Technological leadership

Technology-based companies will continue to expand their presence in northern Nevada during 2007.

Executives in technology fields locally plan to create new jobs, increase square footage and make capital improvements within the next three years, says the Economic Development Authority of Western Nevada.

Northern Nevada's employment growth within the technology industry grew at a faster rate (4.4 percent) than all other industries (3.2 percent), says a report issued as a part of the Target2010 economic planning initiative.

EDAWN's three-year economic investment forecast projects a continuation of past trends, with a strong showing in research and development. In fact, eWeek.com named Reno as a potential hub for the U.S. technology sector.

The tech sector also pays a higher wage than average for this area $57,769 but tech pay in the region lags 18 percent behind the U.S. average of $64,016. Still, the tech wage is nearly twice the average private-sector wage.

Some of the growth will be spurred by new developments, such as the spread of on- demand software.

"What were seeing is even large software companies are going to an on demand model, with users paying only for what they use," says Sheri Elpern, vice president of communications at SQI, (for Software Quality Institute) in Reno.

Cost, she says, is driving sales of open source software, because companies are not investing in the whole infrastructure needed to support software in house. But the movement has not yet spiked growth in the small company.

"Reno is not the most technically advanced area, particularly when dealing with open source," she says. "Most of our clients are located outside of Nevada. We are looking for venture capital or angel money to grow."

The war in Iraq has resulted in a lockdown on research and development spending for some companies, as the federal defense budget goes to fund the fighting, says Wayne Sawka, president of Reno-based Digital Solid State Propulsion.

Next year looks the same, and, in fact, Sawka sees a shaky economy so long as the war is draining the treasury.

Digital Solid State Propulsion makes tiny thrusters used in rocket technology. But the space program is also short on funds.

"The space program is not funded while we continue to bleed lives in Iraq, and while advanced research budgets are being held hostage" says Sawka.

So the company is looking at ways it can sell to the special-effects industry, which he says, is immune from the swings of the defense budget.

At International Game Technology, the biggest manufacturer in the state, Ed Rogich, vice president of marketing, cites positive trends in manufacturing for gaming, as states and nations continue to legalize gambling.

And, he says, "The recent annual gaming show in Las Vegas displayed solid technology advances that will fuel new machines and new systems for the gaming industry."