Monday, October 28, 2002

Hunt Valley exemplifies tech growth in Greater Baltimore area

By Penny Lewandowski

Lately, it might seem easier to pull a rabbit out of your hat than to survive, let alone thrive, in this economy - particularly if you happen to be in the tech sector.

But while no one needs to be reminded that the economy has been sluggish at best, it is important to recognize that the down economy is hardly a local phenomenon. It is affecting companies nationwide. It is equally important - and encouraging - to know that many area tech companies are continuing to do business and, yes, even grow, in spite of the economic hard times. For many, it's been a time to restructure and re-invent hitting on changes in process, market niche, expansion into the government sector and more.

In Greater Baltimore, you need look no further than Hunt Valley to see unparalleled tech success. There, the success of dozens of gaming companies created in the wake of the MicroProse restructuring has made that area the second largest gaming community (next to Silicon Valley) in the nation. And several of those companies have discovered an entirely new market niche they probably didn't even dream of just a few short years ago, as the video games they originally produced with teenagers in mind are now powerful simulation tools used by the Defense Department.

The region has also become home to several major players in the multibillion-dollar distance learning industry, including Baltimore-based Thinq Learning Solutions, Latitude360 (a subsidiary of Columbia, Md.-based RWD Technologies) and iLearning, which rose from the talent of Caliber Learning Networks. With industry analysts predicting that distance learning will grow to become a $23 billion industry nationally by 2004, Greater Baltimore would appear to be well positioned as both government and private business continue to turn to e-learning as a viable means for saving money on training.

Home to both federal labs and research universities, our region sits in a position of strength when it comes to transitioning research into practical business applications. With the assistance of the Maryland Technology Development Corp., TEDCO, two regional companies are now experiencing their first brush with success resulting from tech transfer. Reactive NanoTech (based on tech transfer from Johns Hopkins University) and Wickford Technologies (building on technology transferred from the Naval Research Labs) have both received funding from TEDCO to move their products to market.

And companies working within the region's incubators are also seeing light at the end of the start-up tunnel. Among those is Agentsmith, which just announced that Sinclair Broadcasting will install its revenue management system in 34 of its television stations.

With the likes of Blue Fire Technologies and SafeNet, the Baltimore region has a strong representation of companies that are firmly positioned in the areas of Internet and wireless security. And, yes, there are more survivors than failures of the Internet "bubble" with companies like e.magination, G1440 and Advertising.com keeping pace in their industry.

Even the telecommunications industry, which experts contend is likely to be facing overcapacity issues for years to come, is seeing new investment. Timonium-based Grotech Capital has made three major investments in small telecom companies in the space of the past six weeks alone. Clearly, all is not doom and gloom.

Here and across the nation, in fact, it is the entrepreneurial company that is continuing to drive technology growth.

According to the Small Business Administration, two-thirds to three-quarters of net new jobs come from small businesses. And we're seeing that trend in Greater Baltimore, where the unemployment rate actually fell from 5.5 percent in January 2002 to 4.8 percent in August. Those same entrepreneurs who started tech companies five years ago, then engineered the successful acquisition of those companies, are at it again, starting new tech companies right here, right now.

It's that kind of energy that was readily apparent when the Greater Baltimore Technology Council held its 13th annual TechNite celebration in Baltimore last week. Hundreds of executives from all walks of the Baltimore-Washington tech community were in attendance to celebrate "The Believers" - those visionaries and pragmatists, good listeners and dogged survivors who continue to inspire us to keep going despite setbacks and the challenges of a down economy.

It is those believers who have kept the magic in Greater Baltimore's technology community alive and we're a stronger community because of their presence. Undoubtedly, it will be their advice, their encouragement and their example that will continue to point the way in the future.

For its part, the Greater Baltimore Tech Council remains maniacally focused on providing its members with the resources they need to thrive, from online RFPs to input from potential investors to venues for business leaders to exchange ideas and solve problems.

And based on what we are seeing, if you think all tech companies are experiencing economic problems, think again.

With the diversity of the companies in this region and the wide range of resources at their disposal, not to mention the competitive cost of doing business, Greater Baltimore continues to hold its position as a leader in the technology community.

Penny Lewandowski is the executive director of Greater Baltimore Tech Council. She can be reached at pennyl@gbtechcouncil.org.