HAWAII SPOTLIGHT
A New Kind of Paradise
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s an island paradise, Hawaii has long served as the ideal spot for pineapple plantations and tropical getaways, but Hawaii's golden grandeur comes at a price. Real estate prices as well as location costs have been prohibitive for business investors. So Hawaii's legislature took a hard look at the state's business climate and decided it was time to improve things.
Last July, Hawaii became the first state in the U.S. with a 100-percent tax credit on investment in high-tech business. Passed in July 2001, the Qualified High-Tech Business Act is targeted towards high-tech industries such as biotechnology as well as other technically oriented investments.
"The unmatched 100 percent tax credit will encourage investors in Hawaii to transform their investing style away from the real estate-based investment they are accustomed to and into up-and-coming technology companies, like ours," says David Watumull, president of Hawaii Biotechnology Group.
The Hawaii Technology Trade Association (HTTA), a private sector group located in Honolulu, also supported Act 221, after pushing for tax credits for high-tech firms in previous legislative sessions. The group's efforts have focused on growing Hawaii's high-tech industries with academic supports as well as fostering a business climate conducive for high-technology investments. These efforts have included targeting mainland tech firms to locate sites in Hawaii.
"Act 221 is the result of a collaborative effort between government and the private sector and creates a tech friendlier environment necessary for attracting, growing and retaining technology companies in Hawaii," says Ann Chung, Executive Director of the Hawaii Technology Trade Association.
The new incentives have hit the right note with a customized greeting card company, dearvoice. The firm is a subsidiary of DINOS Technology and has relocated from Seoul to Hawaii. The firm's technology markets high-tech communications by integrating voice recordable microchips into the cards, enabling the sender to record a 20-second voice message.
"Hawaii has created a very good environment for investors by providing generous tax incentives for new technology," says John Kim, president and CEO of DINOS Technology. The new tax act caught the eye of Kim and DINOS officials as they hope to build a global operation. The company is looking for potential markets in Asia as well as the U.S. They see the new tax credit as a means to attract investors.
"This credit makes investing in technology very sage for local investors provided they're investing in a Qualified High-Tech Business," notes Kim.
Hawaii is also looking to expand high-tech industries with funding and incubators.
The Maui Research and Technology Center, managed by the Maui Economic Development Board, has recently found itself at full capacity. The center has helped Maui engineer Michael Polosi launch his head-mounted mouse for disabled computer users. The firm, MiracleMouse, has also spawned a spin-off for computer gamers, Cymouse.
With the Maui Technology Center at full capacity, officials launched another virtual incubator early this May, Maui Tech Ohana. It will focus on high-tech enterprises and networking to enable entrepreneurs to make business connections.
"It will be an incubator without walls," says David Fisher, Maui director of the Hawaii Small Business Development Center Network, which helped the board develop the program.
Recently the five island boards of the The Economic Development Alliance of Hawaii worked together on a project called the Kamaaina Come Home campaign, targeted at reeling in former locals to work in the growing tech industry.
For the last ten years, a new city is taking shape on the western edge of Oahu. The city of Kapolei (www.kapolei.com) is a master planned development offering the state's largest industrial park, a commercial harbor, business park, residential areas and of course, a vacation resort.
The Kapolei development currently has eight major projects underway, representing $165 million in development investment. Kapolei offers some unique advantages for site selectors. The Kapolei teleport gives businesses direct access to satellite communications with Asian markets. This location allows firms to communicate with U.S. and Asian markets simultaneously.
"Last year alone, the number of satellite dishes at Kapolei teleport doubled in number," says Howard Schwiebert, telecommunications manager for the Campbell Estate. The teleport is home to several large companies such as USAsia Telecom, a division of Mitsubishi, Verizon, Loral Cyberstar and Vision Accomplished.
Mid-Pacific Broadband will break ground this year on its first phase of a new 300,000-sq.-ft. (27,870-sq.-m.) facility. The Network Access Point and Internet Data Center will be constructed on a 54-acre (21-ha.) site within the park and will offer outsourcing, Intranet and Internet services. When finally completed, the center will employ more than 150 workers. Last year the Honolulu Advertiser also opened a new facility at Kapolei. The facility, a $29-million investment, includes a distribution warehouse and printing plant.
As Asian economies improve, Hawaii will continue to be a paramount spot for firms looking for a foothold from which to serve the high-tech and communications needs of both Asian and U.S. markets.
Last July, Hawaii became the first state in the U.S. with a 100-percent tax credit on investment in high-tech business. Passed in July 2001, the Qualified High-Tech Business Act is targeted towards high-tech industries such as biotechnology as well as other technically oriented investments.
"The unmatched 100 percent tax credit will encourage investors in Hawaii to transform their investing style away from the real estate-based investment they are accustomed to and into up-and-coming technology companies, like ours," says David Watumull, president of Hawaii Biotechnology Group.
The Hawaii Technology Trade Association (HTTA), a private sector group located in Honolulu, also supported Act 221, after pushing for tax credits for high-tech firms in previous legislative sessions. The group's efforts have focused on growing Hawaii's high-tech industries with academic supports as well as fostering a business climate conducive for high-technology investments. These efforts have included targeting mainland tech firms to locate sites in Hawaii.
"Act 221 is the result of a collaborative effort between government and the private sector and creates a tech friendlier environment necessary for attracting, growing and retaining technology companies in Hawaii," says Ann Chung, Executive Director of the Hawaii Technology Trade Association.
The new incentives have hit the right note with a customized greeting card company, dearvoice. The firm is a subsidiary of DINOS Technology and has relocated from Seoul to Hawaii. The firm's technology markets high-tech communications by integrating voice recordable microchips into the cards, enabling the sender to record a 20-second voice message.
"Hawaii has created a very good environment for investors by providing generous tax incentives for new technology," says John Kim, president and CEO of DINOS Technology. The new tax act caught the eye of Kim and DINOS officials as they hope to build a global operation. The company is looking for potential markets in Asia as well as the U.S. They see the new tax credit as a means to attract investors.
"This credit makes investing in technology very sage for local investors provided they're investing in a Qualified High-Tech Business," notes Kim.
Hawaii is also looking to expand high-tech industries with funding and incubators.
The Maui Research and Technology Center, managed by the Maui Economic Development Board, has recently found itself at full capacity. The center has helped Maui engineer Michael Polosi launch his head-mounted mouse for disabled computer users. The firm, MiracleMouse, has also spawned a spin-off for computer gamers, Cymouse.
With the Maui Technology Center at full capacity, officials launched another virtual incubator early this May, Maui Tech Ohana. It will focus on high-tech enterprises and networking to enable entrepreneurs to make business connections.
"It will be an incubator without walls," says David Fisher, Maui director of the Hawaii Small Business Development Center Network, which helped the board develop the program.
Recently the five island boards of the The Economic Development Alliance of Hawaii worked together on a project called the Kamaaina Come Home campaign, targeted at reeling in former locals to work in the growing tech industry.
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For the last ten years, a new city is taking shape on the western edge of Oahu. The city of Kapolei (www.kapolei.com) is a master planned development offering the state's largest industrial park, a commercial harbor, business park, residential areas and of course, a vacation resort.
The Kapolei development currently has eight major projects underway, representing $165 million in development investment. Kapolei offers some unique advantages for site selectors. The Kapolei teleport gives businesses direct access to satellite communications with Asian markets. This location allows firms to communicate with U.S. and Asian markets simultaneously.
"Last year alone, the number of satellite dishes at Kapolei teleport doubled in number," says Howard Schwiebert, telecommunications manager for the Campbell Estate. The teleport is home to several large companies such as USAsia Telecom, a division of Mitsubishi, Verizon, Loral Cyberstar and Vision Accomplished.
Mid-Pacific Broadband will break ground this year on its first phase of a new 300,000-sq.-ft. (27,870-sq.-m.) facility. The Network Access Point and Internet Data Center will be constructed on a 54-acre (21-ha.) site within the park and will offer outsourcing, Intranet and Internet services. When finally completed, the center will employ more than 150 workers. Last year the Honolulu Advertiser also opened a new facility at Kapolei. The facility, a $29-million investment, includes a distribution warehouse and printing plant.
As Asian economies improve, Hawaii will continue to be a paramount spot for firms looking for a foothold from which to serve the high-tech and communications needs of both Asian and U.S. markets.
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