T University Daily Kansan, November 5, 1982 Page 7 Firms From page one "After we've been in a location for three or four years, 60 to 70 percent of our employees come from that area," he said. "Within a year or two, we have a great deal of intense internal training." PREMUS AND representatives of high-tech firms agreed that a reputable higher education system would continue to be a drawing card. "A university connection is very important because high-tech firms are always needing an upgraded work force," said Maureen Frisch, regional manager in governmental relations at TRW, a Redondo Beach, Calif., firm that produces electronic and space system products. "There's a great deal of concentration on the graduate level programs, but firms are also concerned about the kindergarten through 12th grade schooling." Premus said universities in urban areas had an advantage over schools in rural areas, which he said gave the University of Kansas an advantage because of its nearness to Kansas City. His studies of high-tech firms showed that the companies broke down the importance of education into several clearly defined categories, he said. WHEN I asked the high-tech firm to list the most important university attributes, I found that educational offerings, such as training, programs and library facilities, were number one. "Premus站" $ ^{96} $Cultural activities were number two and research capabilities, such as laboratory research, faculty consulting and faculty publications were number three. $ ^{97} $ The category that Lawrence and the University needs to improve is cultural activity, because students are expected to learn new skills. as lacking in high-quality fine arts, he said. Rich Sexton, research economist for KU Institute of Economics, said that the work "One of the major problems for Kansas is that it is not perceived as being a state offering social services." "Many people who work in high-tech industries are highly skilled engineers and scientists, and they put a great deal of weight on amenities. "INDUSTRIES GO to states where they can attract employees and keep them. One of the reasons California has been so successful is that it has many recreational opportunities." The importance of education, lifestyle and entertainment should give Lawrence an upper hand among Kansas cities vying for high-tech firms, a Lawrence Chamber of Commerce of in terms of Kansas, Lawrence is in the best position because of KU, the research at the University and its reputation as an outstanding academic institution, Johebsen, executive vice president of the chamber. "Housing in Lawrence is reasonable and we have many amenities such as concerts, the library, a fitness center, a pool," she said. "And we have good water recreation with Clinton, Tuttle and Perry lakes. And the proximity to Kansas City is also an advantage, because it's very important to many people who like the convenience of small-town living but who want to live close to a big city." LAWRENCE CITY officials and KU administrators now are studying the possibility of creating a research park that would provide high-tech firms with a more location. The location will be early stage. "We have to keep doing what we're doing and hope the word spreads," he said. "But if everyone is enthusiastic about Kansas, that will help spread the word about the state." "We're never going to be a high growth state. But if we can maintain some economic growth, we can keep our environment clean and offer jobs to our young people, then we can make some inroads." Kansans need to proclaim the advantages of living in the Sunflower State. ONE OF Kansas' most appealing qualities, according to two economists, is its energetic and reliable labor force, which they said the state should promote. To attract high-tech firms, a state needs much more than a prestigious higher education institution. To boost the state's image, Bearth said, all "The quality and availability of labor is the number one factor for firms looking to expand." Premis said. "There is always a need for teachers with training, with experience with a skilled labor force with college degrees." The ability of a state's workers is the top priority for high-tech firms when they investigate a state as a possible site for expansion, Premus said. "Kansas has workers who are highly sought after." Sexton said. "They are well known for their productive capabilities and as reliable workers." One business official, Rolf Horn, director of governmental affairs at Varian Associates, a California-based electronics manufacturing company, said his state's work force was a nearly impossible task. But Frisch said TRW conducted research on states' employment habits before determining where the firm would expand. The second most important attribute in Premus aliday — the cost of labor — could give Klaus a big advantage. vity and longevity records," she said. "They can be very important figures for a company." "We have a highly productive and dedicated work force that is not really labor union workers." "WE LOOK at employment trends, product One reason Premix gave for the eagerness of high-tech firms to branch out from California is that it was easier to move parts. The third most important factor, Premus said, is state and local tax policy, followed by the quality of education, cost of living, possibilities for expansion and state regulations. When examining a state's taxation system, Law said, his firm looks closely for a balance between the two. "We don't have anything like a one-stop permit place, which some states have, but we do have the mechanism to provide information about a broad range of things, such as taxes and regulations," said Deanne Vieux, KDED's planning section chief. FRIISH SAID an important factor was cooperation and willingness to accommodate a company's representatives when they come to investigate a state as a potential expansion site. "We look at what a state offers in the form of bureaues to help in our efforts to set up in their state," she said. "Many states set up departments that make it easy for companies to find out information about a state, such as labor costs and the regulatory process." A member of the Kansas Department of Economic Development (KEDD), which oversees Kansas efforts to attract high-tech businesses and could provide could relay information within minutes. "It's a matter of relaying information over the phone at the moment a firm asks for the information, or looking up information and then passing it on later that same day. Really it's pretty standard among all states." WHEN DRAWING up a plan to lure high-tech firms to Kansas, a consensus of economists and businessmen said, state officials should pinpoint the types of firms they want to attract. "I think one option is for a state to examine the industry already there and then look for compatible high-tech firms that could service them." Frisch said. Besides building up existing Kansas industry, which could spawn new high-tech firms, Bearth said, the state needs to promote the academic strengths of its universities. "I know Kansas State has an emphasis on agriculture, and there is a chance a strong agriculture program could play a role in buring high-tech firms to Manhattan," he said. Kansas State's agriculture school has already lured one high-tech firm, a genetic science company that uses the university's research capabilities. "I KNOW KU is strong in pharmacy, and there is some potential for development in that academic area," Bearth said. "And Wichita State is in a good position in aeronautical engineering because of the aircraft industry in Wichita." Sexton said success in luring a high-tech firm to Kansas could begin a domino effect that eventually would give the state a solid base of companies tend to cluster together, he said. "I don't think Kansas can get the giant firms, like Texas Instruments, but it should concentrate on getting the small firms just starting out that have growth potential," he said. 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