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would increase at three times the rate of all occupations。〃 Unfortunately; the NSB 
reported; the average age of the science and engineering workforce is rising。 
〃Many of those who entered the expanding S&E workforce in the 1960s and 1970s (the 
baby boom generation) are expected to retire in the next twenty years; and their 
children are not choosing science and engineering careers in the same numbers as their 
parents;〃 the NSB report said。 〃The percentage of women; for example; choosing math 
and computer science careers fell 4 percentage points between 1993 and 1999。〃 
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The 2002 NSB indicators showed that the number of science and engineering Ph。D。's 
awarded in the United States dropped from 29;000 in 1998 to 27;000 in 1999。 The total 
number of engineering undergraduates in America fell about 12 percent between the 


mid…1980s and 1998。 
Nevertheless; America's science and engineering labor force grew at a rate well above 
that of America's production of science and engineering degrees; because a large 
number of foreign…born S&E graduates migrated to the United States。 The proportion 
of foreign…born students in S&E fields and workers in S&E occupations continued to 
rise steadily in the 1990s。 The NSB said that persons born outside the United States 
accounted for 14 percent of all S&E occupations in 1990。 Between 1990 and 2000; the 
proportion of foreign…born people with bachelor's degrees in S&E occupations rose 
from 11 to 17 percent; the proportion of foreign…born with master's degrees rose from 
19 to 29 percent; and the proportion of foreign…born with Ph。D。's in the S&E labor 
force rose from 24 to 38 percent。 By attracting scientists and engineers born and 
trained in other countries we have maintained the growth of the S&Elabor force without 
a commensurate increase in support for the long…term costs of training and attracting 
native U。S citizens to these fields; the NSB said。 
But now; the simultaneous flattening and wiring of the world have made it much easier 
for foreigners to innovate without having to emigrate。 They can now do world…class 
work for world…class companies at very decent wages without ever having to leave home。 
As Allan E。 Goodman; president of the Institute of International Education; put it; 
〃When the world was round; they could not go back home; because there was no lab to 
go back to and no Internet to connect to。 But now all those things are there; so they 
are going back。 Now they are saying; 'I feel more comfortable back home。 I can live 
more comfortably back home than in New York City and I can do good work; so why not 
go back?'〃 This trend started even before the visa hassles brought on by 9/11; said 
Goodman。 〃The brain gain started to go to brain drain around the year 2000。〃 
As the NSB study noted; 〃Since the 1980s other countries have increased investment 
in S&E education and the S&E workforce at higher rates than the United States has。 
Between 1993 and 1997; the OECD countries 'Organization for Economic Co…operation 
and Development; 

a group of 40 nations with highly developed market economies' increased their number 
of S&E research jobs 23 percent; more than twice the 11 percent increase in S&E 
research jobs in the United States。〃 
In addition; it said; visas for students and S&E workers have been issued more slowly 
since the events of September 11; owing to both increased security restrictions and 
a drop in applications。 The U。S。 State Department issued 20 percent fewer visas for 
foreign students in 2001 than in 2000; and the rate fell farther in subsequent years。 
While university presidents told me in 2004 that the situation was getting better; 
and that the Department of Homeland Security was trying to both speed up and simplify 
its visa procedures for foreign students and scientists; a lot of damage has been 
done; and the situation for foreign students or scientists wanting to work in any 
areas deemed to have national security implications is becoming a real problem。 No 
wonder New York Times education writer Sam Dillon reported on December 21; 2004; that 
〃foreign applications to American graduate schools declined 28 percent this year。 
Actual foreign graduate student enrollments dropped 6 percent。 Enrollments of all 


foreign students; in undergraduate; graduate and postdoctoral programs; fell for the 
first time in three decades in an annual census released this fall。 Meanwhile; 
university enrollments have been surging in England; Germany and other countries。 。 。 
Chinese applications to American graduate schools fell 45 percent this year; while 
several European countries announced surges in Chinese enrollment。〃 
Dirty Little Secret #2: The Ambition Gap 
The second dirty little secret; which several prominent American CEOs told me only 
in a whisper; goes like this: When they send jobs abroad; they not only save 75 percent 
on wages; they get a 100 percent increase in productivity。 Part of that is 
understandable。 When you take a low…wage; low…prestige job in America; like a call 
center operator; and bring it over to India; where it becomes a high…wage; 
high…prestige job; 
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you end up with workers who are paid less but motivated more。 〃The dirty little secret 
is that not only is 'outsourcing' cheaper and efficient;〃 the American CEO of a 
London…headquartered multinational told me; 〃but the quality and productivity 'boost' 
is huge。〃 In addition to the wage compression; he said; one Bangalore Indian retrained 
will do the work of two or three Europeans; and the Bangalore employees don't take 
six weeks of holidays。 〃When you think it's only about wages;〃 he added; 〃you can 
still hold your dignity; but the fact that they work better is awful。〃 
A short time after returning from India; I was approached in an airport by a young 
man who wanted to talk about some columns I had written from there。 We had a nice 
chat; I asked him for his card; and we struck up an e…mail friendship。 His name is 
Mike Arguello; and he is an IT systems architect living in San Antonio。 He does 
high…end IT systems design and does not feel threatened by foreign competition。 He 
also teaches computer science。 When I asked him what we needed to do in America to 
get our edge back; he sent me this e…mail: 
I taught at a local university。 It was disheartening to see the poor work ethic of 
many of my students。 Of the students I taught over six semesters; I'd only consider 
hiring two of them。 The rest lacked the creativity; problem…solving abilities and 
passion for learning。 As you well know; India's biggest advantage over the Chinese 
and Russians is that they speak English。 But it would be wrong to assume the top Indian 
developers are better than their American counterparts。 The advantage they have is 
the number of bodies they can throw at a problem。 The Indians that I work with are 
the cream of the crop。 They are educated by the equivalents of MIT back in India and 
there are plenty of them。 If you were to follow me in my daily meetings it would become 
very obvious that a great deal of my time is spent working with Indians。 Most managers 
are probably still under the impression that all Indians are doing is lower…end 
software development…〃software assembly。〃 But technologies; such as Linux; are 
allowing them to start taking higher…paying system design jobs that had previously 
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been the exclusive domain of American workers。 It has provided them with the means 
to move up the technology food chain; putting them on par with domestic workers。 It's 
brain power against brain power; and in this area they are formidable。 From a 


technology perspective; the world is flat and getting flatter (if that is possible)。 
The only two areas that I have not seen Indian labor in are networking architects 
and system architects; but it is only a matter of time。 Indians are very bright and
they are quickly learning from their interaction with system architects just how all
of the pieces of the IT puzzle fit together 。 。 。 Were Congress to pass legislation
to stop the flow of Indian labor; you would have major software systems that would 
have nobody who knew what w

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