New Delhi: A new study published recently suggests that brain-drain is actually a good thing as it helps upgrade a country's talent-pool and global connections.
The study shows that outflow or reverse flow of executives from developing countries like India is actually an indirect form of learning from mature markets which can prove to be a boon for a firm's growth.
The study, co-authored by Sourindra Banerjee of Warwick Business School, Rajesh Chandy of London Business School and Jaideep Prabhu of Indian Business & Enterprise at Cambridge Judge Business School shows that companies from developing countries like India have very less opportunities to learn from their own limited range of experience in their growing markets.
The study further talks about important policy implications on free flow of skilled people from budding economies as co-author Jaideep Prabhu says, “Developing countries worry about a ‘brain drain' of executives and talented, young people if they work or study in mature markets.”
The research advocates that since the emerging economies do not have much exposure on how to learn by themselves in the developed markets so ‘brain-drain' of executives helps in filling the knowledge gap.
Authors also suggest that emerging-market firms that grow in developed markets overcome their lack of direct experience by learning through experience of other firms of the developed markets through their leaders, competitors and interim networks.
Apparently, the authors tested their thesis by comparing the international growth in developed markets of a sample of emerging-market firms with a sample of developed market firms.
