Utah retains tech edge

Despite troubles in Utah's tech sector in recent years, the state hasn't slipped in rankings released today by the Milken Institute.

Utah, as was the case in last year's inaugural index, ranks ninth in the 2004 State Technology and Science Index compiled by the institute, a nonprofit economic think tank.

States were ranked on 75 measurements in five categories, and Utah's year-over-year results in each of those categories included a few gains and a few losses. Utah finished in eighth place in one category, 11th place in three and 17th in another.

Utah's overall ranking was reassuring for leaders of the state's tech sector.

"I'm pleased Utah retained the No. 9 ranking," said Rod Linton, director of the Utah Technology Alliance and member of the Utah Technology Industry Council. "That's significant because among the 50 states, Utah is not the largest nor on the coast or a major metro area. It speaks well for Utah."

"I'm glad we're still in the top 10," said Paul Clayson, chairman of the industry council. "In some rankings in past years, we've been in the top 10 or the top five, and I'm glad to see the slippage being arrested and that we're developing a more solid base."

The report's only reference to Utah other than the rankings highlighted the tech sector concentration and a move that could lead to a tech boost in the future.

"Utah retained its ninth-place position overall, and its best placement was in technology concentration and dynamism, where it captured the highest number of Inc. 500 companies per 10,000 business establishments," the report said. "Utah is taking action to foster its position in the future. Legislators recently passed a constitutional amendment, which if approved by voters, would permit universities to take ownership in private business in exchange for intellectual property."

Linton called that amendment "a major step forward" but said three other actions also should boost the tech sector. One is legislation passed last year to create a "fund of funds" to help provide more venture capital in the state, including bringing in funds with technical specialties such as clean energy and aerospace not represented by local VC firms, he said.

Another is a change in the state's Industrial Assistance Fund, an incentive to get businesses to relocate to Utah or grow existing companies. New legislation allows state officials to have more flexibility in offering that incentive.