Jurgen Schmandt - Promoting High-Technology Industry: Initiatives and Policies for State Governments

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PROMOTING HIGH-TECHNOLOGY INDUSTRY

About the Book and Editors

In the wake of declining federal involvement in state affairs, state governments have taken the initiative in creating science and technology policies and programs for economic development. The contributors to this study look at the attempts of eight statesCalifornia, Florida, Massachusetts, Minnesota, New York, North Carolina, Pennsylvania, and Texasto foster economic development through science and advanced technology industries. The contributors discuss factors common to the emergence of science and technology policies in all of these states, review the policy goals and strategies being pursued, and compare the mechanisms used to implement policies. Although it is difficult to come to conclusions about the long-term effects of the new policies and programs, the authors suggest that increased cooperation between government, educators, and the private sector; state emphasis on education and research; plus institutional innovations and heavy private-sector involvement can have beneficial effects on a state's economic health.

Jurgen Schmandt is director of The Woodlands Center for Growth Studies, Houston Area Research Center, and a professor of public affairs at the University of Texas at Austin. Robert Wilson is associate professor at the L.B.J. School of Public Affairs, University of Texas at Austin.

Published in cooperation with the Houston Area Research Center

Promoting High-Technology Industry

Initiatives and Policies for State Governments

Edited by
Jurgen Schmandt and Robert Wilson

First published 1987 by Westview Press

Published 2019 by Routledge
52 Vanderbilt Avenue, New York, NY 10017
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1987 by the Houston Area Research Center

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Library of Congress Catalog Card Number: 87-61327

ISBN 13: 978-0-367-28446-6 (hbk)

Contents

1. iv

Guide

In recent years state governments throughout the United States have looked to advanced technology as a resource to revive old industries, create new businesses, and provide jobs. This is a difficult task. First, the link between technological innovation and economic growth is real but difficult to predict. In addition, states have long grown accustomed to the lead role of the federal government in science and technology policy. Their initiatives are mostly of recent origin and available resources are small. At the present time, the results of new state policies and programs cannot yet be measured. Nor is it possible to determine the right mix between long-term strategies, such as support of higher education, and short-term programmatic interventions. The immediate task, therefore, is to provide detailed information on the approaches taken by different states. For this purpose the Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin, conducted a year-long study of initiatives in eight states: California, Florida, Massachusetts, Minnesota, New York, North Carolina, Pennsylvania, and Texas. We asked two questions:

• What role do state governments see for themselves in science and technology policy?
• What kind of institutional mechanisms have state governments created to articulate and implement their science and technology policies?

The project team consisted of sixteen graduate students and two faculty members. Members of the team visited each of the eight states. We received invaluable help from the many people we interviewed. Several of them later read drafts of the state chapters. In Texas we worked closely with the Governor's Science and Technology Council, to which we submitted a summary report in September 1986. Meg Wilson, staff coordinator of the council, was an inspiring taskmaster. Mr. Josh Farley, Department of Planning and Growth Management, City of Austin, collaborated with us throughout the year, and we wish to acknowledge our appreciation for his contribution. We also acknowledge the help of our editor, Christine Devall, and of our administrative assistant, Susan Roush.

The study was supported by The Woodlands Center for Growth Studies, Houston Area Research Center. It is part of a larger project at the Woodlands Center on state governments and technological change.

Jurgen Schmandt and Robert Wilson

Students

Andre J. Brunel	Georgetown University
Michael P. Burke	University of Virginia
Michael Dowling	Harvard University
Harald Fischer	University of Konstanz
Michael Freudenberg	University of Konstanz
William Guillory	Stanford University
Sidney Bailey Hacker	University of Texas at Austin
Tracy L. Henderson	University of Arkansas
Mark Howard	Noethwestern University
Mary Kragie	University of Virginia
Kathleen A. Merrigan	Williams College
Brian Muller	Yale University
Amy Miriam Peck	University of Michigan
Lance Silbert	University of California-Santa Cruz
Suzanne E. Smith	Vassar College
Robert D. Sommerfeld	St. Anselm College

Participating Faculty

Jurgen Schmandt, Ph.D.
Professor, LBJ School of Public Affairs
University of Texas at Austin

Robert Wilson, Ph.D.
Associate Professor, LBJ School of Public Affairs
University of Texas at Austin

Consultant

Josh Farley
Economist
City of Austin, Texas

1
Introduction

This chapter was written by Michael P. Burke and Michael Dowling.

The decline of traditional manufacturing sectors in many parts of the country is causing some states to seek new foundations for economic growth. The high-technology manufacturing sector is considered by many to be the most promising catalyst for future development. The traditional methods of state assistance for businesses, however, are considered inadequate for meeting the needs of this sector. States, therefore, are beginning to adopt policies specifically designed to promote the growth of high-technology industries. The problems encountered and the policy environment differ in each state; as a result, over 200 state programs with a focus on high-technology development are in operation, representing the major effort of state science and technology policies.

This book examines the science and technology policies and programs of eight states. In each case, the actors in the policy development process, their motivations, the policy directions chosen, and the science and technology programs adopted, are identified and assessed. Lessons drawn from the comparison of the eight states are presented and future policy developments are considered. The analysis is based on information from published material, internal documents and reports, and interviews with program officials, government representatives, and other participants in the policymaking process.

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