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Air Transportation

 
Air Transportation and High Tech Business

While proximity to an airport has been cited as important to business in general, it has been suggested that the information age and technology has supplanted the need for air transportation, with Internet access, video conferencing and other communications technologies. In many cases, the exact opposite is true. High tech industry is heavily dependent on easy access to air transportation and shipping. With short product cycles, quick obsolesce, smaller manufacturing lots, and a reliance on component sourcing and just-in-time manufacturing, moving both parts and products quickly is key to high-tech success. (Goldstein and Luger, 1993; Blakely, 1994; Kasarda 1999)

Consider the locations of commonly cited U.S. "high-tech" centers: Silicon Valley, Boston, Denver, Austin, TX, Raleigh, NC, Fairfax County, VA, and New York's Silicon Alley. One common denominator in each instance is proximity to a major hub airport. In Silicon Valley, where San Francisco International Airport is becoming increasingly inaccessible because of increasing traffic congestion, support from high-tech industries has led to large-scale expansion plans of passenger terminal square footage and in all-cargo and belly cargo handling capacities at San Jose International Airport . A similar story can be told about Raleigh Durham International Airport, whose growth has been driven by the travel and cargo demands of its very close neighbor, Research Triangle Park, North Carolina. (Appendix C in Erie, et al 1998; San Jose International Airport Comprehensive Annual Financial Report, 1997)

 

Air Transportation and High-Tech Executives and Employees
When the focus changes from business location decisions to the factors most important to business employees, quality of life becomes of paramount importance. In an article entitled "The Q Factor", David Birch suggests that businesses are willing to locate to areas which might cost a little more, but which have distinct quality of life advantages to attract and retain a high quality workforce. Birch cites five factors as crucial to attracting small, entrepreneurial companies - the engines of economic growth in the high technology sector. These factors are:
  1. High quality research universities
  2. A good quality labor force
  3. Air transportation
  4. Telecommunications
  5. Local government willing to invest in infrastructure

Air transportation is key because "whereas Fortune 500 executives can fly in and out of just about any town in the company jet, busy entrepreneurs and their salespeople need major airports for their transportation." Another study of business executives looked at the relocation decisions of 40 information age companies with "high quality" jobs. For executives and employees of these companies, quality of life issues were found to be very important to their location decisions, but the concept of quality of life itself was poorly conceptualized. The study concludes that "housing quality, transportation (commuting ease and access to an airport hub [emphasis added]), recreation (especially golf), and local educational funding" are among the factors underemphasized by previous analyses of quality of life. (Omara 1999)

One final examination based on survey data and the migration patterns of high-technology firms throughout the United States found that workers in high tech occupations were more mobile than were employees in other occupations. High tech workers preferred metropolitan over more remote work locations, suburban residences to central city ones, metro areas with lower levels of property taxation, better schools, and greater transportation linkages. (Herzog, Schlottman, and Johnson, 1986; Herzog and Schlottman, 1991)

 
 
 
 
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