Hi-tech industry holds key to US elections

With less than two weeks to go in the race for the White House, it's now clear that the elections will go down to the wire. And while Al Gore may claim to have had a hand in "inventing the internet", the US Vice-President appears to have lost the edge in the area of endorsements from the hi-tech industry.

Gore drew his share of criticism for an interview last year in which he claimed: "During my service in the US Congress I took the initiative in creating the internet." And in an online survey conducted earlier this month he appears to have fallen behind Republican presidential hopeful George Bush in the eyes of industry luminaries.

Gore had held a two per cent lead among voters in the technology industry earlier this month. But the results of the latest survey show that this is no longer the case. In fact, Gore's slim lead has turned into a 28 per cent deficit. Bush has attracted 54 per cent of the industry support compared with Gore's 26 per cent.

Too hands-on?
All signs indicate the change in opinion is connected to the belief that the current administration is too hands-on in its approach to technology and that Bush, not Gore, is the candidate who is most likely to reverse that trend.

Bush planted the seed for that idea last week, saying he preferred "innovation over litigation". He scored a ratings boost in the state of Washington, where Microsoft's headquarters are based, with the statement. It was his strongest comment in recent months on the Clinton administration's antitrust case against the software giant.

While Bush did not go on record and talk about the impending case, he did voice one concern. "Are the customers being harmed and is innovation being stifled?" he asked.

Microsoft, which in June was ordered to split after it was ruled that the company was in violation of US antitrust laws, has appealed the decision. If the software giant gains an appeal, an incoming Bush administration could choose to settle the case.

Bush's comments helped further the belief that, if elected, the US government would take a less hands-on approach to technology. According to the survey, 54 per cent of those polled believe the current administration has too much influence over the industry. Voters see Bush as a stronger industry advocate. Underlining this perception, 50 per cent of those polled believe that Bush would decrease government influence.

As of last week, Gore's total of hi-tech endorsements totalled 443, while Bush's totalled 440. Among the most influential of Gore's supporters are Marc Andreessen, chief executive of Loudcloud; Real Networks' chief executive Rob Glaser; Donna Dubinsky, co-founder of Handspring; and Kim Polesi, chief executive of Marimba.

Bush's list of supporters include Michael Dell, chairman and chief executive of Dell Computer; John Chambers, president and chief executive of Cisco Systems; Scott McNealy, chairman and chief executive of Sun Microsystems; and Jim Barksdale, former chief executive of Netscape.

Money talks
And while Gore held the slim advantage in the number of supporters, Bush held a clear advantage in the amount of money received. As of last month, Bush reported receiving $972,199 in contributions from the technology industry. This is nearly double the $448,554 Gore received. In the past, both candidates have voiced their support for maintaining or increasing funding for basic research and development, particularly in the areas of bio-medical and information technology.

But while Gore's top science and technology priorities include intensifying research in areas to improve the environment, Bush's primary agenda includes increased funds for defence research.

Bush has been critical of the Clinton administration's readiness to increase research and development funding. In a speech delivered on 18 October, he argued that the administration "actually cut our R&D investment by almost a billion dollars a year". Bush proposes to commit an additional $20bn to defence R&D during his first four years in office.

While he doesn't reveal a figure, Gore also claims to be in favour of increased R&D funding. Priority, he states, should be given to university-based research, because universities help prepare the next generation of scientists, engineers and entrepreneurs. Contained in these proposals is support for a permanent tax credit for research and development.

The two candidates also take different views on the subject of genetically modified crops. Gore has been careful to note the benefits of biotechnology, but has gone on record as saying the technology is "not a risk-free endeavour".

Bush stresses the importance of opening foreign markets to genetically modified crops produced in the US. This is despite the objections of the European Union, which in the past has stood against biotech crops and beef treated with growth hormones. The candidates also offer different views on the subject of internet taxes.

Taxing times
In the past, Bush has applauded the House of Representatives for extending the moratorium on internet taxes for five years. But Bush has gone one step further in his desire to push Congress to make the credit a permanent part of the tax code, saying: "I also support a permanent ban on all internet access taxes, and hope that the House will ban these taxes so that the internet is more affordable and more accessible for all Americans."

Gore believes the internet, ideally, should be tax-free. But he wonders just how realistic an aspiration this is. "In the real world, we cannot ignore the fact that our democracy thrives in a federal system in which state and local governments derive one-third their revenue from sales taxes," said Gore.

"Put yourself in the position of governors and mayors. I do not think we can just stiff them as they contemplate a potential fiscal catastrophe."

Both Gore and Bush are in agreement on the subject of 'H-1B visas'. Both are in favour of increasing the cap on these visas, which would increase the number of temporary, highly skilled industry workers. Both believe this increase is an essential element in increasing the competitiveness of hi-tech companies facing a shortage in computer engineers, software programmers and technicians.

Both, however, make the point that the increase in these visas is only a temporary situation. Each stresses the importance of educating the US's youth by connecting classrooms across the country to the internet. Gore favours increasing the number of H-1B visas to 200,000 a year. He also proposes enacting new provisions to protect and prepare the US workforce.

Electronic Bill of Rights
Gore has addressed the issue of privacy on the internet more than his counterpart. He is calling for an Electronic Bill of Rights for Privacy to protect personal privacy online.

According to Gore, consumers have the right to know how and why their personal information is being collected, and have the right to prevent the transfer of that information and the ability to verify the accuracy of their personal information.

Neither candidate has offered anything new in terms of the Napster debate. Both have stressed the importance of using new technologies to offer another form of delivery for consumers. But each recognised the importance of protecting the profit of the individual artists and creators of these products.

It is estimated that global ecommerce could reach up to $7tn in sales within the next four years. Both candidates intend to pursue an international agreement to make the internet tax-free worldwide. Bush criticises the current administration in this aspect, pledging to work with Congress to restore presidential trade negotiating authority, something the current administration has failed to renew.

In a race that is now too close to call, the vote of the technology industry may be a key factor in deciding who will sit in the Oval Office for the next four years. Especially in important voter rich states such as California where the Silicon Valley vote just might prove crucial.