Steve Jobs, chief executive officer of Apple Inc. Photographer: Asa Mathat/All Things Digital via Bloomberg
Google Inc. Chief Executive Officer Eric Schmidt. Photographer: Denis Doyle/Bloomberg
Facebook Inc. founder Mark Zuckerberg. Photographer: Tony Avelar/Bloomberg
President Barack Obama plans to
discuss his economic agenda and ideas for job growth at a
private dinner tonight with technology executives including Apple Inc. Chief Executive Officer Steve Jobs, Facebook Inc.
founder Mark Zuckerberg, and Google Inc. CEO Eric Schmidt,
according to an administration official.
The president will meet with the executives in the San
Francisco area, three days after releasing a $3.7 trillion
budget that aims to keep up government funding for education,
infrastructure and research. He’s likely to hear from the
executives about taxes, patents and regulations.
The companies represented at the dinner at a private
residence are major components of a sector “that has been a
huge contributor to economic growth in the last several
decades,” White House press secretary Jay Carney said today,
before Obama left for California. “There’s a lot of support
among leaders of this industry for our education agenda.”
Also expected to attend the session are John Doerr, senior
partner at Kleiner Perkins Caufield & Byers, Carol Bartz, CEO of
Yahoo! Inc., Dick Costolo, CEO of Twitter Inc., Reed Hastings,
CEO of NetFlix Inc., Arthur Levinson, Genentech Inc. chairman,
John L. Hennessy, president of Stanford University, and venture
capitalist Steve Westly, managing partner of The Westly Group,
the official said, speaking on condition on anonymity.
John Chambers, CEO of Cisco Systems Inc., and Oracle Corp.
CEO Larry Ellison also will attend, spokeswomen for both
companies said. Andrew Noyes, a spokesman for Facebook,
confirmed Zuckerberg will be at the dinner.
“Mark looks forward to speaking with President Obama and
fellow technology industry leaders about the value of innovation
to economic growth, jobs, and U.S. competitiveness,” Noyes said
in an e-mail.
Economic Policies
Obama is holding the meeting as his economic policies are
under fire from Republican lawmakers, who control the House of
Representatives, and the administration is seeking ways to bring
down the unemployment rate. The U.S. jobless rate has stood at 9
percent or more for the longest stretch since monthly data was
first compiled in 1948.
Senator Mark Warner, a Virginia Democrat who co-founded a
company that became Nextel Corp., now Sprint Nextel Corp., said
in an interview that the Internet and social networking have
been one of the rare areas of significant growth in the past
decade.
Warner, who met Zuckerberg on Jan. 19 at Facebook’s Palo
Alto, California, headquarters, said that “without innovation
and a growing economy out in” Silicon Valley, “we’re not going
to be competitive.”
Expanding Access
Along with proposals to improve U.S. public education,
Obama’s budget includes $18 billion to build up wireless
networks for emergency workers, expand access to high-speed
wireless service and supplement communications research.
Former U.S. Securities and Exchange Commission Chairman
Arthur Levitt said that “there’s a natural alignment of
interests” between the president and technology executives.
“I think the president is clearly trying to establish
himself as being at least comfortable with the business
community and not alien to their interests,” said Levitt, an
adviser to the Carlyle Group, Promontory Financial Group and Goldman Sachs Group Inc. He is also on the board of Bloomberg
LP, the parent company of Bloomberg News.
There is a feeling of frustration among technology
executives that the administration has paid lip service to
investments in innovation and education without backing them up
with actions, said Russell Hancock, chief executive officer of
Joint Venture, a research group in San Jose, California, that
provides analysis on the region’s economy.
‘Strategic Investments’
“We’re not getting the sense that the president and his
team are spending enough time here or directing those crucial
strategic investments to this region” like improving
infrastructure, including ports for the transportation of goods,
and stepping up developments in communications, he said.
In his State of the Union address Jan. 25, Obama cited
technology companies as heirs to the industries that made the
U.S. the world’s biggest economy.
“We’re the nation that put cars in driveways and computers
in offices; the nation of Edison and the Wright brothers; of
Google and Facebook,” he said. “In America, innovation doesn’t
just change our lives. It is how we make our living.”
Warner said the executives will likely seek Obama’s help in
improving the business climate in the U.S. That would include
lowering corporate taxes, shortening the patent approval
process, helping new businesses get the capital they need to
launch and expand and shortening the Food and Drug
Administration approval process, he said.
Relations With Business
Obama also is seeking to burnish his pro-business
credentials after struggles with groups such as the U.S. Chamber
of Commerce during his first two years in office.
“This is his way of showing he’s very interested in
figuring out how to strengthen the U.S. economy,” said Bill Kreher, an analyst with Edward Jones in St. Louis. “Obama
recognizes there are bright tech CEOs that can help him shape
the direction of the country.”
Tomorrow, Obama plans to highlight education during a visit
to Intel Corp.’s Hillsboro, Oregon campus, where he will tour
the company’s semiconductor manufacturing facility with Intel
CEO Paul Otellini.
Obama has tapped Silicon Valley for support in the past.
While this trip doesn’t have a direct political purpose,
according to Carney, when Obama was in California last October,
he helped raise money for the Democratic National Committee at
the home of Westly.
Industry Employees
Employees in the high-tech industry contributed $8.5
million to Obama’s 2008 campaign, compared with $1.5 million for
Republican nominee John McCain, according to the Center for
Responsive Politics, a Washington-based research group. No 2008
candidate received more money than Obama from industry
employees. Obama won more than 70 percent of the vote in 2008 in
the area where the dinner is taking place.
During that October stop in the San Francisco area Obama
held a separate meeting with Jobs.
Jobs announced on Jan. 17 that he was taking a medical
leave from the most valuable technology company. It marked the
third time the Apple co-founder has taken time away from the
company since 2004 to deal with health problems.
To contact the reporter on this story:
Kate Andersen Brower in Washington at
kandersen7@bloomberg.net
To contact the editor responsible for this story:
Mark Silva at
msilva34@bloomberg.net