grimes. Starting Ireland on the Road to Industry: Henry Ford in Cork, 2008.
2. Kingsley Aikins and Nicola White, Global Diaspora Strategies Toolkit. 都柏林, 爱尔兰: Impress

Printing Works, 2011.

3. Maria Eugenia Aubet, The Phoenicians and the West: 政治, Colonies and Trade, 剑桥, 新的

约克: 剑桥大学出版社, 2001.

4. Kingsley Aikins and Nicola White, Global Diaspora Strategies Toolkit. 都柏林, 爱尔兰: Impress

Printing Works, 2011.

5. 博士. Enoch Wan, “Global People and Diaspora Missiology,” Online article, 2000. Available at

www.tokyo2010.org.

6. Contribution of migrants to development trade, 投资, and development linkages. Note pre-
pared by the UNCTAD secretariat for the “Ad-hoc expert meeting on Contribution of migrants to
发展: Trade, investment and development linkages,” Geneva, 七月 29, 2009.

7. “The Magic Of Disaporas,” The Economist, 2011.
8. ‘Migrants can help economies recover faster.’ Interview with William Lacey Swing, Director
General,
在
http://www.global=briefing.org/2011/01/globalisations-thirdwave. 也可以看看, “The World
Migration Report 2003: Managing Migration: Challenges and responses for people on the move.”
International Organization for Migration, 2003.

组织

国际的

Migration.

可用的

为了

9. AnnaLee Saxenian, The New Argonauts: Regional Advantage in a Global Economy. 剑桥,

嘛: 哈佛大学出版社, 2006.

10. “Weaving The World Together,” The Economist. 十一月 19, 2011. Available online at

http://www.economist.com/node/21538700.

11. Abhishek Pandey, Alok Aggarwal, Richard Devane, and Yevgeny Kuznetsov, India’s

Transformation to Knowledge-based Economy—Evolving Role of the Indian Diaspora. Gurgaon,
印度: Evalueserve, 2004. 可用于
http://info.worldbank.org/etools/docs/library/152386/abhishek.pdf.

12. AnnaLee Saxenian, “Silicon Valley’s New Immigrant High-Growth Entrepreneurs.” Economic
Development Quarterly, 16, 不. 1 (2002): 20–31; AnnaLee Saxenian, with Yasuyuki Motoyama
and Xiaohong Quan, Local and Global Networks of Immigrant Professionals in Silicon Valley. 桑
Francisco: 加州公共政策研究所, 2002.

13. Zoltán J. Ács, “How Is Entrepreneurship Good for Economic Growth?” 创新 (冬天
2006): 96–107. Available at www.mitpressjournals.org/doi/pdf/10.1162/itgg.2006.1.1.97.

14. Baumol, Litan, and Schramm, Good Capitalism, Bad Capitalism.
15. Alfred Watkins and Natalia Agapitova, “Creating a 21st-Century National Innovation System
for a 21st-Century Latvian Economy,” Policy Research Working Paper 3457, World Bank,
华盛顿, 直流电. 可用于
2004,www.wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/12/07/000012009_
20041207121312/Rendered/PDF/WPS3457.pdf.

16. Migration Policy Institute, “Mobilizing Diaspora Entrepreneurship for Development,” Available

在http://www.migrationpolicy.org/pubs/diasporas-entrepreneurship.pdf.

17. Migration Policy Institute, “Mobilizing Diaspora Entrepreneurship for Development.”
18. Migration Policy Institute, “Mobilizing Diaspora Entrepreneurship for Development.”

创新 / Unleashing Ideas

从http下载的://direct.mit.edu/itgg/article-pdf/7/1/65/704883/inov_a_00116.pdf by guest on 08 九月 2023
下载pdf