2012 Issue

23 The per capita income is quite low compared to other states, re- flecting modest wages divided by large average family size. Table 1 - Utah Rankings Parameter U.S. Rank Population 35 GDP 33 Income per Capita 49 Total R&D 32 Utah’s population is less than 1% of the country’s population and generates less than 1% of the country’s R&D, which is again, un- remarkable. By contrast, California is the leading state for R&D, conducting 21% of the nation’s R&D with only 12% of the country’s population. As a result of R&D (in part), California’s income per capita is 40% higher than Utah’s income per capita. IV. Utah Policy Utah has an integrated industry cluster plan to promote technology and economic growth. In this article, we will focus on the techni- cal components of this program run by the Governor’s Office of Economic Development. The Governor’s Office of Economic Development (GOED), was organized in 2005 at the beginning of then-Governor Jon Huntsman’s first administration. GOED modeled its plan as defined by Michael Porter in “Clus- ters and the New Economics of Competition.” 13 His definition: “Clusters are geographic concentrations of interconnected com- panies, specialized suppliers, service providers and associated institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition.” This is the same concept observed by scholars. 13 Figure 2 shows this relationship. Once undertaken as policy, GOED first identified significant industry clusters and stakeholders (skilled talent, academia, sources of financial capital and governmental sponsors). Second, GOED worked to effect a cohesive industry growth strategy. Using a Strength, Weakness, Opportunity and Threat (SWOT) analysis, specific technology-based industries were identified. The strategic goal was to bring these stakeholders together into an industry sector that possessed the greatest opportunity for success. GOED’s analysis revealed an existing concentration of technolo- gies and talent pool along the Wasatch front. This 100-mile long by 20 – 30 mile wide region concentrates most of the technology- based economic activity in the state. The medical device base is centered around the Salt Lake City area and supported by the research technologies from the University of Utah. The Information Technology base is in Utah and Salt Lake County with research technology supported by both the University of Utah, Utah Valley University and BrighamYoung University. The electrical/electronics and mechanical engineering research activities at mainly the Uni- versity of Utah in Salt Lake City and Utah State University in Logan support the defense and aerospace technology cluster in the Salt Lake, Davis and Weber Counties. V. Our Envisioned Role Professional Societies Silicon Valley (centered in Santa Clara County) has grown to be an economic dynamo, and we should learn lessons from its success. The rise of Silicon Valley is outlined in a book titled Making Silicon Valley: Innovation and the Growth of High Tech, 1930-1970. 12 As the title suggests, this is a success that began early in the twentieth century. The author sorts out the unique features that contributed to the region’s dominance, and we should learn from these. The author discusses classical economic interpretations and popu- lar business interpretations, and proposes his own view that it was the growth of a manufacturing focused infrastructure that underpins success. He contrasts Silicon Valley against other regions that enjoyed similar situations such as Boston. Key features include the early growth of the vacuum tube hobbyists (ham radio), management innovations of the Varian brothers (generous employee stock options), and a primary focus on manufacturing and university leadership. This author does not emphasize another element within Silicon Valley. The engineering community of Silicon Valley is tight-knit, similar to the guilds of early Europe. The Institute of Electrical and Electronics Engineers (IEEE) is the single most important integrating element of this community, because there are more than 10,000 members in the valley. There are free technical talks almost every weekday. Significantly, these are primarily industry- led (rather than academic). Many of the non-IEEE professional activities within the valley are de facto planned and often funded through the IEEE. This is a peer-to-peer knowledge-sharing community that allowed a freedom of information and resource Figure 2. Industry Cluster ECONOMY | continued on page 24