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Virginia: Building the Information Technology State,
Part 2
(cover)

The Deals Keep
On Coming

Northern Virginia Leads the Way
George Mason University: A Technology Magnet
VCU Draws High Technology to
Central Virginia

The Virginia Biotechnology Research Park
The University
of Virginia

Harrisonburg's
High-Tech University

Roanoke Valley:
A Smart Place
for High Tech

Research Centers Provide High-Tech Specialization
Business Likes
Virginia Tech

Hampton Roads'
High-Tech Resources

Consider the Commonwealth
Request Information

Although the Commonwealth of Virginia has built a solid reputation for itself as "The Information Technology State," it isn't resting on its laurels. It's working hard to prepare its impressive technology base for competition in the new millennium.

Virginia
b y     K E L L Y     M A R R I O T T

Building the Information Technology State, Part 2


[Editor's note: This article is the second report in a two-part series on Virginia and its information technology resources. Part 1 begins on pg. 987 of the October/November 1998 Site Selection. The first report is also available on the World Wide Web at http://www.conway.com/va/9810/index.htm.]

Virginia has worked hard over the past few years to become a recognized high-tech hot spot, and it's paid off. In September 1998, Wired magazine ranked Virginia's Silicon Dominion, which supports more than 2,500 technology firms, as the third-largest tech center in the U.S. based on infrastructure-related companies such as Internet firms, chip manufacturers and computer hardware and software companies.

VA-COHERENT_35709 In fact, state economic development officials say the Commonwealth of Virginia has the world's largest concentration of information technology, telecommunications and Internet companies, which account directly and indirectly for nearly 10 percent of the state's income. Virginia is also emerging as one of the nation's most rapidly developing centers for the development and production of pharmaceutical and biotechnology products, with more than 70 biotechnology companies, R&D, service and supply firms located in the state.

According to a study by Virginia's Center for Innovative Technology (CIT) and the College of William and Mary's Bureau of Business Research, the state's technology industry makes a sizable impact on the Commonwealth's overall economy, with high-tech industry accounting for an amazing 63 percent of 1991-96 growth in the state product and 40 percent of the increase in total compensation.


Above: Coherent Communications Systems Corp., in Ashburn, Va., manufactures digital and acoustic cancellation equipment used heavily by the telecommunications industry.
In Part 1 of this report, we discussed the reasons for Virginia's continuing growth as a high-tech leader. Companies locate in Virginia to take advantage of the state's rock-solid economic foundation, reasonable taxes, a variety of incentives and services to assist business growth, a strategic location in the mid-Atlantic region, a strong infrastructure and overall superb quality of life.

Another primary reason high-tech companies choose to locate in Virginia is its highly educated work force and the many opportunities for research and development. The state's institutions of higher education offer exceptional diversity, ranging from public universities with programs in engineering, biotechnology and medicine to small, private liberal arts colleges.

Research and development are critical to emerging technologies, and in Virginia there is no dearth of opportunity for R&D. There are 13 technological development centers at Virginia universities that focus on technologies vital to business competitiveness. Not only do Virginia's stellar colleges and universities offer great education and advanced opportunities for R&D, but they also foster unusually strong strategic relationships between industry and academics. Across the state, businesses and universities are forming partnerships and other cooperative relationships that have proven to be a boon for economic development.

This report will take a closer look at Virginia's universities, R&D centers, technological development centers and corporate and government R&D centers with emphasis on research and services provided to the state's high-technology businesses.

State Initiatives Pave Road for Success
Although it appears that Virginia's position as a rapidly emerging world technology leader is secure, Gov. Jim Gilmore is taking no chances. He has taken the position that Virginia needs to continue to ensure that its policies, education, infrastructure and use of technology encourage continued growth of the state's technology base. To this end, Gilmore has taken several steps in the past year to ensure that state government becomes a more effective user of information technology and other advanced technologies.

In an unprecedented move, in May 1998 the governor appointed Don Upson as Virginia's first Secretary of Technology -- the nation's only cabinet-level officer to combine information technology management with economic development, education and work-force training responsibilities. Gov. Gilmore has also created the Governor's Blue Ribbon Commission on Information Technology to develop, coordinate and promote the administration's educational and economic development efforts that pertain to technology.

According to John Gioia, president and chief executive officer of Robbins-Gioia, an IT consulting firm in Virginia, Gilmore has grabbed everyone's attention with his appointment of a Secretary of Technology: "The creation of this position sends a very clear message that the governor's truly interested in technology and in this industry."

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