From Factories To High Tech: Maryland's 21st Century Economy In the last two weeks, an economic crisis of tsunami proportions has created unease among us all. The dramatic changes for Merrill Lynch, Lehman Brothers, AIG and, in Maryland, Constellation Holdings makes us consider the impact this will have on Maryland businesses in the foreseeable future.

While speaking over the weekend with Brad Wills, my son and CEO of Wills & Associates, the family public relations firm, we focused on some light amidst the economic clouds of Wall Street and government regulatory agencies. Believe it or not, the light comes from the Maryland region.

Instead of uncertainty, the ongoing emergence and staying power of the high tech sector is essential for 21st century Maryland. The clout of business executives and their associates who run high tech companies, both new and well-established ones, has replaced Maryland's 20th century factories, smoke stacks, and assembly lines as the economic engine of the future.


A Strong, Increasingly Stable Platform

The respected Milken Institute issued their annual State Technology and Science Index for 2008 and ranked Maryland # 2 in the country. This annual report measures which states are best positioned to achieve high-quality economic growth based on a range of criteria – mostly technology and scientific assets. This year's report highlights Maryland's move in the last three years from fourth place up to second place, and closing in fast on #1 ranked Massachusetts. According to the Milken Institute, Maryland ranks first in the U.S. for its "Human Capital Investment", and unlike Massachusetts, places consistently in the top ten in all five composite indices. This substantial improvement since 2004 makes Maryland a "serious challenger".

This is happening because Maryland has shown improvement in the ability to attract business into the state and new projects that link research with technology to produce the most advanced products. This state has been delivering what Milken calls "commercialization of its intangible assets, leveraged by its strengths in life sciences and communication technology".


Recognizing Meaningful Action

On October 2nd, The Greater Baltimore Tech Council will host its nineteenth "TechNite" at Baltimore's Convention Center. While one of the best networking events in the region, it is a celebration of how essential the technology community is for Baltimore and Maryland, now and in the future. TechNite is affirmation that the hard work by Maryland entrepreneurs, technology business leaders, and government officials is paying off. This year's event should be even more meaningful because a major bullet was dodged back in April when the Maryland Tech Tax was repealed before it ever got out of the starting gate. The GBTC knew, along with the Maryland Computer Services Association, Tech Council of Maryland, and the Maryland Chamber of Commerce, that that if this repeal effort failed, and most thought it would, Marylanders would be seeing tech, low tech, and no-tech companies running for the hills to avoid this tax – moving operation out of state, reincorporating outside of Maryland, and shipping IT service away from Maryland businesses. The message would have been crystal clear to those thinking of doing business in Maryland – stay away.

Looking at how quickly and effectively the technology community descended on Annapolis and blocked this ill-conceived tax, it is clear that GBTC's effectiveness in growing and expanding the technology community in greater Baltimore during the last twenty years has played a major role in this effort.  12:10 PM •  0 Comments •