R & D as an Economic Development Strategy: The Microelectronics and Computer Technology Corporation Comes to Austin, Texas

Abstract

In this article we evaluate the effects of the location of the Microelectronics and Computer Technology Corporation on Austin's economy and land use. The results of our analysis provide qualified support for the state's economic development strategy, which is based on science and technology. Although its short-term effects probably will be slight, MCC could generate significant economic and land use development over the long term, particularly in Austin. The results confirm the importance of an excellent research university and attractive quality of life in supporting an emerging technology strategy. Rapid urban growth in Austin threatens to frustrate the strategy, however, by eroding environmental quality and causing rapid increases in living costs. Citizens' recognition of those problems has given rise to renewed growth control efforts.