RTP drives changing economy

The Research Triangle Park, established in 1959, has become a hub for the information technology industry, making the IT industry a main sector of North Carolina's economy.

"The park has really helped lead the transition of North Carolina's economy to a technology-based economy," said Rick Weddle, CEO and president of the Research Triangle Foundation of North Carolina. "It is one of the most significant success stories in economic development experiments."

North Carolina has the seventh-fastest growing IT industry in the nation. The industry is projected to employ 69,950 North Carolinians by 2006, according to Deloitte & Touche's Tech Fast 50 annual rankings.

This continued growth can be attributed to new companies coming to the area, staying and expanding.

IBM originally started looking at locations in North Carolina during the early 1960s, and the research network in the state was an attraction, said John Lucy, an IBM spokesman.

IBM began at its RTP location as a small manufacturing center. But over the years, it has changed into a full-fledged IT center and is the company's largest site in the world.

"IBM pretty much was the catalyst for growth of the IT industry in the state," Lucy said

The educated workforce in North Carolina - fueled by major universities such as UNC-Chapel Hill, N.C. State University and Duke University - draws technology companies to the state.

"North Carolina is one of the largest states where (IBM) recruits employees not just for here, but globally," Lucy said.

Large international corporations are not the only businesses the state's workforce and research community attracts and benefits. Small companies also find these resources helpful.

Jim Clary spoke proudly of his son and partner, Greg Clary, and his hand in running their five-year-old company, Mobile Information Corp. The company sprung from a merger of the father-son duo's separate companies.

"Our investors said, 'Why don't you guys merge?'" Jim Clary said.

The idea became a reality when a class led by UNC marketing professor Neil Morgan took part.

"We were like the class project for the semester," Jim Clary said. "One neat thing they did was come up with our name - Mi-Co."

The surrounding universities have been beneficial to the company through their involvement in start-up efforts and providing well-educated employees.

"We enjoy the benefits of being here," Jim Clary said.

The educated workforce and the quality of life in the area are some of the benefits for which Cisco Systems Inc. moved and stayed in RTP in the early 1990s, said spokesman Joe Freddoso.

"The company first opened here in 1995 with 200 employees, and now we have about 2,600 here at the RTP campus," he said.

North Carolina also recently won the bid of a manufacturing plant of another major computer company - Dell USA.

Gov. Mike Easley called a special session Nov. 4 of the N.C. General Assembly to approve an incentives plan for the computer manufacturer.

State legislators passed one of the state's largest incentives plans in history, a package totaling more than $242 million.

"We're always looking for manufacturing jobs," said Sen. Virginia Foxx, R-Watauga. "Manufacturing jobs are always very important."

Dell officially accepted the state's offer Nov. 9 and announced its intention to locate its new plant in North Carolina.

Forsyth and Guilford counties are vying for the plant location through incentives packages of their own.

The city of Greensboro released a $6.8 million incentives package for Dell.

The (Greensboro) News & Record reported that Guilford County also proposed a package of $5.6 million. This $12.4 million is to persuade Dell to build its plant in one of two Guilford County locations.

On Thursday, county commissioners will vote on their plan, and the city council will vote Dec. 7.

The new plant will bring $100 million to the state with the facility and equipment and initially would employ 1,500 individuals - a number that could rise to as many as 8,000, said Sen. Kay Hagan, D-Guilford.

"Because of our incentive plan, they are definitely coming to the Triad," Hagan said.

"They could go anywhere in the world."

Contact the State & National Editor at stntdesk@unc.edu.