Jack Templin - R.I. Should Nurture Info-Tech Gem
December 10, 2007 | Print this page | Share This | Email this page
At a time in Rhode Island's history when it's easy to be cynical about the future of our economy, the state's info-tech and digital media (ITDM) sector is a hidden gem. The ITDM sector may not be as high-profile as our financial-services or life-sciences industries, but don't underestimate its importance and potential.
The U.S. Bureau of Labor Statistics ranks information technology as the fastest-growing sector in the U.S. economy and predicts 68 percent growth between 2002 and 2012. Key to this growth is the merger of traditional information technology with the explosive digital-media field. The result is the creation of new products and services, higher-paying jobs and economic growth.
ITDM already is an important part of the Rhode Island economy. The sector employs more than 15,000 people and accounts for more than $1 billion in annual wages. In 2006, the sector's average salary was nearly $70,000, making it the state's highest-paying industry. Perhaps most importantly, ITDM is unique in that it is not only itself an important and promising sector, but also the primary driver of productivity growth across virtually every other sector.
With strong resources in core disciplines such as design and computer science, it is no surprise that Rhode Island has been gaining momentum in the ITDM sector. A location between one of the world's great info-tech centers (Boston) and one of its great media centers (New York) is an asset that many other states can only dream about. At our fingertips we have access to one of the nation's highest per-capita concentrations of college students, who are important not only as future sector employees, but increasingly as key entrepreneurs and innovators.
Better still, our ITDM sector is as diverse as it is deep, composed of a dynamic eco-system of companies that includes powerhouses such as GTECH and APC, fast-growth, mid-size companies such as Carousel and Simulia, and promising startups like such as InsureMyTrip.com and Location Inc. In 2007, 12 Rhode Island companies made Inc. Magazine's listing of America's 5,000 fasting-growing companies. Seven of those companies were ITDM companies (including the highest ranking Rhode Island company -- North Kingstown-based TCMPI -- coming in at number 74).
When the Rhode Island Economic Development Corporation launched its RI Nexus initiative, we saw how easily state leadership can accelerate activity in the sector with small, strategic investments. We were impressed by the industry's positive response to RI Nexus's ambition to stimulate the community and collaboration across the sector.
At the core of this effort was the launch of RINexus.com. The Web site features a directory of Rhode Island ITDM companies, Web logs, daily news, discussion forums, event calendar and the RI Nexus Marketplace -- a one-stop shop for local ITDM-related jobs and internships. The pilot site already has 400 registered users and over 850 mailing-list subscribers in its first 60 days. Public- and private-sector players use it to share information, learn about opportunities and forge new alliances. Individuals in the community are frequenting the forums to swap ideas and discuss everything from the need for ITDM-conducive working spaces to the future of startup financing in Rhode Island.
It is encouraging to know that something as simple as RINexus.com can have such a positive impact on Rhode Island businesses. BatchBlue CEO Pamela O'Hare said it best when, at the launch of RINexus.com, she remarked, "We have chosen to be in Rhode Island because the state offers a great quality of life, but we have to compete with other regions of the country when it comes to finding new employees and opportunities. A knowledge and networking resource like RINexus.com will help us succeed in making new connections that are extremely valuable to our business."
Rhode Island is distinguishing itself as a place that embraces the ITDM industry and the unique entrepreneurial spirit it embodies. Continued growth in the sector is an important avenue to positioning our economy for growth and creating more high-paying jobs for our citizens. As we head into even tougher budget times next year, I urge state leadership to keep making the strategic investments we need to ensure that Rhode Island can maintain its burgeoning position as an ITDM hotspot.
Jack Templin is an independent Internet strategy consultant and entrepreneur. He assisted the Rhode Island Economic Development Corporation in the creation and launch of the RINexus initiative.
