Assets and Challenges for Accelerated Technology-Based Growth in Hidalgo County: A
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Assets and Challenges for Accelerated Technology-Based Growth in Hidalgo County: A Knowledge-Based Benchmarking By: Gerald D. Brazier and David V. Gibson Date: October 31, 2001 Abstract: Assessment of assets and challenges to the development of a knowledge-based economy in Hidalgo County, Texas, driven by technology industries, second-generation manufacturing, and value-added support services. Includes data on demographics, economy, education, infrastructure, and business activity, as well as a survey of local business leaders on factors affecting economic development. Keywords: economic development; Hidalgo County, Texas; Texas © IC² Institute, The University of Texas at Austin http://ic2.utexas.edu 2 Knowledge Based Benchmarking Assets and Challenges for Accelerated Technology-Based Growth in Hidalgo County A Knowledge-Based Benchmarking Prepared by Dr. Gerald D. Brazier, Director for Administration Center for Border Economic Studies (CBEST) and Coordinator, UTPA CBIRD Program University of Texas-Pan American and Dr. David Gibson, Director Research Programs IC2 Institute The University of Texas at Austin A CBIRD (Cross Border Institute for Regional Development) Core Progam implemented under a partnership agreement between CBIRD and The University of Texas Pan – American funded by the Economic Development Administration with IC2 Institute, The University of Texas at Austin serving as advisor and subcontractor. 4 Knowledge Based Benchmarking Acknowledgements This project was carried out under a grant from the Economic Development Administration (EDA) of the United States Department of Commerce. All of us working on this benchmarking effort appreciate the generous support of the EDA, particularly Mr. Pedro Garza of the agency’s Austin office. The knowledge based benchmarking has been truly a team effort involving community leaders from Hidalgo County, the personnel from the Cross Border Institute for Regional Development (CBIRD), and staff from the University of Texas – Pan American (UTPA) and the IC2 Institute of the University of Texas at Austin. In particular, we appreciate the effort, support, and encouragement of Mr. Roland Arriola, Vice President for External Affairs at UTPA. Among those contributing to the report were: Bret Mann Executive Director of CoSERVE, University of Texas – Pan American Dr. S. J. Sethi Associate Executive Director of CoSERVE, University of Texas – Pan American Sofia Hernandez Director, EDA University Center, University of Texas – Pan American Michael Uhrbrock Associate Director of CoSERVE, University of Texas – Pan American Michel Fabry Director, Data Information Systems Center, University of Texas – Pan American Robert E. DeSpain Director, Manufacturing Services, University of Texas – Pan American Dr. Robert Wrinkle Director of the Center for Survery Research, University of Texas – Pan American Dr. Eliza Evans Researcher, IC2 Institute, University of Texas at Austin Mark Gipson Researcher, IC2 Institute, University of Texas at Austin Dr. Keti Melikadze Researcher, IC2 Institute, University of Texas at Austin Mario Reyna Director, Division of Business, South Texas Community College Pat Bubb Director, Tech Prep of the Rio Grande Valley, Inc. Also, we would like to thank Dr. George Kozmetzky (IC2), Dr. Abdu Megateli (IC2), Dr. Pablo Rhi-Perez (UT-Brownsville), and all the others from the CBIRD project for helping shape the work and contributing their insights. Gerald D. Brazier and David Gibson Edinburg and Austin October 31, 2001 University of Texas – Pan American 1 Table of Contents Highlights of the Report ............................................................................................................... 6 Introduction................................................................................................................................. 11 Demographics .............................................................................................................................. 16 Population................................................................................................................................. 16 Income and Employment.......................................................................................................... 19 The Potential Impact of Increased Hi-Tech Employment in Hidalgo County......................... 23 Poverty and Unemployment..................................................................................................... 24 Summary................................................................................................................................... 26 Educational Profile ..................................................................................................................... 27 Public School Education........................................................................................................... 28 Summary................................................................................................................................... 34 Tech Prep of the Rio Grande Valley........................................................................................ 35 Community College Education................................................................................................ 39 Summary................................................................................................................................... 45 University Education................................................................................................................ 47 Undergraduate Programs........................................................................................................ 47 Graduate Education................................................................................................................. 50 Summary................................................................................................................................... 52 Regional Research.................................................................................................................... 53 Summary................................................................................................................................... 58 Education Infrastructure Summary........................................................................................... 59 Civil Infrastructure ..................................................................................................................... 61 Water ........................................................................................................................................ 61 Transportation........................................................................................................................... 64 Telecommunications Infrastructure.......................................................................................... 68 Entrepeneurial Infrastructure.................................................................................................... 70 Hidalgo County Enterprises....................................................................................................... 74 Employment and Income.......................................................................................................... 74 Changes in Employment and Income ....................................................................................... 76 Hidalgo County’s Manufacturing Sector.................................................................................. 78 The Healthcare Industry in the Lower Rio Grande Valley....................................................... 81 The Technology Sector............................................................................................................. 92 The Call Centers ....................................................................................................................... 97 Technology Sector Case Study: RGV Wireless....................................................................... 99 Technology Sector Case Study: Hamer Enterprises............................................................. 102 Survey of Region’s Business Leaders ...................................................................................... 105 Most Important Established Industries................................................................................... 105 Hidalgo County’s Emerging Economy .................................................................................. 108 Important Factors in Job Creation and Economic Development............................................ 110 Important Strategies for Job Creation and Economic Development...................................... 114 Business Leader’s Opinions ................................................................................................... 117 Open Ended Comments.......................................................................................................... 118 Conclusions from the Survey of Hidalgo County Business Leaders ..................................... 121 Conclusions ................................................................................................................................ 123 References.................................................................................................................................. 126 Appendices................................................................................................................................