Intel Invests in U.S. Technology Paul Otellini, the CEO of Intel Corporation, the world largest chip manufacturer, noted that other countries, among them China, India, and Taiwan, have overtaken the United States as centers of innovation in the technology industry. Concerned that the United States faces fierce competition from other countries worldwide, Otellini recently announced a new initiative. The Invest in America Alliance” teams Intel with 17 technology companies—including Google, Microsoft, Dell, and General Electric—and 24 leading venture capital firms. The alliance plans to invest $3.5 billion in start up technology companies in the United States over two years. Intel Capital, Intel own investment sector, plans to invest $200 million. The money will go to businesses in innovative fields such as information technology, clean technology, and biotechnology. But the fund will also invest in newer industries such as molecular diagnostics, electric vehicle ecosystems, and wireless infrastructure.
Among the venture capital firms that have signed on are Advanced Technology Ventures, Kleiner Perkins Caufield & Byars, and Draper Fisher Jurvetson. Arvind Sodhani, the president of Intel Capital and Intel executive vice president, said, Venture capital investments have played an important role in creating jobs at home and keeping America at the leading edge of technology globally.”
The alliance is also seeking commitments from the technology industry to increase their hiring of recent college graduates. Among those who have made the pledge are Google, Microsoft, Yahoo!, Adobe, and Dell. The alliance goal is to create a total of about 10,500 jobs, mostly in computer science and engineering. But jobs will also be available in financial planning, marketing, and sales. Intel has promised to hire more recent graduates as well. It would be a long term mistake to let our future scientists and engineers sit idle after graduation,” Otellini said.
Questions for Critical Thinking
1. Why does going green” make good business sense for venture capitalists?
2. How are jobs in financial planning, marketing, and sales important to the technology industry?