The study highlights a growing confidence in India’s ability to innovate independently on the global stage
PRAVASISAMWAD.COM
A new study suggests that Indian startup founders who build their companies locally are outperforming returning diaspora entrepreneurs over the long term, challenging a long-held belief that overseas experience gives founders a decisive edge, reported business-standard.com.
The report cited the research, led by University of California, Berkeley professor AnnaLee Saxenian and tech entrepreneur-academic Vivek Wadhwa, analysed 596 high-tech Indian startups founded between 2016 and 2023. The findings show that domestic founders are leading on key measures such as company longevity, employee growth, valuation and revenue. The authors describe this shift as the “returnee paradox”.
“While professionals returning from the United States and other countries still play an important role, their contribution is increasingly seen in specialised functions rather than as primary founders. According to Saxenian, founders with deep knowledge of local markets and customer needs are proving more effective at adapting technology and building sustainable businesses in India’s rapidly evolving ecosystem,” it says.
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The study also notes that returnee entrepreneurs often find it easier to raise early-stage funding because of their global networks
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However, this advantage tends to fade over time as local founders gain traction and scale their ventures
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Wadhwa admitted that the findings surprised him, as earlier research suggested diaspora-led entrepreneurship would drive innovation in countries like India and China
India’s experience differs from countries such as China, which has invested heavily in attracting returnee talent through government-backed programmes and incentives. In contrast, India’s domestic ecosystem appears to have matured enough to nurture world-class entrepreneurs without relying heavily on returning professionals.
The researchers believe the findings could influence global technology ecosystems and talent flows. As opportunities in India expand, fewer professionals may feel the need to migrate permanently, and those who do may stay abroad for shorter periods.
