Economic Development Reference Guide

Reposted from the IEDC Reference guide (http://www.iedconline.org/?p=ED_Reference_Guide)

Technology-led Development

Technology-led economic development fosters the development of new technology-based products and encourages the deployment of technologies to the private sector. Technology businesses have distinct needs which include:

Creating a business climate attractive to technology industries with technology infrastructure, skilled workers, research institutions, and economic development financing
Supporting entrepreneurship and the emergence of locally generated technology business
The presence of other technology firms
A strong local research and development base that transfers technology into the marketplace
Policies and programs that deploy technology to traditional and small businesses.

Trends in Technology-Led Development

Less than a decade ago, technology-led development focused on technology transfer and deployment initiatives. Technology-based business and technology-led innovations, such as the Internet, strongly influenced the rapid growth of the US economy in the late 1990's. From 1995 to 1998, information technology industries accounted for one-third of the nation's real economic growth and created demand for these kinds of firms in many local communities. Current trends in technology-led development include:

State and local governments and other organizations have established venture capital funds to stem migration of local entrepreneurs to California, Massachusetts, and New York venture capital markets.
Encouraging students to enter science and engineering fields.
Recruiting workers from other states and countries to fill local technology job openings.
Technology report cards enable communities to gauge their technology business climate.
Fee-based buyer's consortia that make members eligible for discounts on technologies such as broadband services and access to the latest technology.
Developing Technology Innovation Centers supporting start-up technology businesses.
Creating technology firm incubators
Workforce development programs focusing on training individuals for the technology industry.
Increase in the number of programs that commercialize R&D such as manufacturing extension partnerships, and consortiums.
Programs that support emerging and established high-tech cluster development.
Matching out-of-town companies needs with technology companies in a geographic area.
Schools and childcare facilities using the Internet to develop an early understanding of computers and online educational material.
State and local investment in technology infrastructure such as fiber optic cable and wireless communications ensures high speed and high bandwidth Internet access for businesses and residents.
Inventories of municipal technology infrastructure map fiber optic cables so businesses may locate on or near to a main communications line.
The U.S. Economic Development Administration (EDA) funds community technology transfer projects. These projects include small business incubators and advanced technology centers.
Removing barriers to commercializing federal laboratory technologies.
Research parks developed in association with universities make commercial use of university research.
Technology parks attract start-up and leading businesses in IT, biotechnology, and advanced materials by offering below-market office space, finance acquisition, business plan development and providing mentoring services.
Legislation changes may be used to attract and retain high tech companies.
Transforming city center buildings into high tech carrier hotels for Competitive Local Exchange Carriers (CLEC). The CLEC's then provide low-cost, high-bandwidth networks to local companies.
State government agencies increasingly provide services to the public via the Internet.