If the new US president Donald Trump really implements its business plans, it is uncomfortable for the Silicon Valley . An analysis.
A first idea of how the US will look under its new president, Donald Trump, can be found in his election program, which includes words such as protection tariffs and entry tickets. If the Republican candidate actually implements these plans, it will not only be uncomfortable in foreign policy, but also in the economy.
Even today, companies have to meet stringent requirements if they want to hire foreign specialists. Anyone wishing to obtain a visa for a non-American specialist must, in most cases, submit an application to the immigration authorities. Before a visa can be applied at all, it must confirm the application. Only then does the opportunity exist for a work permit.
It is even more difficult if someone in the USA wants to work permanently. The employee needs a green card. However, these so-called employment-based cards are limited to 140,000 annually. It is also difficult for qualified specialists to get the permit for a permanent residence in the USA.
Every second employee in Silicon Valley is a foreigner
If the immigration under Trump is now more restrictive, this will particularly hit companies in Silicon Valley. The innovators are reliant on good people to advance their ideas – and who often come from abroad: Every second between 25 and 44 years, who in Gründertal works, comes from another country. In coveted areas such as computers and mathematics, there are even three out of four employees. Because the impulses from outside are so important, the US government has even introduced an “International Entrepreneur Rule” in August. By adopting this decree, foreign founders in the United States could be easier to build a company.
What happens with this idea under Trump, we can only guess. But should the immigration quota Trump actually want to cut back to 15 percent, as some observers fear, then is the exception for Founder History before it was ever properly applied. Attracting foreign specialists is then even more complicated. Why is this especially the companies in the Silicon Valley meets? Because they already have to argue about the best developers, programmers and other specialists right now. Corporations like Apple, Google, Intel and Adobe have even signed a non-acquisition deal, because the competition itself has added to them.
But a more restrictive immigration is only part of the forthcoming Trump era. In one of the debates of the Republican presidential candidate of US President-elect in 2015 said that he could imagine, to include “parts of the Internet” . He spoke specifically about the parts that the Terrormiliz IS uses. Trump, as he had often done, left Trump as he was. However, if he realizes his threat, companies like Facebook might be affected. On the platform the terrorists among other things to advertise fighters. Depending on where Trump crosses the border, this might be enough to be banned from the US network.
Trumps protection duties jeopardize the export of Cisco and Apple
Unlike the outgoing President Barack Obama Trump is also an opponent of the so-called network neutrality – a foundation for the Internet as an innovation driver. Whereby opponents almost too much is said: A Tweet from 2014 suggests that Trump has not even understood what is involved in the subject. In his opinion, Obama’s network neutrality is about censoring conservative media. In fact, it is a question of preventing a fragmented Internet, where providers are allowed to collect a kind of toll for data.
“If Trump changes his program as planned, he would be a brake for the US innovation location.”
Even the higher tariffs could be a boomerang for the young companies. Actually, the new US president wants to boost domestic production. However, his plans are more likely to result in a trade war with China and other world powers: if the US increases tariffs on foreign products, the empire of the Middle East will increase its exports to American goods. For companies that distribute their software or their products worldwide, this is a risk. This would not only jeopardize their sales in the short term. In the long term they risk even to be excluded from markets partly – as recently Microsoft in Russia . The plans could hit manufacturers of hardware such as Apple and network equipment Cisco particularly hard.
With these protectionist plans, Trump is attacking the openness of Silicon Valley. Particularly new start-ups, which still need to establish their idea, could not only be slowed, but stopped completely. If Trump changes its program as planned, it would be a brake for the US innovation location.
PIC CREDITS : SHUTTERSTOCK