TechNet to Campaign for Issues of the ‘New Economy’
“Trade association” or “political action committee” tends to bring to mind powerful cabals pursuing narrow goals by cajoling, bullying or buying enough influence in Washington to win tax breaks or other favors that enhance their members’ wealth.
But could an industry group break this mold and perform a socially valuable role by defining its goals more broadly--the creation and sustenance of a new economic model? Technology Network, a high-tech political fund-raising and lobbying group, has hired a new leader who wants to do just that.
Former Netscape General Counsel Roberta Katz plans to use TechNet’s political and financial heft to demonstrate to Washington and the nation the importance of Silicon Valley’s innovation, development and wealth creation based on the power of the Internet.
The “New Economy”--a loosely defined concept characterized by technology, churn, networks, intellectual property, stock options, venture capital, youth and, most of all, speed--is the high ground to which TechNet lays claim.
The group, which boasts support from many of the technology companies credited for this decade’s amazing economic growth, helps channel millions of dollars in campaign contributions. A combination of vast riches with missionary zeal about the transforming power of the Internet makes a potent brew.
TechNet turns 2 next month, and after a year of impressive accomplishments it appears poised to become a major player in the 2000 presidential race.
Katz said high-tech companies enjoy no inherent monopoly on how to create or manage the New Economy. If anything, she sees every industry participating to society’s overall benefit.
TechNet’s key goal this year--an increase in federal grants for research and development in science and technology and a permanent R&D; tax credit--suggests that the group represents more than the same old trickle-down economics tailored to the parochial interests of Silicon Valley.
Federal research funds primarily to university or government scientists enabled high-tech’s proudest accomplishments, including microprocessors and the Internet. The nation’s future as a technology leader depends on continuing and expanding such support, particularly as the payoffs from earlier investments (such as robust tax revenues generated by technology companies) help pay down the national debt.
If any corporate tax break seems justified, a permanent R&D; credit does. It promotes both innovation and a longer view than the typical quarter-to-quarter paranoia that promotes shortsighted decisions and endlessly volatile markets.
TechNet demonstrated a pioneering and ambitious perspective when it took on the issue of California’s failing public schools. The group pushed much-debated legislation, signed into law last year, that will greatly expand the state’s roster of charter schools that give teachers and parents more control over curriculum and school management. Katz promises that the group will continue to push on the education front and may take on related issues in time.
“One thing that has become increasingly clear to me is that the social issues deserve attention--require attention,” she said.
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Whether Katz can make good on that conclusion remains to be seen since the bulk of TechNet’s other goals don’t appear to be similarly high-minded.
TechNet fought hard to increase the number of visas granted to foreign technologists--criticized widely as an easy out for tech companies wanting to avoid costly training for U.S. workers or hiring middle-aged programmers at higher salaries.
Last year, TechNet successfully advocated for restrictions in securities lawsuits that make it harder to sue tech companies when predictions about earnings fall short. This year, it wants Congress to change corporate accounting rules to give corporations more discretion in how they manage stock options, mergers and acquisitions. And it’s pushing to limit the industry’s liability in Y2K lawsuits.
Whatever the merits of each position, all present the time-honored approach of traditional trade groups and PACs: Increase the latitude and power of corporations to build empires and become wealthy without meddling by the government or individuals.
Will TechNet follow up on its education and research goals, and push equally hard for policies that spread that wealth or its benefits more broadly? Hiring Katz looks like a hopeful sign.
Before going to law school at the University of Washington, she earned a doctorate in cultural anthropology at Columbia University. Her dissertation covered social change caused by innovation in the pottery-making industry of a town in Mexico. That may seem a far cry from the New Economy, but it educated her about something Silicon Valley too rarely pauses to ponder: How do changes in the economy affect people’s lives over the long run?
Katz said she’ll use an anthropologist’s insight to approach complex and controversial issues less dogmatically than tech interest groups have become known for.
“This is a very important time in the evolution of the New Economy because the policy issues that are coming up are very real; they’re not easy to solve,” Katz said, citing Web censorship, online copyrights and the battle with law enforcement agencies over encryption.
“In every case, both sides are right,” she said. “But the fact is that with this new technology and with the sociological or social changes that we’re making, someone’s got to make a decision. How do you make it as enlightened as it can be? I feel a sense of responsibility to be there and help build bridges.”
Today, TechNet builds most of its bridges at the highest levels of power. Can it deploy the same New Economy sophistication, drive and sense of urgency to serve society as a whole?
If not, it’s just another PAC.
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Times staff writer Charles Piller can be reached at charles.piller@latimes.com.
