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Issue of the Week:
July 28, 1999
High-Tech And Congress: A Complex Relationship
In early June, John Doerr, a venture capitalist and co-founder of Silicon Valley's bipartisan lobbying group Technology Network, flew in to Washington to meet with Vice President Al Gore and to push high-tech issues with members of Congress.
In the course of his meetings, Doerr became heatedly aggressive about one particular issue, the Y2K bill that was pending in the senate. According to several people who attended a meeting between Doerr and a group of Senate Democrats, he harshly berated them for not supporting the bill, despite a threatened veto by President Bill Clinton.
"I have never heard someone talk to a group of senators the way he did…he basically intimated that the relationship would be back to zero" if the Democrats didn't support the Y2K bill sponsored by Senate Commerce Committee Chairman John McCain, R-AZ, said one person who attended the meeting. (Doerr was out of the country on vacation at the time of this article and could not be reached for comment.)
High-Tech Hits Congressional Scene
While such hardball tactics raised the senators ire, Doerr wasn't shown the door, as he might have been if he represented almost any other industry. The high-tech industry had become too important a constituent to Democrats, and they had to listen to what Doerr had to say about the complex policies and politics involved, despite his combative stance.
But six months into the year that high-tech has exploded on the congressional scene, the industry has shown off a lobbying style that left some Democrats feeling like the high tech industry has a "slash and burn" kind of attitude about pushing its agenda. Some said they feel like they are being marketed to, rather than educated on issues and were irritated by Silicon Valley expectations that Washington can be made to operate the same way it does, where companies can make millions at lightening speed and lose it just as quickly.
"They tend to push hard. But others do too. They are a bit younger and they are less willing to wait for two Congresses to get something done, as opposed to other industries, which have had Washington presences for years. It isn't in the nature of the industry to wait," said Ed Gillespie, head of Policy Impact Communications, who represents a number of high-tech clients, including TechNet. Gillespie is also a former staff member for House Majority Leader Richard Armey, R-TX.
On the other side of the aisle, Republican staff members have complained that not only is the industry pushy, but they don't back it up with the traditional Washington relationship building methods proffering baseball tickets or taking out memberships to the 116 Club, an exclusive restaurant on Capitol Hill where lobbyists from decades-old corporations like Philip Morris and Lockheed Martin meet daily for lunch and make deals that in the long-term can make or break a bill. Another complaint is that they aren't doing enough to hire established "heavyweight" Washington players from the Hill for their DC offices.
"They need to take a minute and understand the political process," said Rep. Tom Davis, R-VA, chairman of the National Republican Congressional Committee and also a former high-tech executive who has sponsored several high-tech initiatives. "They just have to get better at spending time on one-on-ones, getting to know members, creating PACs…because they are competing against other industries who have been here for awhile. They are getting better at it, but they have a long way to go. They are getting outgunned by other industries and they shouldn't."
Both Parties Offer High-Tech Platforms
To be sure, high-tech remains one of Capitol Hill's darlings. So far, the CEOs have had no problem getting access to members when they are in town, with both sides of the aisle vying for the attention of industry deep pockets and power brokers. Besides political donations, technology is the future of the economy and it means jobs. In addition, both parties have something to offer the industry. Democrats have a history of taking on social issues that suit many in the industry, born as it was in one of the most liberal parts of the nation, such as pro-choice and improving education. Republicans can offer a platform of tax cuts and deregulation, which appeals to the growing business side of tech companies.
In the past several months, the number of visits by members of Congress to the West Coast and the technology corridor of northern Virginia have accelerated, as have visits from technology companies to Capitol Hill. Both sides of the aisle have unveiled high-tech platforms the GOP's "E-Contract" and the Democratic "E-Genda" that both embrace the laundry list of high-tech desires: lifting H-1B visa caps and easing controls on encryption and export of high-performance computers.
In its defense, high-tech lobbyists say the industry is new to the process. Most companies are brand-new and very small, and for as long as they have existed, their energies have been focused on market pressures and have few resources to spend on opening a DC office. In addition, many CEOs, when they come to Washington want to focus on policy and not politics, though nothing in DC can be entirely separated from politics.
"I chalk this up to a maturation process occurring. It's not aggressiveness," said Ken Glueck, senior director of government affairs for Oracle, which has had an office in DC since 1989. "For all intents and purposes, we are brand new and what you are seeing is growing pains on all sides. But I could see how you could have a little bit of the bull in the china shop mentality. Congress is a deliberative institution and the industry is do first and think later."
Lobbying Has Its Downside
But the high-pressure lobbying has started to create a small level of resistance from some offices, according to Phil Bond, vice president of government relations for the Information Technology Industry Council. According to Bond, now that members feel as though they have made significant progress with the Y2K bill and the R&D tax credit, they will move on to other policies.
"Some are starting to feel they are a little too pushy because there isn't an institutional relationship to back that up. It's not pervasive, but there have been a few, sporadic instances, where they have pushed back and it’s a reminder that we aren't a politically mature industry yet," Bond said.
To head off any growth in frustration, Hill staffers consistently said, if they could give advice to Silicon Valley, it would be to spend more time getting to know members, hire staff from both sides of the aisle and learn the politics of the town. Davis also suggested that CEOs spend less time coming to Washington together in "cattle call" meetings with members, and spend more time meeting individually with members to establish relationships.
"These guys need to focus more on long-term relationship building, rather than marketing themselves. You cannot approach Capitol Hill, the same way you approach Wall Street," said a Senate Republican staff member who works on high-tech issues.
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