From sparks to flames: igniting Utah's tech industry.

• Author: Stewart, Heather
• Position: Technology

The elements are starting to fall into place. For years, Utah's tech industry leaders have tried to spark a big bang--a brilliant explosion in the number and quality of technology companies in Utah. The raw material is here: a strong entrepreneurial spirit, a tech-savvy workforce and an engaged, supportive state government. So what would it take to spark the transformation of Utah into the new technology hub of the West?

The past five years have seen an unprecedented investment in the state's technology industry. USTAR has brought new dollars to the state's research universities. The Utah Fund of Funds is attracting out-of-state venture funding to Utah's startups. And a myriad of other state programs, from the Centers of Excellence to the Business Resource Centers, have fostered the growth of new technology companies.

"We've got the pieces" says Brad Bertoch, president of the Wayne Brown Institute, an organization that coaches startups on raising money and entrepreneurship. "We've got to make sure that it's fed right--that the infrastructure isn't starved."

Utah is fortunate to have state and private universities that are renowned for technology, computing and life science programs. This, along with state leaders who are committed to economic development, has created a strong groundwork for the industry.

"The question is how do we attain the elusive goal of critical mass, which is necessary to turn Utah into the next Silicon Valley?" asks Bertoch.

MONEY HUNGRY

Local technology experts say the most simple and obvious answer is to invest more money in economic development efforts, in expanded infrastructure and in new startup companies.

New tech startups are struggling to find funding, especially now that the financial markets have tightened.

"The complaint I hear the most is that there's no capital in Utah," says Blaine Nielsen, CEO of Doba, an Orem-based company that connects online retailers with wholesale suppliers.

The Utah market could definitely use more investment capital and more financing options for small businesses, says Nielsen, but funding is available for promising young companies. "If the idea is right and the timing is right, it will happen."

Deals are still being made, even in this economy, agrees Mike Alder, director of Technology Transfer at Brigham Young University.

BYU saw eight of its new technologies licensed in 2008; this year, it already has eight new licensing deals with six more in the works.

"We have a very high rate of new startup companies coming out, but they have a hard time finding funding in this area," says Alder. "But if they move, they can often find funding."

So while the research universities are generating new technologies and entrepreneurs are lining up to license them for startup or existing companies, many of...