International Austin: The Case for Globalization

1. International Austin: The Importance of Globalization
Traci M. Solomon
International Program Manager, Economic Development
Greater Austin Chamber of Commerce
Spring 2001
What is International?
What do we, Austinites, mean when we speak of ourselves as an international city or
region? There are myriad opinions. To some it’s as simple as embracing different
cultures, or actively exporting or importing products outside of the U.S. To others, it
means having the infrastructure and wherewithal to support and promote any number of
international activities--from international visitors to foreign investment. According to The
American Heritage Dictionary, internationalism is “the state or quality of being
international (of, relating to, or involving two or more nations) in character, principles,
concern, or attitude; a policy or practice of cooperation among nations, especially in
politics and economy.” By this definition, indeed by any definition, Austin is most
certainly an international city. We welcome dozens of foreign delegations each year, we
have ten different Sister City relationships (and growing), and Austin’s top 10 major
employers* directly cater to and depend on markets all over the world. Yet “international,”
in many ways, is still perceived with uncertainty and not yet fully embraced.
International Austin: Past and Future
To deliberate on Austin’s global future, we must first examine its local past. Traditionally
a sleepy college town driven by the University of Texas and state government, the Capital
City has lately been given the spotlight as a hub for high-tech businesses, phenomenal
entrepreneurial growth, and emerging international recognition.
Past
Austin has maintained a very successful track record in economic development, though not
historically focused on global commerce. Austin had not begun to fully take advantage of
its international potential until recently. Historically, the ebbs and flows of Austin’s
growth in the international arena were often a reaction to major drivers of the times not
renowned for their longevity or sustainability--the political climate, marketing campaigns,
specific industry or organizational efforts, etc. One of Austin’s first efforts to broaden its
horizons, however, was the Sister Cities Program established in 1965. Broadly focusing on
government, culture, education, business, and athletics, the Program acquired its first
relationship with Saltillo, Mexico in 1968. Another effort, the Austin Convention &
Visitors Bureau, focused more specifically on economic development, targeting
international leads from both the State Tourism Office and the Greater Austin Chamber of
Commerce.** The ACVB has marketed Austin as an attractive international tourist or
business destination for decades, encouraging commercial visitors to do business with
Austin tourism partners thereby generating publicity, as well as revenue. Both the City and
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2. the Chamber have also supported various international economic development programs
and marketing campaigns focusing on international business, visiting delegations, and
potential investors. Over the years, we have seen the international interest in Austin grow
and mature. As the city has begun to recognize this, the greater Austin community has
come together to improve, cooperate, and further provide a world-class field for
international play.
Future
As one of the nation’s fastest growing MSAs (Metropolitan Statistical Areas), Austin is
uniquely poised to take advantage of its international fame in the global marketplace. It
has one of the highest educated populations in the U.S. for a city of our size. It is home to
the University of Texas, one of the top research and teaching institutions in the world,
drawing hundreds of extremely talented exchange students and professors from throughout
the world. Austin’s reputation as “Silicon Hills” draws investors, entrepreneurs, and
worldwide attention on a regular basis further increasing its marketability. Our proximity
to Latin America and the United States’ largest trading partner, Mexico, make our city a
favorite for foreign direct investment and strategic growth. In addition, Austinites’
infectious enthusiasm and pride further set the climate of a positive, encouraging
environment for both work and play. All these things make Austin desirable and unique.
As we look to the future, the ever-popular Mayor Kirk Watson, advises us, “…to embrace
a global perspective to support the continued successes [of Austin].” Susan Engelking,
President of Engelking Kozmetsky Communications and former Director of Foreign Trade
at the Greater Austin Chamber of Commerce, warns that we should heed his advice or risk
becoming irrelevant, “…just another city.” 1
Why International?
96% of the world market is located outside of the United States. The benefits of tapping
this market are innumerous and the evidence of its success is everywhere. The European
Union, for example, was formed understanding the opportunity for mutual, healthy growth
and the importance of international community. Dozens of nations from all parts of the
world have also followed this lead by creating agreements and pacts, such as Mercosur,
GATT, and NAFTA, to encourage and stimulate their economies and foster relations
between them. Recognizing the power of borderless collaboration, Governor Rick Perry
has recently established the Governor’s Trade Alliance to address mutual concerns and
enhance relations between Mexico and Texas. Austin, too, should see globalization as an
opportunity to attain its desired future by addressing the most critical local issues:
environment preservation, quality of life, economic diversification, and workforce
development.2 As illustrated shortly, international trade generates revenue, increases
community investment, creates jobs, contributes to the economic value chain, stimulates
growth, enhances the city’s image, and encourages strategic alliances. The fact is,
embracing globalism is not only essential to our countries’ and states’ economies; it is
essential to Austin’s.
Austin’s next step is to recognize that we are now a part of the globalization system. We
must choose to move forward and embrace this new economic driver. The PHH Fantus
Consulting Report,2 commissioned by the Chamber in 1995, points out that “external
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3. factors have placed every person, business, and city into the global marketplace.”
According to Cheryl T. Draper, Chair of the World Trade Supervisory Board of the Greater
Houston Partnership, “a healthy international city [is one that] has a base for which
businesses can, with ease and convenience, conduct international business and seek out
support.” And, though Austin needs further improvement in certain international areas,
there are many encouraging reasons for pursuing the goal.
The cost benefit of international trade is reason enough to consider its importance. U.S.
imports and exports have tripled since 19853. For example, in 1999 the state of Texas,
second only to California, boasted $91 billion in annual exports.4 The Austin/San Marcos
region alone generated over $4.9 billion in export sales that year, a 186.5% increase from
just six years before. In fact, wholesale trade was the fastest growing industry in Austin
last year, averaging an annual increase of 20.4%.4 It is evident, after singling out our
NAFTA trading partners, that international trade conducted in Texas has been quite
successful. In 1999, exports from Texas to Mexico increased 14% and exports to Canada
grew 3.5%, creating a sum of $32.6 billion worth of exported merchandise ($66.9 billion
ROW).5 Since NAFTA was implemented, Texas has been exporting to these partners in a
steady increase of 111.1%.6 Clearly, our economy continues to be more and more
dependent on trade for growth.
Another example of revenue generation to the local community is foreign direct
investment (FDI) encouraged by international business expansion or relocation to the
region. Last year there were approximately 2,000 foreign-owned companies in Texas.
Among them, they created $92.3 billion in FDI for the Lone Star State.5 The simple
relocation of a firm’s headquarters to Austin encourages economic growth in multiple
ways. Many of Austin’s more famous multinational employers are headquartered here:
Dell, National Instruments, Radian (now URS Corporation), DuPont, Tivoli, Vignette, and
CSC, to name a few. These companies generate countless millions in tax revenue, capital
investment in infrastructure, R&D, equipment and services, corporate giving, and
employee salaries.7 Reciprocally, by encouraging Austin companies to expand overseas,
revenue can also be generated without any physical disruption or challenge to Austin’s
unique quality of life. Additional strains on our existing infrastructure, such as housing and
transportation issues or air quality concerns, can thus be avoided and international
expansion can be seen as a “clean, green alternative to physical growth.”7
World trade creates jobs. “Every billion earned in U.S. export dollars generates about
20,000 jobs.”8 Exporters also add jobs 18% faster than non-exporting firms. Today, Texas
has more than 2,500 foreign-owned companies and they employ nearly half a million
Texans.4 Small exporting firms alone make up a large portion of the jobs created
generating nearly three million new jobs a year in the U.S. In addition, wages and benefits
for these export-related jobs are, on average, 10% higher than non-exporting jobs.8
Business opportunities become more attractive as the world economy becomes more
interdependent.9 Thanks to NAFTA, Canada and Mexico are Texas’ two largest export
markets. In 1999, over 248,300 jobs were directly supported by Texas’ production of
goods for export to these two markets. And, this does not take into account the indirectly-
related jobs, such as transportation, banking, and finance, also supported by this
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4. international commerce. Across the nation, global trade continues to support nearly 12
million jobs.5 Exporters can experience virtually limitless growth through exposure to new
markets and opportunities to earn additional profits.
Both globalization and economic diversification were identified by the Greater Austin
Chamber of Commerce as two of the top strategic economic development initiatives for the
year 2001. Globalization diversifies the economic base. It is important to create and
maintain jobs that are not directly reliant on any one economy’s ups and downs to insure
stability, and often continued growth, in even the worst of economic times. Current
uptrends in Austin, be they in farming, finance, or fashion, may no longer be on an
upswing in Asia, for example. Similarly, what has run its market course in the U.K., may
still be a hot seller at U.T. If Austin keeps its finger on the pulse of the international
economic community, it will have a clearer idea in which areas to best diversify its
economic base when the time comes. It will also enable Austin to have more control over
the types of jobs and industry it is able to attract and retain. According to Bob Ronstadt,
Director of UT’s IC2 Institute, a diversified economy further stimulates economic
development by demonstrating the many benefits of education, entrepreneurship, and
wealth and its influence on the creation of a positive society. Admiral Bobby R. Inman of
Inman Ventures (integral to Austin’s capture of MCC and Sematech in the early 80s) also
encourages further efforts to diversify our economy. He suggests that the key to fortifying
Austin against recession is encouraging European investment in U.S. industries. Both he
and Meg Wilson, Instructor of Science and Technology Commercialization at IC2,
recommend looking for growth opportunities with entities that have already invested in
Austin (e.g., Samsung, MCC) or European venture capitalists looking to invest.
Specifically, Admiral Inman and Dr. Wilson encourage further examination of the United
Kingdom and Germany for collaborative research programs and potential partnership
opportunities, pointing out in particular the marketability of UT intellectual capital and
research facilities.
When any business moves to Austin it brings with it another link in the economic value
chain. Citing examples of export potential, revenue generation, and reverse investment,
Jon Roberts, a Principal with TIP Development Strategies, Inc., comments, “Austin’s
economic future is wholly dependent on its international relationships.” One familiar
scenario is the new international business that requires a product distributor who must have
a manufacturer who needs employees who eat at local restaurants and buy movie tickets
and new homes, etc. Continually adding onto this value chain with new and diverse
international links, Austin can capitalize on its own unique strengths and create for itself
new opportunities within the market.2
In her extensive study on the viability of Austin’s technology community in the New
Economy, Deirdre Mendez, President of Foreign Business Management Consultants, notes,
“As the most attractive market in the world, the U.S. will be the target of multinational
companies all over the globe. U.S. companies will have to be internationally competitive
just to sell in the domestic market.” The market share a foreign competitor gains upon
penetrating the U.S. market is a direct loss to local companies.7 But, if a business is
competing abroad, as well, the damage or threat from international competition will be
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5. much less. Global competition also gives firms the incentives and the means to modernize.
According to David Gibson, Director of Global Programs at IC2, this healthy competition
“increases the pressure on firms to continually improve product quality and specialize in
what they do best.” Trade liberalization pushes nations to focus and specialize in their
areas of comparative advantage.9 Austin’s current competition includes those companies in
the U.S. and abroad who have already moved into the international marketplace. Bill Volk,
an attorney with the local branch of Vinson & Elkins, notes that not taking advantage of the
global marketplace is a lost opportunity equating to lost business. “Even if we do not
[seize this opportunity], our competitors most certainly are.”
Globalization fosters business and infrastructure growth through more trade, foreign
investment, and more efficient use of resources under the pressure of global competition.
According to the U.S. Department of Commerce, 10% of U.S. growth in 1999 was due to
globally exporting businesses, representing 11% of the nation’s GDP. The U.S. DoC also
notes that businesses that do not export are almost 10% more likely to fail within their first
year than comparable firms that do. Also noteworthy, and to the surprise of many, it is
small or medium-sized enterprises, with fewer than 500 FTEs, that make up 97% of U.S.
export firms.5 The growing focus in global markets, also enhances local workforce
development. By increasing opportunities for our lower-skilled and minority workers, the
skill level (and salaries) of local existing technical and line workforce is increased. Dr.
Ronstadt remarks that the “long-term benefits [of globalization] will be a market’s
advancement and expansion.”
When thinking internationally, one must also consider Austin’s image as perceived by the
rest of the world. Thanks to recent accolades and positive media coverage, Austin has been
promoted to the world as a high-tech mecca containing the most-educated populace for a
U.S. city of its size, and the Capital City that produced our nation’s current President.
Prospective international companies visiting American cities expect trade-friendly
communities. Foreign-owned firms need to see Austin as a “good place to do business.”
Our companies need to take advantage of these export opportunities by going out of their
way to make international firms feel welcome. To-date, Austinites appear only reactive to
international trade and shy in considering themselves an international city.2 J.R. Bell of
local law firm Haynes and Boone, makes clear that it is “...inexcusable for [a city] with our
rankings NOT to be global.” One of the first steps to recognizing Austin’s international
image is to retrain Austinites’ very self-perception. We need only revisit the
aforementioned statistics reflecting just how dependent our economy has become to further
stimulate our thoughts on the global.
As international business adds links to the economic value chain, such enterprises are also
the building blocks for creating and sustaining alliances and partnerships.
“The global economy makes it clear that the success of businesses
derives heavily from their linkages. Therefore, cities need to be the
places where linkages can be forged and facilitated. Cities will thrive
as international centers to the extent that the businesses and people in
them can learn more and develop better by being there, in
communication with each other, than somewhere else. The clearest
danger to the viability of communities is not globalization, but a retreat
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6. into isolationism and protectionism.” (Kanter, World Class: Thriving
Locally in the Global Economy, p. 354.)
“The world has become an increasingly interwoven place…your threats and opportunities
increasingly derive from who you are connected to.”10 Globalization hosts a welcoming
atmosphere for strategic partnerships, both locally and abroad, and brings with it many
benefits. For example, alliances are effective where single entities are not, as they draw off
the best practices of the individual partners. They enable the particular strengths of one
partner to compensate where the other is less strong, thus enhancing the overall
effectiveness of the group. They foster communication about the industry, the market, and
the economy from the best possible vantage point: that entity’s physical presence in their
respective locations. In this way, partnerships could even be considered “insurance” in the
event of an economic downturn. For those successful few who “think differently,
challenge assumptions, and bring ideas and resources from outside the industry or locality,”
partnerships are imperative.11
Players
The Greater Austin International Coalition has done an admirable job of assuming the role
as Austin’s international coordinating body. This non-profit “organization of
organizations,” established in 1998, attempts to keep the communication lines open and the
information flowing among the key international players in Austin. Its members are
typically organizations that represent a broader constituency than just a single business or
person, though anyone interested in the international health of Austin is encouraged to
participate. Their membership is comprised of over 40 partners, incorporating
representatives of all aspects of the Austin community from culture and education to
transportation and government.12 At its monthly meetings, the GAIC provides educational
and networking opportunities, as well as a forum, to address the needs and concerns of the
international business community at large. In this way, Austin’s current international
players are in regular communication, can collaborate when necessary, and, in turn, can
offer to their constituents more comprehensive services.
Mayor Kirk Watson’s International Infrastructure Taskforce was formed in late 2000 to
address the growing concern for Austin’s needs in this area. Created as a temporary
working body, and like the GAIC, representing the many facets of Austin’s international
scene, the Taskforce was charged with examining potential solutions and recommending a
plan of action to “improve the coordination of international resources and infrastructure
that will better position Greater Austin in the global marketplace.” One of the first
undertakings of the Mayor’s Taskforce involved understanding Austin’s definition of
infrastructure and acknowledging that a successful international initiative cannot be
accomplished with a disorganization of the existing players. Aside from the logical
components, such as adequate transportation and communication systems, other integral
parts to a solid infrastructure include volunteerism; a diverse, open-minded, and educated
populace; media involvement; political support; business and industry support; and, of
course, the means to attract: quality of life, culture, growth opportunities, business-friendly
attitude, etc.13
In researching resolutions to our infrastructure woes, the Taskforce sent four, small Austin
delegations to visit Calgary, Charlotte, Phoenix, and Atlanta to witness these cities’
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7. successful support systems first hand. As a result of these visits, the Taskforce understood
the universal recognition that economic development and international commerce go hand
in hand. Global trade should not be treated as a separate focus, but rather, considered and
included among all economic development efforts. Also noted for its importance was the
necessity for a strong research source or organization dedicated solely to tracking the
effects of internationalization on the community. Maintaining regularly-updated and
documented economic statistics to bolster the argument for the economic benefits of global
commerce in one’s region is an invaluable investment that many communities overlook.
Any case is made stronger with numbers and supporting examples. As the overwhelmingly
positive statistics in constant proof of the value-add of global trade are given increasing
attention, the battle to educate the public of its importance will be reduced to a skirmish. In
agreement with the GAIC’s 2000 International Mapping Conference findings, the
Taskforce acknowledged these particular areas of need for continued international
development and improvement in Austin: the need for a freestanding, independent,
umbrella organization not tied to the political climate or business whimsy; increased
international flights; city promotional/marketing programs; educational and business
partnerships; international branding or image; state and national global advocates; and
mobilized stakeholders, including the media.
The celebratory capture of MCC in 1983 and the subsequent growth of the high-tech
industry is one shining example of Austin’s potential in laying the framework for new
economic growth, the importance of coalescence, and the impact of organization among
existing players. According to Susan Engelking, diverse leaders (business and state
political) had to agree on a common vision for Texas regarding the software consortium.
Just as a shared vision was required by the state business leadership to make MCC (and
Austin!) a success back in 1983, so too, will business, government, and education have to
come together to make the investment in internationalization a success and once again lay
the framework for Austin’s future.1 Equally applicable to internationalization, diverse
forces must join “in pursuit of new economic generators” when declaring this same
purpose: “to be at the forefront of education, economic diversification, and new
applications of technology to business and industry, and products and services.”1 To
realize this goal, Austin must stay competitive, “take the initiative and go for greatness.”14
Accepting this challenge, the potential for Austin is incredible.
The Greater Austin Chamber of Commerce has maintained a presence in the international
arena over the last few years by producing the only Austin-area International Resource
Guide, representing business interests on the Mayor’s International Infrastructure
Taskforce and the Greater Austin International Coalition, aggressively pursuing regular
international cargo and passenger flights, and co-hosting multiple international delegations
and industry representatives interested in doing business in Austin. And, though the
Chamber has made developing a global strategy a specific priority in Economic
Development this year, its responsibility to its members is no different than it has always
been: “to strengthen the business environment and provide value to our members through
business and civic leadership, government representation, participation opportunities, cost-
effective business services, and networking activities.” To fulfill this mission statement in
the international arena, it is important to consider the many options and resources available
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8. as we move forward to embrace this important economic driver. A review of the following
models could assist us in achieving this goal: International Trade Center, World Trade
Center, regional/country partnerships, educating small business, or simply providing
business services.
Models
One comprehensive model offering market intelligence, a connection to the tech
community, and an opportunity to spearhead international as a “next-level” initiative is co-
partnering with the International Trade Center. The ITC was proposed by Dr. Deirdre
Mendez to the Mayor’s Taskforce, as well as to other organizations, and is designed to
work closely with existing organizations. It is an independent, freestanding center that
would complement and coordinate existing international entities in their efforts to reach out
to area businesses and the broader community to develop international infrastructure in the
region. Based on identified needs, the ITC’s main service offerings would concentrate on
information, education, promotion, protocol, and coordination, but would also pursue
Affiliate Membership with the World Trade Center. The first two years of operation of the
ITC would be funded through initial private sector contributions and public sector grants.
Sustainability and funding for the ITC, thereafter, would come from a variety of sources
including membership fees and office rental. Other cities have shown that success with
such a project can be obtained with minimal, but skilled staffing. To maximize the benefit
from collaboration, it would be advisable to assign a Chamber staff member at least part
time as a liaison.
A second model worthy of consideration is to build or create a World Trade Center, or, at
a minimum, obtain Affiliate Membership status. “World Trade Centers are franchises, for
which licenses are purchased to create immediate international connections. World Trade
Centers bring together international businesses, government agencies and other
organizations, provide essential trade services, and stimulate the economy of the regions
they serve.”15 There are two basic classes of membership in the World Trade Center
Association: Regular and Affiliate. A Regular member is one that intends to develop and
operate a World Trade Center (i.e., building) and is licensed to use the WTCA’s brand
(“World Trade Center”, “WTC”, and map logo). An Affiliate member is one that will not
develop a WTC, but will continue to operate from its current location as it normally does.
The advantages of being associated with a globally-recognized organization dedicated to
international trade are many. Regular Membership benefits include: exclusive rights to
use the WTCA's registered marks and logos, exclusive rights to market WTCA On-Line in
the member's region, access to information and services available through other WTCs,
reciprocal privileges for local members at all operating WTCs and WTC Clubs, seminars
on how to establish a successful WTC, manuals on planning and operating specific WTC
services, a monthly newsletter and many other useful publications, annual general
assemblies, and regular committee meetings. Some of the benefits of Affiliate Membership
are: trade information services, access to the WTCA website, state-of-the-art support
facilities, trade education services, group trade missions, WTC Clubs, networking forums
to facilitate business contacts, and display and exhibit services.15
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9. The Chamber might also consider focusing on strategic regional or country partnership
opportunities to support our initiatives in a particular industry or cluster. A collaborative
alliance through membership with The IndUS Entrepreneurs (TiE), one example, could
help the Chamber more accurately target the high-tech sector and software industry cluster
needs by developing specific relationships and fostering business opportunities. TiE is a
350-member strong networking organization of entrepreneurs and professionals created to
encourage and nurture entrepreneurs with origins in India. India is becoming a global
software competitor. Aligning with this organization would enable the Chamber to
capitalize on employee and intelligence capital in this arena. Austin “now supports a
critical mass of professionals and academics from the Indus region with heavy
representation at organizations such as Dell, Exterprise, IBM, Motorola, Trilogy, Tivoli,
Vignette and others.”16 The U.S. International Trade Commission has released a new
report, quot;Factors Affecting the Competitive Position of the Indian Software Industry,quot; which
describes the rapid growth of this new global competitor. Although India accounts for only
$6 billion of a $154 billion market for packaged software, the Indian Ministry of
Information Technology has set a target of $50 billion in exports and $37 billion in
domestic sales by 2008.17 By offering targeted trade missions and specific business
contacts from India’s high-tech hotbeds, this connection would also coalesce with Austin’s
international goals of encouraging active participation in our local and global society and
economy.
The Greater Austin Chamber of Commerce can also choose to target and provide a
valuable service to one of the more complementary international sectors that also make up
the largest percentage of Chamber Membership…small business. Though many small-
business exporters have not yet understood international trade to be a high priority, the
Chamber can encourage their growth potential by educating them on the many benefits of
including the global marketplace in their business expansion plans. Indeed, small-
businesses that do export, a force whose number “has tripled over the past decade,” have
identified six issues of greatest importance to facilitating trade and their international
initiatives: identifying market opportunities, finding distributors or agents, financing,
documentation, assessing political risk, and managing export operations.18 Aside from
offering education programs or networking opportunities, luncheons or conferences in any
of these areas, these Chamber Members will need to know where and how to begin.19 The
Chamber is a great place to start.
To increase worldwide Chamber visibility and to encourage international investment and
relocation, the Chamber may choose a less dramatic approach to expand on what it already
does best: providing business services. By offering Chamber members the opportunity to
network, attend educational events, and/or distribute marketing materials abroad to
interested businesses, the Chamber is also fostering the growth and stability of the
economic value chain in Austin. For example, the Chamber might consider targeting
specific markets on which to focus current economic development efforts (e.g., Latin
America), gradually expanding to new markets as we become more knowledgeable on a
particular region’s commerce requirements and industry offerings. This could help ease
Chamber transition into global territory. It would allow us to not only pace ourselves, but
our resources, as well, enabling us to progress on to the next region or country once a
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10. desired comfort level and working relationship had been achieved. The possibilities are
endless.
The next stage in Austin’s maturity is to improve and capitalize on its competitive standing
by positioning itself for long-term globalization and economic prosperity. Austin’s
Traditional Economy drivers—government, the University, real estate, and oil—have been
replaced by today’s New Economy drivers that demand technological advancement,
entrepreneurial investment, and established relationships beyond our city limits and state
borders. This leads many to ask, “aren’t we already international?” The answer is an
emphatic “yes.” And, though some Austinites might like to keep Austin “just like it is,” as
stated by one resident, it is time to accept that nothing but change stays the same. The
Fantus Report of 1995 recognized that Greater Austin was already well-entrenched in the
international arena owing to the activities and plans of its existing businesses, as well as
those of competing firms.2 It has already drawn the international headquarters, the
international flights—cargo, as well as passenger--the international attention, the
international students. Tom Friedman says it best. “Globalization is not a choice. It’s a
reality.”20 But, we must consciously choose to embrace global recognition and economic
potential, and make the choice to welcome this world of opportunity.
The fact remains: international commerce strengthens Austin. It exposes local firms to a
diversified customer base, presents them with modern manufacturing ideas, brings foreign
investment capital, lures foreign technology, encounters lower cost suppliers, attracts and
retains local jobs, pays higher than average incomes, increases tax revenues, and can turn
seasonal work into year-round jobs.9 We must chart our course in the global community;
it is not a question of why, but when and how.
SOURCES
Many thanks to the dozens of Austinites who graciously afforded me some of their
precious time to discuss Austin and its role in the international arena: Angelos Angelou,
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11. J.R. Bell, Ray Brimble, Cari Broderson, Barry Burgdorf, Helena Colyandro, Tracey
Davies, Susan Engelking, Richard Fonté, Pam Giblin, David Gibson, Glen Hodges, Bobby
Inman, Robert Loughran, Craig McClure, Deirdre Mendez, Larry Milner, Fred Montoya,
Mark Murdock, John Piatak, David Platt, Pike Powers, Jon Roberts, Bob Ronstadt, Carol
Thompson, Bill Volk, Bill Ward, Kenneth Williams, and Meg Wilson.
*Each of the following companies employs from 4,200 to 20,800 Austinites: Dell
Computer Corporation, University of Texas at Austin, City of Austin, Motorola Inc., HEB
Grocery Company, Seton Healthcare Network, IBM Corporation, Advanced Micro
Devices, Inc., Applied Materials, Inc., and Solectron Texas.
**The ACVB was a functioning department of the Chamber until November 1986.
1
Susan Engelking, “Austin’s Opportunity Economy: A Model for Collaborative
Technology Development,” 1997, p. 33.
2
PHH Fantus Consulting, “Executive Summary of the Assessment: International
Positioning for the Greater Austin, Texas Area,” 1995.
3
Ross C. de Vol, “America’s High Tech Economy: Growth, Development, and Risks for
Metropolitan Areas,” July 1999, p. 96.
4
Texas Department of Economic Development, Business and Industry Data Center.
5
U.S. Department of Commerce, International Trade Administration, Office of Trade and
Economic Analysis, using data from the U.S. Census Bureau.
6
The Trade Partnership, “NAFTA Delivers for Texas 1999 Report,” August 2000.
7
Deirdre Mendez, “Growing a Global Technopolis: How Greater Austin Scores,” 1999.
8
Carol Conway, Southern Growth Policies Board.
9
Office of International Trade, U.S. Small Business Administration, www.sba.gov.
10
Thomas L. Friedman, Lexus and the Olive Tree, 1999, p. 8.
11
Rosabeth Moss Kanter, World Class: Thriving Locally in the Global Economy, 1995.
12
For a list of GAIC partner organizations, please see Appendix 1.
13
Mayor’s International Infrastructure Taskforce Statement of Purpose.
14
SRI International Public Policy Center, “Creating an Opportunity Economy: Enhancing
Quality of Life in a Changing Economy,” 1985, p. 89.
15
Deirdre Mendez, “International Trade Center” Mission Statement, 1999.
16
The Indus Entrepreneurs Website: www.tie-austin.org.
17
Southern Growth Policies Board, “Friday Facts,” March 2, 2001.
18
John Ryans, Jr. and William Shanklin, “Export Assistance Needs for Small Business:
Are They Being Met?,” Economic Development Review, Spring 2000, pp. 26-27.
19
Ibid., p. 28.
20
Friedman, Lexus and the Olive Tree, p. 112.
APPENDIX 1: GAIC Partner Organizations
American Electronics Association
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12. Association of Texas Colleges and Universities
Austin-Bergstrom International Airport
Austin Community College
Austin Sister Cities Committee
Austin Software Council
Austin Technology Incubator
Bridgelinks
Business Success Center
Camino Real District Export Council
CIBER
Convention Center and Visitors Bureau
Congressman Lloyd Doggett's Office
Greater Austin Chamber of Commerce
Greater Austin-San Antonio Corridor Council
Mexican American Cultural Arts
IC2 Institute
International Executive Service Corps
International Hospitality Council of Austin
International School at Austin
International Trade Administration of the USDOC
Japan-American Society of Austin
Purchasing Managers Association
St. Edward’s University
Sematech
Small Business Association
Southwest Texas State University
Strategic Options
Technical Business Network
Texas Asian Chamber of Commerce
Texas Department of Agriculture
Texas Department of Economic Development
Texas International Education Consortium
Thompson & Knight, LLP
TIP Development Strategies, Inc.
The Indus Entrepreneurs -Austin (TiE)
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