Tech-Knowledge-E

TECH-KNOWLEDGE-E^TM
Vol. 1 No. 2


Tech-Knowledge-E^TM is ERTECH's official newsletter focusing on technology issues, resources and programs that impact East of the River communities. The newsletter is also featured as a periodic column in the East of the River and Washington Informer newspapers.
*In This Issue*
BUILDING CONNECTIONS* ERTECH Interview with DC Tech Council President	ERTECH TAKES A TOUR ERTECH Tours Maryland Biotech Corridor

DIGITAL BRIDGE FALLING DOWN Proposed Cuts Threaten Digital Empowerment	TECH BYTES AND PIECES" Technology Resources

BUILDING CONNECTIONS

ERTECH Interview with DC Tech Council President
ERTECH Co-chair Ambrose Lane,Jr. (AL) sat down to talk with Charlotte Ann Hayes (CH), President of the Washington DC Technology Council. The following is a full transcript of that interview.

AL: Charlotte, thank you for taking time to speak with me. Certainly for our readers, they will be quite interested to know about you and about the DC Tech Council. I want to start off by just asking a couple of questions about you. Where did you grow up and go to school?

CH: I grew up on Long Island [New York], and I went to public schools there, then to Wellesley College in Massachusetts, and then I went to law school at New York University School of Law in Manhattan [New York].

AL: You were a Political Science major?

CH: I was a Political Science and History double-major with a minor in French.

Charlotte Hayes and
Ambrose Lane, Jr.

AL: How did that lead you to leadership positions later on in your life?

CH: I really wasn't in leadership positions, but more a follower, initially as an associate at law firms, and then I was a [Capitol] hill staffer working in the office of Senator Barbara Mikulski and subsequently working for Senators Daschle, Mitchell and then Senator Al Gore who became Vice President Gore. I then worked in the White House for a while and ended up at AT&T as a technology person in procurement as part of my five years there.

AL: Tell us about your experience working in the White House.

CH: It is one of the most amazing experiences you can have in your life. It’s certainly "West Wing-ish" (reference to the TV show). I got to work for and around very smart and wonderful people, which was quite a privilege. I had that similar experience working for Senator Mikulski. The level at which you are operating and the level of integrity of people that you deal with was pretty extraordinary and it shaped my expectations of people and professionals. My years in the Senate were generally instructive of the political framework of how our country works—and it’s also a lot of fun.

AL: So you’ve been in and around the District of Columbia for quite some time.

CH: I’ve been here since my graduation from law school in the late 70’s except for the five years that I spent in Baltimore.

AL: And how do you like the District of Columbia?

CH: I enjoy living here most of the time. I think that the District has a lot to offer and as I say in my current position that the District, and actually this region, is really a phenomenal critical mass of incredible resources and intelligent people—people that are interested in the world, and constantly creating new things. The technology focus of the area has been quite phenomenal. There is a compendium of research institutions, an international presence—in fact, DC is an international world capitol. There are incredibly smart people who come here to do business, work on the [Capitol] hill, and run companies. It’s not just the city, but the whole region.

AL: How did you come to the Washington DC Technology Council?

CH: I saw a job ad in late 2000, and I was interested in doing something that was a unique experience—experience at running and managing something. I ended up interviewing with Marie Johns, who is one of the founders, the Chair of the Board [of Directors of the Tech Council], and the President of Verizon DC, as well as Todd Mason, who is on our Board and President and CEO of Atlantic Videos.

AL: Tell us a little bit about the Washington, DC Tech Council. What is it? When and how did it start, etc.?

CH: The [DC] Tech Council is like the other Technology Councils in the region and in the United States. It is a membership organization that is tax exempt—a 501(c)(3)—and funded by the membership dues. We have no government funding per say and we also survive on sponsorship. Our mission is to help grow the technology sector through growing tech businesses in the District and the region. We¹re not just made up of members from the District‹one third of our members are from Maryland and another third from Virginia. We are located at 1301 New York Avenue NW, Suite 600, zip code 20005. Our Web site is www.dctechcouncil.org.

AL: That is actually one of the misperceptions—that the Tech Council is a function of DC government.

CH: It’s definitely not. We are not a government organization or extension at all. We work closely with the [DC] government and all its iterations, particularly we worked on the New E-conomy Transformation Act (aka NET 2000) and the regulatory framework this year. Prior to that, we worked on the bill and testified regarding it. We certainly have an interest where it helps our members.

AL: What are some of the initiatives of the Tech Council?

CH: We have a number that we are working on that were started last year that are now being implemented, and the first of which I am most proud—is our international initiative. This initiative, doing business internationally, includes four virtual trade missions over the year, one per quarter, and the first one will be with Israel. It will focus on technology and the security sector. It is a four to six week dialogue online beginning this March. There are already seventy Israeli technology companies qualified to be online. We are working closely with the Israeli government, and the US-Israel Business Exchange. Our key partner in this endeavor is the Greater Washington Board of Trade, International Gateway and the Greater Washington Initiative. These partners work closely with everybody in the region. You can go the web site and read about our members, our Board of Directors, and other activities. We have events every month as well as quarterly membership events focusing on government doing business with tech companies.

AL: You also have an annual Tech Council event. Tell us about it.

CH: Every year, we put together what is called the Early Stage Capital Forum, and that event is designed for companies seeking anywhere from $300,000 to $5,000,000 in early stage [business] funding. In the current climate, that means a company that has an idea, a product, a service that is for sale and starting to have customers, a real market, and can pass the smell and taste test of potential investor’s criteria. This year, we reviewed about one hundred and twenty-five business plans, and selected nine to present at our forum. Each of those company reps go through a day-long "boot camp" and coaching, to make sure that they can give an eight-minute presentation of their company to a panel of venture capitalists who then ask five minutes of hard questions followed by audience questions. This is pretty much the format used by the Mid-Atlantic Venture Association.

AL: Are some of these companies indigenous to the District, that is, are they registered in the District?

CH: Yes. It’s a regional conference, so companies from the area, including one or two from DC, are a part of the group of presenters. We are also going to take the list of amazing companies that have applied and with a team of professionals, work with them to help them figure out how to make the cut. So we will have an ongoing tool for businesses in the area to help them try to raise capital from outside sources other than family and friends. This will also be a resource for communities that they don’t currently have.

AL: Mayor Williams has expressed his desire to make DC a "tech city". Where would you assess technology in the District right now?

CH: Well, I agree with him that it can be [a tech city], but DC cannot do it alone, it’s going to be the region. No one views this area as one city but one region and all three jurisdictions [MD, VA, DC] have parts to play in that. We’re getting stronger by the day, and becoming an equal partner in that threesome. We all want to be strong. All of the tech councils have expressed this. One of our recent panels included a delegate from Maryland and a council member from Fairfax County as well as Eric Price [Deputy Mayor for Economic Development] from DC and all agreed with this sentiment. This area is now viewed like the San Francisco, San Jose and the "valley" was some years back. It is viewed as a very hot area, a growth area, the area where the Internet started and companies like AOL started. People don’t think of a small struggling AOL ten years ago. The Internet and email became a societal disruptor—that is, a major change in people’s and companies’ daily lives. We are going to see the next major technology like that come from this area.

AL: With the DC Tech Council being the baby of the region, how is the Council’s relationship with its older [Tech Council] siblings in VA and MD?

CH: Good question. We are actually building good relationships with both the Virginia Tech Council and the Maryland Hi-Tech Council. They were partners in the Early Stage Capitol Forum along with the Greater Baltimore Technology Council and the Morino Institute. So this is a very important partnership. We try to work together and this is one very dynamic way we do that.

AL: One of the other perceptions is that there is no overall District technology plan, especially one that addresses the so called "digital divide" for East of the River and other underserved communities, and that it is the DC Tech Council that should address this. One, how true is that, and two, what is your perception of an overall technology plan?

CH: Well, it is actually untrue on both counts. First of all, the District has a plan, and it’s a very good plan—it comes out of Eric Price’s office, Andy Altman has worked on it, and I’ve seen it a number of times and it includes a huge amount of effort in East of the River. The entire Unified Communications Center (UCC), the 911 and 311 center for the District, will be located there [at St. Elizabeths] bringing massive pipelines and communications. I think that it’s going to make a huge difference for those communities and it’s a huge commitment on the part of the Mayor and the city and that is part of "the plan". I heard real estate people talking about East of the River—that’s something that wouldn’t have happened twenty years ago or even five years ago—and that’s because of "the plan". Second, it’s not the job of the DC Tech Council to create policy for the District. It is our job, when asked, to educate people about what the technology community might be interested in seeing, and that would help them grow. We were an important part of the New Economy Transformation Act (NET 2000) regulatory effort this year when I came on board. It’s a great piece of legislation. The tax benefits over our region are beneficial to locate tech businesses in the District making the District competitive with the rest of the country as well.

AL: In your capacity as president, in making linkages, sometimes there is a gulf—some call it the "digital divide"—between where technology is with regard to tech companies, and where underserved communities are. What are some of the linkages that DC Tech Council does through its initiatives to connect companies and other endeavors with communities and organizations?

CH: Well, it was really great to meet you before and to now have a chance to talk about this and also—I’ve only been here for a year—to meet others that are doing "best in class" tech-community efforts. One of my goals is to make sure that I can connect the tech company members, some of whom really want to contribute to communities, and want to figure out how to do that—I’d like to connect them to the "best in class" peers, so that they can contribute in a way that makes sense for their companies. So that is the linkage that we’ve been trying to make. Just remember, the Council was only founded in 1999, so we’re still young and growing.

AL: Talk a little about NOMA (North of Massachusetts Avenue area in NW DC scheduled for development)] and the building of the technology corridor in the New York Avenue area.

CH: That’s really important again emphasizing that there IS a plan—especially with all of this activity. Well, that area over there is going to get a new subway station, and that will change things enormously. The New Economy Transformation Act will provide for space there off of New York and Florida Avenues for some of the new tech companies and that will be pretty exciting. It is the type of space that tech companies like—very open, high ceilings for easy build out. And with the Fed Ex Center and XM Radio anchored there and the DC Department of Alcohol, Tobacco and Fire and a focus on energy, it really brings a lot of potential especially since it is also an enterprise zone. This will provide even more benefits to companies above and beyond the benefits provided in the NET 2000 Act.

AL: One of the questions that ERTECH and others have raised is how can non-profits begin to play a role in the burgeoning technology industry coming to DC?

CH: Well I think on the front end, we must remember that we are still young, and NET 2000 was just passed less than two years ago with the regulations retroactive and going into effect in 2001. Any company that meets the qualifications, which are very broad, is entitled to a wide range of tax and employee benefits, which will attract businesses. If the tech companies are able to locate here and grow strong, then that feeds into the community. Adding a non-profit component to this [the Tech Council] may be the next step for this but for right now educating the tech companies to the District’s benefits is crucial.

AL: In looking at technology, really as a springboard to community economic development, one thing that is relatively new in this area is the idea of remote technology work sites—where companies are given space IN the community to be able to train and employ people from the community. First, what do you think of that idea? And second, has this been discussed in some of the technology company circles you’ve been a part of?

CH: Yeah, you’re hearing that a good bit. With the smaller companies, though, they can’t quite yet go remote, but the larger companies and the federal government have been a leader in having remote work sites. That is something that they have legislated in their appropriations and it’s something that the Feds have to do in the various agencies. This is also fueling a technology boom, in that some of the smaller technology companies are providing some of the linkages. For example, I have one company, that is minority owned and a [Tech Council] member, and they are actually connecting people who are federal employees at a certain GS level, with broadband from their houses—and they are federally contracted. And although they have a good contract, it is a lot of work, running lines to people’s homes. They also have to work with other companies like Verizon, Qwest, and install boxes and other equipment to allow people to work remotely as a federal employee. So, there are a lot of opportunities, certainly for the larger companies, but it will get there even for the smaller ones. We will see more remote working in the future, especially because it is seen as one of the solutions to the region’s transportation problems.

AL: What have been some of the obstacles and challenges you have had to overcome?

CH: Generally, just being new. I think that people perceive everything here as a [already] set-up, large bureaucratic organization. DC Tech was founded in 1999, and we are very small, although we did break a very significant marker in our membership last year—we are over 400 now. Comparing us to Virginia’s and Maryland’s Tech Councils—they were formed almost two decades ago. In technology, that represents a millennium of time. I think that the other challenge has been the economy changing, and the reality that has dawned on people, post September 11th, was already happening actually, that technology is not the be all, end all and savior for everything—you really cannot just plug and play—things just don’t plug in and work immediately because the technology doesn’t work that way and things are really more customized. Even if you are plugging in what appears to be a Microsoft computer, it is going to take some phone calls and customer care and that’s what we’ve all learned—that once you are touching people, it really does take some time to make it all work, that is, the infrastructural stuff. So, some of the technology hype has sort of come back to reality. This also goes back to real business—businesses have revenues and costs. Then there is the bottom line.

AL: Tell us a little bit about "hot " zones—for those that don’t know, these "hot" zones are economic development [enterprise] zones that overlap technology zones. Tell us what you see coming from these zones.

CH: Well again, I think that the first thing is that people don’t even know about these zones and whether or not they (businesses) are sitting in a "hot" zone. As businesses look at moving, they don’t know that they SHOULD focus on a "hot" zone, so we are still in an education phase. People forget that legislation is just on the books, it is not anything unless you use it, so the education of people and businesses has been a real priority. "Hot" zones are incredible. Soon, on the dc.gov web site, you will be able to see where these zones are, that is, the overlay of the tech zones and the enterprise zones.

AL: These "hot" zones are also important for Community Development Corporations, as they try to build incubator businesses, especially East of the River.

CH: Absolutely. As I mentioned, with the UCC going in Saint Elizabeth’s, you’ll have an amazing amount of bandwidth, and eventually, not immediately, tech companies are going to want to locate in and around that bandwidth. We had some [earlier] issues around the technology hotels and such, but they will come back because there is just too much opportunity with increased storage and moving of data. I just visited Solara, Inc., the genome company, which has the most sophisticated computer equipment outside of the Defense Department, and that just happened within the last three years. The other reason why the Mayor and city leaders like the tech sector in this region is that these are very high paying jobs, and also very skilled jobs. You have to come out of high school with some energy to learn and keep learning because if you are in technology and you stop learning, then your career is essentially over.

AL: Has East of the River been left out? I know about the UCC and with McKinley Tech and Ballou Senior High School some see a little progress, but overall, people have expressed a disappointment that this effort will not impact communities of current residents. How do you see technology East of the River in areas other than the proposed UCC?

CH: I think that you cannot discount the impact of the UCC. You have to remember that DC [government] does not have much land. This is why the tech companies are out in Virginia. If you want to build a big building with lots of tech stuff in it, where do you go? Not DC. That’s why that campus over there is so important. You also don’t want to just let it go to commercial developers either, which is why the plan for it is so key. Underestimating the value of this area would be very foolish. People should also look at the Ballou SHS idea as one in which you go into an ongoing improving area, and the community really needs to kick in on that. The issue with technology is that you can buy something today, and in a year-and-a-half it is all but obsolete. That isn’t going to change—it’s nobody’s fault, and it means that you’ve got to nudge the system, you’ve got to make sure that there is funding, you’ve got to get appropriations for technology for children in the schools—to make sure the technology is up to date. I believe the Mayor has contemplated that in the Ballou piece of the McKinley-Ballou connection.

Charlotte Hayes addresses ERTECH

AL: Where do you see the DC Tech Council, as well as technology overall, in the next three to five years?

CH: I see the Tech Council growing very steadily along with technology in this [metropolitan] area, and there are many things that haven’t even been tapped yet, such as the international opportunities, starting with developed countries and spreading to underdeveloped countries. It’s not just procuring and doing business with the US government. The government can be an innovator. If the government says, "we need a technology that will allow people to access their social security accounts", that may sound simple, but the truth is, that that creates impetus for companies to develop hardware and software solutions for that problem. The Department of Defense creation of "night vision" devices is now incorporated into video games. These are examples of how technology can "trickle down" from applications into the mainstream.

AL: Does the Tech Council have a relationship with DC Public Schools? Do they call on you for advice or expertise on their technology initiatives?

CH: Right now, our relationship is centered on the McKinley Tech Project and the McKinley-Ballou issue and we are on the advisory committee to offer suggestions on what some of our member companies think that the planners should consider as residents on the campus. Also, some of our tech companies do some mentoring, tutoring and other things with them. We are looking forward to the McKinley project being the vehicle through which we can build a strong relationship with DCPS. There is also a lot of e-learning in this area and a lot of ways of delivering education. We are hoping that the District and DCPS can take advantage of those resources and companies, but the infrastructure has to be built by DCPS and I think that communities have to demand this.

AL: What is the Digital Capital Alliance and how does the Tech Council play a role in it?

CH: That is the group that the Mayor put together a little before the Tech Council was founded to help him with what he should be doing for the technology community to foster growth in Washington. The Tech Council works with them at the Mayor’s request to help with policy and help advise the Mayor on next steps. Mayor Williams has asked what should be the next initiative following the NET 2000 legislation and subsequent regulations.

AL: On behalf of the East of the River Technology Collaborative (ERTECH), I want to thank you for taking the time to tell us about the DC Tech Council. We look forward to working with you in bringing technology resources to underserved communities.

CH: It was my pleasure. It’s good to know that groups like yours are there as a resource for residents and for the Tech Council. We certainly look forward to working with you to incorporate community input in what we do

For more info about:
NOTE: These links will take you off the ERTECH Web site.

DC Tech Council
Tech Council of Maryland
Northern Virginia Technology Council
NET 2000 Executive Summary

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ERTECH TAKES A TOUR

ERTECH Tours Maryland Biotech Corridor

ERTECH recently participated with Washington Metropolitan Dialogue on a Technology Tour of Maryland's Biotechnology Corridor. Our hosts were Dyan Brasington, President of the Technology Council of Maryland and Andrea DeSanti, Director of the Maryland Bioscience Alliance. Our first stop was the Office of Technology Transfer at the National Institutes of Health (NIH) which oversees patenting and licensing of the NIH discoveries. Next it was onto the Center for Advanced Research in Biotechnology (CARB) a collaborative research center established by the University of Maryland's Biotechnology Institute, the National Institutes of Standards and Technology and Montgomery County. Our final stop was The Institute for Genomic Research (TIGR) a not-for-profit research institute analyzing genomes and their functions.

Washington Metropolitan Dialogue and ERTECH members at the Center for Advanced Research in Biotechnology (CARB)

We learned that Maryland has the third largest biotechnology industry sector in the nation with over 300 bioscience companies and that these companies and their support industries employ over 22,000 workers. This success is supported and encouraged by a state that offers strong economic incentives, investment in entrepreneurship, a strong K-16 educational system, and cultivation of building specialists and real estate brokers with expertise in the specialized facilities requirements of this industry.

Another highlight of the trip was the opportunity to see the general development in the areas of Montgomery County immediately surrounding the "biotech village". Homes and businesses are being developed to establish residences and neighborhood conveniences for persons employed by the biotech companies in the area, as well as to attract others. The concept seems to be that of creating a complete environment, very much like the planned communities that were built in the late 60s and early 70s, with the emphasis on the industry and support services required to make the environment resident friendly.

For more info about:
NOTE: These links will take you off the ERTECH Web site.

Technology Council of Maryland and Bioscience Alliance
NIH Office of Technology Transfer
CARB
TIGR

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DIGITAL BRIDGE FALLING DOWN

Proposed Funding Cuts Threaten Technology Empowerment Programs

Concern over proposed Bush funding cuts for two technology programs for low-income communities has prompted the Leadership Conference on Civil Rights and the Benton Foundation to put out a call for local and national organizations to mobilize a grassroots organizing and lobbying campaign to restore funding to their current levels. ERTECH members have been active participants in these "Digital Empowerment" meetings.

The Bush FY 2003 budget eliminates two programs created to help close the gap between the technology "haves" and "have-nots"--The Community Technology Centers (CTC) Program coming out of the Department of Education and the Technology Opportunities Program (TOP) administered by the Department of Commerce.

CTCs are diverse in program areas and populations served. They can be found in nonprofit organizations, schools, churches, Boys and Girls Clubs, libraries, housing projects, museums and homeless shelters. Their mission, however, is the same: To provide community-based technology access and training to those on the "have not" side of the Digital Divide. Several DC organizations, including the Friendship Public Charter School, were awarded CTC grants in 2000. The total CTC funding amount for the District for the three-year grant cycle is over $2.7 million.

Providing access, however, is only the first step in closing the digital gap. Technology must be used to inform and transform individuals and communities. But how? Enter TOP-- designed to fund innovative uses of technology that improve and extend the delivery of services and opportunities to underserved communities. Through the creative use of technology, TOP projects have improved access to healthcare and legal services, enhanced public safety, provided educational and employment opportunities and promoted community and economic development. Between 1994 and 2001 over $3.9 million in TOP funding was awarded to DC organizations like the Marshall Heights Community Development Organization (MHCDO) for their program to help low-income families move from poverty to self-sufficiency.

In response to criticism from Digital Divide advocates, a Bush administration official told the Washington Post that TOP had "fulfilled its mission." Rick Gonzalez, a Program Manager for another MHCDO program, disagrees. "We just got some folks online, they are in the middle of their training, they are starting to get excited and then the funds are gone. It’s almost more disheartening." Mr. Gonzalez also spoke of the brief lifespan of computer hardware and the difficulties he has faced trying to upgrade or replace obsolete equipment for his program to provide multimedia training for youth.

In the past, both the CTC and TOP programs have enjoyed bipartisan support, however in light of a struggling economy and defense priorities, the Digital Empowerment advocates are prepared for a tough fight. Lobbying efforts and a letter writing campaign from organizations such as the American Bar Association and the National Urban League affiliates are in full swing. Media efforts are also underway with articles and letters to the editor beginning to appear in major newspapers such the Chicago Tribune and Christian Science Monitor.

The following is an excerpt from the Digital Empowerment Web site:

TECH-KNOWLEDGE-ETM Vol. 1 No. 2

BUILDING CONNECTIONS

ERTECH TAKES A TOUR

DIGITAL BRIDGE FALLING DOWN

TECH BYTES AND PIECES

Technology Resources

TECH-KNOWLEDGE-E^TM
Vol. 1 No. 2