Gathering Places
Gathering Places
Since receiving an "F" from Governing Magazine in 1999 for its status in information technology, Hawaii has taken several vital steps to nurture a climate that encourages high technology. It is now time to make much greater strides by adopting a proven strategy from California. ‘Aloha Teams’
would link public,
private high-tech
effortsThe Legislature has adopted two acts that are considered to be competitive, if not better than, most technology tax packages in the country. The state government has developed a snappy website that provides user-friendly information about government services and regulations.
High-tech initiatives ranging from infrastructure development in Kakaako, to astronomy at Mauna Kea, to technology transfer at the University of Hawaii have laid a foundation for expanding Hawaii's tech industry. The state boasts 600 companies, 16,000 jobs and $1.8 billion in revenue. By capitalizing on these strategic niches, Hawaii has the potential for diversifying its economic base.
Even so, Hawaii's technological assets are little known to the rest of the nation, let alone in our own backyard despite government-sponsored efforts of the Department of Business & Economic Development and Tourism and High Technology Development Corp.'s "Technology Kama'aina**Hele on Home!" program to lure our best and brightest back home.
At a recent meeting of the Hawaii Technology Trade Association (HTTA), half of the participants, mostly technology executives from Hawaii, were unaware of the tax credits available in the two legislative acts.
In a wider context, Hawaii lacks focus in its efforts to survive and prosper in what is known as the New Economy. It is unclear whether Hawaii will be able to adapt to the new requirements of the digital and information age.
A lack of venture capital, a shortage of skilled labor, and Hawaii's poor business image are glaring impediments to participation in this New Economy.
To overcome these drawbacks, attracting mainland firms is essential to creating a catalyst for technology development. Hawaii's efforts to lure such companies must go beyond dangling tax incentives. They should include greater participation by business, labor and community leaders who can attest to Hawaii's business attributes and high-tech potential.
In comparison to Hawaii's government-centered approach, California has developed an integrated and collaborative "Red Team" approach. The California Red Team consists of senior decision-makers in the public and private sectors assembled to persuade a company to locate, expand, or retain operations in California.
Depending on the company being sought, the Red Team includes senior executives in finance, human resources, real estate and the legal field, as well as representatives from the chamber of commerce, community groups and government agencies.
The Red Team provides the resources, information and networks to assist in decision-making and relocation of a prospective company to California, and includes confidential site selection, site tours and meetings with the local communities in which the company has an interest.
The California Technology Trade and Commerce Agency serves as a facilitator of the Red Team, and participates when needed.
Several years ago, then-Rep. Paul Oshiro grasped the necessity for Hawaii to take a more aggressive and collaborative approach to luring companies to Hawaii. A bill to create "Aloha Teams" was introduced but died in committee. It's time to revisit the Red Team approach.
Any prudent executive seeking to situate a company in Hawaii will look at several factors: operating costs, taxation, housing, human resources, business climate and the educational system. Having the support of Hawaii's business and labor leaders could go far in persuading companies to come to Hawaii. Some outreach is done now by the Chamber of Commerce of Hawaii, HTTA and neighbor island economic development boards but the recruiting process is haphazard and informal.
In comparison, California's Red Team is strategic, focused and targeted.
Clearly, Hawaii has the potential for technology niches that could provide economic diversity and jobs. The groundwork has been laid. Now a collective recruiting effort by business and government should be made. The Red Team is a proven method that should be implemented.
Attorney William M. Kaneko is president
of the independent Hawaii Institute for Public
Affairs, which seeks to improve civic policy
through research and analysis.