New Jersey's telecom industry needs new growth strategy, report says

Sep 08, 2006

With jobs and patents declining, New Jersey's communications industry needs a dramatic turnaround strategy to capitalize on the next wireless revolution, according to a report released this week by Stevens Institute of Technology. Without a sound strategy, the report cautions, New Jersey may lose out on its share of a wireless technology industry projected to reach $757 billion by 2017.

The report – authored by M. Hosein Fallah, an Associate Professor in the Wesley J. Howe School of Technology Management at Stevens and formerly the director of Network Planning and Systems Engineering at Bell Labs – suggests that New Jersey focus on growing a strong and cohesive cluster of small and high-potential advanced communications companies "the toddlers" within the state; and by attracting new ones from outside the state. Matching grants and tax incentives can be used to help create this vibrant environment for a sustained economic growth.

Telecommunications employment in New Jersey has already dropped 35 percent since 2001. More jobs may be lost if the proposed Lucent-Alcatel merger is approved.

Meanwhile, states such as California and Texas are gaining communications jobs – largely by employing the same kind of public-private partnership that could work in New Jersey, as well, the report says.

In Texas, for instance, a coordinated, market-driven economic strategy is in place, focusing on growing specific industries, including telecommunications. A job creation component, the $295 million Texas Enterprise Fund, is part of the approach. Texas has recently announced a $2.5 billion investment in its university system to make them a magnet for scientific and medical research.

Today, Texas is second only to California in the number of telecommunications patents per year that developed there, New Jersey is ranked fifth. Back in 1996, however, the positions were reversed – New Jersey was No. 2 and Texas, No. 5.

New Jersey would benefit from a strategy similar to Texas to reverse its current trend. Under the terms of the Stevens report, the state needs to devote at least $100 million annually to this initiative for the next five years. Funding could come, not from the existing state budget, but by updating the state telecom tax policy and making taxes and fees equal for all of the communications services.

The report further suggests that matching grants would be offered for research coming from outside the state, as well as for collaborative R&D projects between small New Jersey companies and New Jersey research universities and institutions.

In return, the state would mandate that successful projects remain in New Jersey for at least a decade, and create new R&D jobs.

Source: Stevens Institute of Technology

Explore further: Putting net neutrality in context

add to favorites email to friend print save as pdf

Related Stories

Nevada leads US in per-capita growth in solar jobs

Feb 12, 2015

The number of solar industry jobs in Nevada more than doubled last year, the fastest per capita growth in the nation, a nonprofit research and education group said in a new report Thursday.

Arsenic stubbornly taints many US wells, say new reports

Jan 30, 2015

Naturally occurring arsenic in private wells threatens people in many U.S. states and parts of Canada, according to a package of a dozen scientific papers to be published next week. The studies, focused mainly ...

13 primates die at South Texas research facility

Dec 23, 2014

A South Texas research facility where 13 primates died of hyperthermia in overheated rooms could face federal penalties, a U.S. Department of Agriculture spokeswoman said Monday.

Student science projects explode with rocket

Oct 30, 2014

Eighteen groups of students have lost science projects that were onboard an unmanned rocket that exploded in Virginia after taking off for the International Space Station.

Recommended for you

Google to offer own cellular network plan

8 hours ago

Google will soon be offering cellular network plans in a bid to bridge the gap between the realms of Internet services and mobile device software it dominates.

'Slow motion at the speed of light'

10 hours ago

New technology developed by a collaboration between the UA and the University of California, Los Angeles, provides real-time monitoring of streaming video to optimize network traffic.

Putting net neutrality in context

Feb 27, 2015

After much litigation, public demonstration and deliberation, the US Federal Communications Commission (FCC) voted 3 to 2 to adopt open internet rules. While the substantive details of the decision are not yet known, the rules ...

Key facts on US 'open Internet' regulation

Feb 26, 2015

A landmark ruling by the US Federal Communications Commission seeks to enshrine the notion of an "open Internet," or "net neutrality." Here are key points:

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.