Not known for its political zeal, the high technology industry is quickly overcoming its aversion to the process in an attempt to influence upcoming legislation and the 2000 elections.
Tech companies in places like Silicon Valley, Texas and Seattle are becoming popular stops for politicians on the campaign trail looking to curry favor with the fast-growing industry.
Campaign contributions by the tech industry to seven presidential candidates already have more than quadrupled to $843,000 in the first six months of this year, compared with $189,000 it gave for the entire 1996 presidential campaign, according to an analysis by the Center for Responsive Politics in Washington, D.C.
Texas Gov. George W. Bush led the pack with $380,200 and Vice President Al Gore was second with $177,950, based on data filed electronically with the Federal Election Commission. Former Sen. Bill Bradley, a New Jersey Democrat, trailed Gore by just $11,000. Sen. John McCain, an Arizona Republican, tallied $56,715 in the same six-month period. Rounding out the field are Gary Bauer, a former Reagan Administration domestic policy adviser, with $28,918; former Cabinet member Elizabeth Dole, $15,500; and former Vice President Dan Quayle, $6,000.
While the amount is considerably less than donations from lawyers ($8.1 million), securities and investment firms ($4.6 million) and the real estate industry ($3.5 million), the fact that the technology industry is getting more involved in the political process shows that it knows what is at stake, said Holly Bailey, an analyst with the non-profit group.
“As the industry grows, Washington, D.C., is watching them grow and introducing legislation to control them,” Bailey said. “The computer industry wants to have a hand in where the regulations are going.”
Even so, the little money the industry gives goes a long way, according to Paul Green, director of the Institute for Public Policy at Governors State University in University Park, Ill.
“They don’t have to give that much,” he said. “Not only is it a new industry, but everybody is falling all over each other trying to get into it.”
Illinois tech companies are far behind in donations to candidates. Not one company ranks among the top donors for any of the 2000 presidential hopefuls.
“Traditionally, the high tech firms in Illinois have not tended to be the biggest players,” said James Kales, project coordinator for the Illinois Campaign for Political Reform.
They have been reluctant to donate to candidates seeking state offices as well, which could mean state legislation favorable to the industry may be difficult to find, he said.
“Money is really very important in Illinois, and a new up-and-coming industry has to work and give money to get anywhere,” Kales said.
To combat their poor performance, high-tech leaders in Chicago recently established their own political action committee, called Tecpromote, to focus attention on Illinois technology companies.
“What’s missing is an organization to speak the political language,” said Tom Thornton, who, along with Mark Glennon, started the political action committee (PAC) in July.
Thornton, who also is president of the Illinois Coalition, a non-profit group that promotes development of the state’s high-tech economy, said while there are many non-profit technology organizations dealing with a variety of issues surrounding the industry, those organizations are prohibited by government campaign finance laws from contributing to political candidates.
Tecpromote, an acronym for technology, entrepreneurship and capital formation promotions, will be “focused on issues that impact technology companies in Illinois,” said Thornton.
“We will be contributing to federal and state candidates who focus on Illinois technology issues,” said Glennon, who also founded the Illinois Venture Capital Conference that sponsors an annual gathering of early-stage companies seeking investors.
Those issues include sharing federal funding of research; protecting intellectual property rights; prohibiting shareholders from suing unsuccessful start-up companies; creating tax incentives for employers to train IT workers; and the minimizing of e-commerce regulations and taxes.
Glennon said Tecpromote hopes to raise $100,000 from corporations and individuals by the end of the year.
While it will begin by contributing to political campaigns, Glennon forsees Tecpromote becoming a full-fledged political action committee similar to Technology Network, or Technet.
Technet is a Silicon Valley PAC that represents 140 California companies and contributes significant amounts — nearly $5 million since 1996 — to state and congressional candidates to promote its agenda. It has been successful in introducing beneficial laws as well as blocking harmful legislation.
In addition, Technet offers face-to-face meetings with government and political leaders, policy advocacy programs and economic initiatives designed to boost tech jobs programs, or what Glennon calls “grass roots” activities to boost general interest in the industry.
With Tecpromote just starting to organize the state’s industry in political terms, Ameritech Corp. and Motorola Inc., two of Illinois’ larger tech companies, have established records of contributing to political campaigns.
Ameritech, a regional Bell telephone operating company providing local phone, cable and Internet service to communities in Illinois, Wisconsin, Indiana, Michigan and Ohio, has its own PAC, called Team Ameritech.
Team Ameritech has 7,000 members and contributed $646,086 to federal candidates and $295,654 to state hopefuls in 1997 and 1998, according to the Center for Responsive Politics.
“We try to reflect the views of our company and its policies and we support people who reflect those policies,” said Gary Lytle, vice president of federal relations at Ameritech. “It allows Ameritech to participate in the political process.”
Motorola, a leader in the cellular telephone and semiconductor businesses, contributes money through the Motorola Civic Action Campaign Fund.
It contributed $108,306 to federal candidates and under $20,000 to state candidates in 1997 and 1998. Motorola declined to comment for this story.
These are all signs that Illinois’ high-tech industry — like the industry as a whole — is finally asserting itself.
As Kales of the Illinois Campaign for Political Reform said, “What we’re seeing now is the emergence of a new power group.”
