Industry leaders agree Idaho’s tech economy uncertain

A half a dozen of the state’s technology leaders met for breakfast last week to tackle the same problem that’s been plaguing Idaho’s technology sector for nearly a decade: What can the industry do to sustain its growth?
 
There were no clear solutions presented during a 90-minute discussion, only a clear framing of the problems facing the state’s technology businesses.
The event was hosted by the law firm of Holland and Hart, and co-sponsored by the Idaho Business Review.
Idaho has attracted many entrepreneurs, but their efforts are not enough to sustain the state’s technology sector or attract new companies. Business owners are too busy running their own companies to get involved in steering policy.
Participants agreed the state government needs to play a bigger role in marketing the business environment and developing the university system – not only to help develop technology, but to ensure that economic segment continues to generate tax revenue.
No one should assume the technology sector is here to stay, said Jason Crawforth, the former CEO of Treetop Technology.
“We were lucky to have a vibrant economy during the dot com era,” he said. “We’re starting to see what happens when you don’t pay attention to the largest sector. The only entity responsible for promoting the state is the state. I believe it’s the government’s role to take at least a passive attempt to invest in the economy.”
John Hale, a managing partner at KPMG and discussion moderator, said, “The state of Idaho leads the country in restraint in spending,”
A representative from the state Department of Commerce was invited to participate, but did not attend.
A lot of people come to Boise because it’s a great town, but have no idea what kind of place it is to do business, Balihoo CEO Pete Gombert said.
“I’ve been coaching our people at Balihoo about what it’s like to have an entrepreneurial environment,” he said. “I’ve just sent some of my mangers to Palo Alto to sit in coffee shops and see what it’s like. Everybody thinks we have a budding entrepreneurial community, but it lacks a lot of the energy.”  
Keynetics CEO Brad Wiskirchen agreed – Boise isn’t Palo Alto.
“I’ve had the opportunity to spend a lot of time in Palo Alto in the last year or so,” he said. “It’s a different environment there. We tell ourselves we’re a tech centered community. We’re not as tech centered as we think we are. All the high rankings in Forbes and Money won’t make it so. We have to build it.”
“I moved from tech into real estate just in time to see the market decline,” Kickstand President Chris Volk said. “I think there’s been a pervasive fear that the local economy is supported by people building houses for people who are building houses for people who keep coming to Idaho.”
Entrepreneurs can be successful anywhere, which means they don’t have to continue starting businesses in Idaho.
If you believe in your business concept, nothing is going to get in the way of executing it, Gombert said.
“I’m not going to look to the state to provide the resources or environment to start my business,” he said. “The one thing the state can do well is investment in primary and secondary education.”  
The universities are also a source of entrepreneurial activity, but again fall under the responsibility of the state.
If you go back far enough all successful tech regions are centered on universities, Wiskirchen said.
“The technologies that created Silicon Valley were incubated at universities,” he said. “We don’t have that same environment here for a number of reasons. We don’t have a tech transfer program. You have to start at the university level.”  
John Gardner, associate vice president of Energy Research, Policy and Sustainability at Boise State University, agreed.
“I agree it’s not there yet,” he said. “Every tech transfer is a new adventure for us. But we are going in the right direction.”
Gombert said Boise State’s engineering program, which is now in its tenth year, is headed in the right direction.
“When I started 10 years ago I didn’t hire a single person from Boise State,” he said. “Now I have eight, including a professor. I think it’s just nascent right now.”  
One way or another, all the stakeholders will need to get on the same page.
“If the goal is to attract larger tech companies to the valley, until we go out on with a united front and talk about strengths and weaknesses, we’re not going to get there,” Wiskirchen said. “The Boise Valley Economic Partnership must be paying people off for these high rankings. But until we get coordinated we’re never going to be able to sell people on Boise and back it up.”
Paul Hiller, executive director of the Boise Valley Economic Partnership, was scheduled to participate in the discussion but did not attend.