OPINION:
Small businesses drive the U.S. economy and hold the key to its recovery and competitiveness. These businesses represent a broad swath of American industry, including tens of thousands of small firms engaged in the fields of science, technology, engineering and math, and are responsible for almost half of the high-tech jobs in America. Small businesses and startups drive economic growth and keep our economy competitive and innovative. But they need a pipeline of human capital in order to scale, innovate and compete, and to have a fighting chance against global competitors like China.
While education modernization is a key strategy for closing the skills gap in our workforce, a practical solution with both short and long-term benefits stands before us. The House and Senate are working to reach a final agreement on the COMPETES/United States Innovation and Competition Act. One measure being considered would allow high-skilled, highly-trained immigrants in the STEM fields and those with a successful business to remain in the U.S., and either work for an American business or provide employment opportunities for more Americans.
Specifically, Section 80303 of the House’s COMPETES Act would create an exemption for foreign nationals with a Ph.D. in STEM fields from annual green card limits and backlogs (that are decades-long), allowing them an opportunity to stay in the U.S. and obtain permanent residence. It would also create a temporary visa for qualifying foreign-born entrepreneurs and includes a way for entrepreneurs to earn lawful permanent residence. Both provisions would bring new talent to the U.S. and allow us to retain the talent already here, which is most certainly needed in the competitive global economy.
According to the U.S. Bureau of Labor Statistics, nearly 8 million skilled-labor jobs were lost from the labor force during the pandemic. About half have been filled, but approximately 4 million vacancies remain in industries responsible for most transportation, construction and mechanical needs.
Global competitors like China see these gaps and use our flawed immigration system to their advantage, snatching up STEM workers who would have otherwise thrived in and helped America’s economy.
Current law and regulations also drive qualified STEM workers into bigger tech companies who can sponsor their H1-B visas and allow these high-skilled individuals to remain in the U.S. Passing Section 80303 in COMPETES would untether these valuable workers from the larger companies and provide more freedom to enter in smaller, niche tech businesses and startups. These smaller firms provide an outsized benefit to national security, such as in the development and production of semiconductors.
If Congress fails to pass this measure, the clarity and assurance about the pathway to citizenship will remain murky for these highly talented workers. More than likely, the U.S. economy will lose these workers to global competitors. Again, the status quo disadvantages small to mid-sized businesses within STEM fields that need skilled workers to scale and compete with larger companies, and across the globe.
With regard to semiconductors and the current shortage, smaller firms and startups can play an indispensable role in helping to address current chip shortages. Since 1995, nearly $4-5 trillion in global GDP has been directly linked to semiconductor design and production, and the industry will invest an anticipated $3 trillion in the next decade. While the industry is growing rapidly, the startups and small firms in this sector — 84.2% of firms involved with semiconductor and related electronic component manufacturing have fewer than 100 employees (Census Bureau 2019) — have difficulty competing for talent. An open and more robust pipeline of STEM workers into these emerging businesses would enable these firms to better compete and more rapidly meet semiconductor demand.
The lack of clarity on the number of years — or even decades — that it takes to get a green card will continue to weigh down America’s ability to draw and retain STEM talent. Legal immigration reform should never be a zero-sum game because a growing and vibrant economy is not a zero-sum game when it comes to jobs and entrepreneurial opportunity. The U.S. needs more workers and innovative entrepreneurs. Particularly during this time of economic uncertainty, we can hardly afford to kick specialized workers out of our country.
A solution to getting our economy back on a prosperous path is for lawmakers to create clear pathways for workers within the STEM field to contribute to American small business innovation and job creation. If the goal of COMPETES is to help our businesses more effectively compete in the global marketplace, then this legislation needs to help small businesses compete by addressing their high-skilled worker needs.
• Karen Kerrigan is president & CEO of the Small Business & Entrepreneurship Council.
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