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Writer's pictureMASTROWALL

Brain Drain Vs Brain Gain

Updated: Jan 4, 2021

Brain drain can occur when scientists, engineers, or other intellectual elites migrate to a more developed country to learn in its universities, perform research, or gain working experience in areas where education and employment opportunities are limited in their home country. These professionals then return to their home country after several years of experience to start a related business, teach in a university, or work for a multi-national in their home country. Their return is this "Reverse Brain Drain". Reverse brain drain is a form of brain drain where human capital moves in reverse from a more developed country to a less developed country that is developing rapidly. These migrants may accumulate savings, also known as remittances, and develop skills overseas that can be used in their home country.


Key Takeaways

  • Brain drain is a slang term indicating substantial emigration or migration of individuals.

  • Brain drain can result from several factors including political turmoil or the existence of more favorable professional opportunities elsewhere.

  • Brain drain causes countries, industries, and organizations to lose a core portion of valuable individuals.

Geographic, Organizational, and Industrial Brain Drain


Brain drain, also known as a human capital flight, can occur on several levels. Geographic brain drain happens when talented professionals flee one country or region within a country in favor of another. Organizational brain drain involves the mass exodus of talented workers from a company, often because they sense instability, a lack of opportunity within the company, or they may feel that they can realize their career goals more easily at another company. Industrial brain drain happens when skilled workers exit not only a company but an entire industry.

Several common causes precipitate brain drain on the geographic level including political instability, poor quality of life, limited access to health care, and a shortage of economic opportunity. These factors prompt skilled and talented workers to leave source countries for places that offer better opportunities. Organizational and industrial brain drain is usually a byproduct of a rapidly evolving economic landscape in which companies and industries unable to keep up with technological and societal changes lose their best workers to those that can.


The main areas that affect brain drain and gain are as follows:

  • Legislation - Legislation that effectively promotes scientific research, non-restrictive immigration laws, and a lower risk of political instability, all decrease brain drain. This suggests that more open and forward-looking societies better prevent domestic talent from leaving the country.

  • Agility - The agility and adaptability of companies to market changes as well as inclusive corporate values also reduce brain drain. The agility exhibited by companies may be perceived of as trait of innovation thus attracting overseas talent while also encouraging locals to remain in their home country.

  • Education - The quality of an education system is an important factor in increasing the inflow of overseas talent, or brain gain. This may be an indication that highly skilled staff consider the quality of schools for their children when making a decision whether or not to relocate. In addition, quality of education, particularly at university level, may entice local talent to remain in their country by reducing the need to search for a better education elsewhere. On the other hand, attending university overseas is likely to lead to permanent relocation increasing the brain drain experience by an economy.

  • Health - A country’s health infrastructure is a significant determinant of talent attractiveness. This may be the case because a workforce that enjoys overall healthy lives tend to remain in their country of origin thus reducing the need to attract foreign personnel.

  • Pay - Relatively speaking, remuneration levels appear to have only a marginal impact on the attractiveness of countries to foreign talent. The quality of the education system in a country is, for instance, of greater significance at determining talent flows.

  • Motivation - Worker motivation is a key factor in reducing brain drain, it also contributes to increasing brain gain. It sends a strong signal to overseas talent that, for example, firms in a particular country offer a work environment highly conducive to maintaining strong employee morale.

Reverse brain drain is sometimes related to the term ‘brain circulation', which is when migrants return to their own country on a regular or occasional basis, sharing the benefits of the skills and resources they have acquired while living and working abroad. However, "brain circulation" is known as the extended definition of brain gain with an emphasis on human capital circulation across nations in the global market, benefiting both the sending and receiving nations; in addition it is considered a two-way flow of skill, capital, and technology, unlike brain drain and reverse brain drain.


 

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