How Austin, Texas became a top global location
for technology companies

For over one hundred years, Austin’s economy relied upon the city’s status as the seat of state government and the home of the University of Texas, flagship of Texas’ system for higher education.

Only twenty years ago, Austin was a quiet city of 345,000, largely students, professors, and government employees. The foundation of the "Live Music Capital of the World" had been laid, to be sure, and the city’s legendary parks and leisurely lifestyle were in place, but the economy was subject to the fits and starts of Texas’ energy-driven economy.

Without sacrificing its treasured quality of life, Austin has transformed itself into a leading center of high-technology, with a metro population of 1.2 million well-paid, well-educated citizens. It has developed strong clusters in semiconductors, computer manufacturing, and software development. This "technopolis" came about after a concerted local effort to develop scientific preeminence and new technologies, to attract major technology companies, and to nurture the entrepreneurial spirit.

How did Austin achieve this remarkable transformation in so short a time? There is no secret about it: Austin’s leaders in business, government, and academia armed themselves with commitment and a strategy. They dedicated themselves to the cooperative pursuit of economic opportunity for all Austinites.

Can do spirit, cooperation, and synergy
Angelos Angelou led the efforts of the business community at the Chamber of Commerce. Visionary George Kozmetzky of the School of Business awakened the University from its slumber and reshaped it into a potent force in the economic life of the city. A succession of elected officials, in the city and in progressive suburbs, joined the effort.

Research and Development
Austin burst onto the national technology scene in the early 1980’s with the arrival of Sematech and the Microelectronics and Computer Technology Corporation. These were supported by UT’s J.J. Pickle Research Center, and by enormous private R&D efforts at 3M, IBM, TRI, and countless others.

Training
Austin committed resources to the development of a 21^st century workforce. Six area universities and one community college, supplemented by the efforts of the Capital Area Training Foundation, serve the metro area.

Entrepreneurship
Austin leaders recognized early the need to support innovative, entrepreneurial companies. The IC2 Institute, another Kozmetsky effort, spawned the Austin Technology Incubator, the Capital Network, and the Austin Software Council, all of which are dedicated to nurturing, and funding, the entrepreneurial impulse. The State of Texas, locally involved since the 1983 courtship of MCC, cooperates by maintaining a business-friendly regulatory environment. Today, Austin absorbs 65% of all venture capital in Texas, and yields a steady stream of IPO’s.

Quality of Life
Through it all, Austin and its people have remained dedicated to the city as a special place. Environmentalists and entrepreneurs, capitalists and guitarists, all share a dedication to the city’s arts and environs.

Austin today faces challenges, such as growth pressures, persistent social inequities, and a competitive labor market. If recent history is any guide, Austin will overcome them.

Forbes/Milken Best Places Survery Ranks Austin #2
The Forbes/Milken Institute Best Places for Business and Career ranks 200 metros based on growth in jobs and earned income, plus a measure of activity in critical technologies that foster future growth.

You may read the full text of the article here.