Flight Capital: The Alarming Exodus of America's Best and Brightest [Hardcover]

David Heenan (Author)

Book Description

Publication Date: September 1, 2005

The best and brightest in America are returning to their homelands in record numbers-and with them is going U.S. technological and economic preeminence. In Flight Capital, we explore this exodus through the personal stories of dozens of successful, foreign-born professionals who are leaving America for opportunities in their native lands. Drawing on their experiences, Heenan analyzes the economic, cultural, and political factors that are driving this flight, as well as the initiatives that countries are using to attract top talent.

Editorial Reviews

Review

A book that should be "must reading" for every community leader and politician in Hawaii. -- Pacific Business News, Sept. 16, 2005

A slow, withering decline into mediocrity. Sound gloomy? Read Heenan's proposals and wake-up calls in FLIGHT CAPITAL. -- Spirit of Aloha (Aloha Airlines Magazine), Nov/Dec 2005

A thought-provoking study essential to understanding the future of immigrant talent in this nation. -- Midwest Book Review, February 2006

An insightful new book. A wake up call to leaders in American government and industry to act now -- ..

Fascinating examination. Gives readers a firm foundation on which to build an informed opinion and specific ways they can respond. -- Soundview Executive Book Summary, February 2006

Heenan is an old hand at the global game, having worked for the famed trading house Jardine Matheson and Citicorp. -- U.S. News & World Report, September 19, 2005

Riveting look at the global war over human capital and 12 steps we must take to reverse the disturbing trend. -- Book Buzz by Anita Bruzzese, Nov. 6, 2005

From the Publisher

There's no place like home. At least that's what U.S. immigrants seem to think.

America's foreign-born superstars are hotfooting it back to their motherland--and in alarming numbers of up to 1,000 per day. What's worse, they're among the best and brightest in science and technology--the kind of immigrant brainpower that gives rise to the likes of Google, Yahoo, and eBay and propels today's innovation economy.

So, where are they going? And why? And what does such a "reverse brain drain" mean for America's future?

David Heenan, a leading expert on globalization, spent five years crisscrossing the globe--traveling to eight countries on three continents--to unearth the answers.

From Iceland to India, Heenan sat down for one-on-one interviews with more than 100 top-flight repatriates--many of them world-class thinkers in science and technology--along with dozens of foreign-based government and business leaders who are spearheading some bold initiatives to lure talent away from the United States.

Each of the repatriates' personal stories is uniquely their own. What they share, however, is a desire to use their American-earned experiences to benefit their homeland. The bottom line for the U.S., says Heenan: A wrenching talent gap, as America moves from importer of innovators to net exporter of human capital.

What to do? The answers do not require a dramatic reversal of America's present course, says Heenan. They do, however, call for a series of innovative reforms--from revamping immigration policies to overhauling public education--that U.S. leaders from government, business, and academia must wake up to before it's too late.

For starters, Heenan proposes a 12-step action plan for attracting and retaining more immigrant brainpower--starting with "know thy competition"--while boosting the strength of America's native sons and daughters.

Other insights and ideas that Heenan offers in FLIGHT CAPITAL are:

* Why globalization is a good servant, but a bad master--and what U.S. companies can do to make it work for them * Why it's impossible to accurately measure the reverse brain drain (and why America must assume the worst) * The converging factors of outmigration--political, cultural, economic, and technological * How China, India, and other nations are enticing emigrants home--offering significant tax breaks, unprecendented venture capital funding, and more * How "nanonations" such as Iceland and Singapore are competing to win * Why the current exodus extends well beyond the ranks of the immigrants themselves * Why repatriates' ties to America don't stick--and what the U.S. can do about it * How post-9/11 immigration restrictions are widening America's talent gap * Why the U.S. must celebrate and fund science and technology--or risk falling further behind * Why the right attitude is neither dark pessimism nor wild optimism--but sober realism

See all Editorial Reviews

Product Details

• Hardcover: 232 pages
• Publisher: Nicholas Brealey Publishing; First Edition first Printing edition (September 1, 2005)
• Language: English
• ISBN-10: 0891062025
• ISBN-13: 978-0891062028
• Product Dimensions: 9.1 x 6 x 1.1 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 4.6 out of 5 stars  See all reviews (12 customer reviews)
• Amazon Best Sellers Rank: #1,633,785 in Books (See Top 100 in Books)

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8 of 8 people found the following review helpful:

5.0 out of 5 stars Heenan's Clarion Call, October 10, 2005

By 

Robert F. Kay (Honolulu, HI USA) - See all my reviews
(REAL NAME)   

This review is from: Flight Capital: The Alarming Exodus of America's Best and Brightest (Hardcover)

After picking up David Heenan's latest book, Flight Capital, I couldn't help thinking of a comment by Walter Wriston, former president and chairman of Citicorp, and one of the most innovative financiers of our time. In his book, The Twilight of Sovereignty, Wriston opined that in an era where information flows freely, "capital will always go where it is welcome and stay where it is well-treated." By capital, he meant not only money but human capital.

With these words the late Mr. Wriston (who was actually Heenan's former boss and mentor) summarizes with eerie prescience Flight Capital's premise-- the United States can no longer count on attracting human capital from around the world as its birthright.

Heenan, former University of Hawaii School of Business Dean, Citicorp executive and currently trustee for the Estate of James Campbell in Hawaii, explains that after generations of importing the best brainpower to our shores, foreign-born, US educated technocrats are going back to the countries of their origin. When our nation's best brains walk, they take with them intellectual capital, skills and an entrepreneurial edge that only an immigrant can muster.

As America's human capital diminishes, so does this country's technological preeminence and with it, our economic supremacy. This trend, says the author, will soon lead to a day or reckoning if we don't do something to stem the tide.

Flight Capital chronicles the personal accounts of a numerous professionals who have left this country for the lands of their birth. Country by county he cites a litany of sterling entrepreneurs and technology wizards that find the grass is greener back home. We read about people such as China born, New Jersey educated Wu Ying who returned to his homeland to launch his own company that now generates over $2 billion a year in revenues producing mobile phones.

So where exactly did we go wrong? Why are the Wu Yings of this world leaving the land of milk and honey?

To begin with, as Walter Wriston might say, human capital that once flowed freely into the USA is staying where it is better treated. As up and coming nations such as India, China, Ireland, Singapore and Israel develop their own Silicon Valleys and offer a better standard of living, it's only natural that homeboys and homegirls come back to the fold.

The post 9/11 environment in this country has also contributed to the brain drain. Hassles over H1B visas, angst over outsourcing and a sometimes nativist, anti-immigrant backlash have all conspired to shut the door on highly qualified foreigners. The giant sucking sound created by their departure unfortunately leaves our country bereft of engineers, physicists, chemists, mathematicians and other scientists-the very core of our technological infrastructure. To make matters worse, the U.S. is simply not producing enough of these individuals to take the places of the foreign born talent.

Although the author says, "Flight Capital is intended to sound a loud wake-up call to a nation often blinded by hubris", he claims it's not a forecast of certain doom. Corrective actions are possible and he offers twelve specific points that can ameliorate the brain drain.

For those concerned about America's ongoing brain drain, this is a must read.

14 of 16 people found the following review helpful:

5.0 out of 5 stars A Tremendous Service to the Nation, October 15, 2005

By 

M. L Lamendola (Merriam, KS USA) - See all my reviews
(VINE VOICE)    (TOP 1000 REVIEWER)    (REAL NAME)   

This review is from: Flight Capital: The Alarming Exodus of America's Best and Brightest (Hardcover)

Shortly before reviewing this book, I attended a conference at which many of the attendees were executives. Conversation at breaks and during the lunch kept turning to a single topic not even on the conference agenda: "How hard it is to find people who can do the work."

Joe Salimando, an electrical industry analyst, predicted a shortage of electricians and project managers--more than ten years ago. That shortage has hit today, with a vengeance. The average electrician is in his mid-40s, and the average senior project manager is in his early 60s. The statistics are grim for other brainworkers--both in skilled trades and in the professions. The average nurse is 53 years old, for example. And try to hire a competent machinist--I dare you!

None of this should be surprising. In the 1970s, schools began to abandon properly equipping children for the real world. That is not to say that every graduate of the 1970s and later is inept. But what has happened is the best and brightest have had to succeed despite their "education," not because of it.
Another factor is 98% of American homes contain a brainwashing machine (also called a "television"). These machines expose their victims to a steady stream of anxiety-producing marketing messages, regularly scheduled depressing news, and a litany of falsehoods and propaganda. Which is why I haven't watched television since my early days of graduate school (oh, so long ago--and I don't miss it).

Compounding the difficulties, American corporations are run mostly by plundering executives and incestuous boards. The corporate practice of squeezing non-executive employees to pay for the lavish "compensation" of CEOs and key officers is still a problem, despite some recent federal cases. For example, Disney reneged on the performance bonuses they owed their Imagineers, but in the same year let Michael D. Eisner "earn" $830 million. Until enough Americans boycott Disney and demand a refund of that $830 million, we can't expect this kind of "Rob the poor to give to the rich" chicanery to stop. Among the collateral damage: Kids who grew up in the 1970s and 1980s to see their dedicated, hard-working parents discarded like yesterday's trash while the executives who ruined their lives were paid tens of millions of dollars. That's hardly very motivating, and it certainly has not engendered employee loyalty among those who are today's junior workers.

Another problem is the Internal Revenue "Service." (Not taxes, per se--though in sum, taxes work out to 70% to 90% of income and would be punitive even if cut in half. The federal government alone uses five different taxation methods on individuals, including national sales taxes and a flat tax.)

John Graver has interviewed wealthy expatriates and found that every one of them cited the IRS as the number one reason for leaving. Anyone who has been caught up in the machinery of this criminal-infested agency understands why. The GAO reports each year on IRS employee behavior that normal people would be locked up for (such as stealing 4300 computers from their own offices). Congress, however, pretends none of this is a problem. Congress is concerned about political infighting, not about engaging in productive use of their time. So, this problem isn't likely to go away any time soon. We are stuck with an unfettered, arrogant federal agency that is not only abetting individual criminal actions, but is also driving away the wealthy--who take their job-producing capital with them.

So now the chicken has come home to roost and the cost to America is staggering. The USA is losing its dominance in every area in which it now leads the rest of the world. We have societal, institutional, cultural, and other factors driving the knowledge workers away. This, despite the fact that the real wealth today is created in the knowledge economy. But the good news is we may be able to do something to save ourselves and future generations. And therein lies the real value of Heenan's book.

"Flight Capital" consists of ten chapters. The first chapter explains the brain drain problem (quite well, I might add). Heenan tells us why this is happening, what forces are accelerating it, and what it is costing us.

Each of the next eight chapters examines a different economic competitor to the USA and how each is attracting human capital (as opposed to how the USA drives people away). A basic tenet in business is "Know your competition." Heenan has analyzed the competition, and provided minute detail on each of the eight selected competitors. He even provides a "guided tour" in each of many cities to the various restaurants, night clubs, and attractions. What I like about this aspect isn't so much the interesting read it provides, but the evidence that Heenan isn't some armchair analyst making generalizations. My confidence in his information is high.

The final chapter provides a mix of common-sense and insightful advice on how to get the USA back into the game. You might want to ask, "Who is Heenan to have the magic answers to our problems?" Actually, he doesn't claim that he personally has the answers. Remember, eight out of the ten chapters in this book examine the competition. Heenan developed his advice by looking at what works. This is much better than any theory. The untested educational theories of the 1970s and beyond are partly to blame for the brain gap problem we have right now. Heenan has refused to take the reader down that road again--instead, he focuses on facts and draws conclusions based on results. And aren't good results what we're really after, anyhow?

I'm glad I read this book, simply because it is a high-quality book. But what would really make me happy is if every leader in America--in government, academia, and business--also read it. And took it to heart. We, as a nation, must answer some tough questions in the very near future. Fortunately, the answers we need are in this book. Thank you, Mr. Heenan--you have rendered the nation a tremendous service.

A note on the writing: form is important, as it dictates readability. Fortunately, this book scored very well on substance and on form. This book actually uses Standard Written English (SWE). This was a refreshing change from the Pidgin English that so many of today's authors slop onto our reading palettes. The care taken in writing this book shows that the author and publisher actually cared about the reader. That's a huge plus.

9 of 10 people found the following review helpful:

5.0 out of 5 stars Puts the spotlight on one of America's serious problems..., October 24, 2005

By 

Dr. Jonathan Dolhenty (Port Orford, OR United States) - See all my reviews
(VINE VOICE)   

This review is from: Flight Capital: The Alarming Exodus of America's Best and Brightest (Hardcover)

Let me say at the outset. This is not the sort of book I would normally buy at a bookstore or borrow from the library. In fact, I probably wouldn't even be shopping or browsing in the designated section which includes this book. Had this book not been sent to me for review, I wouldn't have known about it. And it would have been a sad occurrence indeed. I say that because this is a great book on a fascinating topic and I'm pleased that I was given the opportunity to read it. I learned a lot I didn't know about the phenomenon of globalization and also about a problem of which I was unaware: the flight of America's best and brightest to other countries around the world. David Heenan, the author of this important work, says it right up front: "Forget terrorism. Forget weapons of mass destruction. The next global war will be fought over human capital." And he methodically presents his case providing lots of information about the eight countries he surveys: Ireland, Iceland, India, Singapore, China, Taiwan, Israel, and Mexico.

According to the author, who has experience in both business and academia and is a leading expert on globalization, the best and brightest in America are returning to their homelands in record numbers. More importantly, they are also taking America's technological expertise and economic preeminence with them. In this book he explores this exodus through the personal stories of dozens of successful, foreign-born professionals who are leaving America for opportunities in their native lands. Drawing on their experiences, Heenan analyzes the economic, cultural, and political factors that are driving this flight, as well as the initiatives that countries are using to attract top talent. The author clearly defines the current problem: "After centuries of importing brainpower, the United States is now a net exporter. In the past few years, nearly 200,000 foreign-born Americans -- many of them...highly talented techies -- have returned to their motherland every year. This reverse brain drain, or 'flight capital,' stimulated in part by lucrative government incentives, has spawned flourishing new scientific havens from South Asia to Scandinavia."

There were two chapters in this book -- one about Iceland and the other about Singapore -- that I found particularly interesting, probably because I hadn't given much thought to their place in the arena of economic globalization and, furthermore, I really didn't know much about them and their place in the modern world. Regarding Iceland, that very, very cold "Land of Fire and Ice," Heenan says that "...miraculously, this subarctic island of 290,000, Western Europe's poorest nation a century ago, now ranks, per capita, among the world's seven richest countries." Frankly, I never would have guessed that. The last travelogue I saw about Iceland was about thirty or so years ago and nothing was mentioned about its rank in the global marketplace. (As I recall, most of the film seemed to be about the rowdiness of its teenage population!) Now I am told that Reykjavik, Iceland's capital, has become one of Europe's most cosmopolitan cities and the country itself is off and running in the world of biotechnology, genetic research, and other high-tech scientific enterprises.

Then there is Singapore, an island about the size of Rhode Island. According to the author, this tiny nation has become "one of the world's great economic successes." I always pictured Singapore as sort of a backward spot on the Asian frontier which had too many rules and harsh punishments for breaking them, a country that I would probably never want to visit, much less take up residence in. Well -- surprise, surprise -- I will now have to reevaluate my assessment of this booming nation based on the information which Heenan presents in his book. Heenan makes a point of the fact that "Notorious for ... rigid controls, this never-naughty nation has recently loosened up." Good news for those of us who prefer a more relaxed behavioral atmosphere in which to conduct business and trade. And it seems to be paying off. Singapore has attracted scientists worldwide and wants to be home to more than a dozen world-class life-sciences companies within the next five years.

The "brain-drain" problem is serious and needs to be addressed now. As Heenan says: "America cannot afford to equivocate. For centuries, our leaders have responded to similar challenges. Yet, history offers many examples of other great countries that came to catastrophic ends because of their unwillingness to respond to change. Nothing short of meeting this threat will safeguard America's talent base and shape the kind of society in which our children and their children will prosper. The time to act is now," and, furthermore, "America is in a state of transition, at the beginning of an economic and attitudinal revolution. Inevitably, this revolution means restoring the American Dream. For this to happen, all segments of society will have to pool their talents."

The author suggests a dozen strategies for winning the talent war, including: know thy competition, adapt -- or die, spur immigration reform, dust off the welcome mat, target the best minds, celebrate science and technology, and, one of the most difficult, from my perspective, reform -- really reforming -- public education. I am afraid I am pessimistic about the last one mentioned. I have watched over 40 years of so-called "public school reform," and fail to see any substantial improvement in the public schools of our nation. (Please note that I spent over 17 years in the public school system as both teacher and administrator, so I know something about the problem of school "reform.") But one can always hope!

If you are a current-events buff or news junkie, as I am, you will not be disappointed with this book. Heenan's prose is very readable and the work is obviously intended for general audiences, as well it should be since the problem affects all of us, not just those engaged in international commerce or business.