Yes, I think you are right that stay rates will decline for China and India, with India probably sooner. One way to reduce the impact of a potential glutting of the US market is to throw resources at training people for the entire idea-to-product pipeline, not just at the idea-generation/research stage. Taking a research idea to market is a long and difficult process, and most PhDs as currently trained are probably not much good for anything but the earliest stages. Professional Science Masters' programs are one way of doing this; I'm sure there are others. These kinds of lateral training programs would not only provide other useful outlets for the talents of S&Es, but by increasing the rate at which scientific findings get commercialized, could help increase the overall demand for S&E's.