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The Changing Tech Policy World
by Heather Greenfield
When Information Technology Association of America CEO Phil Bond was the technology undersecretary at the Commerce Department, he began offering unsolicited advice about industry unity to what he called the alphabet soup of tech associations in Washington.
Many people in the industry now have heard his complaint that he could make one call to learn what the movie industry thought about an issue but had to make at least a dozen to discover the tech stance. The industry has been represented by more than a dozen groups with acronyms and names like AeA, ACT, BSA, CCIA, CEA, CSIA, CDT, CompTIA, EIA, EFF, GEIA, ITAA, ISA, ITI, PFF, SIIA, SIA and TechNet.
Some groups sprang from different interests like electronics or data-processing, but as the members' products converged, they more and more fell under the broader umbrella of technology. During the past year, though, many of the associations worked together in groups like the R&D Credit Coalition, and two groups recently announced merger talks.
Fewer Ingredients In The Alphabet Soup
The year began with rumors that the Electronic Industries Alliance would merge with AeA or ITAA after former Rep. Dave McCurdy, D-Okla., left as EIA's chief executive officer. ITAA reportedly had considered a merger of its own when its CEO, Harris Miller, left in 2006 for an unsuccessful bid for the U.S. senate seat in Virginia. But instead it hired Bond.
EIA had 1,300 members within its four member associations -- the Government Electronics and Information Technology Association; the JEDEC Solid State Technology Association; the Electronic Components, Assemblies and Materials Association; and the Telecommunications Industry Association. EIA went forward with its CEO search but also indicated that it was considering all options, including mergers.
In July, EIA's board voted to close the group and sell its assets, including a building in Arlington, Va., valued at $25 million to $40 million. The money was to be divided among the four original member associations and the Consumer Electronics Association, which broke off on its own. The decision led to speculation about more mergers among tech industry groups -- especially by the EIA member associations set to have attractive dowries.
The first development occurred in November, when ITAA announced merger talks with GEIA. The move was not a surprise to other tech companies, which noted that the two associations not only had 30 members in common but also were the most involved in government procurement.
Bond said the merger would be a step toward speaking with a clearer, louder voice in Washington by consolidating some groups. "At long last it's a trend that's starting to touch the tech industry."
GEIA President Dan Heinemeier said he plans to have the final merger proposal to board members by the end of the year -- before a meeting and vote in mid-January. "It will create a group of 400 companies and combine our electronic and IT base with their very strong IT and provide a single voice where there were two on a lot of issues," Heinemeier said.
Heinemeier said the EIA building sale is in the bidding process now and a merged ITAA/GEIA would have money for new projects if that is what GEIA's board wants.
ITAA, meanwhile, has announced partnerships this year with more state technology councils like the Northern Virginia Technology Council.
Merging Isn't The Only Answer
Whether they agree to consolidate or not, executives at various tech associations do agree on one thing: The industry needs a stronger voice in Washington now more than ever.
The reason is competitiveness -- both because other industries are lobbying Congress and because the industry is competing with other nations and industries for selling products and attracting talent. Bond said globalization increases the need for the United States to be competitive and the tech industry to come together on issues.
"There have to be some powerful and credible voices for the tech industry in Washington because some of the associations we're against have strong lobbyists," said Ralph Hellman, a lobbyist at the Information Technology Industry Council.
AeA lobbyist John Palafoutas said a merged ITAA and GEIA likely would focus on procurement and cyber security, and the merger would help member companies better get what they want from an association. But he added, "I'm not sure we need another general-purpose lobbying firm."
Palafoutas also said he is not sure that having fewer associations brings a stronger voice. "It's not a bad thing having a lot of voices -- it shows unanimity," Palafoutas said. He said such unity in voices helps on issues that all tech groups support, like competitiveness.
Sean Garrett writes the blog for the public-relations firm 463 Communications, and TechNet is among its tech clients. He said one idea left out of the debate over mergers and whether that strengthens the tech voice is that tech companies and associations could do a better job sharing information and strategy on blogs.
For an advanced industry, he argued, the tech world too often communicates via memos and not interactive dialogues on issues that impact the industry.
The Association Outlook For 2008
Several tech association lobbyists said more mergers are possible over the next year. Bond predicts "a lot more" in that time. "I think it's going to be good, but it's not going to be easy." He said associations that offer valuable services to members are more likely to merge with other associations whose policy operations are in the "upper tier."
Hellman expects to see more mergers, too, but said the solution is never going to be one tech industry group. "It's a pipe dream to have one group," Hellman said. "The BSA [Business Software Alliance] is never going to go away. It has a niche and it focuses very well on it." He noted the diversity of the industry, which includes pure Internet companies and involvement in the software, hardware, telecom and electronics sectors.
Another trend is for some associations that focus heavily on federal lobbying to get more involved at the state level. ITI is considering partnering with TechNet for state lobbying. "We're going to focus on lobbying -- federal, state and international," Hellman said.
"Everyone is looking to have capability from the grassroots to global level," Bond said.
BSA President Robert Holleyman said his association plans to increase its lobbying overseas through partnerships with existing tech councils and associations there. "There is no change in BSA structure and mission," he said. "We're looking more at what we can do in foreign markets."
AeA began as the Western Electronics Manufacturing Association and opened its first office in Washington state in 1943 and then opened another in Silicon Valley in 1948. It now has 18 regional offices and a reputation as the national tech association with the strongest state lobbying operations. "I don't understand the other trade groups trying to get into the states when it's an expensive venture and it takes time to cultivate relationships," Palafoutas said.
Palafoutas said it also does not make sense that people lament the diversity of tech voices in Washington, D.C., "and yet these same groups are saying, 'Let's get diversity at the state level.'"
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