U.S. high-tech venture capital investments totaled $13 billion in 2002, dropping 52 percent from the $27 billion in 2001, according to the latest research from AeA.

California (995,000), Texas (479,000), New York (330,000), Florida (271,000) and Massachusetts (256,000) lead the nation in high-tech employment, according to AeA.

Colorado leads nation in the concentration of high-tech workers, with 98 high-tech employees per 1,000 private sector employees, followed by Massachusetts, Virginia, New Mexico and Maryland.

William T. Archey, president and CEO of AeA, urged high-tech companies not to scale back expansion projects, research and development, or educational outreach efforts.

“We are aware of current budget constraints, but now is not the time to cut back on education, particularly in math and science,” Archey said. “We need a world class work force to deal with world class challenges.”

Many companies are expanding their high-tech operations, assisted by states eager to add or retain their presence.

Newton, Mass.,-based Geo-Centers Inc. will locate a corporate technology research and development center in Prince William County, Va., initially creating 10 to 15 jobs, mostly to conduct research along an array of biotechnological areas.

Geo-Centers has more 950 employees in 40 work locations in 16 states. Scientific research, technology development, engineering, field testing, and project management are the core competencies of the company.

The company will operate at the Innovation @ Prince William Technology Business Park.

The company chose Prince William County because of its business climate, proximity and access to the life sciences facilities of George Mason University, and the ability to work collaboratively with the students and faculty of GMU.

“This research and technology center will enable Geo-Centers and our clients to expedite the commercialization and use of technologies that will enhance homeland defense worldwide,” said Edward P. Marram, president and CEO of the company.

The Virginia Economic Development Partnership (VEDP), the Prince William County Department of Economic Development and George Mason University assisted Geo-Centers with its site selection decision.

Initially, GMU will provide support in biology, chemistry and material science to Geo-Centers on existing federally funded research projects, said Larry Czarda, vice president of George Mason University’s Prince William Campus.

“Geo-Centers will bring expertise in imaging and nanotechnology,” he pointed out. “Using these complementary skills, GMU and Geo-Centers will pursue federal funding for additional joint research projects.”

Also in Virginia, semiconductor manufacturer Infineon Technologies Richmond will expand its Henrico County facility and produce 300-millimeter wafers. The company first announced an earlier version of the project with the commonwealth in 2000 but market conditions delayed the expansion.

In the first build-out phase, Infineon will add 800 jobs in Richmond, and when fully built out, the expansion will create 1,200 new jobs with an investment of more than $1 billion.

Infineon Technologies Richmond currently employs 1,700 people.

As part of the incentive package, legislation will be proposed to modify the existing performance grant to reflect the new completion schedule. A grant from the Governor’s Opportunity Fund of $3 million was approved to assist Henrico County with the project.

Infineon Technologies Richmond also qualifies for a Major Business Facility Job Tax Credit, a statutory incentive available to all qualifying companies. The Virginia Department of Business Assistance will provide work force training.

The Greater Richmond Partnership and the Henrico County Economic Development Authority worked with VEDP to assist Infineon.

“The commonwealth of Virginia has been a great partner in supporting the development of Infineon by providing performance-based grants, training assistance and support for higher education,” said Robert LeFort, president of Infineon Technologies North America Corp. “The excellent infrastructure and state-of-the art manufacturing expertise at Richmond enables us to quickly bring capacity online.”

High-Tech Touches Many Industries

High-tech is a ubiquitous term. Every industry has some sort of high-tech connection to it, including payroll services and the automotive industry.

E-Chx, a high-tech payroll service company, will invest more than $250,000 to expand into the Canal View Office Park in Brighton, N.Y., in the Rochester metro, enabling the company to retain 19 jobs and create 31 additional jobs.

E-Chx provides an array of payroll-related services. The company has experienced a tremendous growth spurt during the past several years thanks to the establishment of Internet-based access to its services.

The company has a large operations center in Alpharetta, Ga., where it considered relocating its headquarters, said Scott Seeman, president and CEO of the Pittsford, N.Y.,-based company.

Incentives provided by the state of New York were a big factor in the decision to remain in Brighton.

E-Chx is eligible to apply to Empire State Development for a $75,000 capital grant to offset machinery costs. The company will also receive benefits through New York State’s Empire Zone program.

Automotive supplier Material Sciences Corp. plans to invest $17.4 million to establish a 54,000 square foot technical center in Plymouth Township, Mich.

Elk Grove, Ill.,-based Material Sciences specializes in developing solutions that help reduce noise and heat problems related to the operation of vehicles.

The expansion is expected to create six new positions during the first year and 17 new positions during the next decade. The company will also relocate 24 current employees in its Farmington Hills, Mich., facility to the new facility.

Material Sciences had considered a competing site in Ohio for the expansion.

However, a Single Business Tax credit worth $800,000 convinced the company to expand in Michigan.

Plymouth Township has approved a 50 percent abatement of the company's new real and personal property taxes for 12 years. The value of the abatement is estimated at more than $1.4 million.

A company that is developing battery systems for the emerging hybrid electric vehicle market will consolidate its operations in Michigan.

The company also focuses on the commercialization of battery storage systems for the telecommunications industry and stationary uninterruptible power sources.

To accommodate its growth, Cobasys will invest an estimated $1.5 million during the next two years to complete an office building and purchase new equipment as it consolidates three plants currently operating in Troy, Mich., to one 70,000 square foot facility in Orion Township, Mich.

A Single Business Tax credit valued at more than $3.9 million convinced the company to expand in Michigan. Cobasys considered siting the project in Ohio.

Orion Township has approved a 50 percent abatement of the company’s new personal property taxes valued at $92,000 for 12 years.

The project is expected to create 50 new jobs in the first year, and 150 jobs within five years.

Ken Krizner is managing editor of Expansion Management. He can be reached at kkrizner@penton.com.