George Kozmetsky

Perceived Causes of Small Business Failures: A Research Note

A nationwide survey of approximately 1,000 small business owners and managers was conducted to investigate the perceived causes of small business failure. In addition, survey participants were asked for suggestions for reducing the number of small business failures. The major cause of small business failures—according to the individuals surveyed—is a lack of management expertise. Consequently, the survey participants’ primary suggestion for decreasing small business failures was to improve management education. 1 1 This research was supported in part by a grant from Safeguard Business Systems, Inc.

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.

DEA of Financial Statements Data: The U.S. Computer Industry

DEA (data envelopment analysis) is a technique for determining the efficiencyfrontier (the envelope) to the inputs and outputs of a collection of individual corporations or other productive units. DEA is here employed to estimate the intertemporal productive efficiency of U.S. computer manufactures, using financial data brought from earnings statements and balance sheets. The results indicate that a few corporations, including Apple Computer Inc., Compaq Computer Corp., and Seagate Technology were able to stay at the productivity efficiency frontier throughout the time period investigated. But not all successful corporations did; sometimes subefficiency (=disequilibrium) actually goes together with very rapid growth. A new Malmquist type productivity index is calculated for each corporation, measuring shifts of the estimated intertemporal efficiency frontier.

The Austin/San Antonio Corridor: The Dynamics of a Developing Technopolis

Examination of the factors contributing to the development of the Austin/San Antonio corridor as a high-technology center in the years 1945-1986. The paper uses a conceptual framework called the Technopolis Wheel, which identifies seven segments as fundamental in regional high-tech growth: university, large and small technology companies, state-local-and federal government, and support groups (e.g., chambers of commerce). The major contribution of the paper is its emphasis on using multiple data sources to measure the relative importance of these segments. It concludes with case studies of Microelectronics and Computer Technology Corporation (MCC) in Austin and the biotechnology sector in San Antonio.

Technology and economic development in the modern technopolis

Abstract This paper assesses the dynamics of technology development and economic growth in the technopolis or modern city-state. It describes seven segments within the technopolis: the university, large technology companies, small technology companies, state government, local government, federal government, and support groups. In the process, the paper points to new institutional relationships affecting economic development and examines the role of influencers in economic diversification. San Antonio, Texas, is used as a case study of a developing technopolis to analyze how this process works. The paper concludes with a list of key factors affecting the development of the modern technopolis.

Effects of defense spending on the Texas economy: An example of concave programming

Abstract The projected defense buildup by the Reagan Administration through 1937 will provide strong stimulus to the Texas economy. In this paper, we provide numerical estimates of the emerging additional output and the number of jobs in 173 productive sectors of the states economy. The calculations are carried out inside the framework of a new concave programming format which makes it possible to compare the need for labor in 23 aggregate sectors with the projected available workforce. In sectors with scarce labor supply, wages will start to rise. The general price level will then also rise from the cost side. Appropriated defense dollars will then buy less real goods and services than originally envisaged. The model was solved using a computer code for successive linear programming. The computations represent one of the larger applications of this particular computer code to date.

The New Role of the Federal Laboratories

Federal laboratories are of vital importance to America’s scientific achievements, national security, and economic well-being. Science and technology, when successfully commercialized, provide opportunities and jobs across the board in research and development, design, manufacturing, customer maintenance and service, financing, and other service sectors, including personal services of all kinds.

An Overview of International Economic Competition

We believe in the existence of economic competition between nations, and that a nation’s competitiveness is an important concept, particularly for the United States at the present time. In this section, we will explain the reasons behind those beliefs, and why we reject this statement by economist Paul Krugman:

The Changing Economic Conditions of the World

The global economic environment is in a state of constant change. All the world’s nations have had to learn how to cope with economic dynamics in order to maintain or raise standards of living for their residents. In terms of competition within the global electronics market, changing macroeconomic conditions have greatly influenced the competitive positions of trading countries. In order to discuss international trade patterns and evaluate the economic performance of electronics industries and companies, we need an overview of the changing economic environment of the world.

The Core Competition of Global Giant Electronics Companies

In previous sections we conducted comparative analyses for global electronics companies divided into six clusters that span the entire electronics technology chain. Analyses of company-level data have indicated that Japan has become a dominant player in the global electronics industry, its success can be attributed to its giant electronics companies. The United States’s position in the global market, however, has declined substantially. This decline can be directly attributed to the losses of market share by U.S. giant electronics companies. On the other hand, U.S. mid-sized companies in all the clusters exhibited excellent performances.