| BUSINESSWEEK ONLINE : DECEMBER 27, 1999 ISSUE | ||||||||
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| WHERE TO INVEST -- THE FRAMEWORK
Why the Valley Will Score on the Hill In an election year, pols want to please high tech Conventional wisdom says that little will get done in Washington in 2000. In an election year, lawmakers usually prefer to draw sharp partisan differences rather than cut deals. But there's a big exception to that dismal scenario: technology initiatives. With tech executives writing fatter checks than ever before to political campaigns, and with sizzling software and computer sales fueling the economic boom, lawmakers will be eager to push policies that please Silicon Valley. Just look at the victories techies chalked up in '99. In a year that was otherwise a legislative graveyard, Congress and the White House granted the industry a five-year extension of tax breaks for research and development, a moratorium on new Internet sales taxes, curbs on cybersquatting, and relief from Y2K lawsuits. Tech lobbyists see more wins next year. ''The industry is a bigger and bigger part of the economy, and people will want once again to be able to say 'here's what we've done for high tech,''' says Edward Black, president of the Computer & Communications Industry Assn. DIGGING DEEP. Technology leaders are certainly doing their best to make sure lawmakers get the message. In the first nine months of '99, computer industry execs and their companies funneled $4.4 million to candidates and parties, more than double the amount that they gave in the same period for '98 elections, according to the nonpartisan Center for Responsive Politics (CRP). Republicans snagged 55% of geek giving. That's small potatoes compared with the $17 million that securities firms poured into political coffers so far this year. But the newly minted New Economy millionaires are only just getting into the political money game. For pols, cozying up to techies is ''cool,'' says CRP analyst Holly Bailey. ''It says, 'I'm aligned with the future.''' So how is Techland looking to be repaid in 2000? One sure bet is a measure to give electronic signatures the same legal standing as the pen-and-ink variety. In late fall, both the House and Senate passed bills approving the practice. Consumer groups and the Clinton Administration objected to provisions that could erode consumer-notification rights. But tech lobbyists believe a compromise is within reach. Also likely: another reduction in curbs on computer exports to China and other politically sensitive nations. More problematic is the fight to ease restraints on overseas sales of encryption products. Industry execs say the Administration is backing away from commitments to relax its current controls. But legislation to lift curbs on encryption faces tough sledding because of opposition from law-enforcement and national security agencies. Nevertheless, tech lobbyists are convinced a deal will be made. Explains one industry rep: ''Clinton knows Al Gore needs to score points with the tech community.'' A battle is looming, too, over a drive to increase the number of visas for foreign high-tech workers. Says Roberta Katz, chief executive officer of Technology Network, a bipartisan political action committee of high-level Net execs, ''This is not an immigration issue, but a competitiveness issue. It's essential that American companies continue to have access to the most highly skilled workers.'' But organized labor vehemently opposes moves to make it easier for foreign workers to find jobs in the U.S. Most worrying to techies: Talk of taxing e-commerce. A congressionally mandated commission on e-taxes is badly split. Still, Silicon Valley can count on enough tech-friendly policies from Washington to make its lobbyists the envy of K Street. By AMY BORRUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Why the Valley Will Score on the Hill TABLE: The Techies' 2000 Wish List INTERACT E-Mail to Business Week Online | |||
