Follow The Leader
     Alaska's trying to lead by example. Lt. Gov. Fran Ulmer, D, was tapped five years ago to lead the state's Telecommunications Information Council, and since then has worked to upgrade the services offered on the state's Web site. With a population of 600,000 spread throughout the largest state in the nation, providing government services such as drivers' license renewals and permits online is key, said Glenda Carino, Ulmer's spokeswoman. The fact that the Web site is consumer-friendly and e-commerce oriented sets an example.
     "It communicates a lot about a state — that you've got your act together as a state," Ulmer said. "It tells potential investors or people looking to park their businesses that they're in a place that is friendly toward the digital age."
     Alaska has followed through with a technology workers initiative created last week by Alaska's Science and Technology Foundation, which funds start-ups with venture capital. Under the program, companies can train potential employees on the state's dime as long as the employee agrees to work for the firm.
     "There's a lot of matchmaking going on," Ulmer said.

Choose Your Partner
     Pairing private and public entities has allowed other states to venture into deals that would be cost-prohibitive if only state funds were available. Through Oklahoma's Corporation Commission, Southwestern Bell has negotiated a $30 million investment for school technology, explained Dan Mahoney, spokesman for Gov. Frank Keating, R. The investment will install digital switching for high-speed Internet access in 22 cities around the state, and Keating has proposed a $70 million bond to provide further technology expansion into the schools themselves. By using money from a national tobacco settlement, the bond would complete the "last mile," connecting the schools to the actual networks.
     "Our goal obviously isn't just kids surfing the Net," Mahoney said. "The real goal is long distance learning and telecourses."
     With the increased graduation requirements in math and science recently proposed by the governor, many rural schools are finding themselves without the necessary equipment or qualified teachers to prepare their students. The networking would hopefully allow school districts to "share" teachers and connect students in more remote areas with courses that might not necessarily be offered at their own schools.
     Wyoming also is looking to wire more of its citizens, and last week Gov. Jim Geringer, R, signed a contract extension with U S West that will further allow the company to connect the northern and southern parts of the state with a fiber optic network. The company's relationship with the state began in 1998, when U S West bid $18 million to create a network connecting 400 schools in a 98,000 square mile area with Internet access, said Richard Paulson, a U S West spokesman. That partnership allowed Wyoming to become the first state to wire all of its schools with high-speed Internet access, said Eric Curry, Geringer's spokesman. The new fiber optic system is crucial for the state, Paulson explained, because it will make the network more dependable and allow for increased speed and capability.
     Last month Geringer touted the need for a stable tax structure, competitive labor costs, access to capital and a favorable regulatory climate to attract the tech companies to the state. He emphasized the need to develop the university system's focus on research, noting that new business spin-offs would be more likely to locate in areas with such facilities.

No Clear Path
     While Geringer is on the right track, analysts are quick to point out that there is no specific trigger states can pull to transform them into the next tech hot spot.
     "As a general rule, it's the business climate that really matters for tech companies," said Michaela Platzer, author of the American Electronics Association's Cyberstates reports. That includes an entrepreneurial environment where companies can quickly develop, a venture capital market, strong education systems and tech-friendly government policies that support businesses, she said.
     But not every state can become the next Silicon Valley, and that's not necessarily the goal. Platzer said that states focusing on one specific aspect of the technology industry, such as networking or software, would do better than those trying to attract any new start-up that comes along. That principle might apply to location as well, as the Progressive Policy Institute's Robert Atkinson recommended that rural states focus on developing their medium-sized cities rather than trying to attract companies to their most remote areas.
     "If you're trying to attract knowledge workers or companies that employ them, know that most don't want to live in the middle of nowhere," said Atkinson, the director of PPI's Technology and New Economy Project. "They want to live in a place where there's a certain amount of cultural amenities, reasonably good schools, higher education."
     And then there are quality of life issues that may attract companies as much as other aspects like education and transportation. "Look at states like Colorado and Washington," Platzer said. "People just like to live there."
- by Stephanie Lash