High-tech enclaves around the world are no mere Silicon Valley wannabes. They are chips off the old block.
By Chris Allbritton
ASSOCIATED PRESS
Silicon Valley: The phrase conjures a pop-culture wonderland of microchips
and moxie. Its inhabitants
once said it meant the end of geography.
Workers would collaborate across oceans and continents in cyberspace. Business
would leap borders
without tax or tariff. With such technology, who cared which "X" marked
which spot on some map?
Well . . . not quite. Instead of destroying geography, cyberspace has redrawn the map.
The globe is now dotted with high-tech hot spots where geography is very
real, because working and
living cheek-to-jowl with similarly plugged-in folks creates a critical
mass. Proximity helps produce
ideas, which produces products, which produces wealth.
After all, Silicon Valley is a real place, too. Why else is Sun Microsystems
a stone's throw from Oracle
and Apple Computer in this verdant fold in the California earth? Why did
Microsoft Corp., a perennial
Valley outsider, recently open a major office there?
The Seattle area, where Microsoft has its headquarters, is itself an example.
Software and
Internet-related companies in the area -- among them Amazon.com and Nintendo
of America -- generate
$20 billion a year in sales.
Unlike Seattle's high-tech cluster, which does not have a nickname, many
other regions have grafted
"Silicon" onto their local area's identifying feature.
But despite their imitation of all things Californian, these are no mere
pretenders. In fact, according to a
recent survey by the American Electronics Association, these new clusters
are creating most of the
high-tech jobs. Since 1990, Austin, Texas' "Silicon Hills" has created
three times more high-tech jobs
than Silicon Valley. Utah and Washington state also out-hired the Valley.
Here is a tour of some of the lesser-known high-tech regions on the Silicon Planet.
United States
Route 128, Boston. The traffic is the first clue. Four lanes each direction,
jammed bumper to bumper for
two hours every morning and every night. Route 128, the high-tech beltway
surrounding Boston, is home
to Lotus, Lycos, Data General and about 3,600 other up-and-coming and stalwart
computer and
electronics companies.
The region has benefited from Boston's storied universities, particularly
the Massachusetts Institute of
Technology. About one in 10 jobs in Massachusetts -- 308,900 total -- is
high-tech related.
-- Sharon L. Lynch, AP, Boston
Silicon Alley, N.Y. Content is king in Silicon Alley, centered on Manhattan's
Flatiron Building but
stretching from New Jersey to Connecticut.
The Alley is home to many of the world's major media companies -- Time
Warner, the New York
Times, Viacom -- as well as possibly the highest concentration of the Internet's
new power players:
publishers and advertising agencies. Some 4,800 communications-related
companies in all are here,
comprising an economy worth $2.7 billion, according to the Federal Reserve
Bank of New York.
Razorfish and Agency.com, two of the largest online advertising and Web
design firms, are based here,
along with DoubleClick, a major online ad company.
New York lacks programming talent, and aging telecommunications infrastructure,
heavy taxes, and high
rents make it hard to run a business. But "New York" remains a magic phrase,
lending fledgling
companies credibility.
The community's virtual town square is Echo, the online bulletin board
that has been called "the
Algonquin roundtable of the 1990s." Echo founder Stacy Horn calls it "the
crankiest group in
cyberspace."
Chris Allbritton, AP, New York
Silicon Valley Forge, Philadel phia. Although the Route 202 Corridor has
been the region's engine for
growth, it has not captured national attention for the simple reason that
most companies here don't make
products that sell in the mass market.
Instead, Route 202 firms focus on niche areas, such as software that runs
a hospital, a college, or a
government agency.
Firms SCT Corp. and Shared Medical Systems, both in Malvern, make processing
software for large
institutions. Lockheed Martin and Unisys, companies with offices near Route
202, employ thousands in
computer and software jobs.
SAP America, one of the world's largest software firms, is locating its
new corporate headquarters in
Newtown Square, a short drive from Route 202.
Venture funds, interactive advertising agencies, and Internet firms also
have sprouted up along Route
202.
RFA, an economic consulting firm in West Chester, estimates that about
97,000 workers in the
Philadelphia region are employed in high-tech jobs, about 4.4 percent of
the workforce.
Pennsylvania ranks eighth in the U.S. in high-tech employment with 151,400
workers, according to the
American Electronics Association. New Jersey ranks seventh with 168,000
high-tech jobs.
-- Bob Fernandez, The Inquirer
Silicon Hills, Austin, Texas. The personal computer company founded in
1984 by college dropout
Michael Dell became so successful it coined a term in this college town,
Dellionaires:
employee-stockholders worth $1 million or more.
Following Dell's example are young entrepreneurs such as Joe Liemandt,
who founded software maker
Trilogy Development Group and, at 28, became the youngest member of the
Forbes 400 list of
wealthiest people.
Texas' capital city includes major facilities for IBM, Advanced Micro Devices,
Motorola, and other
programming, software and gaming companies.
All this was sparked by Microelectronics and Computer Technology Corp.'s
1983 decision to locate
here. Sematech, the semiconductor industry's research consortium, followed.
Today, about 1,750 companies employ some 110,000 people in high-tech jobs
in Austin, Engle said.
That's about one-fifth of the city's total employment, according to state
figures.
-- Michael Holmes, AP, Austin
Asia
Silicon China, Zhongguancun. Take a population of intellectuals clustered
near top universities. Add
local and foreign entrepreneurs looking to profit from the thirst for information.
What you get is Zhongguancun. The 3-mile-long street in Beijing's suburbs
that just a decade ago was
lined by drab state-owned shops and dumpling joints is now full of computer
outlets, Internet cafes, and
high-tech start-ups.
The area's proximity to China's best universities led to its transformation
into the city's main high-tech
zone. Software and computer-game businesses started by professors and graduates
have migrated from
campus into storefronts nearby.
Adding to a "computer fair" feeling are farmers supplementing their incomes
by peddling pirated CDs
and software on the sidewalks.
Among the most prominent high-tech firms based in the area are Founder,
a Beijing University start-up
that produces the most popular Chinese electronic publishing software;
Legend, China's No. 1 domestic
computer maker, and Stone, a major electronics firm.
Some 102,000 people work in Zhongguancun, whose high-tech businesses have
revenues of more than
$4.1 billion a year, officials say.
A "brain drain" of talent overseas has hampered China's quest for advanced
technology, although some
of those who have succeeded abroad returned to Zhongguancun to finance
ventures of their own.
-- Elaine Kurtenbach, AP, Beijing
Silicon Island, Taiwan. Some left high-paying jobs abroad to come to Taiwan's
version of Silicon
Valley. Others drawn to the Hsinchu Science-based Industrial Park were
native entrepreneurs who
formerly made toys or shoes or calculators.
The park's creators, using tax incentives to draw low-cost factories, transformed
a rural town 90
minutes from Taipei. Some 260 start-up companies have blossomed since the
park opened in 1980,
making Taiwan the largest manufacturer of monitors, keyboards, mouse devices
and motherboards.
Taiwan also makes one-third of the world's notebook computers.
About 68,500 people work in Hsinchu Park, which contributes $13.9 billion
to Taiwan's $284 billion
economy.
From the engineers' casual clothing to their Lexus and Acura cars, the
park seems like a reconstructed
Silicon Valley. One company even has a beach volleyball court. Though Taiwanese
traditionally defer
to their bosses during business meetings, conferences at the park are more
lively and often in English,
said salesman James Liu of D-Link Corp.
The reason? Many of the employees and engineers once worked in the Valley.
-- Annie Huang, AP, Taipei
Kyushu, Japan. The Japanese island of Kyushu could be an island of prosperity
in Japan's troubled
economic waters.
The southernmost island in the Japanese archipelago, Kyushu is home to
19 semiconductor plants and
about 350 supporting firms. Japan's NEC Corp. and Mitsubishi Electric Industrial
Co. have factories
there, as does Texas Instruments. The area is the source of almost one-third
of the microchips made in
Japan.
Why Kyushu? Because of the island's clear, clean water, which the companies
need for silicon chip
production.
-- Todd Zaun, AP, Tokyo
Silicon Plateau, Bangalore, India. Fifteen years ago, Bangalore was a popular
town for retired civil
servants drawn by its salubrious climate and laid-back lifestyle. Now,
it's the high-powered software
capital of India, a city that can barely cope with its newfound wealth.
Since the 1980s, Bangalore's university has produced 30,000 new engineers
a year, 7,000 of them
computer engineers. This pool of English-speaking specialists in hardware
and software, willing to
work for bargain salaries by international standards, made Bangalore a
magnet for multinational
companies.
After the Indian government lowered taxes on foreign chip and computer
manufacturers, a host of
companies including Hewlett-Packard, Motorola, IBM and Novell arrived.
Today, the city has 250 software companies, many of them linked by satellite
to home offices in the
United States. They employ 50,000 and contribute $1.2 billion of India's
$4 billion in software exports.
Salaries are lavish by Indian standards. In a nation where per-capita income
is $300 per year, yuppie
couples in high-tech jobs spend weekends at exclusive country clubs, and
the hottest status toy is a home
theater system.
-- Hema Shukla, AP, New Delhi
"Intelligent Island," Singapore. Imagine Miss Internet beauty contests.
Courtrooms with
video-conferencing for faraway witnesses. Computerized bus stops that monitor
buses to tell impatient
commuters when to expect a ride.
In tiny Singapore, the fascination with high-tech can border on the surreal,
and it's as much a government
effort as a public obsession. The plan is nothing less than to transform
the Southeast Asian city-state of
3.1 million people into an "Intelligent Island."
This micro-managed country seems well on its way. According to 1997 statistics,
41 percent of all
households have computers.
In 1996, the government embarked on a plan to link every office, home and
school to an ultra-fast
national multimedia network, Singapore One. Officials say 90 percent of
the population can now access
it.
Today, about half of the world's hard-disk drives and most of Apple's latest
iMac computers are
produced here, while a homegrown star, Creative Technology, produces about
60 percent of the world's
PC sound cards.
In 1997, about 36,000 people worked in Singapore's silicon economy, worth an estimated $5.36 billion.
-- Jonathan Drake, AP, Singapore
Silicon Corridor, Malaysia. In Malaysia, palm-oil plantations have become
the Multimedia Super
Corridor. And despite an economic recession and lack of a technology-savvy
labor force, it has grown
rapidly.
It's a pet project of Prime Minister Mahathir bin Mohamad, who envisions
a $1.2 billion intelligent city
of high-tech companies, schools and a new paperless government seat all
linked by fiber-optic lines.
The corridor starts at the southern edge of the capital, Kuala Lumpur,
and connects a 30-by-9-mile zone
to a new multibillion-dollar international airport.
Promising 10-year tax incentives and unrestricted hiring of foreign staff,
the government has lured 180
companies here. Among them: Sun Microsystems, Oracle Corp., and Nippon
Telegraph and Telephone.
Corridor companies employ 14,600, and analysts project that in five years
they will generate $25
billion, about one-fourth of the Malaysian economy.
Until recently, the question mark for the project was the regional currency
crisis. To reassure investors,
the government earmarked $29 million for the project and sped up building
of highways and railroads.
Now, the concern is politics, notably the arrest of Mohamad's former No. 2, Anwar Ibrahim.
-- Jocelyn Gecker, AP,
Kuala Lumpur
Europe/Middle East
Silicon Fen, Cambridge, England. Ever since the 17th century, Cambridge
University has reckoned
itself the world's great center of science. It was here that Sir Isaac
Newton established the principles of
physics. Other Cambridge scientists have split the atom, discovered vitamins,
developed biochemistry,
deciphered DNA, and built the world's first digital computer.
Cambridge also has been one of the few universities in Britain to market
its research by setting up
science parks to help entrepreneurs. The 1,200 tech-centered companies
within a 30-mile radius of the
city employ 40,000 people and generate $6 billion per year.
Microsoft is getting in on the action. It announced in June that it would
invest $80 million in a research
institute at Cambridge.
-- Robert Seely, AP, London
Sophia Antipolis, France. The French Riviera, long a playground for movie
stars and millionaires,
became a haven for stressed-out techies, too, with the creation of Sophia
Antipolis, a would-be Left
Bank for technology.
Built in the 1960s by decree, Sophia Antipolis, outside Cannes, lacked
the edge that has driven
innovation in places like Silicon Valley, which it predated. Still, it
has more than 18,000 high-tech
workers today, and 80 percent of its companies have eight employees or
fewer, a hallmark of the tiny
but brilliant start-ups that fuel a science center.
Loaded with laid-back charm, Sophia Antipolis looks like a country club,
bordered by the
Mediterranean and mountains, and dotted with golf courses and tennis courts.
"There's a certain spirit of working here that I doubt you have anywhere
else," said Emmanuelle Donnet,
in charge of communications for the agency that manages Sophia Antipolis.
-- Angela Doland, AP, Paris
Oulu Technopolis, Finland. The initial push for promoting technology in
this Baltic Sea port, 370 miles
north of Helsinki, came in the 1970s when Nokia began to develop radiotelephones
for the Finnish army.
Technopolis followed in 1982, founded by 18 companies.
Now, the high-tech sector is estimated to be worth some $1 billion andemploys
more than 13 percent of
the local workforce.
-- Matti Huuhtanen, AP, Helsinki
Silicon Bog, Ireland. A decade ago, the Republic of Ireland was an impoverished
backwater. Today,
the country is called the Celtic Tiger and boasts the most vibrant European
economy.
Ireland is the world's No. 2 software producer, trailing only the United States.
Major PC makers -- Intel, IBM, Apple, Dell, Compaq and Gateway -- have
made Ireland their main
European base, and the country aggressively offers these companies a blend
of tax breaks, government
aid, and investment in industry-linked university programs.
The silicon economy in the Irish Republic contributes $9 billion to the
total Irish economy of $63
billion.
In all, computer-related industries employ more than 50,000 people and
feature prominently in what a
few years ago were cow pastures outside Dublin, Limerick and Cork. The
Irish Times job section is
filled with high-tech ads.
In Dublin, these high-salary jobs have helped fuel an unprecedented suburban
housing boom. One new
red-brick development: Cyber Plains.
A primary inspiration for the boom was Chris Horn, in 1991 a computer sciences
professor at Trinity
College Dublin who got government sponsorship to develop "middleware,"
software that makes
different programs compatible.
Today, Horn is one of Ireland's wealthiest men, and his Iona Technologies
has forged a strategic
partnership with Microsoft. But Iona is only the best-known of nearly 600
indigenous software houses in
Ireland.
"In Ireland, from Day One, you think about exporting," Horn said. "Your
domestic market's too small to
matter." Ireland has only 3.6 million people.
-- Shawn Pogatchnik, AP, Belfast
Silicon Wadi, Israel. The ancient walks of Israel have proven fertile ground
for the cyber-revolution,
with soldiers turned software start-up kings using military know-how, government
subsidies, and
ingenuity to make the desert bloom Silicon Valley green.
Israel's high-tech cluster, Silicon Wadi -- Arabic for the Middle East's
dry riverbeds -- employs about 6
percent of the country's workforce. They take home twice the salary of
their fellow workers, averaging
$30,000 a year.
Israel's stunning rise in the high-tech arena -- the industry is now worth
$4 billion annually -- can be
credited to entrepreneurs who have taken advantage of technologies first
developed in Israel's army.
Many worked in California during the microchip boom and then returned to the country in the late 1980s.
That, coupled with the budding peace process, encouraged international
investment. About the same
time, immigrants from the former Soviet Union provided an abundant supply
of cheap but highly skilled
labor. The government offered capital and support for start-up companies.
Israel is most prominent in the fields of systems security, telecommunications and imaging.
Explaining his country's cyber success, Oded Kafri, 54, who founded several
start-up companies, cited a
parallel between Israel and the United States.
"I think the Israelis are very similar in many aspects to the Americans
as a country of immigrants which
has talent from all over the world," Kafri said, "Israel has the spark
that you see in America."
-- Dina Kraft, AP, Jerusalem