ttW03.htm

Trends andNews

George Kozmetsky passes away
     George Kozmetsky, winner of the National Medal of Technology, social visionary, founder of Teledyne Corp., renowned business dean, and founder of the IC²Institute, died in May after a long illness. As Director of the IC² Institute and a member of the Board of Directors of Dell Computer Corp., Dr. Kozmetsky was the central figure in the renaissance of Austin, Texas, as a technology-driven economic growth pole.
     Kozmetsky was friend, mentor, and benefactor to many readers of this newsletter. Along with such figures as Jaime Lerner and Morihiko Hiramatsu, Kozmetsky exemplified the “godfather model” of technopolis development, in which the energy of a single communicator/visionary becomes the seed crystal for a region’s innovation and growth.
     Hundreds of Kozmetsky’s disciples now dedicate their efforts to codifying and evangelizing the “Kozmetsky effect,” for the benefit of nascent techno-regions worldwide. See http://www.ic2.org for a biography and links to further stories.
Vancouver, B.C. to host Olympic games
     The Olympic Committee’s decision (announced on July 1) resulted from an extraordinary cross-border regional initiative, with the Oregon and Washington legislatures formally supporting British Columbia’s bid. PNWER, the Pacific Northwest Economic Region organization, also supported the bid. A large fraction of international visitors to Vancouver travel through the Seattle-Tacoma airport, according to The Oregonian.
     Vancouver’s win is seen as a signal to the world that the Pacific Northwest (including Canada’s southwest) is a premier destination for sporting tourism. We’ll be watching for technology transfer opportunities as well; see “BCIT to offer Master’s,” below.

Hard times for Hong Kong
     Just when they should be jubilant about eliminating SARS, Hong Kong residents are preparing to protest a harsh new sedition bill proposed by Beijing. Hong Kong, a trade powerhouse that was returned to China by the British in 1997, is experiencing record unemployment (8%), property deflation (60% drop since 1997), budget crises, loss of low-paying jobs to the Chinese mainland, loss of foreign direct investment to Shanghai, and discontent with Beijing’s “misrule” of the city, according to Julie Chao of Cox News Service (7/1/03). “Ultimately,” says Chao, “the fear is that HK will lose its special identity as an open, vibrant, international society and become just another Chinese city.”

City of Austin to take greater role in recruiting (4/17/03)
     "Austin should proactively pursue the recruitment of firms" in industries which meet certain requirements. These requirements should include overall fiscal impact, job creation, links to the local economy and the effect on the quality of life in Austin,” stated a city task force report.
     According to the Daily Texan, “The report also recommends financial and non-financial incentives for companies to relocate to Austin or expand. Financial incentives would include refunding property taxes based on the incremental growth of the company. This system would not give up the city's existing revenue.”

Finally, disaggregated data!
     Harvard's Cluster Mapping Project "uses detailed county level data and statistical techniques to profile regional economies and their performance over time, with a special focus on clusters.” Get access to this data set by clicking through.

Good news or bad news for biotech? Depends where you are.
     The U.S. biotech presence in Ireland (Abbott, Wyeth Medica, Genzyme, etc.) remains on the upswing, encouraging Ireland to stake a course toward biotech leadership. The U.S. Secretary of Health & Human Services will cooperate with the Irish Prime Minister to start a mentorship program involving Irish startup biotech concerns and American executives in the industry. The effort got a good start with the BioIreland conference held last year. Ireland’s obstacles, according to Genetic Engineering News, include institutional infrastructure ? the ability to get all parties talking to one another.
     Portland, Oregon, on the other hand, has finally given up the quest for leadership in biotechnology commercialization. Citing a shortage of industry expertise and venture capital, Portland leaders have adjusted their expectations toward “getting a fair share of a growing industry” (The Oregonian, 6/30/03, page D1).   Portland’s Oregon Health & Science University has a massive, successful and well-funded bioscience research program. However, the lack of large pharmaceutical firms in the region means university technology licenses must go out of state.

The Economist admits a place for capital controls
     Realizing that globally liberalized capital markets can freeze less-developed regions at their current level of wealth - rather than “lift all boats” - the prestigious business magazine (5/3/03, page 15) advocates a continued liberalization of foreign direct investment (FDI) while regulating short-term capital inflows to poorer regions. Noting that sudden reversals of capital inflows brought recession to areas of east Asia, the editorial cites Chile’s taxation of short-term inward capital as a good example.

Report from the Northwest

BCIT to offer Master’s degree in technology management
     British Columbia Institute of Technology is located in Burnaby, adjacent to Vancouver and about 40 miles north of the US border. BCIT has recently been given the mandate to offer Masters degree programs, according to retired BCIT engineering Dean Dave Chowdhury, and one of the first ones being considered is an M.Tech in Technology Management. BCIT has offered a B.Tech in Technology Management for about 10 years.
     Dr. Chowdhury has asked Technopolis Times’ Dr. Fred Phillips to advise on the use of his book Market Oriented Technology Management: Innovating for Profit in Entrepreneurial Times as a “primary resource” in the new program.
Portland lists nascent and promising clusters
     Looking for industries in which Portland has locational and technological advantages, a greater than average concentration of firms, and at least one firm that can be globally competitive, a number of trade and civic organizations have compiled lists of candidates. Technopolis Times collates the lists:

* Advanced displays
* Aviation
* Beer
* Compliance software
* Creative services
* Digital imaging
* Education
* Electronic design automation software
* Embedded software
* Environmental and sustainability
* Medical devices
* Security software
* Semiconductor manufacturing equipment / semiconductors
* Sports outerwear

Location secrets revealed: Why Wacker and Fujitsu located in the Portland metro
     After the tax breaks, here’s what it came down to. In Wacker’s case, according to insiders, it was reliable electricity supply and good community college programs. Wacker’s chairman added, "Portland looks like home (Bavaria), and we like the people."
     Fujitsu liked Portland’s cheap land and labor - and its great community college programs.

Seattle resigns itself to stagnant economy
Unemployment at 7%; region will trail national recovery, says The Seattle Times (5/25/03). See also http://archives.seattletimes.nwsource.com/cgi-bin/texis/web/vortex/display?slug=watch25&date=20030525 .

Seattle survives loss of Boeing HQ, but must win manufacturing site for the company’s new 7E7 plane.
Washington Governor Gary Locke takes leadership role. http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=7e7watch240&date=20030624&query=and+keep+the+7E7

Olympia considers bills to attract high tech
According to Computer Source magazine (5/03), Washington Senate Bill 5725 (House Bill 1751) will provide “comprehensive” tax breaks for the construction of semiconductor manufacturing facilities. Other bills will incentivize technological development (e.g., help desk businesses) in rural counties.

Oregon Senate backs tax break for venture capital executives. (Associated Press, 5/2/03)
“A limited number of venture capital executives and university researchers could be exempted from paying state income tax under a bill the Senate approved Thursday.” Sponsored by state Senator Ryan Deckert (from Technopolis Times’ own district of Beaverton), the bill would exempt VC firms investing $2 million annually in Oregon, and Oregon microtechnology researchers bringing in stable funding of $200,000/year.

Oregon Technology Alliance launched
The Portland Business Alliance launches OTA. In related news, PBA merged with PNITA, the Portland Northwest International Trade Association, in July 2003.

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Conferences

7th International Conference on Technology Policy & Innovation (Now past)
     Held in June in Monterrey, Mexico, the conference was notable for high-quality presentations, outstanding hospitality, and the broad interests and practical views of the Mexican economists we met. Monterrey seems to be the principal beneficiary of NAFTA. Unemployment and crime are low. The energy level is high, the food is wonderful, and the museums are magnificent. The outskirts of Monterrey and Saltillo are blooming with new industrial sites.
Free Report: Our paper “The Intellectual Poverty of the New Free Trade Agreements” was well received at the conference. It commented on the impact of WTO rules on technopolis development. To receive a pre-publication draft, send an email to info@generalinformatics.com, with “FTAs” in the subject line.

Portland International Conference on Management of Engineering and Technology (PICMET)
July 20-24, 2003, the downtown Hilton, Portland, Oregon.

8th International Conference on Technology Policy & Innovation
The 8th ICTP&I will take place on 14-16 June, 2004, Gasteig Cultural Center, Munich, Germany.   See http://in3.dem.ist.utl.pt .

Hosting a conference? Order imprinted bags and pens at http://www.impres2020.com .

Business audiences applaud The Conscious Manager; Author joins “Buck a Book”
     Just one recent review: “THE CONSCIOUS MANAGER, by Fred Phillips, is a must-read for any crisis manager…. Phillips, a 5th Dan black belt in Aikido, is head of the Management department at Oregon Graduate Institute of Science and Technology. He applies the lessons learned through studying and teaching Zen martial arts to dealing with business challenges, including crises. As a former martial arts student, I have used basic principles (e.g., allowing an opponents' force to work to your own best interests) in work with my clients. Mr. Phillips takes such concepts to a MUCH higher level.” From CRISIS MANAGER: The Internet Newsletter About Crisis Management <03.01.03/ISSN:1528-3836/©2003 Jonathan Bernstein>. Read more reviews here.
     Buy The Conscious Manager at http://www.generalinformatics.com/CM/preorder.htm .
     Along with other Oregon business authors, the author of The Conscious Manager has responded to Oregon’s education crisis by pledging a dollar to an Oregon school district for every copy of the book sold through the “Buck a Book” web site.

Forwarding a request from the Trudel Group Newsletter (3Q03)
     Stanford Law School Professor Larry Lessig, author of The Future of Ideas, was for a time special master of the court in the Microsoft case. He seeks to prevent copyrights from becoming perpetual monopolies that place areas of American culture off limits. In a note to John Trudel, Lessig asks, “It is my birthday and I have a favor to ask. If you are permitted - by law or conscience - to sign a petition, I'd be grateful if you would look at http://www.PetitionOnline.com/eldred/petition.html . This cause has taken 4 years of my life. I would be extremely happy if you could consider signing it to help us push it along a bit more. If you're a supporter, I'd be even more grateful if you could pester others to sign as well.”

No, actually it may be brilliant…
     On July 3, The Oregonian picked up this item from the Chicago Sun Times, which picked it up from somewhere in Italy... "Italian battery maker Powergen Italia admitted it might not have been the best idea to create a company web site called www.powergenitalia.com."
     Last time we checked, the site - legitimate and clean - is still up (excuse the expression) and running.

Jargon watch: “Innovalue”
     As China consolidates its dominance in manufacturing and begins to move up the technology value chain, Taiwan scrambles to add more value in all high-tech industries. “Innovalue” is the catch phrase for Taiwan’s bid to stay ahead, according to Mike Clendenin in “Taiwan rethinks its role in new world order.” EE Times issue 1251.

Best quote
Today’s customer “wants anything at any time from anywhere, over any device - and if she can’t have that, she won’t do business with you.” -Tony Perkins, editor of Red Herring.

More News

Annals of Regional Science Vol. 36 No. 3, Table of Contents. Full text available online for LINK subscribers.

Editorial introduction: Special issue on Entrepreneurship and Regional Economic Development. Peter Nijkamp and Roger Stough
Zoltan J. Acs, Felix R. FitzRoy, Ian Smith: High-technology employment and R&D in cities: Heterogeneity vs specialization

Roberta Capello: Entrepreneurship and spatial externalities: Theory and measurement

David Huffman, John M. Quigley: The role of the university in attracting high tech entrepreneurship: A Silicon Valley tale

Marthen L. Ndoen, Kees Gorter, Peter Nijkamp, Piet Rietveld:
Entrepreneurial migration and regional opportunities in developing countries

Edward J. Malecki: Local competition in telecommunications in the United States: Supporting conditions, policies, and impacts

The Oregonian (December 15, 2002) interviewed Howard H. Stevenson, Sarofim-Rock Professor of Business Administration at Harvard Business School, on entrepreneurship and regional development. Prof. Stevenson says a region's social culture is an important success factor, and that an educated workforce is much more important than tax rates. Social culture, says Stevenson, determines:

Propensity to reinvest the rewards of business success in still more local businesses - rather than in real estate or offshore bank accounts - and in the social welfare of locals.

Attitudes toward the success of others. Do we celebrate entrepreneurs' successes, or ostracize them?

Willingness to embrace change.

"I've never met an entrepreneur," says Stevenson, "who said 'I'm not going to start my business here because the tax rate is five points higher.'" Finding the right workforce is the real issue.
Stevenson also mentions supporting education and the importance of forgiving bankruptcy laws.

Finding a Niche in Life Sciences (from the newsletter of Technology Futures Inc.)

"In the August 26-September 1, 2002 Indianapolis Business Journal article, "Consultants Steer Life Sciences Initiative," David Smith (VP, TFI) discusses how TFI is assisting Indiana in finding key areas of interest in the life sciences industry and helping to create roadmaps to assure its entry into the new "Bio Age." For more information on these activities, please contact David Smith at dsmith@tfi.com, (800) TEK-FUTR or (512) 258-8898."

Editorials

Knowledge vs. roads and bridges?
     A member of the Oregon Council for Knowledge and Economic Development complained that the State’s desperately ailing budget slashed funds for nurturing the knowledge economy, while at the same time increasing funds for roads and bridges. This complaint is naïve, both from a political perspective and a business perspective. “Knowledge economy” is a squishy phrase; legislators don’t know what it means, though it smacks vaguely of high technology. Marketing a concept that’s so hard to get a grip on, demands cleverness and perseverance, and we haven’t seen this kind of marketing of the new economy in Oregon.
     Roads and bridges get built and maintained in all parts of the state, creating blue-collar jobs everywhere. What could be more appealing to a state legislator? In contrast, technology and knowledge jobs cluster in the more privileged districts of the state. These are few compared to the number of rural and old-economy districts.
     History shows the necessity of keeping the roads and bridges open. After the crash of 2001, however, legislators suspect that the knowledge economy is a flash in the pan or another fraud perpetrated by out of work dotcommers.
    Smart and sustained effort must be aimed at selling the knowledge economy to political leaders.

Technopolis Issues & Events