FROM THE DESK OF...ANNE DOHERTY JOHNSON, EXECUTIVE DIRECTOR

How could proposed legislation impact your company's product development, growth, business practices or profitability? The answer is quite significantly, with the impact of  government policy on high tech continuing to increase, with the industry being called to battle more and more legislative proposals that threaten to slow the adoption of new technology, add burdensome costs or otherwise impede industry growth.

AeA has many ways to keep our members up to date on these threats, and how they could impact your company. We regularly prepare issues briefs and research reports that are designed to quickly and clearly outline the issues, educate stakeholders, encourage positive dialog and foster sound legislation.  These reports have been widely applauded by AeA members, lawmakers and the press for taking the mystery out of complex issues -- from data privacy and RFID to environmental end of life and business taxation. I encourage you to stay up to date by reading AeA issue papers and reports, a free benefit of AeA membership.

To learn more about the numerous legislative issues we are working on your behalf, read the latest issue of our AeA New England Legislative Alert for September 2007. We continue to monitor many issues industry issues including: Data Breach, E-Recycling, Taxation, Broadband Deployment, STEM Education and Cell Phone Use in Cars to mention just a few.

A new benefit of AeA membership is our Member to Member Discount Program.  We are excited to be bringing this opportunity to our members and want to hear from you.  See below for more information on how your company can grow revenues and exposure within the high tech industry by enrolling in this free program.

In other Council news, we continued to present local professional development and networking events. Over the summer, AeA held a successful program focused on sharing best practices for Prospering in the Asia Pacific Market. Attendees benefited from an information packed program on how technology companies can grow business in China and Korea. Featured speakers included Greg Shea of AeA's Beijing office and more.  Special thanks to our event sponsor, KIICA-Boston and our host, AeA member BTU International. Attendees interested in this program may also wish to read these recent AeA publications -- call us for more information on these valuable free reports available from AeA.

• The U.S.-South Korea Free Trade Agreement: Improving Access and IP Protection for American High-Tech Products and Services (June 2007)
• China and the United States – The Links Grow Stronger (May 2007)
• China's 15 Year Science and Technology Plan (April 2007)

Earlier, we continued our International Series with our annual seminar on Keeping Your Company Trade Compliant designed for companies exporting to foreign markets or importing components or technology. With ever changing regulations, this once a year refresher was extremely useful in updating attendees on the latest changes to regulations and enforcement activities, AeA's International Committee efforts, and current discussions in Washington on pending trade agreements, H1-B Visas and deemed export licensing requirements (which apply even for companies not exporting products -- call AeA for more details if you sell dual use products). Special thanks to AeA member Cadence for hosting this event.

AeA hosted another sold out event in the spring Environmental Compliance, hosted by Teradyne, Inc. and sponsored by 5-Trees LLC, TetraTech and Allen & Overy. This event reviewed regulations including China RoHS; WEEE, electronic waste recycling laws; chemical bans; REACH and EuP.  To learn more about AeA's environmental issue work, contact Anne Doherty Johnson at 781.938.1925, x105.

We also conducted our annual half day seminar on Sales Compensation: Rewarding Top Sales Performers While Managing Costs.  This interactive session reviewed industry trends in sales compensation plans and ways to tie compensation plans to revenue and corporate growth. The seminar, presented by AeA and The Alexander Group, reviewed how best to design and simplify plans so they help achieve company objectives. Special thanks to AeA member Stratus Technologies in Maynard, MA for hosting this event. A networking luncheon followed, featuring a peer discussion led by our speaker.

We also held a webinar on Deemed Exports, a topic impacting many of our members.  Participants learned what constitutes a deemed export, why the U.S. Government has identified deemed exports as one of its primary enforcement focuses, how to spot deemed export situations in advance and new methods of ensuring compliance with the deemed export rule under both the EAR and ITAR. For companies dealing with this issue, we have an event CD you can order that can be an aid in educating employees about the importance and details of this law. Call the Council office for details.

Please feel free to call us for more information on any of these topics and how we may be of assistance to you.

Wishing you continued success in advancing the business of technology,

Anne Doherty Johnson
Executive Director, AeA New England Council

AeA/Stanford Executive Institute Graduates Nearly 100 Technology Leaders

In addition to University faculty, speakers included CEOs, Board Chairmen, VCs, and political leaders, such as:

• Timothy E. Guertin, President and CEO of Varian Medical Systems and current AeA Chairman of the Board, who shared what qualities and traits he looks for in senior leaders and high potential employees.  He also discussed what business knowledge and skills helped facilitate his own rise through several key management positions during his 31-year Varian Medical Systems tenure. 
   

• Eric Benhamou, the Chairman of the Board of Directors of 3Com Corporation and Palm, Inc. and co-founder of Bridge Communications and Benhamou Global Ventures, shared his experiences as a CEO and leading his company through a merger, to his transition into private investing and the active role he plays as a mentor to innovative high tech companies.
   

• Bill Archey, President and CEO of AeA, highlighted tech's historical involvement in legislative and government initiatives.  He shared updates on competitiveness, net neutrality, SOX, and intellectual property issues impacting the industry.
   

• Deepak Chopra, Founder and Chief Executive Officer of OSI Systems, was honored by AeA and Stanford University with the 2007 Alumnus Award for Outstanding Achievement.  Mr. Chopra attended the Institute in 1981.

For more information about the Institute or to register for next year, call your local council.

STATE, FEDERAL AND INTERNATIONAL ISSUES IMPACTING OUR INDUSTRY

U.S. and China Approaches to Innovation and Competitiveness Policies On August 2, AeA hosted a program in the David Packard Conference Center for over 50 participants from industry and government that analyzed the policy approaches taken by the U.S. and China towards promoting innovation and competitiveness.  Both countries are confronting the same challenge to be competitive in the rapidly changing global economic environment and see innovation leadership as a critical factor in their efforts, but they are coming from very different starting points. William T. Archey, AeA President and CEO, kicked off the program with a discussion of AeA’s efforts over the last three years to alert U.S. policymakers to the need for policy changes in the areas of math and science education, research, and highly-skilled foreign workers if the U.S. wants to maintain its global competitive leadership.  He noted that China has taken lessons from the U.S. policy approach after Sputnik, and is devoting substantial resources to development in key technology sectors, funding of research, and increasing the number of engineers.  Fortunately, the Congress finally responded to AeA’s efforts with the passage of the 21st Century Competitiveness Act just before leaving for its August recess.  The Act provides incentives for American children to take math and science, training for teaching of math and science, and increased budgets for basic R&D. Greg Shea, President and Managing Director of the US Information Technology Office in Beijing (USITO), expanded on the Chinese policy approach which includes a 15-year plan, Guidelines on National Medium and Long-Term Program for Science and Technology (2006-2020).  The plan seeks to have, by 2020, over 2.5 percent of GDP invested in R&D, reliance on foreign technology below 30 percent, and to be among the top five countries with worldwide patents.  They target eight industries as priority areas for development and innovation.  Despite this strategic targeting of resources, China’s ability to innovate will be hampered by its lack of intellectual property protection and the resistance to working with global standards.  To discourage the focus on indigenous innovation that could exclude U.S. high-tech companies, USITO has been arguing the importance of the innovation ecosystem that requires a complete set of policies designed to foster innovation. The second panel of the program included presentations by Rich Brecher, Director Global Advocacy for Motorola; Greg Slater, Director Trade Policy for Intel; Chris Moore, Deputy Assistant Secretary for Trade Policy and Programs at the U.S. Department of State; and Richard Johnson, Senior Partner at the law firm of Arnold and Porter.  The industry representatives agreed that, in essence, they would like to see the U.S. government do more to support innovation and competitiveness of U.S. companies while the Chinese government should do less regulating that negatively impacts foreign companies.  Through the U.S. – China Strategic Economic Dialogue (SED), both countries have agreed to principles for an innovation dialogue going forward.  As part of this dialogue they agreed to hold an Innovation Conference in Beijing around the time of the next SED meeting in December.  Finally, Rick Johnson outlined the work of the OECD in assessing China’s approach to innovation. The program highlighted the importance of these policies in the U.S. and China to the U.S. high-tech companies that are playing a central role in the economic development of both countries.  AeA continues to be active on both fronts seeking more support from the U.S. government while coordinating with USITO in trying to steer the Chinese government away from interventions that would hinder the business of our member companies. For more information on the International Issues affecting your company, visit: The AeA International Update AeA India High Tech News Report China IT Weekly Europe in a Page   Competitiveness Legislation Signed Into Law...AeA Plan Moving Forward The passage of the America Competes Act represents a positive step forward and a major accomplishment for AeA.  As stated in the op-ed co-authored by Craig Barrett, Chairman, Intel, and William T. Archey, President & CEO, AeA, and printed in the August 19 San Jose Mercury News it is among the most important bills passed in years for the high-tech industry.  However, AeA is now working to ensure that this is not the end of the line of the Competitiveness agenda on the Hill, but rather just an important first step.  AeA’s focus come the fall, when Congress returns from Summer Recess, is to push forward on the Competitiveness agenda. Among its many beneficial provisions for the high-tech industry, the America Competes Act contains two major provisions.  The first is the call for the doubling for research programs at the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the Department of Energy (DOE) Office of Science.  The second is the authorization of a total of $43.3 billion over the fiscal years for 2008-2010 for science, technology, engineering, and mathematics research and education programs across the federal government.  The next step for AeA is to push Congress to ensure full funding for these two important elements and other provisions in the Competitiveness Agenda that will benefit the high-tech industry. While AeA is pushing for full funding, it is also working on other elements of the Competitiveness agenda.  The bulk of AeA’s efforts will be focused on High-Skilled Visa reform.  Using the momentum of our grassroots efforts created by the hard work of AeA staff across the country and the executives of our participating member companies, AeA will continue to educate, preach, and demand High-Skilled Visa reform. If you would like to get involved to volunteer and tell your company's story, please contact Anne Doherty Johnson.   Child Online Safety Group Formed to Promote Legislation and Create a Safer Internet Experience AeA has recently launched its Child Online Safety group.  This group is dedicated to promoting legislation that promotes a safer Internet experience for children, while ensuring that state legislation is technology neutral.  Recently, AeA has rolled out its online safety webpage to provide examples of the dangers on the Internet, useful tips on how to protect yourself and loved ones, and links to informative websites for further information on Internet Safety. Online safety is just one issue AeA is tracking throughout the states.  Come the fall, AeA will continue to monitor legislation impacting RFID, E-Waste, and E-Commerce in the handful of states that have not finished their legislative calendar for the year. For more information on activity across the states or to get involved with AeA's State Government Affairs contact your local council office. AeAHealth! CARE TIP: COPING WITH STRESS AeAHealth! and UnitedHealthcare’s Tip of the Month: Coping with Everyday Stress Sources of stress are everywhere and, if not dealt with effectively, could lead to decreasing levels of productivity by you or your employees.  UnitedHealthcare understands this and as part of the AeAHealth! Insurance Program offers member companies access to the Care24 program.  Care24 is available 24 hours a day, 365 days a year, and allows you to speak directly with experienced registered nurses, master's level counselors, attorneys, financial advisors, management consultants and trainers about your stress.  In addition to access to experts via the telephone, Care24 delivers AeA Members opportunities to attend training and wellness seminars and consultations on personal legal and financial concerns; critical stress management; decision support for minor emergencies; information on diagnostic procedures and treatments; and more.  Care24 is also available in more than 140 languages for non-English speakers and their families. For more information about AeAHealth! and its offerings—such as Care24—that are provided by UnitedHealthcare, please contact Tiffany Barrett at 202.682.4459 or tiffany_barrett@aeanet.org. ACCESS TO INVESTORS: AeA FINANCIAL CLASSIC CONFERENCE November 4-7, 2007 - Monterey, California Featuring up to 200 Publicly Traded High-Tech Companies Join us November 4-7 at the Monterey Conference Center for the 37th annual AeA Classic Financial Conference.  Showcasing presentations from up to 200 publicly traded AeA member companies with a market cap or revenues of $100 million to $4 billion.  Presenting companies will have an opportunity to gain visibility and develop business contacts with 600+ investors. Tell your story before 600+ investors in one location Network with fellow executives from 200 companies and tell your story before 600+ investors in one location Leverage the small group break out sessions to exchange information and identify new business opportunities Boost your investor relations program and grow your company's visibility To register, contact Anne Doherty Johnson.   COMPENSATION DATA AT YOUR FINGERTIPS High-Tech Industry Specific Salary Data At Your Fingertips In today's market, it is critical to know if you are over or under compensating your employees so that you can maximize your top and bottom lines.  Avoid costly mistakes - ensure you have the right information you need to make sound compensation decisions. Building on 20+ years of providing salary surveys, AeA offers online, subscription-based access allowing you to receive fresh data, day or night, anytime of the year.  Unlike any other survey product on the market, AeA's Salary Survey provides:  Current Data - Updated daily and year-round it provides you the most up-to-date data available. Custom Reports - Refined searches based on region, industry or company type at no extra cost. Free Access - AeA Members receive complimentary access, just for participating. Your company's participation in the AeA Salary Survey is critical to maintaining dynamic reports for you and your industry peers.  All data submissions are kept strictly confidential. For more information, visit http://survey.aeanet.org or, contact AeA's Survey Support at SurveyInfo@aeanet.org or 1.800.542.9078. BUSINESS NETWORKING: 2007 MEDAL OF ACHIEVEMENT EVENT HONORING AeA's BILL ARCHEY Sponsor or Attend the 2007 Medal of Achievement Luncheon Honoring AeA's President & CEO AeA's Board of Directors welcomes you to join us for a very special Medal of Achievement Luncheon honoring William T. Archey, President and CEO, AeA, on October 2 in San Jose.  Since 1959, the AeA Medal of Achievement is presented annually to recognize an individual who makes significant contributions to the advancement and service of their community, the high-tech industry, and humankind.  It is the highest award presented by AeA and is known as one of the industry's best networking events in Silicon Valley. William T. Archey has been the President & CEO of AeA since 1994 and will be retiring in early 2008.  Under his leadership, AeA has been Advancing the Business of Technology through its research reports; international, domestic, and state lobbying efforts, financial investor conferences; executive education programs; networking events; and through offering cost savings programs to our members.  In addition to AeA's two former executives E.E. Ferry and Richard Iverson, Archey will be joining a who's who of high-tech leaders who have received the honor, including: William Hewlett and David Packard, Hewlett-Packard; Ross Perot, Electronic Data Systems; Thomas J. Watson, Jr., IBM; Gordon Moore and Andrew Grove, Intel; Thomas J. Engibous, Texas Instruments; and John Warnock and Chuck Geschke, Adobe. For more information on attending or sponsoring this event please contact Colette Gonsalves at 408.987.4248 or colette_gonsalves@aeanet.org. Platinum Sponsors Gold Sponsor Silver Sponsors CYBERSTATISTICS OF INTEREST: FTAs BOOST EXPORTS Free Trade Agreements Boost Exports Growth of exports since Free Trade Agreement implementation through year end 2006 by Country (year FTA went into force) Note: CAFTA-DR = Costa Rica, Dominican Republic, Guatemala, El Salvador, Honduras, and Nicaragua Source: United States Trade Representative Currently, 4 trade agreements with 4 countries are before the U.S. Congress:  Panama, Peru, Colombia, and South Korea. These trade agreements remove tariff and non-tariff barriers to technology products and strengthen protection for intellectual property. If approved by the U.S. Congress, these agreements would help boost U.S. exports of high-tech goods. The United States has significant technology trade surpluses with Panama ($302 million), Peru ($636 million), and Colombia ($1.2 billion). Trade with Latin America is of particular importance for the United States.  We have always tried to extend strong economic ties with our neighbors in the Western Hemisphere; they are strategically and geopolitically vital to U.S. interests. Other countries are negotiating trade agreements with these countries.  If the United States is not adopting similar agreements that lower barriers for U.S. goods, we will be at a competitive disadvantage. For more information on Industry Data and AeA Publications visit www.aeanet.org/research   PHOTO CORNER Ninety-six senior leaders from many of the industry's leading companies attended the 2007 AeA/Stanford Executive Institute from August 12-23.  This intensive eleven-day executive management program has developed the careers of over 3,400 high-tech professionals since 1975.  Pictured is AeA President & CEO William T. Archey, discussing how public policy directly affects business's top and bottom line. Over the summer, AeA's New England Council hosted a program in North Billerica, MA, focusing on sharing best practices for Prospering in the Asia Pacific Market.  Attendees benefited from an information packed program on how technology companies can grow business in China and Korea.  Pictured are the speakers from the event.  Representatives from New England area companies learn the latest about global environmental directives impacting high tech products at AeA's seminar hosted at Teradyne.      CALENDAR OF EVENTS Date Event Location Sep. 5 WA Marketing Committee Conference Call Via Telephone Conference, WA Sep. 6 Research & Tech Grant Workshop - Conf. Call Via Telephone Conference, WA Sep. 6 NCA 2007 Conference Bellevue, WA Sep. 6 SD HR Roundtable: Employee Benefits San Diego, CA Sep. 6 IT Roadmap: Dallas Dallas, TX Sep. 6 OC Operations Committee Meeting Irvine, CA Sep. 6 Twin Cities RFID Forum - Putting RFID To Work in Retail Minneapolois, MN Sep. 7 WA Education Committee Meeting Lynnwood, WA Sep. 10-11 Organizational Analysis and Design Hillsboro, OR Sep. 10 MHTA Networking Event -- Tekne Award Winners Announcement Minneapolis, MN Sep. 11 OC International Committee Meeting Irvine, CA Sep. 11 OC Membership Committee Meeting Irvine, CA Sep. 11 OC Sales & Marketing Committee Meeting Tustin, CA Sep. 11 Estonia: "Silicon Valley on the Baltic" Seattle, WA Sep. 12 WA HR Committee Meeting Bellevue, WA Sep. 12 WA Membership Committee Meeting Bothell, WA Sep. 12 Finance Roundtable Atlanta, GA Sep. 12 AeA SD Operations Roundtable Joint Meeting San Diego, CA Sep. 13 AeA Salary Survey Orientation Webinar Via Online, Webinar Sep. 13 Eastside CEO Forum Luncheon Bellevue, WA Sep. 13 CFO Forum: Thriving in a Private Equity World Portland, OR Sep. 13 OC SWAT Committee Meeting Irvine, CA Sep. 14 CFO Committee Roundtable Lombard, IL Sep. 14 Technovations - Tampa Tampa, FL Sep. 14 AeA East Bay CEO Roundtable Fremont, CA Sep. 18 TX HR Lunch 'n Learn Austin, TX Sep. 18 Global Trade Compliance Mountain View, CA Sep. 19 How To Win Business in California Santa Clara, CA Sep. 19 AeA Cyber Series - Appropriations Programs Washington, DC Sep. 19 AeA Customs Committee Meeting Cupertino, CA Sep. 19 AeA Export Controls Committee Meeting Cupertino, CA Sep. 19 CXO Race Day - Redux Irwindale, CA Sep. 19 Building Your Company's Health Fort Lauderdale, FL Sep. 19 AeA CEO Fourm - CO Springs Colorado Springs, CO Sep. 19 Get People To Your Website & Keep Them There! Irvine, CA Sep. 19 Government-Industry Executive Interchange Washington, DC Sep. 20 Product Development Roundtable: Pain Killer Product Design San Diego, CA Sep. 20 Spirit of Endeavor Awards Banquet Atlanta, GA Sep. 20 AeA TX CEO Roundtable Dallas, TX Sep. 20 Hong Kong: Turning China Into Opportunity Seattle, WA Sep. 20 Seattle CEO Forum Luncheon Seattle, WA Sep. 20 Trends in State Government: Who Is Buying What? Chicago, IL Sep. 20 Building Your Company's Health Orlando, FL Sep. 20 Executive Committee Meeting Woodland Hills, CA Sep. 25 OR FY07 Celebration / FY08 Kick Off Portland, OR Sep. 25 AeA TX CFO Forum 6 - Dallas Addison, TX Sep. 25 Executive Dinner Series: Colleen Pedroza Sacramento, CA Sep. 25 Sales Leadership Roundtable - Info. Mtg. Lynnwood, WA Sep. 26 AeA Cyber Series - Appropriations Programs Washington, DC Sep. 27 AeA Cyber Series - Appropriations Programs Washington, DC Sep. 27 NJ-PA Government Affairs Committee Via Telephone Conference, NJ Sep. 27 Environmental Compliance Webinar Via Online & Telephone, Northeast US Sep. 27