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Official: State should back
firms
Idaho urged to help high-tech
industry grow
By Ken Dey
The
Idaho Statesman
In the shadow of giants such as Micron Technology and
Hewlett-Packard, a new generation of cutting-edge companies is
building a future for Idaho.
And nurturing those companies toward success is something the
state needs to take an active role in, said Jay Engstrom,
administrator with the Idaho Department of Commerce's Division of
Economic Development.
At last count, more than 800 high-tech companies called Idaho
home, Engstrom said Friday during an open house held by RidgeRun, a
new high-tech company in Boise.
Engstrom said the state must make it a priority to attract
venture capitalists to Idaho so they can provide the financial boost
needed to grow companies ready to develop exciting new technologies.
Engstrom said that in the next legislative session, a solid
venture-capital bill should come forward, one that if passed could
provide tax incentives to attract venture capitalists and capital
gains tax breaks to attract new investors to companies.
RidgeRun is a perfect example of what a company can do with a
cutting-edge idea and the proper financial backing, Engstrom said.
Founded by two former HP engineers, RidgeRun has developed
enabling software for digital signal processing microchips in
wireless devices -- everything from digital cameras to cell phones
and personal digital assistants -- that will allow the transfer of
information to other devices without using a modem.
"This company has a very good opportunity the way they've
positioned themselves," Engstrom said. "The diversity of this
application is huge. This company could become another Micron to the
cell phone and PDA world."
The company is financially well positioned, thanks to a
partnership with Texas Instruments that brought $5 million in
funding and an agreement to provide software for TI microchips that
are used in most wireless devices.
Rudy Prince, CEO of RidgeRun, said the company could grow
rapidly, perhaps doubling or tripling its staff of 30 within three
years.
Prince said the market for microchips in wireless devices is
expected to be worth $20 billion by 2005. "This company is sitting
in the right place at the right time," he said.
To
offer story ideas or comments, contact reporter Ken Dey at
kdey@idaho statesman.com or 377-6428.
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Saturday, August 4, 2001 
