By John Yates

Morris, Manning & Martin, LLP

ATLANTA – As we enter the new year, every major Southern city is focused on attracting new technology business.  Atlanta has been the heart of tech growth in the region — can it continue its central position in the next decade?

The answer is yes, if metro Atlanta and the State of Georgia address infrastructure issues and minimize petty politics.  If not, other cities in the region will emerge as technology leaders in specific areas.  Eventually, one or more of these cities may gain momentum and attract tech businesses away from Atlanta at a growing rate.

What are the key issues facing Atlanta and the State of Georgia in maintaining technology leadership in the region?

1.    Fix Transportation and Water - The Atlanta business community and Georgia legislature need to address these two important issues.  They are fundamental to technology growth in Atlanta.  Transportation gridlock must be relieved through a comprehensive transportation plan with adequate funding.

The water problem is even more serious, and will involve legislative and judicial cooperation to allow metro Atlanta to have sufficient water for expanding economic development.  Atlanta must resolve these issues in 2010 or risk losing its dominant position as the center of Southeastern technology growth.

2.    Provide Tax Incentives – Other Southeastern states are offering attractive tax incentives, making Atlanta and Georgia less desirable for technology company growth.

Angel investment tax credits and other favorable tax benefits are needed to attract companies to Atlanta.  With the budget problems facing every state, further tax breaks are difficult to enact.  Georgians should survey the tax breaks provided by other states and remain competitive as a tax friendly jurisdiction.

3.    Build a Tech-to-Traditional Business Cluster – Atlanta has a unique competitive advantage — the ability to create a business cluster composed of technology and traditional companies.

This cluster of companies can transact business among themselves, share technology trends and develop strategic partnerships.

No other city in the region has the ability to cluster Fortune 500 companies with growing tech businesses.  Atlanta should exploit this advantage to maintain its dominant role in the region.

4.    Focus on Tech Sectors of Strength - Despite its central location in the region, Atlanta cannot be number one in all technology sectors.  RTP continues to excel in drug discovery and biotech with South Florida moving aggressively in this area.

Through leadership in the Atlanta business community and the Technology Association of Georgia, Atlanta should focus on its key strengths — software, digital media, games and entertainment, and internet security.

5.    Nurture Both Entrepreneurs and Growing Tech Companies - Atlanta has a tricky balancing act to achieve ongoing success in this next decade.  The metro area must attract leading technology companies looking to move their headquarters to the Southeast — companies like NCR with its recent move to Georgia.

At the same time, the city and state must provide incentives for growth companies and entrepreneurs to remain in the state and build solid businesses.  The challenge is to establish a legislative and policy agenda addressing both important constituencies.

6.    Grow Entrepreneurs and VCs Will Come – It’s a fact that we have a shortage of venture capitalists headquartered in the region.  However, that doesn’t mean we have a lack of available capital.  If Atlanta continues to grow entrepreneurial businesses, venture funds from throughout the world will find these companies and make investments in them.

VCs are intelligent folks, and the larger funds are constantly scanning the world to find attractive entrepreneurial businesses.  If Atlanta fosters the growth of innovative technology companies, the venture money will follow.

The future is bright for metro Atlanta but only if the city can address its infrastructure issues — transportation and water availability.  If these issues are successfully tackled, the city and state can maintain a dominant role in the region by promoting economic development to attract large tech businesses — while at the same time nurturing growing, entrepreneurial companies.

The secret weapon for Atlanta will be its ability to cluster these traditional and entrepreneurial businesses and leaders around the common goal of regional and ultimately national leadership in the technology area.

This column is presented for educational and informational purposes and is not intended to constitute legal advice.

John Yates is the partner-in-charge of the Technology Group of the law firm of Morris, Manning & Martin, LLP, headquartered in Atlanta with offices throughout the Southeast.

Join hundreds of Marketing Professionals and Internet Execs at Atlanta’s premier Digital event – Digital Summit 2012
www.digitalsummit.com

Related Stories:

• Venture Atlanta 2008 coming in October
• Nominations for Tech 50 companies open, most innovative Southeast companies sought
• BIO International Convention coming to Atlanta in 2009
• Nashville Tech Council wants to rebrand the city as “Techville.”
• Venture Atlanta 2008 Seeks Presenters for October Investor Conference

© 2010, TechJournal. All rights reserved.