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Tennessee
Raises the Bar

b y    R E N E E    H A I N E S

High technology is no new concept in a state where a place now known as Oak Ridge was chosen to become the site of the Manhattan Project nearly six decades ago. What is new is that Tennessee has raised the bar to accelerate the translation of its long-standing research and technology strengths into a wider high-technology business base.

"Tennessee has been a bastion of technology since World War II with the Oak Ridge National Laboratory," says Lee Martin, founder of Tennessee's high-technology Interactive Pictures Corp. and now executive director of the state's new Tennessee Technology Development Corp. "There are literally thousands of scientists at Tennessee public facilities."

Tennessee's private sector, too, is producing new technologies. High-speed electronic chips designed by Oak Ridge-based OSIC International can be found in circuits that support worldwide data communications. Knoxville's CTI is a leading supplier of advanced medical assessment technology. Memphis-based Federal Express Corp. recently opened the FedEx World Tech Center to focus on information technologies.

A major high-tech newcomer is Dell Computer Corp., which is locating a desktop computer manufacturing facility and support operation in Nashville, and drawing a required high-skills work force from the local labor pool. In addition, "Dell's presence in middle Tennessee will attract dozens of high-tech suppliers," Tennessee Gov. Don Sundquist said when Dell announced its decision in May.

Meanwhile, Tennessee has embraced a series of pro-active initiatives specifically designed to attract a wider technology business base, says Alex Fischer, deputy commissioner of the Tennessee Dept. of Economic and Community Development. "We're believers in raising the bar with every project that we work with," he adds.

The Tennessee Technology Development Corp. will establish regional seed capital funds for start-up and existing technology companies, while also helping to speed the transfer of technology from the state's public sector research base to the private sector. The organization was quick to pledge its support to the state's newer Tennessee Biotechnology Assn., which was formed to promote biomedical research and product development.

"What you find is a new approach in Tennessee," says economist Matthew Murray, associate director of the Center for Business and Economic Research at the University of Tennessee at Knoxville. "Today, our state's economic development strategy has broadened its target list of industries to recruit to go beyond the traditional manufacturing firms. You are seeing a change in mindset."