Brookings Looks at TBED Outside the Techpoles

Ask most state and local technology-based economic development (TBED) professionals what they are trying to accomplish in their community or region and the majority will probably draw on a few of the well-known high tech centers of the country for examples. Many books, studies and reports have scrutinized the success of Silicon Valley, Boston, Seattle, Austin, etc. For example, the desire to replicate the success of Silicon Valley, has led to litany of "Silicon <insert geographic term here>" branding across the country.

Another easy example to point to is the outrage so many communities felt when their metro area didn't make the top ten in the Brookings Institution's seminal report, Signs of Life: The Growth of Biotechnology Centers in the U.S.

Why are TBED proponents so prone to wanting to be the biggest? The same size-envy doesn't permeate all aspects of public policy on growth. Few of cities the size of Peoria, Boise, Akron or Burlington would claim in their ten-year growth strategies that they want to become the next New York City, Tokyo, Los Angeles or Chicago.

To help bring the goals of tech-based economic developers back into perspective, the Brookings Institution Center on Urban and Metropolitan Policy has released Spreading the Wealth: Building a Tech Economy in Small and Medium-sized Regions. The new discussion paper, prepared by Paul Sommers and Deena Heg of the University of Washington Daniel J. Evans School of Public Affairs, looks at the strategies five Washington regions other than Seattle employed to encourage the growth of their tech economies.

The paper identifies key lessons from the five case studies and recommendations that the authors believe have applicability across the country. The following excerpt is from the executive summary:

• Invest in broadband and other telecommunications infrastructure necessary for technology development. Adequate broadband capacity is a prerequisite for IT growth. Meeting demand can be achieved in creative ways based on an expansion of utility systems used for power system management, augmentation of public sector systems, negotiations with existing telecommunications companies, or fostering startup telecommunications.
• Focus on “grow your own” strategies for technology development. Given the history of the techpole regions in this country, entrepreneurial development deserves far more attention relative to marketing and recruiting-based strategies. The establishment of robust networking, mentoring, and startup capital programs, combined with improvements to infrastructure, education, and real estate offerings are key to enhancing the competitiveness.
• Find ways to link research institutions to the local economy. Research institutions play an important role in fostering and supporting technology-based development through the generation of commercially viable ideas, training sophisticated workers, and problem-solving for local companies. Branch campuses, cooperative extensions, and other outreach programs can play an important role in bringing the benefits of the research university to smaller communities.
• Continually monitor and evaluate strategies and results. Regional leaders must carefully monitor and evaluate their efforts to ensure that the results achieved are commensurate with the resources invested to extend the benefits of technology into their communities. Understanding what is working, and what isn’t, is essential to ensuring that program and policies evolve appropriately over time.
• Work with state level research, education, and infrastructure efforts. Local technology development strategies need to be supported by state level polices and programs that are tailored to each local community. Leadership at the state level is also necessary to provide a sense of direction and project a positive outside image that can powerfully complement local efforts.

Copies of Spreading the Wealth: Building a Tech Economy in Small and Medium-sized Regions will be available to attendees of SSTI's annual conference in Seattle next week (Oct. 20-22). The discussion paper will be available for download or ordering from the Brookings Institution Center on Urban and Metropolitan Policy at: http://www.brookings.edu/urban/