IBM invested $7.9M in 2007 lobbying; does tech favor Democrats?
Tech companies plunked down some serious coin last year for lobbying efforts. Among the companies we watch here on the EDN news desk, IBM led the way, investing $7.9 million.
That’s according to the Center for Responsive Politics, which tracks lobbying spending on its Web site OpenSecrets.org and bases its information on data available from the Senate Office of Public Records. According to the site, computers/Internet ranked as the fourth industry in terms of lobbying dollars spent last year, shelling out nearly $111 million. Pharmaceuticals/health products, insurance, and electric utilities ranked in the top three spots, respectively. Total 2007 lobbying was up 8% from 2006 to nearly $2.8 billion, making it a record year (see "Total Lobbying Spending," left). The $111 million figure is more than double the $40 million in lobbying funds that came from computers/Internet in 1998 (see "Annual Lobbying on Computers/Internet," below).
IBM’s $7.9 million effort is a high for the company over the last nine years and puts IBM far above other players in the semiconductor world. But such investment from Big Blue is not entirely unexpected. While the company’s policy is to encourage its employees to participate in local politics “as private citizens, not as IBMers,” it has a long and involved history in American politics (see this Harvard paper on the Watson family’s influence).
And while its $7.9 million number stands out, IBM is not alone in putting its money where lobbyists’ mouths are. Other big-spender chip players who contributed to the computers/Internet category’s $111 million 2007 lobbying efforts include Intel, which spent nearly $1.8 million, and TI at about $2.8 million in spending. Outside of the chip space, Microsoft led all computer/Internet companies with $9 million to lobbying efforts.
Meanwhile, contributions from the computers/Internet industry are also on the rise, according to the Center for Responsive Politics. And tech seems to favor the Democratic Party, at least in recent elections. I’m not sure what the connection is there. Besides Bill Gates pushing for less stringent H-1B visas and reformed immigration, I see little Democratic mindset from our corner of the tech world. And when I covered well-known Dem and former VP Al Gore from last year’s Embedded Systems Conference, that opened a whole can of worms.
Nevertheless, see the long-term contribution numbers from computers/Internet (above, right, and below) from the watchdog group. To be sure, the numbers are based on contributions of $200 or more from PACs (political action committees) and individuals to federal candidates and from PAC, soft money, and individual donors to political parties, as reported to the Federal Election Commission. While election cycles are shown in charts as 1996, 1998, 2000, etc., they actually represent two-year periods. For example, the 2002 election cycle ran from January 1, 2001 to December 31, 2002. So the numbers shown for 2008 started January 1, 2007 and are current through March 3, 2008, the Center for
Responsive Politics reports. So far, computers/Internet has contributed more than $15.5 million for the 2008 election cycle. That compares with about $18.5 million from the industry in the 2006 cycle and $29 million in the 2004 election cycle.
In the end, it doesn’t matter that the economy is struggling, that there may be layoffs mounting, and that R&D funds may be feeling the pinch. Politics is recession-proof, and when it comes to the likes of visa issues, NAFTA, green legislation, federal investments, IP rights, etc., tech wallets open and they open wide.
But what is the appropriate place for tech in politics? Are the above noted lobbying efforts and contributions excessive? Or are they in line with the value of what’s at stake in the coming election season? Share your thoughts below.
–Suzanne Deffree, Managing Editor, News
Source for above charts: Center for Responsive Politics
Editor’s note on the long-term contribution charts: * The above figures do not include donations of "Levin" funds (contributions that state and local parties can spend on voter registration and get-out-the-vote activities related to federal elections) to state and local party committees.
**Soft money contributions to the national parties were not publicly disclosed until the 1991-1992 election cycle, and were banned by the Bipartisan Campaign Finance Reform Act following the 2002 elections.
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