DATE=10/6/1999
TYPE=BACKGROUND REPORT
TITLE=C-I-A / SILICON VALLEY
NUMBER=5-44431
BYLINE=ALISHA RYU
DATELINE=LOS ANGELES
CONTENT=
VOICED AT:
INTRO: In a unique experiment, the U.S. Central
Intelligence Agency (C-I-A) has set up a company to
invest in high-tech companies in California's Silicon
Valley. Surprisingly, the spy agency says none of
these activities will be conducted in secret. V-O-A's
Alisha Ryu in our West Coast Bureau has details of the
C-I-A's entry into the world of venture capitalism.
TEXT: The C-I-A calls the new company "In-Q-It."
The "In" stands for intelligence, the "It" for
information technology. And the "Q" in the middle is
a humorus nod toward the beloved gadgets expert "Q" in
the James Bond movies.
But there is little else light-hearted about the
agency's new venture. Using 28-million dollars in
start-up money from previously classified funds, In-Q-
It will invest in high-tech companies and
entrepreneurs and form joint ventures with others.
The objective -- to integrate Internet technology and
applications that could benefit the C-I-A.
In-Q-It's chief operating officer, Gilman Louie, says
this is the first time a government agency has adopted
a private-sector model to meet its needs. He believes
the company's success will be critical to the long-
term viability of the agency.
/// FIRST LOUIE ACT ///
Without it being able to achieve a state-of-the-
art level of information technology, the basic
mission of the C-I-A would be in jeopardy. We
are talking about wrong decisions or information
getting out into the wrong persons' hands that
can cost lives.
/// END ACT ///
Mr. Louie cites the accidental bombing of the Chinese
embassy in Yugoslavia, a target chosen by the C-I-A,
as an example of what happens when the agency
generates erroneous or incomplete information.
But in order to attract the best minds to help upgrade
its information-gathering system, Mr. Louie says the
C-I-A realized it needed to make In-Q-It's activities
highly visible and public.
/// SECOND LOUIE ACT ///
The problem today is that "operating in the
black" (in secret) is not a viable solution.
First of all, to attract a talent, the talent
needs to be able to take that technology and
spin it to the commercial side in order to get
financial gain. And without that financial
gain, the government takes a second seat to
commercial needs. So, in terms of attracting
talent, they realize they need to do this in the
open.
/// END ACT ///
Mr. Louie, who is a veteran Silicon Valley software
executive, says the C-I-A faces the same competitive
challenges as any other large corporation trying to
tap into Silicon Valley's talent pool. While In-Q-It
will remain non-profit for the time being, he says his
eventual goal is to make the company self-sustaining
from its investments.
/// THIRD LOUIE ACT ///
I think this model will take some time to prove
out whether or not it is a model that will
really work. I think there is some level of
risk. I applaud the C-I-A for taking the risk.
/// END ACT ///
In-Q-It will not be entirely based in California. Mr.
Louie says the company will keep an office in
Washington D.C. to coordinate with the agency and with
a board of directors that includes well-known high-
tech executives, as well as former Defense Secretary
William Perry. (Signed)
NEB/AR/TVM/gm
06-Oct-1999 18:21 PM EDT (06-Oct-1999 2221 UTC)
NNNN
Source: Voice of America
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