Section  of State and Local Government







State & Local News
Vol. 22, No. 3, Spring 1999


Technology Policy and Its Contribution to the Changing Face of Columbus

By Gregory S. Lashutka

In the Digital Age, technology will profoundly change how we govern, how cities and towns serve their citizens, and how elected officials interact with the community. Already, local candidates use the Internet to facilitate their campaigns, improved information technologies are making mayors and community leaders more accessible and accountable, and the mechanics of government has had to quicken with the exponential advances of technology. Government needs to harness the beneficial tools of technology.

There are no clear-cut right or wrong answers in determining what are the needs of a community, especially in regards to technology. First of all, the definition of technology is ambiguous. The National League of Cities’ 1997 Futures Report discusses the difficulties of defining "information technology."1 The meaning changes depending on how the individual uses it. Some replace management information systems with information technology departments; others refer to the hardware, software, and telecommunications applications; and still others focus on how information is managed. The Computer Systems Policy Project, a consortium of top-level CEOs from the computer and telecommunications industry, spent their first year defining "global electronic commerce": "a term used to describe commercial transactions and non-commercial activities facilitated through the use of information technology and network technologies, such as the Internet, intranets, and extranets."2

I have encouraged Columbus to seek world-class standards in everything we meaningfully pursue, including technology initiatives. Regions that meet a world-class standard will succeed. The need for technology policy in order for a city or region to succeed in a global economy has been espoused far and wide. Dr. Rosabeth Moss-Kanter teaches us that world-class communities are rich in three important things: "concepts," the best and latest knowledge and ideas; "competence, "the ability to use the highest standards any place in the world; and "connections," the best relationships providing access to the resources of other people and organizations around the world.3 The old boundaries between city and county, region and state have to move beyond any notions of territoriality. We cannot make policies that only benefit the City of Columbus, it should benefit the region. In fact, we should embrace world-class competence, concepts, and connections in order to move forward.

One of my strategic goals for our community has been to strengthen the economic vitality of our city and the surrounding region. Our robust economy has not occurred by sheer coincidence. Our economic strategic agenda has produced interconnected companies and institutions in select fields. Dr. Michael Porter has termed these "clusters."4 Central Ohio economic clusters include distribution, education, health care, biotechnology, and insurance. Dr. Porter instructs us that economic clusters create local benefit by increasing the productivity of area-based companies, driving the direction and pace of innovation as well as stimulating new business formation. The economic cluster model compels the public and private sector to work together for mutual benefit. The mutual dependence and collective responsibility among business, government, education, and other institutions are key to our continued economic competitive success.

The global economy is influenced by rapid transportation, high-speed communication, and market accessibility. Technology also becomes critical. Today there is no such thing as a "low-tech" industry. We must insure that our companies-providing vital jobs to our citizens-compete using the most advanced relevant skills and technology.

The changing nature of how business is transacted, combined with the impact of technology and global trade, is forcing all municipal officials to rethink how they maintain a predictable and growing revenue base into the future. The City of Columbus, blessed with a sound economy and prudent in how it spends its money, has seen phenomenal revenue growth over the past few years. Recent income tax revenues grew at over 11 percent. We have the highest bond rating of any large city in the nation.

Yet, the future is not entirely bright. For example, the dramatic rise in Internet commerce poses a real threat to sales tax-based governments. While this is not a significant problem for the City of Columbus, it certainly impacts county government and the State of Ohio. The City of Columbus’ economic engine is driven by income-tax proceeds, while the state and county governments are sales tax-based. Since we are seeing the Internet in its fledgling state, it is impossible to foresee what will happen as the possibilities and economic impact of the Internet expand.

On the other hand, the Internet does provide a greater body of information than ever before so that the city and its citizens can make more informed decisions as consumers. David Osborne and Ted Gaebler state, "We live in an information society in which people get access to information almost as fast as their leaders do."5 We would like to see technology encourage the competition that is necessary for our economy to thrive; in that sense, there should be few restrictions on the Internet and technology in general, only so far as to ensure that the community benefits financially from the resulting development.

What’s important for cities is not embracing technology itself as the only solution for economic development but to develop and manage it so as to reach all walks of life-bankers, taxicab drivers, high-tech workers, and the unemployed. Not everything associated with new technological developments should be embraced. As with any policy decision, the fads must be separated from the truly beneficial economic tools.

In the past, downsizing, mergers, and technological change have lowered the number of workers and wage scales for those employed in the traditional manufacturing sectors. Cleveland, Toledo, Youngstown, Cincinnati, Dayton, and the Ohio River sector were all seriously affected. As mentioned above, Columbus’ economy has been viewed as robust. However, we are on the verge of a crisis, according to the task force I initiated to inquire into the role of technology in the future of Central Ohio. No single factor is impacting Central Ohio more than technology. It affects every single business, every single individual in this community. As with most regions in the United States, we do not have the skilled labor force available to make Central Ohio an inviting home, let alone a hotbed of technological industry and growth. The task force found that unless our community focuses on the development of technological skills and growth, we will inhibit growth in emerging industries, lose ground with our existing business base, and ultimately, narrow the base of our local economy.

Task Force on Technology and the Future of the City

The Task Force on Technology and the Future of the City was convened in July 1997 to delve into the issue of how Central Ohio could become a model for technology leadership. The mission of the task force was to identify and recommend the necessary initiatives to position Columbus as a thriving center of technology. The task force was composed of community and technology leaders charged with creating a vision of the community that ensures "Columbus will be the recognized national leader and model city for the best integration of technology in business, education, and government for the advancement of the entire community."6

The task force of ten members was chaired by Doug Olesen, president and CEO of Battelle Institute, and Dr. Kathryn Sullivan, president of the Center of Science and Industry. Over seventy members served on the six workgroups developed to address different technology needs in the community. Nine recommendations were expounded by the council:

1. Establish a technology leadership council;

2. Build Columbus’ image;

3. Develop a "virtual Columbus";

4. Survey technology strengths and weaknesses;

5. Support expansion of the science and technology campus;

6. Encourage academic support of business;

7. Establish a venture capital pool and advisory network;

8. Develop technology-friendly tax codes; and

9. Support public access technology centers.

In order to implement these recommendations, the first order of business was to create the Technology Leadership Council.

Technology Leadership Council

The first recommendation of the Task Force was that a technology leadership group should be formed of the highest-level leadership in business, education, and research-a senior-executives-only roundtable of leaders with a strong interest in Central Ohio’s future as a technology leader. The Technology Leadership Council (TLC), chaired by Ohio State University President William E. Kirwan and American Electric Power Chief Executive Officer Dr. W. Linn Draper, is in its early stages in focusing our community on our technology needs. I am excited by their work to date. Their efforts will blend with The Ohio State University Science and Technology Campus, the Business Technology Center, the Edison Biotechnology Center, and other ongoing initiatives, which can prepare us for tomorrow’s challenges.

The Technology Leadership Council will oversee the goals of the Task Force Report and other needed projects, whether supporting infrastructure improvements or providing a better environment for technology start-up companies to implementing programs for retaining IT graduates in Central Ohio. Currently, a benchmarking study has been undertaken to determine the best practices of successful technology councils across the country. The council hopes to use these findings to develop a strong organization to lead Central Ohio’s technology initiatives. Funds have been allocated by the Columbus City Council to help the council with start-up costs and for funding a future director for the council.

Of course, the TLC is not the only organization needed to make a difference in the economic and cultural climate of Central Ohio. Efforts by local universities and the chamber of commerce are also needed ingredients to implement successful technology policies.

Science and Technology Campus

The vision of the Science and Technology Campus (STC) is to create a world-class technology park to create economic growth and new opportunities for Ohio. Director Ora E. Smith, formerly of the Illinois Superconductor Corporation, was chosen this summer to lead the effort. Ohio State has worked with business and civic leaders to develop improvements to the Business Technology Center, a business incubator that provides space, services, and a supportive environment for start-up technology-based companies. In addition, the STC will provide greater collaboration between businesses and the university than ever before.

As an indication of the collaboration that has already started, a University Technology Partnership Task Force was created to enhance Ohio State research programs that benefit the Ohio economy and the university. This organization has built upon the report of the Task Force on Technology and will work with the Columbus Technology Leadership Council and other community organizations. The initial recommendations have met Dr. Kirwan’s approval and the task force is now steering Ohio State’s applied research in directions that can both strengthen the region and the university.

Workforce Development at the Chamber

Workforce development and retention is on the minds of most technology companies in many cities. If we don’t keep the local resources we already have, the problems with finding qualified information technology employees will get worse. Workforce problems are not unique to Columbus, and the Greater Columbus Chamber of Commerce and Technology Leadership Council is trying to determine what we can do to develop our employee base as technology companies grow and are attracted to the area. We must grow our own workforce so that people go through our academic institutions and computer skills training programs with the intentions of staying, working, and growing technology businesses in the region.

Several initiatives have been implemented to attract and build the technology workforce for Central Ohio. The Greater Columbus Chamber of Commerce has launched several projects to give business the tools to compete in a tight labor market. Local hiring trends, industry wage rates, and work-training requirements have been surveyed by Ohio Works, an online database of labor statistics for Franklin and Fairfield Counties. The information is now available for use by employers and job seekers alike.

Internal City Policies

To avoid becoming outdated, cities and counties must recognize the need for updating internal systems in order to effectively implement technology policies. Web sites should be interactive, facilities must be year-2000 compliant, and appropriate staff should be hired. We have created a Department of Technology headed by Chief Technology/Information Officer Peter Anderson to make the daily decisions of the information services division and work with other departments on their technology policies and procedures.

For example, the Columbus’ Department of Trade and Development's webpages provide information on planning activities, applications for housing permits, and a form to request housing inspections. City websites should be organized the way a citizen would approach city government. The average citizen thinks in terms of functions, like trash collection or zoning, and would get more use out of that kind of visual organization.

In addition, the City of Columbus is investing a substantial amount of money in a geographic information systems (GIS) program that will provide not only economic development tools, but enhanced productivity across all city departments. Our GIS system contains a development suitability module that will enable us to scan all the parcels in the city and county and to locate potential sites for new businesses. These sites can be chosen based on a number of criteria, including size, zoning, rail access, highway access, sewer and water supply, and potentially, any other data incorporated in the Vision Information System Integrating Neighborhoods (VISION) model. The city has chosen to create a unified system that will do far more than benefit economic development efforts. By encouraging every department to participate in the design and development, every department will achieve productivity improvements. The city commissioned a cost benefit study before undertaking the project, and the result was an unusually high internal rate of return. The VISION system makes economic sense, as well as encouraging economic development. Currently, the Franklin County auditor is using the system to allow web users to look up a property’s value and list of improvements.

In regards to what is working in economic development, equal access issues are important. The "have nots" should be allowed access along with the "haves" in this increasingly technologically advanced society. To that end, our central city programs are crucial. We are looking toward providing tax credits to businesses that invest in the targeted central city area; our maps for tax credit investment are on the website. We want to reach the right groups and encourage companies to invest in the central cities. We recently received a grant from the U.S. Department of Commerce National Telecommunication and Information Administration Program to create an Employment Consortium with an interactive database to training the workforce in the central city and help companies connect with opportunities in the city.

Through all of these efforts to develop effective technology policies, if our constituents are not interested or capable to understand the changes, then we have missed our mark. The public should be educated as fully as possible on economic development in the city. We are missing the ability to provide the funds to ideally allow every household access to the services and information provided in our economic development initiatives. We can’t possibly move swiftly enough to remove outdated barriers to access for both public and private sectors, such as the lack of collaboration between state and city to provide more technology-friendly tax codes or zones. Sometimes, the actions desired by the city or state are beyond the ability of both to leverage; greater public access leading to stronger local economic development programs takes funds that neither entity has by themselves.

We are in a profound time of global social transformation, as Peter Drucker suggests.7 The real test will be how well we pursue social and political innovation in the next century. Successful innovation will embrace technology.

Gregory S. Lashutka is the mayor of Columbus, Ohio

Endnotes
1. National League of Cities, 1997 Futures Report, at 5.
2. Computer Systems Policy Project, Ready, Set, Go! The CSPP Guide to Global Electronic Commerce Readiness (1998), at 4.
3. Rosabeth Moss Kanter, World Class: Thriving Locally in the Global Economy, at 10.
4. Michael E Porter, Clusters and the New Economics of Competition, Harvard Bus. Rev. Nov./Dec. 1998, at 78-80.
5. David Osborne & Ted Gaebler, Reinventing Government (1992), at 12-15.
6. Mayor’s Task Force on Technology and the Future of the City, Final Report (1998), at 10.
7. Peter F. Drucker, The Age of Social Transformation, Atlantic Monthly 274 (Nov 1994), at 53-80.


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