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Journal of Undergraduate Research

Keywords

Mountain West, IT economies, Utah, Colorado, public IT markets

College

Family, Home, and Social Sciences

Department

Political Science

Abstract

Escalating in the mid-1970s, two very similar Mountain West economies augmented a dramatic shift from mining and agriculture toward information technology (IT). Both Utah and Colorado took steps to attract computer and software firms in an effort to diversify and develop IT industries. At first glance, Colorado IT markets appear superior in scale and scope due in part to a more sophisticated professional services infrastructure and far more equity finance. Notwithstanding these apparent disadvantages, public IT firms in Utah consistently demonstrate greater profitability and faster growth rates during the last 10 years. While Colorado tends to specialize in birthing new public firms, Utah IPOs manifest greater profitability over time. Several explanations for such disparity exist. This thesis approaches this puzzle by use of several methods: historical comparison, regression analysis, and policy analysis. The results of these analyses show that after controlling for several factors—age, size, growth rates, and public policy—performance differences between mature Utah and Colorado public IT firms largely disappear. While mature Utah firms still edge out the regional competition, Colorado firms, after a lengthy incubation period, move toward performance convergence despite their relative smallness. CONTENTS

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