Move forward with USTAR

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Once considered a leader in high technology, Utah is losing its edge.

In the past four years, the state has lost 11,000 high-tech jobs, from 67,000 to 56,000. Utah wages have decreased in comparison to the national average, from 96 percent of the average in 1981 to 82 percent in 2005. It is a poor showing for the state associated with WordPerfect, Novell, Iomega and other high-tech firms.

The problem lies in part with the fact that Utah is one of 17 states without high-tech research funding initiatives. Other states offer support to universities with research facilities that concentrate on producing products or processes that are commercially viable. That makes those states attractive to high tech firms, as well as breeding grounds for new companies.

But Utah could, if the Legislature agreed, harness its academic power to become a stronger center for high tech. Sen. Al Mansell, R-Sandy, and Rep. David Clark, R-Santa Clara, are working on legislation to establish the Utah Science and Technology Research Economic Development Initiative, which would establish two research laboratories -- one at the University of Utah and the other at Utah State University. It would also appropriate money for the centers' staff and authorize a state authority to manage the program.

The idea already has support from Gov. Huntsman, who recommended funding it in his own budget proposal.

USTAR would require the state to put up $175 million to build the laboratories, and $31 million a year to operate the program. It's a big expense, but not back-breaking in the $9.6 billion budget proposed by the governor.

Some have suggested, perhaps wisely, that high-tech programs could be built up more gradually -- starting out with leased facilitites, for example. This seems to make some economic sense, though it should not be overweighted. Certain basic facilities are required for research, and a lukewarm commitment may inhibit success.

Certainly, supporting high tech would be a good investment in Utah's future. The state has already proved that its people and universities are capable of amazing work. The world's first successful artificial heart was developed at the U, for example. But the artificial heart program, was lured out of Utah by a promise of better research facilities elsewhere.

And without adequate research facilities, it is harder to attract and keep new enterprises.

High-tech industries offer relatively high pay for employees and are a key element in Utah's economic strategy. Without high-tech industries, our economy will not be able to offer the high-paying jobs that help retain our best and brightest.

USTAR's backers, including the Salt Lake and Provo/Orem chambers of commerce, point out that if enacted, the program will bring in $4.9 billion in outside research funds (such as grants), spawn 422 new companies, create 123,406 new jobs paying $62 billion in salaries and yielding $5 billion in taxes to the state.

We don't doubt the long term benefits. But it's easy to become giddy in light of such estimates and throw all caution to the wind. Utah should proceed, but it should do so with its feet firmly planted on the ground.

The USTAR initiative would play to the strengths of the U and USU. The U is recognized in the fields of medical and genetic research, while USU has a reputation in the fields of agriculture, water and homeland security. While the main research laboratories will be in Salt Lake City and Logan, there are plans for partnerships with other Utah colleges and universities to help develop new, marketable technologies.

Utah Valley State College should also have a place. Its computer science program is excellent, and its graduates are among the highest paid of all students coming out of Utah higher education. They will be willing to stay in the state and contribute to the economy if it's worth their while.

There is another benefit for the state. The state constitution was recently amended to allow colleges and universities to own equity in companies that use technology developed at their schools. USTAR would likely accelerate a return on investment. A biomedical lab at the U could license a cure for Alzheimer's, for example, and receive a share of the profits.

Utah has a chance to invest in its future and become a leader in high technology. We hope the Legislature will grasp the spirit of the proposal and move forward.

This story appeared in The Daily Herald on page A8.

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