High-tech growth in the computer and electronics industry slowed considerably last year, as did activity in many industries across the board. It may seem somewhat more noticeable in the high-tech industry simply because it has enjoyed such phenomenal success in the years leading up to the current economic downturn.

The best news, perhaps, is the fact that we live in a technologically driven society. Computers and electronic technology continue to make their mark, in some form or another, in virtually all industries. This simple fact is likely to remain the cornerstone of all future industry developments.

Whether it's an automotive company, a medical-device maker or a cell phone designer, chances are good that microchips and other advanced electronic technology is keeping things in motion and taking product performance to the next level. And it's oftentimes the small and mid-sized high-tech companies, in particular, that propel this industry forward.

Of course, this means that high-tech companies continue to grow, though admittedly not at the rapid pace we've previously seen.

While much of the growth is still taking place in locations traditionally heralded as high-tech havens, there are newcomers to the favorite location scene, as well.

"High-tech hot spots include states like Virginia, Georgia and Colorado," said Micheala Platzer, vice president of research and policy analysis for the American Electronics Association. "Additionally, there are many states that are doing well in specific segments of the industry. Minnesota and Washington in electromedical equipment manufacturing, and Arizona and Oregon in semiconductor manufacturing."

When All Circuits are "Go"

As with every industry, locational criteria must be carefully examined by high-tech companies considering a start-up mission, or a relocation or expansion of an existing business.

As these businesses scout out the perfect site to establish or grow their operations, what do they look for?

"The most important factor in site location selection for many tech companies is access to a skilled and technically trained labor force," Platzer said. "Other factors that are important center on infrastructure issues like good communications and transportation networks. Finally, for many technology workers, quality of life issues, including access to good schools for their children, make a real difference."

Virginia emerged the top choice of Microsoft when the company selected Fairfax County in September as the location for its Microsoft Innovation & Technology Conference Center.

The $25 million facility, Microsoft's first in Virginia, is expected to bring 100 jobs and new technology investment to the region.

Japanese firm Cambridge Filter Japan Ltd., chose Arizona over California and Nevada. The high-tech manufacturer of air filters revealed plans in September to open a sales office in Phoenix. It is also looking for an area site to build a production facility.

Company officials cited affordable operating costs, available work force and a significant semiconductor industry presence as reasons why Phoenix was selected.

The Tokyo-based firm's air filters are used in the pharmaceutical, manufacturing and semiconductor industries.

The Financing Role

There can never be too much money when it comes to high-tech operations. And financing, whether in the form of state and local funds or private venture capital, is always a head-turner for technology companies on the upswing.

For Precision Instrument Corp., financing obtained through New Jersey's Seed Capital Program proved instrumental in drawing the firm to the state's capital city of Trenton.

A.J. Phillips, founder and president of the company, said his ability to access affordable financing was a major factor in his decision to relocate the company's headquarters from another East Coast location.

The company, which manufactures real-time sensors that detect problematic conditions, plans to grow to 30 employees within two years.

Under New Jersey's Seed Capital Program, the Economic Development Authority can lend from $25,000 to $500,000 to technology businesses that have established an emerging technology but need funding to bring their products to market.

Tailoring The Talent

A technologically experienced work force is a dynamic asset for any high-tech company. But communities that go one step further to create tomorrow's talent today are really taking control of their own destinies.

San Antonio, Texas, is a city striving to meet the needs of its growing high-tech industries.

One industry that is thriving particularly well in the region is information security. San Antonio boasts the largest concentration of information security experts outside of Washington, D.C.

San Antonio is taking the lead in training tomorrow's "infosec" specialists. The city is working to equip its students with the knowledge necessary to feed ongoing growth of the sector. Recently, the Information Technology and Security Academy opened its doors to high school juniors and seniors.

This highly technical academy represents the aggressive action that San Antonio is taking in response to the business need for highly specialized and trained IT security specialists.

Students are given an opportunity to begin specialized training, as well as gain valuable experience through internships and jobs offered by sponsoring businesses in the community.

Companies that supply funding, are programs partners, or both include Lockheed Martin, Chromalloy, Pratt & Whitney, SecureLogix and Karta Technologies.

Rachael Hedgcoth is senior editor of Expansion Management magazine. She can be reached at rhedgcoth@penton.com.

Top 10 States for High-Tech Growth from 2000-2001 (per employment growth)

California

Kansas

Virginia

Oregon

New Jersey

Massachusetts

Florida

Georgia

Tennessee

New York