Tri-Valley’s right tech mix
Pleasanton, Dublin and Livermore are poised to become high-tech havens, with Callidus Software Inc. among the latest arrivals to the Tri-Valley. Several advanced technology firms have struck deals to move to cities in the area, which has had its ups and downs in attempting to become a Silicon Valley outpost.
For some time, local leaders have hoped that a tech expansion would take hold in the region, which also includes large operations of telecommunications giants AT&T in San Ramon and Comcast cable in Livermore. The region has been touted as a place where Silicon Valley could establish an outpost.
Economic downturns have frustrated the expansion hopes. The dot-com meltdown erased plans by San Jose-based Cisco Systems Inc. to open a big complex in the Tri-Valley. KLA Tencor, also of San Jose, opened a large facility in Livermore, but later gave up its space so Lam Research Corp. could move in. Both efforts dissolved.
This time around, smaller upstarts, including one in the clean-technology sector, could be the ingredient to produce a tech surge for the Tri-Valley.
“The area is starting to become a hub for innovation,” said Linda Maurer, Dublin’s economic development chief. “We are not defined by any one specific industry.”
The newcomers to the area include Perquest Inc., Bridgelux Inc. and Callidus Software Inc. Up-and-comers that are homegrown in the region consist primarily of Taleo Corp., Polycom Inc., Workday Inc., Amerimade Technologies and Pandigital. Established vets include Sybase Inc. and Oracle Corp.
“A number of technology companies are moving here,” said Pamela Ott, economic development director for the city of Pleasanton. “We know that tech businesses attract other tech businesses.”
Other changes have emerged that can nurture the fresh crop of tech firms.
Local BART extensions have improved area transit.
Other efforts are reminiscent of the invention machines at Stanford Industrial Park, Xerox Park and NASA Ames Research Center that helped to power the rise of Silicon Valley.
Two of the East Bay’s national laboratories, Lawrence Livermore and Sandia, have engineered an effort to encourage private sector collaboration and innovation at the lab facilities.
“There is a change in culture at the labs,” said Rob White, Livermore’s economic development director. “Companies will be able to come in and collaborate with scientists on about 120 acres the labs are setting aside.”
Bridgelux, an LED light maker, and Admedes, a biotech firm, plan to take advantage of the lab facilities, White said. Livermore-based Cool Earth Solar is working on a deal with the two labs to build a solar plant.
Here’s another parallel: Commercial real estate space is relatively inexpensive and in large supply in the Tri-Valley, a recession fallout.
In the 1970s, cookie-cutter buildings produced by developers such as the Peery Arrillaga firm helped tech companies expand, sometimes within a matter of weeks or months.
“Rental costs in the Tri-Valley are about 50 percent of what they are in Silicon Valley,” White said.
Low building costs and room to grow were among the factors that coaxed Bridgelux to move to Livermore from Sunnyvale, Perquest to move to Dublin from Oakland, and Callidus to move to Pleasanton from San Jose.
Those three relocations alone have brought about 300 jobs to the Tri-Valley.
Plus, it’s easier for the new tech arrivals to recruit talent. Callidus executives say that’s already begun to pay off.
“Pleasanton can’t be beaten as a location,” said Leslie Stretch, chief executive officer of Callidus, which provides software on demand, also known as software as a service. “It’s a nice labor market, a nice place to live for our employees and great for our customers. We have offices that are appropriate for high tech.”
Callidus will be in its new offices in August.
And next week, a group of businesses led by Sybase will produce a report about the region’s tech clusters. The focus of the report is “Innovation Tri-Valley.”
“The idea is to define the Tri-Valley not as another Silicon Valley, but as its own region,” Maurer said. “We have to really brand this market.”
