Israeli Infotech Migrants in Silicon Valley Steven J. Gold RSF: The Russell Sage Foundation Journal of the Social Sciences, Volume 4, Number 1, January 2018, pp. 130-148 (Article) Published by Russell Sage Foundation For additional information about this article https://muse.jhu.edu/article/684312 [ Access provided at 30 Sep 2021 14:11 GMT with no institutional affiliation ] Israeli Infotech Migrants in Silicon Valley IsraEli infotEch miGrantS in Silicon vallEy St EvEn J. Gold Prior to the 1980s, Israel’s national ideology discouraged emigration and entrepreneurship among its citi- zens. Yet, by the late 1990s, Israeli emigrants were one of the leading immigrant nationalities in Silicon Valley. Drawing on interviews, fieldwork, a literature review, and perusal of social media, I explore the ori- gins of Israeli involvement in high- tech activities and the extensive linkages between Israeli emigrants and the Israeli high- tech industry. I also summarize the patterns of communal cooperation that permit emigrant families to maintain an Israel- oriented way of life in suburban communities south of San Francisco, and I compare these patterns with those of Indians, a nationality engaged in the same pursuit. I conclude by con- sidering the impact of infotech involvement on Israeli immigrants and on the U.S. economy. Keywords: immigrant entrepreneurs, transnationalism, ethnic communities, Silicon Valley Israeli immigrants have among the highest deed, Israelis and migrants from other coun- rates of entrepreneurship of all national- origin tries who work as entrepreneurs, professionals, groups in the United States, and they sustain and financiers in high- tech and are engaged in similar patterns in other places where they other cutting- edge economic activities have have settled in Europe, South Africa, Australia, been the focus of a growing body of attention. and Asia. Their rate of self- employment in Regarded as the world’s most powerful engines 2000, according to that year’s U.S. census, was of economic growth and innovation, they are 33.4 percent. Areas of economic specialization associated with the establishment of Silicon include garments, jewelry, construction and Valley and similar locations in other regions real estate, entertainment, restaurants, grocery and national settings (Kotkin 1992; Rebhun stores, media, moving companies, and multi- and Lev Ari 2010; Saxenian 2006; Senor and ple professions (Y. Cohen 2009; Gold 2002). Singer 2009). According to a report produced Among their various realms of economic for the U.S. Small Business Administration, specialization, information technology has re- high-tec h migrants have been found “to ac- ceived the most interest because of its global count for a disproportionate share of job cre- economic importance as well as the particular ation and economic growth” in recent years conditions associated with its emergence. In- (Hart, Acs, and Tracy 2009, 5). Steven J. Gold is professor of sociology at Michigan State University. © 2018 Russell Sage Foundation. Gold, Steven J. 2018. “Israeli Infotech Migrants in Silicon Valley.” RSF: The Russell Sage Foundation Journal of the Social Sciences 4(1): 130–48. DOI: 10.7758/RSF.2018.4.1.08. Direct cor- respondence to: Steven J. Gold at [email protected], Department of Sociology, Berkey Hall, Room 316, 509 East Circle Drive, Michigan State University, East Lansing, MI 48824- 1111. iSraEli infot Ech mi GrantS in Silicon vall Ey 131 The economic desirability of these entrepre- chants and professionals (Saxenian 2006; Se- neurs has now been recognized by business nor and Singer 2009). Such is the contention experts, academics, government officials, jour- of Israel Drori, Benson Honig, and Mike Wright nalists, and policymakers who had previously (2009, 1003–4), who identify infotech migrants paid little attention to immigrant entrepre- as “transnational entrepreneurs (TEs)” and as- neurship (Hart, Acs, and Tracy 2009; Hohn sert that they “are not simply passive adherents 2012; Light 2010). Multiple nations now com- to institutional constraints, but actively mold pete to attract these immigrants with ever them to suit their own unique initiatives. more generous incentives, and high-tec h im- TEs modify and create environments including migrants have become associated with eco- new and existing institutions, as well as struc- nomically advanced host societies like the tures, inclusive of rules and procedures, that United States. At the same time, their countries go on to define new and emergent ‘rules of the of origin are well aware of their value. Seeking game.’” to benefit from their development magic, the Drori and his colleagues point out that im- homelands of these entrepreneurs have re- migrant entrepreneurs are “frequently obli- formed long- standing policies regarding citi- gated to rely on their group’s ethnic resources zenship, offshore investment, government fi- and social capital,” of the type associated with nancing, money transfer, and taxation. As a enclaves or ethnic economies, for their eco- consequence, environments that formerly fa- nomic viability, and their experience is codified vored protectionism now encourage global en- with the language of marginality, as suggested gagement through “tax incentives, government in concepts like “Pariah people,” “middleman grants and funding of R&D, training grants, in- minorities,” “marginal men,” and “disadvan- cubators for start-ups and support for venture tage” theory (Drori, Honig, and Wright 2009, capital” (Saxenian 2006, 104; Cohen 2010; Ray 1004; Portes 2010; Light and Gold 2000). On the 2013). contrary, transnational infotech entrepreneurs In addition to reworking their financial and are able to obtain services, investment funds, business- related policies, high- tech migrants’ and business contacts from mainstream countries of origin have also revisited national sources. They are welcomed to the host societ- understandings of patriotism, identity, occupa- ies’ corridors of power—places to which, until tion, military service, and place of residence. quite recently, persons of their nationality, re- In many cases, perspectives on family, gender, ligion, or race had little access (Wishingrad culture, and religious practices have been 2015). transformed to encourage and endorse emi- Given that “the debate on whether ethnic grants’ involvement in the global economy niches are harmful or beneficial for earnings (Frenkel 2008). Drawing on opportunities and continues to interest immigration scholars,” resources associated with multiple locations, infotech migrants’ productivity and status can acquired from assorted nation-st ates, net- be seen as challenging widely accepted as- works, and organizations, and motivated by an sumptions in the study of international migra- array of loyalties, affinities, and relationships, tion (Lee 2013, 748; Portes 2010; Sanders and Israeli immigrants’ extensive involvement in Nee 1996; Waldinger and Bozorgmehr 1996; Xie information technology is a product of such a and Gough 2011). Accordingly, their achieve- transnational process. ments and the contexts that produce them are Because “infotech” entrepreneurs enjoy un- topics worthy of scholarly research. precedented levels of income, state- granted This article explores the experience of im- permission to work and travel, and access to migrants from Israel who are employed in the elite institutions, some observers argue that United States in infotech and related high- level this group represents a fundamentally new cat- occupations—such as academics, engineers, egory in the realm of migration. These mi- managers, and venture capitalists—in order to grants are distinct not only from laborers but gain insight into the ways in which highly also from other skilled migrants such as mer- skilled immigrants are involved in entrepre- rsf: the russell sage foundation journal of the social sciences 132 nEw immiGrant labor mark Et nichES neurship. To consider the place of occupation and a perusal of websites regularly used by versus nationality in the development of the members of the Israeli high- tech community. high- tech niche, I include a cursory compari- son of Israeli emigrants’ patterns of involve- From condemnaTion To ment in infotech to those of Indians, the mi- encouragemenT oF emigranT grant nationality most heavily represented in enTrepreneurship this endeavor both in Silicon Valley and nation- Israel’s status as a recently formed nation en- ally (Wadhwa, Saxenian, and Siciliano 2012). gaged in protracted conflict with many of its Finally, I consider the implications of involve- neighbors and populated by Jews from through- ment in the infotech industry, both for immi- out the world suggests some of the reasons why grants themselves and for American society. members of its population have been well rep- resented among high-tec h immigrants. Israe- m eThods lis’ propensity for emigration is explained by This multi-sited ethnography focuses on inter- the population’s relatively short tenure in Is- views with twenty- one Israelis employed in in- rael. As of 2007, almost 30 percent of Israelis fotech and related high-le vel occupations such were foreign- born, and 90 percent had resided as academics, engineers, and venture capital- there for three generations or less (Jewish Vir- ists. Interviews were conducted between 1991 tual Library 2014; Senor and Singer 2009). and 2016 in California and among returnees Thus, many Israelis possess abilities, expecta- (including former California residents) in Is- tions, language