Technology Leadership Issues August 14, 2002 Dr. Rati Ram, Distinguished Professor of Economics, Illinois State University Vivek R. Gupta, Senior Consultant, System Services Corporation
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	We thank everyone for participating in the Tech Pulse Chicago survey number 4 exploring the Chicago area’s technology leadership issues. The survey was conducted from July 25 through August 9, 2002. We observed participants from leading corporations, leading educational institutions, government, and startup companies.
	We continue to refine the Tech Pulse Technology Outlook Index. You can learn more about the Index or the general methodology of this survey at the Tech Pulse Chicago website. Tech Pulse Technology Outlook Index 47.20 -5.52 Technology Employment Index 47.67 -4.39 Technology Capital Spending Index 42.95 -4.43 Technology Innovation Index 50.98 -7.75 Due to the significant time lag between this measurement of the index and the previous full measurement, the Tech Pulse Technology Outlook Index and all its components show very significant drops. These drops seem to align with the general economic downturn.
	All questions in this survey allowed participants to select multiple responses. Consequently, the sum of percentages for various items on each question is greater than 100.
	2. Our question regarding the actions that could be taken by state and local governments to strengthen our technology leadership brought out an overwhelming support for financial incentives to attract technology businesses (70%) and investments in building infrastructure (65%). A large number of participants thought state and local governments should promote regional strengths (57%) while a smaller number came out in favor of seed funding (43%) by the government. Even smaller support came for funding of non-government entities (39%) and consolidation of various government agencies (30%). Participants noted a need to better understand our strengths as well as a need to survey and understand best practices of other successful technology regions around the country.
	3. On the question regarding actions that could be taken by venture capital and other capital professionals to extend our technology leadership, a large number of participants thought that capital professionals should make more investments in early stage companies (64%). Mentoring and providing feedback to entrepreneurs was supported by 51% of the participants with examples of events driven by ARCH Development Corporation and Midwest Entrepreneurs Forum. Fewer participants favored facilitation of networking and introductions (43%), education on capital decision-making process (41%), and promotion of local success stories (36%).
	4. The question about actions by local corporations that can strengthen our technology leadership brought out some surprising results. A large number of participants thought that local corporations should make greater use of local resources (69%). Promotion of our strengths worldwide (56%) by local corporations and nurturing of entrepreneurs (52%) options also drew strong support from participants. A surprisingly low 41 percent of the participants thought that local corporations should increase venture funding. Several participants noted the need to outsource locally as global corporate relationships shrink.
	5. The question regarding actions that the entrepreneurs can take to strengthen our technology leadership brought out expected and well-defined responses. A large number of participants thought the entrepreneurs should learn from success and failures of others (59%) and focus on viable business models (49%). Need for entrepreneurs to place greater focus on technology (33%) and have more tenacity (21%) drew weak responses. A prominent local venture capitalist advised entrepreneurs to “Come up with more viable business models. The crazy days are over...for a LONG time”. Another participant stated cogently “Good science, a real market, a level head, and lot of determination makes for successful companies”.
	6. The question about actions that professional and networking organizations can take to strengthen our technology leadership received a somewhat quiet and balanced response. A large number of participants thought that professional organizations should create opportunities to introduce technology leaders to entrepreneurs (51%) and increase networking opportunities (49%). Fewer participants looked for professional organizations to create educational seminars (44%) or promote the region (38%). Many participants commented on the need for networking to be more than give-and-take. They noted that everyone needed to work harder to find ways to add value in mutually beneficial ways with realistic expectations.
	7. Our final question on actions that universities and educational institutions can take to strengthen our technology leadership brought out a strong response in favor of research and technology transfer. Fifty six percent of the participants thought universities should facilitate technology transfer to commercial entities, and fifty four percent favored promotion of innovative research. Fewer participants thought universities should develop more advanced curriculum (43%) or incubate new companies (39%).
	The next Tech Pulse Chicago survey will address issues related to economic recovery and technology initiatives.