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“They say within five years, electronic commerce will be a market of $1.3 trillion. We want a piece of that. We’re building jobs for the new century. We want to make Illinois a leader with a comprehensive, industry led effort to provide custom made financing tools for high tech firms.”
-Gov. George Ryan
The Chicago-Cook region has taken the lead in developing an impressive high tech infrastructure. This is a place where many large (Motorola, 3Com, and Comdisco) and many small ($471 million in venture capital investment) companies have chosen to locate. Many more are on their way. These companies are drawn by the world renowned universities, extensive venture capital networks, unparalleled quality of life, and technology culture. Not to mention the staggering number of Fortune 500 companies and quality service providers.
The commitment to technology in the Chicago-Cook region is astounding. There is no single reason as to why the region has grown so well, but several:
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- Approximately 400,000 students are enrolled in the region’s 57 institutions for higher learning. Some of those institutions include Northwestern University, University of Chicago, Loyola University, Depaul University, and the Illinois Institute of Technology.
- Those institutions award over 75,000 master’s degrees and 2,000 doctoral degrees annually. These degrees cover everything from business management to high level engineering.
- 94 of the Fortune 100 companies have a presence in the Chicago-Cook region
- Argonne National Laboratory is one of the top 10 institutions in the world for physical science research citations
- Over 1,000 companies operate research facilities in the Chicago-Cook region
- Over 280,000 people are employed in technology fields
- Over 5,500 patents and trademarks are awarded annually in the Chicago-Cook region
- Residents have high disposable income as a result of household wealth being over 21% above the national average
- Chicago-Cook’s cost of living is lower than Silicon Valley and Seattle
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Of course there is always something to be said for the idea of choosing your business location for no business reasons at all. Reasons such as the Chicago skyline, Lake Michigan, 67,000 acres of forest preserves, 250 golf courses, 40 museums, 150 theaters, 106 different languages spoken, Michigan Avenue, and the incomparable views from Lake Shore Drive.
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Some quick facts about our technology market
Category Rank among 50 states (1998)
- Total R&D performance 9th
- Patents issued 4th
- Number of scientific and engineering doctoral degrees 5th
- Number of scientists in workforce 6th
- Exports of manufactured technology products ($17.7 billion) 3rd
- Number of Gazelle firms 3rd
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Between 1989-1998
- 44,049 technology jobs added
- Wages increased 50%
- 5,270 new technology establishments
- Venture capital investments increased 693%
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One of the primary requirements we hear from biotechnology companies searching for a region in which to locate their operations is the need to be close to an educated and talented workforce. In addition to the numerous institutions of higher learning in Chicago-Cook County, we boast the Roosevelt University Biotechnology Program and the M.S. in Biotechnology and Chemical Science offered by the same university. The emphasis of the programs is on the development of practical laboratory skills and a strong conceptual foundation of these disciplines.
As you can see, Chicago-Cook county is serious about it’s desire to retain and attract technology companies. As our Governor said, “We want a piece of that.”
“Regions lagging in high tech industries will likely lag in economic growth as well”
Area Development, August 1999, p.14
Chicago-Cook county realized this a while ago and therefore is among the top 10 areas for high tech industries according to the Milken Institute.
“Chicago’s technology resources and talent area among the best in the nation.”
Brent Hill, Co-Founder and CEO BigEdge.com
“With this new center, Chicago will lead the nation in providing the means for the Internet industry to flourish.”
Mayor Richard M. Daley
Main tenant, Frontier Communications, is a nationwide provider of integrated communications services. The firm will build a 75,000 square foot media distribution center
“Chicago has all of the resources necessary to become one of the nation’s first high-tech cities.”
Mayor Richard M. Daley
“The IT industry has had a remarkable impact on Chicago’s economy, having outperformed almost every other industry in the region”
David Weinstein
“BigEdge.com has benefitted from the programs developed by the city of Chicago and the State of Illinois and has developed a formidable team here–one that would have been difficult to develop elsewhere”
Ian Drury, Co-Founder and President -BigEdge.com
“We have to offer IT firms even more than we do right now. That is why I have set forth a strong comprehensive policy to get high tech entrepreneurs and established companies to come to Chicago”
Mayor Daley
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Chicago Technology Development Initiative
- Chicago has many growing high-tech firms with more than 8,000 technology-based businesses
- Chicago is the fourth largest technology region in the country measured by technology employment
- Illinois ranks third in technology exports
- Nearly 280,000 Chicagoans already work for technology-based companies
- Chicago has a huge manufacturing base which functions as both business partners and customers, helping high-tech companies function more efficiently.
- Illinois is fifth in the country in the number of scientific and engineering Ph.D.'s awarded each
- year and sixth in the number of scientists in the workforce. With its high concentration of world-class universities and colleges, Chicago has one of the most highly educated labor pools in the nation. Chicago's premier business schools also provide the business talent needed to manage firms in all stages of growth and development.
- More than 60 venture capital funds managing over $12 billion, investing specifically in technology companies are located in Chicago. Seventy percent of all Illinois firms receiving venture capital investment in 1997 were technology companies.
- Chicago’s economy – unlike that of North Carolina's Research Triangle, which is dependent on a large number of federally subsidized labs – is not dependent on decisions made in Washington. The diversity of Chicago's economy is a key strength, faring better than most areas, even in a recession, because no one sector so dominates the entire economy.
- Chicago’s quality of life is second to none
- Chicago has a lower cost of living than Silicon Valley, Seattle or North Carolina's Research Triangle
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CITe
The landmark Lytton Building at 247 South State Street in Chicago's Loop will be renovated specifically for IT businesses. The Chicago Information Technology Exchange (CITe) will be the cornerstone of Chicago's Info-Tech District.
The CITe will feature these info-tech advantages:|
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- High bandwidth fiber-optic backbone that will include Internet access at Ethernet speed
- Turn-key telecommunications infrastructure
- Intra-building LAN extension
- Customized, category III and V fiber optic cabling UPS back-up generator
- Multiple power grids servicing building
- 24-hour HVAC through the UNICOM multiple plant system (built-in redundancy)
- Video conferencing system
- Lobby featuring Sony video wall interactive building directory displaying tenant names and web sites
- Business satellite television service
- Building specific Internet site with tenant links
- "Clean" electrical and mechanical
- Multiple fiber, intelligent wiring hub, Fast Ethernet, Copper, T1, T3, ISDN, DSL and satellite communications
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In addition, the CITe also offers these amenities:
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- Flexible leases to accomodate expansion at below market rates
- Central location at NE corner of State and Jackson in the heart of downtown Chicago
- 13,500 to 15,000 square foot floor size to be customized into loft style offices
- High ceilings, up to 15 feet, and large windows for maximum natural light
- Pre-built floor for small space users for immediate move-ins
- 24 hour a day, 7 day per week manned security and coded access
- New high-speed elevators
- Tenant lounge area complete with pool table and vending machines
- Indoor basketball court with locker room and showers
- Shared conference and training rooms
- First floor coffee house, restaurant and copy center
- Extremely convenient access to CTA, buses, Metra and South Shore trains
- Nearby parking facilities
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Chicago Civic Network
"I envision the entire City – residents, businesses, and institutions – using this network to access on-line education programs, video-on-demand services, telecommuting and on-line community organizing."
-Richard M. Daley, Mayor |
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Chicago Technology Growth Fund
The City of Chicago will provide $3 million for early-stage and seed capital, leveraging a minimum of $7 million from private sector co-investors, creating a $10 million investment fund for high-tech entrepreneurs in Chicago.
The Chicago Technology Growth Fund will leverage public funds with private co-investors to invest in start-up technology companies. Focusing on the new companies, the fund's aim is to create a supportive environment for new technology firms in Chicago|
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Illinois Six Largest Technology-Intensive Sectors, 1996
Industries Employment Establishments
- Telecommunications 79,247 1,410
- Biomedical 56,208 1,330
- Electronics 55,798 1,558
- Computer Software 47,740 4,530
- Environmental Technology 40,996 1,586
- Advanced Materials 28,134 591
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Telecommunications
Illinois is a major telecommunications hub, home to over 1,400 telecommunications companies employing approximately 80,000 people. With its large financial services industry and world-class research institutions setting a high standard for the state's telecommunications infrastructure, Illinois has long been a leader in the research and deployment of innovative telecommunications technologies. Fiber-optic communications, rapidly now becoming the state-of-the-art, was first tested in Illinois 20 years ago. Today, Illinois has over 200,000 miles of fiber-optic cable. AT&T's Bell Laboratories, based in Lisle, developed the digital switch in 1982 and Illinois Bell was the first commercial customer to adopt the technology. Today, more than 80 million phone lines in 49 countries worldwide use these switches. Illinois' telecommunications sector profits from a strong core of high-tech vendors and state telecommunications laws are the most effective in the nation in promoting competition. Ttelecommunications companies such as Motorola and Tellabs have announced expansions that are expected to create a combined 8,000 new jobs within the next several years.|
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Biomedical
More people are employed in the health care and biomedical fields than anywhere else in the country. With over 240 hospitals in the state, Illinois is renowned for its concentration of world-class health care and medical research facilities. The depth of our research capabilities and quality of our care draws grants, scientists, doctors and patients from around the world. Since 1990, employment in the health and biomedical sectors has grown by over 20 percent.|
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Environmental Technology
The agricultural biotechnology revolution began in Illinois, and now there are over 1,280 biotechnology, biomedicine, pharmaceutical firms located here. Some of the nation's largest medical products manufacturers are located in Illinois, including Abbott Laboratories, Baxter International, Medline and Dade International. Dozens of firms are involved in the research and manufacture of bio-related materials in agriculture, bioremediation and food processing, including Archer Daniels Midland, A.E. Staley and DEKALB Genetics.|
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Electronics
Illinois has one of the highest concentration of electronics firms in the country, including General Instruments Corp., Zenith Electronics, Molex, Bell and Howell, Methode Electronics and Cherry. Illinois' leadership in this field goes back to the 1930s when the state led the nation in the design and production of vacuum tubes and radio equipment, which was the high technology of that period. Those days were followed by wartime leadership in electrical components and the postwar boom in television production. Today, Illinois' 1,558 electronics firms profit from the region's large original equipment manufacturers in the automotive and telecommunications industries, and aggressive international marketing. Illinois' electronics manufacturers lead all other industry sectors in the state in the value of their exports.|
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Software
Software developed at the University of Illinois has opened up the graphics-rich World Wide Web to millions. The new technology not only has transformed the Internet, but made millionaires out of state computer whizzes. Today, Illinois is home to over 4,530 software companies, including global leaders in the industry such as Platinum Technology, SPSS, SoftNet Technologies, and Spyglass. Illinois' software industry generates $3.2 billion in revenue annually and employs more than 47,740 people. Today our software designers and engineers are working on the leading edges of the newest in high-performance computing hardware and software, virtual prototyping, visualization, networking, security, and benchmarking tools.|
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Advanced Materials
In today's competitive global marketplace manufacturers demand new materials with the potential to improve quality and reduce production cost. Illinois-based companies have been among the first to respond by making high-quality advanced materials better, faster, and less expensively. Today, Illinois companies are developing ceramic engine parts, fabricating the world's first mass-produced superconducting materials, developing super-hard thin-film coatings and increasing product lifetimes by reducing friction and wear with advanced lubricants. Further leadership in materials research will be made possible by Argonne National Laboratory's Advanced Photon Source (APS). The APS' super-intense x-ray beams, the brightest in the world, will have important impacts on the development of new or improved semiconductors, drugs, polymers, ceramics, superconductors and composites.|
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Environmental Technology
Environmental technology is one of the fastest growing sectors in the Illinois economy, with 1,586 companies employing 40,996 people. Industry sales exceed $6 billion. A combination of factors including the support of academic research and a specially trained work force have helped give Illinois' environmental industry a big head start in getting to the global market first. Companies like Amoco, WMX Technologies, Nalco and SafetyKleen make Illinois a global leader in this rapidly expanding sector.|
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Manufacturing
Illinois has always been a major manufacturing center for mass-produced goods such as automobiles, heavy machinery, chemicals and food products.
Today, Illinois firms are developing a new form of manufacturing: flexible production using concurrent engineering to produce custom-designed solutions for niche markets. Research into and refinement of these advanced techniques is being conducted at the three University of Illinois at Urbana-Champaign research centers; the Manufacturing Research Center, the Machine Tool Agile Manufacturing Research Institute, and the Institute for Competitive Manufacturing.|
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Technology Talent
Illinois colleges and universities supply a wealth of talent for industry in the fields of computer sciences, life sciences, mathematics, physical sciences and engineering. More than 21,000 students are enrolled in graduate science, engineering and health programs at Illinois universities, ranking the state 5th in the nation in the number of graduate students educated. Importantly, Illinois also ranks 6th in the number of scientists and engineers in the workforce, indicating a strong ability of the technology sectors to employ these knowledge workers in the state.
Illinois leads much of the nation in the number of patents granted, reflecting a key competitive advantage of Illinois companies, the ability to innovate. This capacity for innovation is also seen in areas like transportation technology and high performance computing. In addition, our knowledge creation sector (e.g. universities, R&D facilities, consulting, engineering, and law) has always been one of Illinois' most valuable resources.|
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Research and Development Leader
Illinois ranks among only a handful of states in terms if its ability to support scientific research and technology development, produce high-quality graduate students, and develop patentable technologies. Illinois ranks 7th in the nation in total R&D performed by industry, research universities and federal laboratories, conducting $7.5 billion in FY 1995, the last year for which data is available. The state ranks 5th in the number of scientists educated and 6th in the number of patents issued. The state is home to over 30 federal R&D centers.
This research strength matters: Illinois' technology-intensive industries depends on a vital science and technology infrastructure. Illinois' world-class research universities are an important source of technology and technical talent, and have spawned the creation of many new enterprises and new industries. Illinois' federal laboratories serve important national interests, are sources of basic research, have created the billion dollar medical imaging, the superconductivity industry and spawned more than 30 companies.|
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Technology Venture Funding
Home to the Chicago Board of Trade, the Chicago Mercantile Exchange, the Chicago Board of Options Exchange, the Chicago Stock Exchange and many major banks, Chicago is one of the world's most competitive and innovative financial centers.|
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In International Markets, Illinois Technology Companies are Real Players
Long before the term "global marketplace" was part of the business lexicon, Illinois technology companies were making their mark in the world economy. Illinois ranks third in the nation in the total export of electronics, computer and industrial machinery, totaling $17.7 billion in 1997. Technology products now account for 51.7 percent of Illinois' exports, making them the largest contributor by far to the state's export performance.
Schaumburg-based Motorola has produced the smallest transistor ever using a class of material that allows the transistor to be 3 to 4 times thinner than current versions. Within the next few years, this remarkable advancement could put the processing power of a desktop computer into a wireless phone.|
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