At least, that is the assertion of tech leaders who met with Obama in order to discuss both the impact of the Snowden spying fallout and the way forward with implementation of the Affordable Care Act.
Internationally, other companies (they say) express reluctance to do business in the US because of the new (and previously unarticulated) scrutiny, or to do business with the US companies for the same reason. What has yet to be felt is the impact to the branding of companies tied with wholesale data dumps to the feds.
What young idealist intent on saving the world wants to work hard in school and compete to be a part of that? Especially when DHS is consistently the lowest-ranked agency for job satisfaction.