{"59146":{"#nid":"59146","#data":{"type":"news","title":"How to Build A Thriving High Tech Hub","body":[{"value":"\u003Cp\u003EWhy do Silicon Valley and Boston thrive as high tech industry hubs while other promising areas stagnate?  Its a question long debated by reseachers, but new findings by Dan Breznitz in the Sam Nunn School of International Affairs identify localized business connections and funding as imperatives. In a case study focusing on Atlanta, Breznitz uncovers critical course corrections for that city and a roadmap for other regions looking to grow high tech industry.\u003C\/p\u003E\n\u003Cp\u003EBreznitz, and co-author Mollie Taylor of the Enterprise Innovation Institute at Georgia Tech,  set out to settle the debate over what induces sustained regional entrepreneurial growth in the high tech industry \u0022\u0022physical resources or business social structure. They focused their research on the Atlanta metropolitan area because it leads the U.S. in the physical factors necessary to attract and sustain technological-entrepreneurial clusters: top research universities, a large educated labor pool, a wealth of new technologies and entrepreneurs, a vibrant creative class, and generous venture capital financing. Atlanta has also been perceived as having the social business structure needed to induce growth. The study revealed otherwise.\n\u003C\/p\u003E\n\u003Cp\u003EBreznitz and Taylor found that Atlanta companies haven\u0027t meshed within the local economy. The result has been a decade of steady migration of companies to other states leaving the city with an \u0022at best, stagnant\u0022  industry profile. 40% of Atlanta\u0027s high tech start-up companies leave for other states within three years. California, New York, New Jersey and Florida are common destinations for Georgia-born IT companies. That, combined with a persistent decline in large IT companies, accounts for the industry malaise.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022The metro area excels at incubating high tech businesses, but it lacks the cohesive business social structure needed to sustain them so many of the most promising young companies leave the city,\u0022 says Breznitz. \u0022Instead of building great high tech companies, Atlanta has become a feeder system for great high tech companies in other states.\u0022\n\u003C\/p\u003E\n\u003Cp\u003EAnalysis of Atlanta\u0027s most promising new companies and the city\u0027s top 50 technology firms revealed little contact either between IT executives with those of Fortune 500 or with other technology companies. CEOs, attorneys, and managers in Atlanta IT companies don\u0027t sit on each other\u0027s boards and don\u0027t communicate. The problem isn\u0027t unique to the city\u0027s IT industry, but there are far fewer interlocks within the IT community than in other industries that are successful in the region.\n\u003C\/p\u003E\n\u003Cp\u003E\u0022Companies there don\u0027t interlock with each other and the large companies that control industry in Georgia don\u0027t interlock with the high tech industry,\u0022  says Breznitz, highlighting a complaint that he and Taylor heard consistently from the area\u0027s high tech workforce.\n\u003C\/p\u003E\n\u003Cp\u003EAtlanta provides a lesson for other cities aspiring to grow high tech industry. The study identifies the need for policies and institutions that stimulate information sharing, collective learning, access to resources, and business community buildings. It also identifies venture capital industry with true local focus (which Atlanta lacks) as crucial to embedding a company locally. In conclusion, business social variables are crucial for long-term entrepreneurial-technological economic growth. \n\u003C\/p\u003E\n\u003Cp\u003EBreznitz is interested in helping reshape Atlanta\u0027s high tech business landscape. He is  helping reinvent the Advanced Technology Development Center (ATDC) at Georgia Tech\u0027s Enterprise Innovation Institute evolving its success as a business incubator to build more links between start-up.\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"Why do Silicon Valley and Boston thrive as high tech industry hubs while other promising areas stagnate?  Its a question long debated by reseachers, but new findings by Dan Breznitz in the Sam Nunn School of International Affairs identify localized business connections and funding as imperatives. In a case study focusing on Atlanta, Breznitz uncovers critical course corrections for that city and provides a roadmap for other regions looking to grow high tech industry.","format":"limited_html"}],"field_summary_sentence":[{"value":"Local Roots are as Important as Resources"}],"uid":"27167","created_gmt":"2009-10-02 00:00:00","changed_gmt":"2016-10-08 03:06:47","author":"Rebecca Keane","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2009-10-02T00:00:00-04:00","iso_date":"2009-10-02T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"59147":{"id":"59147","type":"image","title":"tqt58398.jpg","body":null,"created":"1449176217","gmt_created":"2015-12-03 20:56:57","changed":"1475894510","gmt_changed":"2016-10-08 02:41:50","alt":"","file":{"fid":"190878","name":"tqt58398.jpg","image_path":"\/sites\/default\/files\/images\/tqt58398_0.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/tqt58398_0.jpg","mime":"image\/jpeg","size":49514,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/tqt58398_0.jpg?itok=KIfmNJ31"}}},"media_ids":["59147"],"related_links":[{"url":"http:\/\/www.inta.gatech.edu\/faculty-staff\/listing.php?uID=15","title":"Danny Brezntiz"},{"url":"http:\/\/www.gatech.edu\/newsroom\/assets\/pdf\/atlpaperMay19th.pdf","title":"Study of Atlanta\\\u0027s IT Cluster"}],"groups":[{"id":"1281","name":"Ivan Allen College of Liberal Arts"}],"categories":[{"id":"129","name":"Institute and Campus"},{"id":"134","name":"Student and Faculty"},{"id":"135","name":"Research"},{"id":"150","name":"Physics and Physical Sciences"}],"keywords":[{"id":"1988","name":"Breznitz"},{"id":"1072","name":"Business"},{"id":"10071","name":"high tech"},{"id":"166994","name":"startups"},{"id":"1594","name":"Taylor"},{"id":"1037","name":"tech"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cstrong\u003ERebecca Keane\u003C\/strong\u003E\u003Cbr \/\u003EIvan Allen College of Liberal Arts\u003Cbr \/\u003E\u003Ca href=\u0022http:\/\/www.gatech.edu\/contact\/index.html?id=rkeane3\u0022\u003EContact Rebecca Keane\u003C\/a\u003E\u003Cbr \/\u003E\u003Cstrong\u003E404-894-1720\u003C\/strong\u003E","format":"limited_html"}],"email":["rebecca.keane@iac.gatech.edu"],"slides":[],"orientation":[],"userdata":""}}}