Creating the technopolis: High-technology development in Austin, Texas☆

Abstract New institutional alliances, driven by the rapid increase in and diversity of new technologies, are altering the strategy and tactics of economic development. As a result, communities across the world are seeking to create modern technopoleis or city-states that interactively link technology commercialization with public and private sectors to spur economic growth and diversification through high-technology company development. This paper develops the conceptual framework of a technopolis wheel from studying the dynamics of high-technology development and economic growth in Austin, Texas. It describes seven segments within the technopolis: the university, large technology companies, small technology companies, federal government, state government, local government and support groups. Empirical data, based on surveys, interviews, and archival sources, are presented to assess the role and impact of each segment on the emerging Austin technopolis. Analysis of this data demonstrates the role of the research university on spin-out company formation, the direct and indirect impacts of federal, state, and local government, the evolution of high-technology companies over time with a focus on major company relocations or foundings, and the establishment of indigenous high-technology companies. A case study of Tracor, Inc., the only home-grown, Fortune 500 company headquartered in Austin, demonstrates some of the key factors at work in the technopolis wheel. The paper points to new institutional relationships among the segments of the technopolis wheel. It emphasizes the role of influencers who provide leadership in each segment while networking the different segments to form new institutional alliances. Key findings of the study include the pivotal role of the research university, the need for continuity in governmental policies, the catalytic role of large technology companies, the importance of indigenous company development, and the need for consensus for the sustained development of the technopolis. Three important themes emerge in technopolis development, not only in the United States but also in Europe and Asia: the need for a coordinated approach to high-technology company development, the presence of a high-quality research university, and the importance of a network of influencers or “executive champions.” By focusing on the interaction among the seven segments of the technopolis wheel, we provide a conceptual framework for assessing the relative importance of government, academic, business, and public sectors in the high-technology economic development of a region.