High Tech Corridors - 1

[Leadership & Management/Business Development]

Smart Business: Technology Corridors

Hed: High T...
High Tech Corridors - 2

First: finances. "The cost of doing business in Eastern Tennessee is significantly lower
than in ...
High Tech Corridors - 3


Lower taxes and cheaper land originally drew larger tech businesses to Bothell, says Gary
Hassel...
High Tech Corridors - 4

<a href="http://www.villageventures.com">Village Ventures</a>
<a href="http://www.ornl.gov">Oak R...
High Tech Corridors - 5


Curtis Cluff
Marketing Communications Manager
Portsmith, Inc.
1111 S. Orchard St.
Suite 109
Bois...
High Tech Corridors - 6

Oak Ridge, Tenn.
(865) 220-2020
rogers@tech2020.org

Parker Hardy
President
Oak Ridge Chamber of ...
High Tech Corridors - 7

Founder
Vizx Labs
2815 Eastlake Ave. East
Suite 300
Seattle, Wash. 98102
(206) 336-5606
jtr@vizxl...
Upcoming SlideShare
Loading in …5
×

Smart Business: Technology Corridors

982 views
867 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
982
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Smart Business: Technology Corridors

  1. 1. High Tech Corridors - 1 [Leadership & Management/Business Development] Smart Business: Technology Corridors Hed: High Tech in Small Towns Deck: Small Technology Companies and Small Towns Complement Each Other Summary: Big-city technology corridors aren't the only places where high tech s feel at home. Lately, corridors in smaller city offer lower cost of living, gracious surroundings and professional colleagues. Pull Quote: "A key measure of the success of any technology corridor is that you start with a few companies that are entrepreneurial. They grow, bring in capital, perhaps go public and then the next generation of bright young middle management looks at the experience and says 'I can do that,' and spins off another company." – Tom Rogers, president, Technology 2020 Technology corridors near big cities have been thriving for years, but more recently technology corridors near small cities from coast to coast are beginning to attract businesses. Entrepreneurs get professional colleagues, lower costs, state-of-the-art infrastructure and great lifestyle amenities. The cities benefit from the influx of new business. "Technology corridors help cities by creating jobs that provide wages above the average," says Marc Brailov, public communications director at the American Electronics Association in Washington, D.C. The national private-sector wage is $31,000, and the average in high tech is $57,000, he says. "If people get jobs at a higher average wage, they're going to spend money, and that provides a ripple effect for businesses of all types, both large and small." Prior to the growth of Internet technologies, business corridors were not planned, nor were the businesses in them actually linked, says Kenneth E. Corey, professor of urban regional planning and geography at Michigan State University in East Lansing. They grew randomly as highways brought together suburban and exurban areas of towns like Washington, D.C. and Baltimore. "The potential and reality of the new (small city) corridors is due to technology and some real-space proximity that creates synergies," Corey says. "The exciting thing about IT- driven technology and electronic commerce is that they bring even the smallest place and smallest enterprise into the possibility of global linkages and commerce." Small Businesses Sign On Initially, small-city corridors began with large companies or universities as their anchors. These days, smaller tech businesses are setting up shop nearby for a variety of reasons.
  2. 2. High Tech Corridors - 2 First: finances. "The cost of doing business in Eastern Tennessee is significantly lower than in Silicon Valley," says Parker Hardy, president of the Oak Ridge Chamber of Commerce, located in the Oak Ridge-Knoxville Tennessee Technology Corridor. "The quality of life is second to none in the United States." Infrastructure costs also are lower. Bothell, Wash., a former bedroom community 40 minutes from Seattle, is part of the state's Interstate 405 tech corridor. It attracts biotech business s that like the idea of saving on costs of building lab space with extra ventilation, running water and facilities for the disposal of medical waste, says Tom Ranken, former director of the Washington Biotechnology and Biomedical Association. Second: the spin-off phenomenon. Entrepreneurs who leave jobs at larger firms recognize the benefits of their locations and stay to start new businesses. The ideas behind iPix, an Oak Ridge Internet imaging company, originated in the Oak Ridge National Laboratory. IPix CEO Jim Phillips lists the area's "incredible" electric power sources and low-cost, very high-band telecommunications as contributing to his company's success. Third: lifestyle amenities. Oak Ridge offers 10-minute commutes, outdoor activities in the Smokey Mountains and a cost of living "that's practically free," says Vig Sherrill, president of ASIC International, an Oak Ridge computer chip design firm. This helps companies attract and retain top employees. In eight years ASIC has lost only three engineers; in California the average tenure for engineers is nine months, he says.[.] Fourth: support systems. Repair people are more willing to supply and service high tech equipment when they have other clients nearby, says Erick Rabins, director of business operations at Eden Bioscience, one of Bothell's 25 biotechnology firms. Tech Corridors Help Smaller Cities Grow "A key measure of the success of any technology corridor is that you start with a few companies that are entrepreneurial," says Tom Rogers, president of Technology 2020, an Oak Ridge public-private sector partnership focusing on technology business development. "They grow, bring in capital, perhaps go public and then the next generation of bright young middle management looks at the experience and says 'I can do that,' and spins off another company." Over the last three years, 45 technology-related companies have created 450 jobs in the Oak Ridge-Knoxville corridor. As a result Knoxville housing and entertainment markets are flourishing and the airport has expanded more than once. Boise's corridor got its start in the 1970s with the arrival of one of Hewlett Packard's printer division, and Micron, a provider of semiconductor memory solutions. Today about 440 tech companies, many of them smaller s, do business in the area. "They manufacture products like computer chips here, sell them in China and the money returns here and goes back through the Boise economy," says Linda Jackson, economic development manager at Boise Metro Economic Council.
  3. 3. High Tech Corridors - 3 Lower taxes and cheaper land originally drew larger tech businesses to Bothell, says Gary Hasseler, community planning manager for the City of Bothell. "There's some prestige associated with having internationally known businesses like Advanced Technology Laboratories here," he says. "They give us a regional presence and attract other businesses and people to the area." Getting the Cash The spawning of small companies also attracts venture capital firms that see potential in small-city technology corridors. Each year entrepreneurs create about 25 technology- related s in Boise, says Roger Akers, managing partner in Boise's first venture capital company, Akers Capital, Fair Oaks, Calif. He and his partner Tom Loutzenheiser opened their Boise office in September 1999. "Venture capital investments are on the rise," Akers says. "For s, the angel network of private investors is pretty robust and there are broader levels of funding from venture sources and syndicated partners to those venture sources." Matt Harris and Bo Peabody launched Village Ventures in June 2000 with $80 million in commitments. Today the company has nine venture capital funds up and running in seven locations including Boise. "We look for markets where there will be a lack of venture capital competition," says Kevin McCormack, senior VP of marketing at the North Adams, Mass., company. "That gives us an advantage in terms of attracting entrepreneurs, and the cost of doing business in these markets is generally 62 percent lower than in top venture capital markets such as Silicon Valley, New York and Boston." Phil Reed is currently raising money to fund his Boise software business, Duckets, Inc. Two West Coast law firms specializing in venture capital deals -- Fenwick & West from Palo Alto, Calif., and Perkins Coie from Seattle – have recently opened offices in Boise. "That makes it easier to locate venture money outside the area," says Reed who views Boise as a good technology base for his . "A number of very talented people are living here because of the lifestyle and lower cost of living, so we could get our software written faster and quite a bit cheaper than in Silicon Valley." Reed and others like him are driving the country's economy. The Department of Commerce estimates that over the last five years the high tech industry nationwide has accounted for about one-third of the U.S. Gross Domestic Product, Brailov says. He calls that highly significant. Related links <a href="http://www.aeanet.org">American Electronics Association</a> <a href="http://www.fenwick.com">Fenwick & West</a> <a href="http://www.perkinscoie.com">Perkins Coie</a>
  4. 4. High Tech Corridors - 4 <a href="http://www.villageventures.com">Village Ventures</a> <a href="http://www.ornl.gov">Oak Ridge National Laboratory</a> <a href="http://www.tva.gov">Tennessee Valley Authority</a> <a href="http://www.utk.edu">University of Tennessee Knoxville</a> <a href="http://www.orcc.org">Oak Ridge Chamber of Commerce</a> <a href="http://www.tech2020.org">Technology 2020</a> <a href="http://www.asicint.com">ASIC International</a> <a href="http://www.ipix.com">iPIX</a> <a href="http://www.boisechamber.org">Boise Chamber of Commerce</a> <a href="http://www. portsmith.com">Portsmith Inc.</a> <a href="http://www.akerscapital.com">Akers Capital</a> <a href="http://www.inel.gov">Idaho National Engineering and Environmental Laboratory</a> <a href="http://www.ci.bothell.wa.us">City of Bothell</a> <a href="http://www. edenbio.com">Eden Bioscience</a> <a href="http://www.isn-chatt.com">Intelligence Systems and Networking</a> <a href="http://www.kickstand.org.">Kickstand</a> <a href="http://www.vizxlabs.com">Vizx Labs</a> <a href="http://www.wabio.com">Washington Biotechnology and Biomedical Association</a> SOURCES: Erick Rabins Director of Business Operations Eden Bioscience 11816 North Creek Pkwy. North Bothell, Wash. 98011 (425) 806-7300 rabinse@edenbio.com Gary Hasseler Community Planning Manager City of Bothell 9654 NE 182nd St. Bothell, Wash. 98011 (425) 486-3256 gary.hasseler@ci.bothell.wa.us. Roger Akers Managing Partner Akers Capital 8436 Marina Vista Fair Oaks, Calif. 95628 (916) 715-7917 rakers@akerscapital.com
  5. 5. High Tech Corridors - 5 Curtis Cluff Marketing Communications Manager Portsmith, Inc. 1111 S. Orchard St. Suite 109 Boise, Idaho 83705 (208) 395-1300 curtisc@portsmith.com Phil Reed CEO Duckets, Inc. 9448 Fairview Ave. Boise, Idaho 83704 (208) 250-0922 preed1@uswest.net Linda Jackson Economic Development manager Boise Metro Economic Development Council 250 S. Fifth St. Boise, Idaho 83701 (208) 344-5515 (ljackson@boisechamber.org Marc Brailov Public Communications Director American Electronics Association 601 Pennsylvania Ave. Washington, D.C. 20004 (202) 682-4443 marc_brailov@aeanet.org Kevin McCormack Senior VP Marketing Village Ventures 1476 Massachusetts Ave. North Adams, Mass. 01247 (413) 664-0100 kevin@villageventures.com Tom Rogers CEO Technology 2020 1020 Commerce Park Drive
  6. 6. High Tech Corridors - 6 Oak Ridge, Tenn. (865) 220-2020 rogers@tech2020.org Parker Hardy President Oak Ridge Chamber of Commerce 1400 Oak Ridge Turnpike Oak Ridge, Tenn. 37830-6214 (865) 483-1321 hardy@orcc.org Vig Sherrill President ASIC International 1093 Commerce Park Drive Oak Ridge, Tenn. 37830 (865) 482-4616 jvs@asicint.com Jim Phillips CEO iPIX 1009 Commerce Park Drive Oak Ridge, Tenn. 37830 (865) 482-3000 jim.phillips@ipix.com Tom Loutzenheiser Partner Managing Partner Akers Capital 8436 Marina Vista Fair Oaks, Calif. 95628 (208) 345-3456 tom@akerscapital.com Greg Jones President Intelligence Systems and Networking 3923 Volunteer Drive Chattanooga, Tenn. 37422 (423) 499-8097 gjones@isn-chatt.com Tom Ranken
  7. 7. High Tech Corridors - 7 Founder Vizx Labs 2815 Eastlake Ave. East Suite 300 Seattle, Wash. 98102 (206) 336-5606 jtr@vizxlabs.com Kenneth E. Corey Professor Michigan State University 241 Hannah Administration [KC1] Building East Lansing, Mich. 48824-1046 Kenneth.corey@ssc.msu.edu

×