The Lone Star Rises in High-Tech Exports

The cliche -Everything is bigger in Texas- now applies to high-tech exports. For the first time ever, as confirmed by a report from TechAmerica, a trade association that represents the technology sector, Texas has surpassed California as the nations leader in high-tech exports.

In 2012, the Lone Star State sent more than $45.1 billion in American-made innovation to overseas markets, a 7.3 percent increase from 2011. Energy products are still the states top exports, but the top billing for high tech is great news for our states 500,000-person-strong high-tech workforce, more than 65 percent of whose jobs depend on trade.

High-tech companies that manufacture in the state, like Texas Instruments, work hard to compete and win against tough competitors around the world. But success does not just happen. It depends on a number of factors: a smart, motivated and diverse workforce; access to world-class talent; low operating cost; and a predictable, business-friendly environment that balances economic growth with tax and regulatory needs.

The incredible growth of the innovation ecosystem within the state has also been a driver. Texas now ranks fifth in winning federal research dollars and has attracted some of the worlds brightest minds and most talented researchers to our universities. The Texas Emerging Technology Fund, with its research superiority and matching grants program, and the Texas Research Incentive Program, which focuses on developing more Tier One universities in the state, are both helping Texas become a hub of technological innovation and job creation.

But perhaps the key factor is that Texas has been a real beneficiary of the free trade agreements negotiated by the United States over the last several decades. Historically, the U.S. has been a leader in breaking down barriers and leveling the playing field so that the best products can reach the consumer. And these agreements have had big benefits. The U.S. runs a trade surplus in manufactured goods with our 20 free-trade agreement partners, with more high-tech exports going to our NAFTA partners than any other nation. NAFTA was a big springboard for Texas trade, and subsequent multilateral and bilateral agreements have continued to generate growth for our state.

TI is a company that depends on global customer relationships. It may surprise some to know that nearly 90 percent of TIs revenue comes from overseas sales. When other countries impose tariffs and non-tariff barriers on high-tech products, such as policies that favor indigenous firms or that require technology transfer as a cost of doing business in an important market, it hurts U.S. manufacturers.

This kind of behavior can and does happen all over the world. It stifles innovation, limits growth and narrows consumer choices in the countries that impose these barriers. And because it keeps U.S. exporters from selling great products into other markets, it affects jobs.

Texans are never ones to rest on their laurels. Becoming the leader in high-tech exports is a significant milestone, but much remains to be done. Here are some things we need our elected officials to do now, so that Texas and the U.S. stay strong:

Congress should give the president the authority he needs to cut the best deal he can to open more markets to American-made goods and services by passing trade promotion authority. The administration is driving an ambitious market-opening agenda with Europe and with a number of our trading partners in the Pacific Rim. Texans of both parties should be leading the charge to help secure these agreements.

Pass effective immigration reform that both secures the borders and helps U.S. companies with access to the worlds best talent and brightest minds, especially foreign talent produced by our own universities.

Finally, when fixing our nations spending problems, lawmakers should take care not to short-shrift the future and provide adequate resources for research, infrastructure and education.

There is a lot to be done, folks. None of these issues are easy, and all require political will and determination. But all have proved to be historical winners for our country and our state. Lets all get to work and get them done.

Richard Templeton is chairman, president and CEO of Texas Instruments and may be contacted at rkt@ti.com.