Census of State Government Initiatives for

High-Technology Industrial Development

May 1983

NTIS order #PB84-104033
Library of Congress Catalog Card Number 83-600537

For sale by the Superintendent of Documents,

U.S. Government Printing Office, Washington, D.C. 20402
Preface

This background paper contains preliminary information gathered by OTA during the

early stages of its assessment of Technology, Innovation, and Regional Economic Development. The information is being made available at the request of public officials and others

with an interest in high-technology development programs that are being mounted at the

State and local levels. OTA hopes that its timely publication will prove helpful to readers

who have an immediate need for more detailed information than will be available in the

formal report of this assessment.
OTA Technology, Innovation, and Regional

Economic Development Project Staff

John Andelin, Assistant Director, OTA

Science, Information, and Natural Resources Division

William F. Mills, Program Manager

Science, Transportation, and Innovation Program

Paul B. Phelps, Project Director

Barry J. Holt, Analyst

Caroline S. Wagner, Research Assistant

Charla M. Rath, Research Assistant

Jay M. Berman, Intern (Fall 1982)

Mary Ann Wall, Intern (Spring 1983)

Marsha Fenn, Administrative Assistant

R. Bryan Harrison, Word Processing Specialist

OTA Publishing Staff

John C. Holmes, Publishing Officer

John Bergling Kathie S. Boss Debra M. Datcher Joe Henson

Doreen Foster Linda Leahy Donna Young

/v
—.. . — . .

Contents

—

Chapter

1. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● “ “ ● ● ● “

Z. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preliminary Taxonomy. . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Analysis of Census Results. . +.. . . . . . . . . . . . .

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Creation of State High-Technology Programs . . . . . . . .

General Industrial Development Programs . . . . . . . . .

High-Technology Task Forces . . . . . . . . . . . . . . . . . . . .

High-Technology Development Programs and Services

Unsuccessful High-Technology Programs . . . . . . . . . . . .

High Technology in Overall State Strategies . . . . . . . . .

Strategies Focused on Research and Development . .

. . . . . . ...*.** ● ✎☛✎☛

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

. . . . . . . . . . . . . ● ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎ ✎

Strategies Focused on Commercialization and Firm Creation . . . . . . . . . . . . . . .

Strategies Focused on Expanding Production and Mature Industries . . . . . . . . .

Other Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....””..

Appendix—Directory of State High-Technology Strategies and Programs

Tables

Table No.

1.

2.

3.

High-Technology Development Programs and Services . . . . . . . . . . . . . . . . . . . . . . .

State High-Technology Programs by Type.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Establishment of State High-Technology Programs by Year. . . . . . . . . . . . . . . . . . .

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CHAPTER I

Summary

Over the past 20 years, several regions of the

United States have developed strong local economies

based on fast-growing, technology-based industries.

Encouraged by the success of “high-technology” industries in California’s Silicon Valley, Massachusetts’ Route 128, and North Carolina’s Research Triangle, many other States have launched government

initiatives to promote similar high-technology industrial development of their own.

OTA’s census, carried out as part of the ongoing

assessment of Technology, lnnovation, and Regional

Economic Development, has identified 150 State

government programs with at least some features

directed toward high-technology development. Only

a few of these initiatives, however, are dedicated

assistance programs focused on the needs and problems of high-technology businesses. Using the narrower definition of a “dedicated” high-technology

development program—chartered and at least partially funded by the State, and specifically targeted

on the creation, attraction, or retention of high-technology firms-OTA identified a total of 38 programs

in 22 States. Most of these initiatives have been

launched within the last 3 years.

OTA also found that the States define “high-technology development “ in many different ways. In

most cases, State officials consider their high-technology initiatives to be a natural and even unavoidable extension of their different economic development strategies. As a result, their high-technology

initiatives show a great deal of variety in form, purpose, and level of funding. In general, however, the

dedicated programs provide services that address

four central needs of high-technology firms, particularly those of entrepreneurial businesses engaged in

the development and commercialization of innovative

●

●

●

●

products and services:

technical assistance, including access to technical facilities and equipment as well as the consulting services of experienced personnel to conduct feasibility studies or patent searches;

manpower assistance, including access to scientific and technical personnel as well as highly

skilled labor;

business assistance, including access to consultants who can help the entrepreneur put together a business plan or management team,

as well as assistance with licensing and permitting or through subsidies for sites and facilities;

and

financial assistance, particularly access to risk

capital (whether through brokerage services, or

direct State equity investment, grants, or loans

and loan guarantees), but also including fiscal

assistance such as research and development tax

credits, technical training credits, and other tax

incentives and concessions.

OTA has not yet completed its evaluation of the

effectiveness of these State efforts and their impacts

on related Federal policies and programs for hightechnology industry. It should be noted, however,

that only a few of the high-technology development

programs have been in place long enough to show

measurable results or impacts. Further, the States

that have launched these initiatives often had considerable high-technology development prior to the

State government’s intervention, making it difficult

to assess the specific impact of the dedicated programs on further development.
CHAPTER II

Int roduct ion

Overview

Over the past two decades, several regions of the

United States have developed strong local economies based on high-growth, technology-based firms

that are engaged in the systematic development and

commercialization of new products, processes, and

services. These firms, and the industries they compose, are a major source of new jobs in the manufacturing sector and an important factor in U.S. international competitiveness and balance of trade. They

are also a key source of the innovations that are

essential to increased productivity in more mature

industries. As a result, several Federal policies are

aimed at encouraging their growth. In addition,

these high-technology industries are also becoming

the targets of the economic development strategies

of many State and local governments, as well as the

efforts of corporations, universities, and other private sector groups.

This background paper presents the preliminary

results of a census of existing State government programs to stimulate, attract, or retain high-technology industrial development. As such, it represents

an update of similar studies conducted by the State

of California for the National Governors’ Association (NGA) (State Activities to Encourage Technological Innovation, October 1981, revised February

1982) and by Venture Economics, Inc. (Source

Guide of Government Technology and Financial

Assistance, Capital Publishing Co., October 1982).

Much of the impetus for such studies comes from

an increasing awareness of the impact of State and

local initiatives on the creation of new businesses.

In addition, recent changes in Federal policy have

put increasing emphasis on the role and responsibility of the States in controlling the

public funds and in promoting their

development and well-being.

Scope

Later components of OTA’s assessment of Technology, Innovation, and Regional Economic Development will address the factors that influence the

birth and location of high-technology firms and the

role of high-technology industries in the growth and

revitalization of the U.S. economy. We have given

priority to the identification of State initiatives for

high-technology development, however, in response

to both the desires of the Committees of Congress

that requested this study and the recommendations

of the OTA Planning Workshop held in July 1982.

distribution of

own economic

The purpose of this census was to identify the

fullest range and variety of State initiatives for the

encouragement of high-technology industrial development. As a consequence, it cast a wide net—both

“high-technology programs” and “high-technology

industries” were defined broadly (see below) in order

to catch as many potential initiatives as possible,

as well as the similarities and differences between

these initiatives.

3
4 ● Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives

.——.— - .——— . . . . —.—- . .-———.—.-————.——— ———————— —

Methodology

Based on the NGA and Venture Economics studies cited above and additional literature search, project staff developed a list of known high-technology

initiatives and names of contacts. In States where

no initiative was known, a call was placed to the

Washington Office of the Governor; if this turned

up no contact, a call was made to the Office of the

Governor in the State capital. In each State contacted, an effort was made to identify not only the

manager of individual programs, but also the one

person in the State government most knowledgeable

about its high-technology industrial development

initiatives. In many cases these proved to be the

same person.

Project staff called the managers of known programs in order to determine the current status of

each program and to verify available information

about its purpose and funding level and the services

it provides. Where no dedicated program had previously been identified, the contacts were asked if their

State had any high-technology incentive program

and, if yes, to describe the mission of that program

and the services it provides. In addition, they were

asked for information about other programs, such

as vocational and technical training programs

funded by the State, as they relate to a high-technology development strategy. In States with no dedicated high-technology program, the contact was

questioned about the extent to which general industrial development programs might also promote

high-technology development. In addition, questions were asked about overall State strategy in general economic development, and the place of hightechnology industries in this development.

Preliminary Taxonomy

The census data gathered by OTA have been

coded and stored according to a preliminary taxonomy of program types and services. This taxonomy,

based on earlier studies and literature searches, includes 5 descriptive codes for “universal categories”

or program types, in addition to about 40 functional

codes for specific services that are (or could be) provided to high-technology firms by one or another

of these program types. Although formatting constraints did not allow for extensive comments, codes

were added over time to capture the unique features

and qualities of different State efforts. This results

in some overlap—individual initiatives may be classified in two different program categories, and some

programs may be listed as offering up to 10 different

services—but it also indicates the range and diversity of the tactics that have been employed by State

governments to encourage high-technology development. The program and service codes are listed in

table 1 for ease of reference and comparison in ‘ .

discussion that follows.
— .

Ch. 11—introduction ● 5 —

Table 1 .—High-Technology Development

———. -. ——. .— Programs and Services

-..—.—. —.-—— - —. — .

Program types

High-technology development

High-technology education

Capital assistance

Labor/technical assistance

General industrial development

Functional codes (Program services)

Enterprise zones

Industrial revenue bonds

Information dissemination

Investment capital

investment in survival

Grants

research

startup

development

training

Labor

grant for jobs created

training vouchers

training technical staff

SOURCE Office of Technology Assessment

training by State State resources promotion

technical support by Task forces and

State commissions

link with university Tax incentives

Legislation reduction in corporate

Licensing assistance tax

Loans abatement of property

debt tax

equity freeze on assessed value

subordinated exemption from sales

stock or royalty rights tax

guarantees Venture capital

long-term low-interest direct (startup)

Market development direct (product

assistance development)

Office or equipment bond issue to raise

provision funds

Physical plant assistance royalty or stock rights

Patent searches assistance in finding

Product development

assistance

————————— —
CHAPTER Ill

Analysis of Census Results

Overview

OTA’s census identified over 200 State and local

level economic development initiatives with at least

some features directed toward high-technology development. The appendix contains detailed descriptions of 150 of these initiatives that were launched

by State governments; table 2 shows the distribution of these programs by type and State. Using the

narrower definition of a “dedicated” high-technology development (HTD) program—chartered and

at least partially funded by the State government,

and specifically targeted on the creation, attraction,

or retention of high-technology firms—OTA identified a total of 38 programs in 22 States.

Most of these HTD initiatives have been launched

within the last 3 years (see table 3). Few of them

have been in existence long enough to produce

measurable results, and in most cases there has been

no systematic evaluation of their effectiveness. In

fact, their effectiveness will be difficult to measure–

many of these States had experienced a considerable

amount of high-technology development prior to

any intervention by the State government, and the

impact of the dedicated program on further development has yet to be demonstrated. In other cases,

furthermore, relatively mature State programs have

been very slow to produce any appreciable results,

Table 2.—State High-Technology Programs by Typea

State HTD TF HTE LTA CPA GID State HTD TF HTE LTA CPA GID -—..—.

Alabama. . . . . . . . . . . . — — — — — 1

Alaska . . . . . . . . . . . . . — — — — 2 —

Arizona. . . . . . . . . . . . . — — 1 1 1 1

Arkansas . . . . . . . . . . . — — — 2 1 —

California. . . . . . . . . . . 1 — 1 1 — —

Colorado . . . . . . . . . . . 1 1 — 1 — 1

Connecticut. . . . . . . . . 3 — — 1 1 1

Delaware . . . . . . . . . . . — — — — — 1

Florida . . . . . . . . . . . . . 3 — 1 — — 3

Georgia . . . . . . . . . . . . 1 — 2 — — —

Hawaii ... , . . . . . . . . . 1 — — — — —

Idaho . . . . . . . . . . . . . . — — — 2 — 1

Illinois . . . . . . . . . . . . . 2 1 — 2 1 —

Indiana . . . . . . . . . . . . . 1 — 1 — — —

lowa . . . . . . . . . . . . . . . — — — — —

Kansas . . . . . . . . . . . . . — — — — 1

Kentucky . . . . . . . . . . . — — — 1 1 1

Louisiana. . . . . . . . . . . — 1 — — 1 —

Maine . . . . . . . . . . . . . . — — — — 2 2

Maryland . . . . . . . . . . . — 1 — 2 3 —

Massachusetts . . . . . . 1 — 1 1 1 1

Michigan . . . . . . . . . . . 8 — — 1 1 —

Minnesota . . . . . . . . . . — — 1 — — 1

Mississippi . . . . . . . . . 1 — — 1 1 1

Missouri . . . . . . . . . . . . 1 — 2 2 2 2

Montana. . . . . . . . . . . . — — — — — 1

Nebraska . . . . . . . . . . . — — — 1 — 1

Nevada. . . . . . . . . . . . . — — — — — 1

New Hampshire . . . . . — — — — — 1

New Jersey . . . . . . . . . — 1 — — — —

New Mexico . . . . . . . . 2 — 1 — — —

New York. . . . . . . . . . . 2 — — 1 2 —

North Carolina . . . . . . 1 — 2 — — 1

North Dakota . . . . . . . — — — — 1

Ohio . . . . . . . . . . . . . . . 1 — – — ; 1

Oklahoma . . . . . . . . . . — — — — — 1

Oregon . . . . . . . . . . . . . — — — — — 1

Pennsylvania. . . . . . . . 2 — 1 1 - —

Puerto Rico . . . . . . . . . — — — 2 1 —

Rhode Island. . . . . . . . 1 — — 1 1 —

South Carolina . . . . . . — 1 — 1 — —

South Dakota . . . . . . . — — — — — 1

Tennessee . . . . . . . . . . 2 — 1 — — —

Texas . . . . . . . . . . . . . . 1 — — 1 — 2

Utah . . . . . . . . . . . . . . . — — — — — 1

Vermont . . . . . . . . . . . . — — — — 1 —

Virginia. . . . . . . . . . . . . 1 1 — — — 1

Washington . . . . . . . . . 1 — 1 — — —

West Virginia . . . . . . . — — — 1 — 1

Wisconsin . . . . . . . . . . — — — — — 3

Wyoming ., . . . . . . . . . — — — — — 1 — . —

Totals , . . . . . . . . . . . 38 9 15 27 27 37

aHTD - High-technology development. LTA = Labor/technical assistance.

TF = Task force. CPA = Capital provision assistance

HTE - High-technology education. GID = General Industrial development

SOURCE: Off Ice of Technology Assessment

7
8 . Technology, Innovation, and Regional Economic Development: Background Paper—Census Of State Government Initiatives

.--— —.——.—— —

Table 3.—Establlshment of State High-Technology

Programs by Year

1959

1984

1988

1975

1978

1979

1980

1981

1982

1983

North Carolina Research Triangle Park

Mississippi Research and Development Center

New York Science and Technology Foundation

Connecticut Product Development Corp.

Florida Research and Development Commission

Massachusetts Technology Development Corp.

Hawaii Venture Development Fund

North Carolina Board of Science and Technology

Georgia Advanced Technology Development Center

California Innovation Development Loan Program

Florida Technical Entrepreneurship Program

Indiana Corp. for Science & Technology

Missouri Office of Science and Technology

New York Corp. for Innovation Development

Pennsylvania Industrial Development Authority

Tennessee Department of High-Technology,

Finance, and Service Sales

Washington Research Foundation

Connecticut Innovation Development Loan Fund

Connecticut Science Park

Illinois Biomedical Research Parks

Illinois Research Assistance to the State

Michigan High-Technology Development Corp.

Michigan High-Technology Resource Center

Michigan Industrial Technology Institute

“ Michigan Innovation Center

Michigan Molecular Biology Institute

Rhode Island Strategic Development Corp.

Tennessee Technology Corridor Foundation

Texas Institute for Ventures in New Technology

Virginia Science, Engineering, and Technology

Advisory Service

Florida Interagency High-Technology Committee

Michigan High-Technology Equity Loans

New Mexico Economic Development Division

Ohio Industrial Technology and Enterprise Board

Pennsylvania Ben Franklin Partnership Fund

SOURCE: Office of Technology Assessment,

while more recent programs in other States are already considered successful. Admittedly, some programs are designed to achieve long-range objectives,

while others are intended to show short-term results;

but there has yet to be any systematic comparison

of the effectiveness and benefits of different program

types. Finally, some States report that, even without

a dedicated effort, they have nevertheless experienced a great deal of high-technology industrial

development.

It was also found, however, that different States

define “high-technology development” in different

ways, and that in most cases their high-technology

initiatives are an extension of their overall economic

development strategies. States with HTD initiatives,

for example, tend to be those that had a sophisticated research base and considerable high-technology industry even before these programs were established; their objective is in part to strengthen and

retain what was already there. In States where the

economic base consists primarily of “sunset” industries, on the other hand, the “high-technology” strategy tends to emphasize economic diversification and

the application of new production technologies to

traditional manufacturing processes. Still other

States, notably those that are not yet highly industrialized, base their strategies on the aggressive pursuit of the production facilities of expanding

high-technology firms as part of a broader effort to

bolster their industrial base and build the foundation for future development.

These patterns suggest that, for most States, attention to high--technology industrial development

is not distinct from economic development in general. They also suggest, however, that in launching

their initiatives, the States have given attention both

to the special needs of technology-based enterprises

and to their own comparative advantage vis-a-vis

the basic stages of technological innovation and

commercialization. This attention, in turn, results

in part from the ways in which these programs have

been created.

Creation of State High-Technology Programs

Initiatives to promote high-technology industrial grams that are based on the needs of technologydevelopment usually come about in one of two ways: based enterprises, whether perceived or projected,

1) as a natural, evolutionary outgrowth of the State’s and on strategies to mobilize the resources or proongoing economic development efforts; or 2) as the vide the services that will encourage or attract their

result of a special effort to identify and mobilize the growth within the State. In many cases the programs

appropriate State resources. Both routes lead to pro- are based on models elsewhere: several States cited
Ch. 111—Analysis of Census Results 9 — — . ——.—. — —.— — - — — . —

the National Research Development Corp. (created

by the British Government in 1949 to commercialize

new products), and many other strategies are described in terms of “making Silicon Valley happen

here.”

General Industrial Development

Programs

In the first instance, the dedicated high-technology program results from a need perceived by the

State’s department of economic development. This

office already provides a wide range of assistance to

industry in general, such as locating plant sites or

identifying an appropriate labor pool. Many but not

all these services are also helpful to technology-based

businesses. As more and more special requests are

received from high-technology firms, or as this sector becomes more important to the State’s industrial

base, individuals or offices within the existing State

agency are designated to concentrate on meeting this

increasing demand.

OTA found that almost all States have “general

industrial development” programs that can also assist or influence the creation and growth of hightechnology businesses. The same can be said for programs in the “capital assistance” and “labor and

technical assistance” categories. These programs

rarely exclude any specific type of business that needs

their services, and the services they offer to new,

expanding, or relocating high-technology industry

are often not much different from services offered

to more traditional industry.

For this reason many States that do not have dedicated HTD programs can and do encourage this

kind of development through the services offered

by their general, capital, and technical assistance

programs. In the States where dedicated programs

do exist, they usually work closely with these general

programs to help their high-technology clients. In

addition, in several States, an existing State agency

or representative assumed the job of encouraging

high. technology industrial growth in the State.

As a result, however, it was difficult in most

States—even those with dedicated programs—to determine precisely where to make the cutoff between

“high-technology” programs, on the one hand, and

those whose mission is more general but who nevertheless provide the special services demanded by a

growing high-technology sector.

High-Technology Task Forces

The second method of creating a high-technology

program is more of a “supply-side” tactic. The Governor or legislature appoints an ad hoc task force

to examine the State’s resources and recommends

initiatives that will encourage the development of

high-technology industries. These task forces usually

represent all sectors of the State’s economy, and they

address such issues as the proper definition of “high

technology, ” the special needs of high-technology

firms, and the question of loyalty to traditional industr y versus the appeal of emerging technologies.

OTA’s census identified nine existing task forces,

and similar task forces in a number of other States

have already disbanded after reporting to the Governor or legislature. In many cases the task forces, after

presenting their recommendations, are succeeded by

permanent advisory committees that coordinate subsequent efforts, In other cases they are transformed

into nonprofit, semiprivate corporations or foundations that administer or provide funding for the

mechanisms created to implement task force recommendations. These organizations often provide the

basis

High-Technology Development

for the State’s HTD programs. -

Programs and Services

OTA’s census identified only 38 State initiatives plants of expanding firms elsewhere or by encouragthat met the criteria for the “high-technology devel- ing the creation and retention of indigenous highopment” category—that is, a dedicated State govern- technology businesses. In addition, OTA identified

ment program or agency whose specific mission is 15 “high-technology education” programs—initiathe promotion of high-technology industrial devel- tives undertaken by States in conjunction with their

opment in the State, whether by attracting branch universities, and dedicated to equipping inventors
10. Technology lnnovation, and Regional Economic Development: Background Paper-Census Of State Government Initiatives

—..—— — —————.—--—..— .—. .— — —————_-——.— —_..

or entrepreneurs with the skills needed to create for high-technology firms. Almost half of the profirms that will develop or commercialize emerging grams also offer some form of financial assistance—

technologies. In many cases, however, it is difficult nine programs assist entrepreneurs in locating vento draw the line between these two categories, par- ture capital, another nine deal with industrial revicularly where the school involved was a State uni- enue bonds, eight provide grants for research and

versity and thus funded by the State. (In addition, development, and four provide loans to high-techthe 15 education programs included here are only nology firms. Other services commonly offered ina fraction of the HTD programs that have been elude: market development assistance (seven prolaunched by colleges and universities, both public grams); product development assistance (four proand private, throughout the Nation.) grams); and incentives or assistance in training techThe services most frequently offered by these 53 nical personnel (five programs). More unique servprograms involve information dissemination–ii’ ices include helping inventors to acquire patents;

programs link industry and university resources, and providing laboratory or office space for new and

8 others involve promotional activities aimed at growing businesses; and investing public pension

funds in high-technology business. advertising the State’s resources and opportunities

Unsuccessful High-Technology Programs

In the course of its census, OTA also identified

several high-technology industrial development programs that have not succeeded. It is unclear whether

the reasons for failure are unique to each program

or State, or the result of program design flaws that

other States should avoid. Several examples follow:

●

●

The Maine Capital Corp. (MCC) was established by the legislature in 1978, with capitalization encouraged through a 50-percent credit

against State income tax for investments in

MCC. Since that time, MCC has funded only

one project—a manufacturer of electronic parts

—and that project was unsuccessful. Although

MCC has advertised its services, the fact that

it could invest only in Maine corporations, and

the fact that it is so close to Boston (a center

of competing private venture capital activity),

may have rendered the program ineffective.

The Michigan Business Development Corp.

(MBDC) was authorized by the legislature in

1979 to promote the growth of small high-technology businesses in Michigan by channeling

private venture capital to existing firms. However, the legislature did not reach final agreement with the financial community about stock

and royalty rights before the legislation was

passed. As a result, the private sector was unwilling or unable to provide funding to businesses through this program, and MBDC never

got off the ground. It was replaced in 1981 by

the Michigan Economic Development Authority, which has established several programs for

financial assistance to high-technology industry.

 The New Jersey Office for Promoting Technical

Innovation (OPTI) was set up in 1979 to encourage economic development through technical, business, and financial assistance to technology-based enterprises. OPTI had a broad

mandate but little flexibility or funding. It attempted to encourage everything from “basement inventors” to sophisticated licensing arrangements, but its greatest success may have

been in involving the private sector in screening and financing promising projects. The program lost its funding on September 31, 1982,

but a source close to the program characterized

it as a useful experiment whose errors were

taken at a low cost. A proposal to create a similar mechanism, with these errors corrected, has

been introduced in the New Jersey Legislature.
Ch. III—Analysis of Census Results ● 11

————. - .— ——- —-————-—.————.—— ——— -

High Technology in Overall State Strategies

Most States report that “high-technology development” is part of their overall strategies to increase

economic growth, create new jobs, and enhance the

standard of living of their people. (These strategies

are described in the appendix.) As part of this effort, most States seem to be assessing their strengths

and capitalizing on them in order to develop, attract, or retain high-technology industry. The

resulting programs therefore appear to target different phases in the development and commercialization of new technologies, according to each State’s

comparative advantage. These phases correspond

roughly to basic stages of industrial innovation: 1)

initial research and product/process development;

2) commercialization and firm creation; and 3) expanding production or application by established

firms. These patterns are illustrated below with examples identified by the OTA census.

Strategies Focused on Research

and Development

States whose high-technology strategies emphasize basic and applied research in emerging

technologies tend to focus on the resources and

facilities of their university systems, and on the importance of cooperation between industry and

university activities. Several States are working to

improve or expand the university faculty, curriculum, and research in relevant disciplines. To encourage these efforts they often provide R&D tax

credits, offer challenge grants for university research,

seek out Federal R&D contracts, and even support

the creation of independent centers of research and

development.

●

●

Michigan has set up several research institutes

with State funding to conduct research and

development in biotechnology and robotics.

Illinois and Utah both have a biomedical

research park connected with the State

university.

Strategies Focused on

Commercialization and Firm Creation

Some States encourage the development and commercialization of new technologies by providing their

inventors and entrepreneurs with the services they

need to create new firms and bring new products

to market. These services include providing product

and market development assistance, finding capital

assistance for new products and young companies,

and in some cases establishing “incubator facilities”

for high-technology business starts.

Georgia’s Advanced Technology Development

Center provides technical and business assistance, helps firms to find venture capital, and

provides incubator space for new businesses.

The Massachusetts Technology Development

Corp. provides venture capital for firms and

products that would usually be overlooked by

traditional sources of capital, and it also provides assistance with business plans, management, and marketing.

l-he Hawaii Venture Development Fund has

a special “Inventor’s Fund” for the development

of new product ideas.

The Connecticut Product Development Corp.,

which makes equity investments in existing

firms, has recently set up an Innovation Development Loan Fund to fund the development

of innovative projects.

Strategies Focused on Expanding

Production and Mature Industries

Instead of targeting the early stages of the innovation and firm creation processes, some States concentrate on attracting the assembly facilities of expanding or relocating high-technology firms, or on

transferring and applying new production technologies to help firms in mature industries.

Attracting Production Facilities.–Some

States, aware of their limited R&D capability or

skilled labor pool, are instead trying to attract the

production of more standardized high-technology

goods in the State. These States pursue expanding

and relocating high-technology firms in much the

same way that they recruit more mature industries,

through promotional programs and through location assistance and tax incentives. Alabama’s New

and Expanding Industry Program is an example of

such an initiative; similar strategies to attract high-
12 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

.————-. ——. .——. -. ——.—-——...——.—.——-———-—-———. ——————.

technology expansion and relocation are being used

in Delaware, Idaho, and Puerto Rico.

Process Development and Application.–

The “high-technology” strategy in many States emphasizes technology transfer-the application of new

production technologies to the manufacturing processes in mature industries already located in the

State. By increasing the efficiency and productivity

of the existing industrial base, these programs may

strengthen and retain facilities and jobs that might

otherwise leave the State or the country. Maine’s

New Enterprise Institute, for instance, helped to introduce technologies like computer-assisted design

and manufacturing to the shoe industry, and Michigan has established an Industrial Technology Institute to promote the development and application

of robotics in the automotive and other mature industries. Similar programs are underway at the Mississippi Research and Development Center, the

Arkansas University-Industry Experimental Center

for Small Manufacturers, and the Texas Engineering Experimental Stations.

Other Approaches

Some State strategies have aimed at developing

integrated markets within the State, thereby providing the opportunity for new high-technology industry to produce for and obtain inputs from existing

industry. Examples of this approach are Michigan’s

emphasis on robotics, both as a new manufacturing

sector and as an input to the automotive industry,

and Arizona’s attempts to encourage the growth of

high-technology support industries.

A few States have placed their general industrial

development emphasis on technology appropriate

to unique State needs, and are not making a concerted effort at this time to attractor develop hightechnology industry. Alaska, for example, has a limited manufacturing base and special application

needs in most technologies.

Finally, several States have attracted “spillover”

high-technology industry without a concerted effort

by their governments. These States include Colorado, Oregon, Arizona, Washington, and New

Hampshire. Each of them maybe a desirable place

to live and do business, but in each case they also

have-the advantage of proximity to a growing center

of high-technology development—apparently a great

advantage in attracting branch plants.
APPENDIX

Directory of State High-Technology

Strategies and Programs*

Alabama

Alabama’s overall strategy is based on developing the

primary industry and infrastructure needed to attract

high-technology development. To do this, the State has

set up a new and expanding industry program, technical

and managerial training programs, and a pension fund

with bond issues for business. The State’s community

college system also provides programs for training and

retraining technical workers. In addition, the State uses

several Federal programs, such as Community Development Block Grants, to develop the infrastructure needed

for growth and development.

Alabama reports a good supply of engineers and technicians and a large number of high-technology support industries. It also has a considerable base to build on in

the Huntsville area, which boasts some 200 high-technology manufacturing firms and several advanced research programs at the University of Alabama at Huntsville. Other centers of high-technology research are Birmingham, Auburn, and Tuscaloosa.

Programs

Labor/technical assistance

Alabama Industry Development Training Program

General industrial development

Alabama New and Expanding Industry Program

Alabama Industry Development

Training Program

Mr. Michael McCain

Assistant Director

Alabama Development Office

State Capitol

Montgomery, AL 36130

(205) 832-6980

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

Program services:

Trains technical staff for business.

Technical training provided by State.

*This directory i? based on lntbrmatmn provided hy the States, in conversation and wmung, betwcxn h“o~,ember f W and Februa ry 1983,

Description:

This State-funded program includes training for both

technical and managerial personnel, and is free to new

or expanding businesses. The program meets requirements on a firm-by-firm basis and provides screening of

personnel, on-the-job training to business specification,

upgrading or renewal of skills, and mobile classrooms and

workshops.

Alabama New and Expanding

Industry Program

Mr. Michael McCain

Assistant Director

Alabama Development Office

State Capitol

Montgomery, AL 36130

(205) 832-6980

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development

Program services:

Abatement of local property tax.

Freeze tax on improved property.

Exemption from State sales tax.

Description:

The Alabama development office offers many services

to new and expanding industry, some of which are also

part of the general industrial development network. This

program works with the Industrial Training Program to

provide training services to meet the needs of individual

firms. The State gives grants for industrial site development, has a one-stop permitting agency, and can provide 100 percent Industrial Revenue Bond (IRB) financing on land, buildings, and equipment. IRB projects and

business inventory may qualify for certain tax exemptions for up to 20 years.

Alaska

Alaska’s overall strategy involves the development of

technological solutions for the unique problems faced by

a “frontier” State. For example, the State is a leader in

implementing advanced telecommunications technology,

13
14 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government initiatives

largely because of the vast distances between cities and

the subsequent isolation of its people. The State government is investing oil and gas revenues in renewable resources, such as agriculture and fisheries, that will diversify Alaska’s economy and minimize its dependence on

the boom/bust cycle characteristic of extraction industries. In addition, Alaska has several programs designed to encourage the development of specific technologies such as housing for permafrost areas, icestrengthened research vessel, and avalanche forecasting,

as well as the application of existing technologies to

Alaskan problems.

Programs

Capital provision assistance

Alaska Council on Science and Technology

Alaska Resources Corp.

Alaska Council on Science and Technology

Mr. Christopher Noah

Executive Director

Office of the Governor

Pouch CV

Juneau, AK 99811

(907) 465-3510

Date of establishment: 1978

Annual State funding (millions): $0.8

Program type:

Capital provision assistance.

Program services:

Grants available.

State resource promotion.

Description:

This State program is designed to advise the Governor

and the legislature on technological and research matters. In particular, the Council concentrates on energy

programs and on telecommunications policy.

The Council administers two research grant programs

for development of technology. One is the Northern

Technologies Program, which provides grants for the development of technology appropriate to the region. To

date the program has funded 115 projects for up to $5,000

each. Most are energy-related projects.

The second research grant program (using a National

Science Foundation program as a model) provides funds

for the development of technology suitable to northern

climes. This research grant program has also worked

closely with the Canadian Science Advisory Board of

the Northwest Territories.

Alaska Resources Corp.

Mr. Wayne Littleton

Executive Director

Alaska Resources Corp.

Government Bldg.

Anchorage, AK 99811

(907) 561-2210

Date of establishment: 1982

Annual State funding (millions): $40

Program type:

Capital provision assistance.

Program services:

Direct investment in startup.

Equity loans.

Venture capital.

Description:

The Alaska Resources Corp. (ARC) (reconstituted in

1982 from the Alaska Renewable Resources Corp.) provides development capital for establishing and expanding

small enterprises in resource industries, to diversify and

stabilize the State’s economy. Targeted industries are

tourism, fisheries, timber, and manufacturing enterprises.

This program uses a broad definition of “venture capital” in order to serve the diverse needs of a frontier State.

This program will help start any type of business, although most businesses served thus far are commercializing or developing ideas for alternative energy sources.

Arizona

Arizona already has a well-established high-technology

base, consisting of some 200 establishments—many of

them branches of firms elsewhere—that represent over

40 percent of the State’s industrial base. This development has occurred with relatively little direct intervention by the State government programs or initiatives, but

Arizona has begun to explore possible mechanisms for

retaining existing industry and encouraging the growth

of indigenous firms. As part of this effort, the State

recently issued a report on Opportunities in Arizona for

Suppliers ofIfigh-Technology Manuficturers, which targets desirable high-technology support industries and

discusses the availability of skilled labor for microelectronics, computers, and other high-technology areas.

In addition, the State has placed emphasis on the development of a strong, technically based education system that can work closely with private industry. The

Center of Excellence at Arizona State University
—-—-———

Append/x—Directory of State High-Technology Strategies and Programs ● 15

(Tempe), for example, works closely with business to improve science, mathematics, and engineering instruction.

Programs

High-technology education

Center of Excellence

Capital provision assistance

Arizona Development Services

Labor/technical assistance

Governor’s Manpower Program

General industrial development

Arizona

Arizona

Economic Development

Development Services

Program

Arizona Development Services

Mr. John O. Morales

Program Manager

Office of Economic Planning and Development

1700 W. Washington St., 4th Floor

Phoenix, AZ 85007

(602) 255-5705

Date of establishment: 1980

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

General industrial development,

Program services:

Licensing assistance.

Assists in finding venture capital.

Loans.

Description:

This Arizona program works closely with the Federal

Small Business Administration 503 program. The program provides lists of licensing requirements for each

Arizona community as a reference to new or relocating

business. It also helps new or relocating business obtain

licenses and explains the local and State tax structure,

sales taxes, and city ordinances.

In addition, the program will help businesses find venture capital, and is trying to attract venture capital to

the State. Finally, the office plans a Center for Innovation, and intends to maintain an information clearinghouse for small business information.

Arizona Economic Development Program

Ms. Judie Scalise

Program Manager for Economic Development

Office of Economic Planning

1700 W. Washington St., Suite 400

Phoenix, AZ 85007

(602) 255-5374

Date of establishment: 1962

Annual State funding (millions): $0.180

Program type;

General industrial development.

Program services:

State resources promotion.

Assists in finding venture capital.

Labor assistance.

Physical plant provision.

Information dissemination.

Links industry with university.

Market development assistance.

Description:

The high-technology industry base in Arizona has been

created with few explicit State government incentives.

Since nearly 40 percent of all manufacturing is in the

high-technology sector, Arizona has begun to consider

support mechanisms for new and existing high-technology industry.

The State office also works closely with a number of

Federal Government programs such as the Small Business

Administration (SBA) 503.

There are no tax rebates or “holidays” offered to business, mainly because the State considers the existing tax

climate favorable for business. The existing tax structure

includes no inventory tax, no corporate franchise tax,

and allows tax-exempt dividends for firms based in

Arizona.

A joint position statement between this office and the

community colleges in Arizona links education, training and employment resources to the State in an effort

to further high-technology development.

Center of Excellence

Dr. Charles E. Backus

Director, Center for Research

College of Engineering and Applied Science

Arizona State University

Tempe, AZ 85287

(602) 965-1725
16 . .Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government Initiatives

—.— — -_-— .——. -—.. .— — — —. _ —- -——-

Date of establishment: 1980

Annual State funding (millions): $1.4

Prograrn type:

High-technology education.

Program services:

Links industry with university resources.

Description:

The Center of Excellence has coordinated with a proposed State program for Academic Excellence recently

initiated by the State. Six proposals were given by the

Governor to the State Board of Regents and Board of

Education to provide the following:

1.

2.

3.

4.

5.

6.

higher admission requirements for math and science

in the State universities,

math and science centers at the universities for outstanding high school students,

a student loan program to encourage more math and

science teachers,

summer science and math institutes for teachers,

computer literacy as a requirement for State teacher

certification, and

“team-teaching” efforts between educators and industry specialists.

The Center of Excellence represents public/private investment of $32 million, of which the State has donated

funds for a new building and equipment for the engineering school.

Governor’s Manpower Program

Mr. Alton J. Washington

Governor’s Manpower Program

Arizona Office of Economic Planning and

Development

1700 W. Washington St., 4th Floor

Phoenix, AZ 85007

(602) 255-5434

Date of establishment: 1977

Annual State funding (millions): -OProgram type:

Labor/technical assistance.

Program services:

Training and employment resources.

Grants for training.

Information dissemination.

Description:

The Office of Economic Planning and Development

supports a major job training effort called the Manpower

Program. It has recently published the Arizona Training Profiles, which supply Arizona employers and potential employers with information in occupational education and training available to meet their employee requirements. Two of the areas, “electronics” and “data

processing and computer science” are occupations in

demand.

Arizona does not have any quick start money for training, so the program was set up initially with Federal Comprehensive Employment and Training Act (CETA) funding. “Manpower” custom designs a training program on

a firm-by-firm basis.

Manpower has undertaken several projects to investigate opportunities for high-technology managers and to

research information processing training needs. Man”

power links university resources with industry, and can

provide a list of high-technology firms with 25 or more

employees.

In addition to the ongoing work of the Center of Excellence, the State has provided funding for five shortterm, competency-based, curriculum development and

validation projects, designed to train workers in skills required by high-technology industries. Utilizing CETA

funds, training will be in the following occupational areas:

electronics, data entry/word processing, computer programing, and automated accounting.

Arkansas

There is considerable support for high-technology development in Arkansas, but also for increased productivity in traditional industries. Arkansas sources sometimes point out that it is a newly industrialized State and,

like many other Southern States, its industry has its

headquarters and research facilities elsewhere, while

Arkansas labor is used primarily in production and shipping of manufactured goods, As one State official put

it, “High-technology? By the time it gets here it is like

any type of assembly industry. ” The State has therefore

adopted a policy of encouraging innovation in all types

of firms. It does this through a number of programs that

provide firms with financial, technical, and training assistance. A recent task force of government officials and

high-technology experts identified the State’s educational

institutions as a valuable asset, and encouraged a continued emphasis on quality education.

Programs

Capital provision assistance

Industrial Research Extension Center

Labor/technical assistance

A University-Industry Experimental Center for

Small Manufacturers

Industrial Development Corp.

Industrial Research Extension Center

General industrial development

A University-Industry Experimental Center for

Small Manufacturers
—

Appendix—Directory of State High-Technology Strategies and Programs . 17

—.————————.——-— — —————. .—.—.— — —

Industrial Development Corp.

Industrial Research Extension Center

A University-Industry Experimental

Center for Small Manufacturers

Mr. J. P. Moore

Director of Extension Activities

University of Arkansas at Little Rock

33d and University, Rm. 417

Little Rock, AR 72204

(501) 371-1971

Date of establishment: 1978

Annual State funding (millions): $0.05

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Information dissemination.

Trains technical staff for business.

Market development assistance.

Assists in finding venture capital.

Physical plant provision.

Description:

This program is jointly sponsored by the National

Science Foundation and the State of Arkansas. It is set

up to introduce state-of-the-art technology into traditional industrial processes in all industries in need of help,

including new starts, expansions, and stabilizations. The

services include production assessment, evaluation of layout and design efficiency, advice in technical manufacturing, and assistance in finding capital for new developments. The program does not provide any funding for

new ventures.

Arkansas Industrial Development Corp.

(AIDC)

Mr. Windell Adams

Director

Arkansas Industrial Development Corp.

One State Capital Mall

Little Rock, AR 72201

(501) 371-2301

Date of establishment: 1955

Annual State funding (millions): $3.5

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Information dissemination.

State resources promotion (infrastructure).

Description:

The AIDC program seeks to assist “home grown” businesses within the State, and to help firms relocate to the

State. Arkansas does not provide any venture capital or

business loans, but the First Arkansas Development Finance Corp. puts together State and commercial money

for fledgling organizations. The Board of Directors of

AIDC has both State and private sector representatives.

In addition to its day-to-day work, this State office has

conducted some seminars to bring together industry and

education on an informal basis. Also, AIDC took part

in the Legislative Council Task Force chaired by Ray

Thorton of Arkansas State University, to “study educational and research resources within the State which

would be useful in providing highly technical and scientific instructional and research programs.” Conclusions

of this Task Force included the realization that high-technology industrial development will only come about because of the development of other basic industries and

infrastructures.

Arkansas Industrial Research

Extension Center

Dr. Barton Westerlund

Director, Industrial Research Extension Center

University of Arkansas at Little Rock

College of Business Administration

33d and University, Rm. 417

Little Rock, AR 72204

(501) 569-3470

Date of establishment: 1955

Annual State finding (millions): $1.2

Program type:

Capital provision assistance.

General industrial development.

Labor/technical assistance.

Program services:

Labor assistance.

Loans.

Investment capital.

Tax-favorable business climate.

Venture capital assistance.

Product development assistance.

Information dissemination.

Grants available.

State resources promotion.

Market development assistance.

Description:

The Industrial Research Extension Center (TREC) is

set up to provide economic research and information to

the State development agencies, both public and private.
18. Technology, Innovation, and Regional Economic Developrnent: Background Paper-Census Of State Government Initiatives

—.— ..——— ——.—.-—. — — — ————— — -.——.—---—— —

This consists of educational programs and research, counseling of various types, projection studies, demographic

studies, income studies, feasibility studies, and market

studies. For small businesses in the State, IREC provides

production analysis, accounting assistance, and financial

analysis. IREC has field offices in five cities in the State,

and is linked to nine institutions in the State. Set up by

legislative mandate, the program is located and integrally part of the State university system, although they

maintain a separate budget.

IREC handles all kinds of businesses, and are seeing

more and more advanced technology innovation in the

State. The Director notes, however, that “by the time

it gets here, it is like any type of assembly industry, with

similar types of low-skilled manufacturing jobs. We have

spent some time with innovating firms who try to move

into higher technology manufacturing processes, but

what often starts out as ‘high tech’ quite quickly becomes

standard manufacturing procedure. ” Of his clients, Dr.

Westerlund goes on to say, “We have fewer and fewer

dealings with ‘Mere and Pop’ and more with minicomputers to be installed in gas stations. Perhaps its that

Mom and Pop are becoming more sophisticated.”

California

California is renowned as a center of high-technology

development. It has a highly advanced industrial base,

capital resources to fund new ventures, and the technically skilled labor to meet the needs of quickly changing

technologies. Under the previous administration, the

State government set up several programs to encourage

technological innovation and further development.

These included the California Commission on Industrial

Innovation, a Pension Investment Unit that invested in

high-technology ventures, and the California Innovation

Development Loan Program, which was designed to promote product development. The Commission, however,

ceased to exist after producing case studies of “winning

technologies,” and both of the other programs have been

discontinued under new State administration.

California’s public and private universities have worked

closely with industry to develop the technically skilled

work force needed for economic development. This trend

is expected to continue. In addition, the State’s training

programs will continue to train technicians for industry.

Programs

High-technology development

California Innovation Development Loan Program

Capital provision assistance

California Innovation Development Loan Program

Labor/technical assistance

California Worksite Education and Training Act

(CWETA)

Microelectronics Innovation and Computer Science

Research Program (MICRO)

California Innovation Development

Loan Program

Ms. Christie Campbell

Director

Innovation Development

1030 13th St., Suite 200

Sacramento, CA 95814

(916) 322-1394

Loan Program

Dare of establishment: 1981

Annual State Funding (millions): $2.0

Program type:

Capital provision assistance.

High-technology development.

Program set-vice:

Investment in product development.

Description:

This program provides financing for product development to promising technology-based firms. The recipients of the loans are generally entrepreneurs and inventors who have had difficulty finding finding from other

more traditional sources.

California Worksite Education

and Training Act (CWETA)

Ms. Charlsey Cartwright

Director

CWETA

800 Capita! Mall, MIC 38

Sacramento, CA 95814

(916) 323-3006

Date of establishment: 1980

Annual State funding (millions): $10.0

Program type:

Labor/technical assistance.

Program services:

Links industry with university resources.

Trains technical staff for business.

Description:

CWETA established a program in which potential employers commit to hire CWETA-trained workers. Training programs are devised in conjunction with local educa-
Appendix- Directory of State High-Techno/ogy Strategies and Programs ● 1 9

-——. --.——.. ...- .———.— . .—. — .- ._ —.————.—..———

tion and training institutions, with much of the training taking place on the job. Both entry level and upgrade

training are provided in fields which include electronics,

machine trades, and health.

Microelectronics Innovation and

Computer Science Research Program

(MICRO)

Dr. James Albertson

Associate Vice President for Academic Affairs

University of California

733 University Hall, 2200 University Ave.

Berkeley, CA 94720

(415) 642-9786

Date of establishment: 1981

Annual State funding (millions): $2.0

Program type:

High-technology education.

Program services:

Links industry with university resources.

Grants for research.

Grants available.

Description:

The 1981-82 University of California budget included

$980,000 for “innovative research in microelectronics

technology, its application in computer information sciences, and its necessary antecedents in other physical science disciplines. ” The program is intended by the State

to assist the California electronics and computer industries in maintaining their competitive edge by expanding pertinent research and graduate student education

at the University. Under the research part of the program, faculty members on several campuses submit proprosals for research projects that will potentially form the prp

basis of new industrial products several years in the

future, Each faculty member is responsible for obtaining a prior commitment from an industrial firm to support at least half the cost of the project.

Colorado

Colorado has a good base in high-technology industry,

and in secondary industries supplying the inputs for

high-technology manufacturing. This development has

been accomplished largely without the intervention of

the State government. INC. Magazine, in its “Report

Card on the States,” identified Colorado as one of the

four or five most desirable States for high-technology industry. Many Coloradans do not see such development

as an “economic panacea,” but the State has set up a

task force m look at the issue of innovation in national

and international markets and in the educational sector. In addition, legislation is pending on the creation

of” a Colorado Tec hnology Institute, although economic

constraints make passage uncertain in 1983.

Colorado also has the active participation of the private

sector in the development of high-technology industry.

The Colorado Business Development Center, the Higher

Education Council of the Colorado Association of Commerce and Industry, the Institute for Computational

Studies, and Worker Outreach, all provide assistance in

technology-based economic development.

Programs

High-technology development

High-Technology Cabinet Council

High-technology education

Colorado Electronics Institute

Labor/technical assistance

Jobs for Coloradans

General industrial development

Colorado Division of Commerce and Development

Colorado Division of Commerce

and Development

Mr. Steve Schmitz

Director

Department of Commerce and Development

1313 Sherman St.

Denver, CO 80203

(303) 866-2205

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services;

Location assistance.

Licensing assistance.

Investment assistance.

Description:

The Division of Commerce and Development has a

long history of providing staff and financial assistance

to businesses seeking a new location. Many times, this

involves working with a new manufacturing process or

product, helping to identify a labor base, the best location for specific resource needs, and assistance in compliance with local ordinances.
20 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government /initiatives

——.——————..— .- — .-—-— - —— -. .——.—— --- . . . . . . —_ .-. .—- —.. -

Colorado Electronics Institute

Senator Al Meiklejohn

State Capital Bldg., Rm. 127

Denver, CO 80203

(303) 8664866

Date of establishment: 1982

Annual State funding (millions): $4.0

Program type:

Legislation.

Program services:

Links industry with university resources.

Description:

A bill (S. 01) has been introduced in the 1983 Colorado General Assembly for the establishment of a Colorado Advanced Technology Institute to promote, develop, and coordinate education and research programs

in fields of advanced technology. The Institute will seek

to improve the quality and quantity of graduates from

Colorado institutions of higher education in fields of advanced technology, to further the research capabilities

of Colorado institutions of higher education, to provide

incentives to attract and retain superior faculty members,

and to enhance the economic health of Colorado by encouraging investment by both governmental and private

sources in educational programs which promote advanced technology education and research and development.

Governor’s Science and Technology

Advisory Council

Mr. Leonard Slosky

Assistant to the Governor for Science and

Technology

State Capital Bldg., Rm. 127

Denver, CO 80203

(303) 866-2471

Date of establishment: 1975

Annual State funding (millions): -OProgram type:

Legislation.

Program services:

Task force.

Description:

Technology development activity in Colorado has occurred largely without active State government involvement. The Governor’s office established this task force

to explore ways to attract technology to the State, a top

issue for the Governor in the coming year. The task force

is to address the issue of moving innovation to the marketplace by looking at educational and international economic issues.

High-Technology Cabinet Council

Mr. Leonard Slosky

Assistant to the Governor for Science

and Technology

Governor’s Office

State Capitol Bldg.

Denver, CO 80203

(303) 866-4579

Date of establishment: 1983

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Description:

This Council is set up to coordinate the activities of

the Colorado government intended to promote hightechnology development in the State. The Council will

prepare a Colorado strategy to encourage high-technology industrial development in the State, including coordination of research and development efforts, education

and training, and private sector initiatives.

Jobs for Coloradans

Mr. Steve Schmitz

Director

Department of Commerce and Development

1313 Sherman St., Rm. 500

Denver, CO 80203

(303) 866-2205

Date of establishment: 1982

Annual State funding (millions): $0.150

Program type:

Labor/technical assistance.

Program services:

Technical training provided by the State.

Description:

This program is setup to meet the changing labor needs

of industry, and train State people for jobs. A dislocation or training need is identified by State staff or through

negotiations between local governments, area vocational

schools or community colleges. Upon identification of

specific skill areas, employment and training agencies organize and implement specific training programs. In addition, this program works closely with the Worker Outreach Program, a privately run program, which screens

and places individuals for technical occupations.
Appendix—Directory of State High-Technology Strategies and Programs ● 21

. —— . . . . .—

Connecticut

Connecticut has a major stake in high-technology industrial development and has become a leader in the development of State government programs to encourage

it, It ranks first in the percentage of manufacturing jobs

in high-technology areas, and this percentage is growing. State officials attribute Connecticut’s success in attracting and incubating high-technology industry to a

number of coincidental factors, including: a strong industrial base; a large, well-educated labor pool; proximity to a large export center; an above-average system of

higher education; and access to venture capital.

To foster and retain this growth, the State government

has created over the past 20 years a number of programs

targeted on the creation and success of high-technology

firms. The major goals of these programs include: creation of new jobs; expansion of existing industry; retention of existing industry; creation of new ventures; and

diversification of the State’s economic base. The Governor recently established a State High-Technology Coun--

cil, which will focus its attention on the State’s educational resources, and proposed a “high-technology strategy” for 1983 that includes funds for job training, increased funding for the Connecticut Product Development Corp., and funds for education programs in vocational and higher education.

The State government also has the organized participation of the private sector through the Cambridge Research and Development Group (CRDG), founded in

1965. The principal mission of CRDG is to identify and

exploit patentable new products that represent outstanding business opportunities for Connecticut companies.

Programs

High-technology development

Connecticut Innovation Development Loan Fund

Connecticut Product Development Corp.

Science Park

Capital provision assistance

Connecticut Enterprise Zones

Connecticut Innovation Development Loan Fund

Connecticut Product Development Corp.

Science Park

General industrial development

Connecticut Department of Economic Development

Connecticut Enterprise Zones

————

Connecticut Department of

Economic Development

Mr. John Carson

Commissioner

Department of Economic Development

210 Washington St.

Hartford, CT 06106

(203) 566-4094

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Abatement of local property tax.

Training vouchers for new jobs.

Exemption from State sales tax.

Description:

The Connecticut Department of Economic Development is working on a project called “Take Care of Your

Own)’ to look after the needs of existing industry in the

State. The Office reports that Connecticut has had the

high-technology industry advantage all along, mainly

because of its diversified economic climate. The State

claims 40 percent of Connecticut’s manufacturing work

force is in high-technology industry, and that the State

leads the Nation in the number of patents granted and

in the number of research and development laboratories.

There is a broad mix of economic sectors, including a

well-trained and educated work force.

Aside from being the home of many major manufacturers, Connecticut offers Industrial Revenue Bonds, a

working capital loan program, industrial park networks

for land acquisition, no State income tax, and a general

program of recruitment.

Connecticut Enterprise Zones

Mr. Ken Roberts

Director

Connecticut Department of Economic Development

210 Washington St.

Hartford, CT 06106

(203) $66-3308

Date of establishment: N/A

Annual State funding (millions): $1.0
22 ● Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives

Program type:

Capital provision assistance.

General industrial development.

Program services:

Enterprise zones.

Long-term, low-interest loans.

Industrial revenue bonds.

Physical plant provision.

Description:

Six enterprise zones, in underdeveloped parts of the

State in need of economic revitalization, have been

named to date. The Enterprise Zone office has available

a $1 million revolving loan fund to help establish new

or expanding businesses within the newly created zones.

The emphasis is on high-technology business development.

Connecticut Innovation Development

Loan Fund

Mr. Thomas Munson

Director

Innovation Development Loan Fund

93 Oak St.

Hartford, CT 06106

(203) 566-2920

Date of establishment: 1981

Annual State funding (millions): $2

Program type:

Capital provision assistance.

High-technology development.

Program services:

Grants for development.

Loans with stock or royalty rights.

Market development assistance.

Description:

This organization, recently funded by the Federal Economic Development Agency, aims to speed the diffusion

of innovation. It will work closely with the Connecticut

Product Development Corp. (CPDC), taking over where

CPDC leaves off in the development of an innovative

product within an established company. In addition,

CDPC and CIDP are considering providing venture capital to new starts.

Connecticut Product Development Corp.

(CPDC)

Mr. Thomas Munson

Director

Connecticut Product Development Corp.

93 Oak St.

Hartford, CT 06106

(203) 566-2920

Date of establishment: 1975

Annual State funding (millions): $10

Program type:

Capital provision assistance.

General industrial development.

Program services:

Grants for development.

Loans with stock or royalty rights.

Investment in firm survival.

Product development assistance.

Technical support provided by State.

Assists in finding venture capital.

Description:

CPDC, although not strictly a high-technology development operation, provides financial investment to

develop new products with job creation and market potential. These products are often “high-technology” products. The system is set up to receive royalty from successful products, which in 1982 provided CPDC with

$3.3 million in royalty payments. At present there are

50 active projects, with 22 products already on the market. CPDC takes part in all aspects of preparing a product for market, including assisting in management plan

preparation, product development, market identification

and development, and examining the financial capability of a company. It does not take part in any new business

starts.

While CPDC is not a government agency, the

employees are on the State payroll, and the State treasury

handles payment to beneficiaries. The Governor appoints

the Board of Directors and advises it about State policy.

CPDC works closely with the Connecticut Innovation

Development Program (CIDP), set up with U.S.

Economic Development Agency (EDA) funds, particularly in high-technology initiatives. Since CIDP provides

venture capital, CPDC will usually refer new starts to

CIDP.
Appendix—Directory of State High-Technology Strategies and Programs . 23

Science Park

Mr. E. L. Deshong

Vice President

Science Park Development Corp.

Yale University

New Haven, CT 06106

(203) 436-2300

Date of establishment: 1981

Annual State funding (millions):

Program type:

Capital provision assistance.

High-technology development.

Program services:

$2

Market development assistance.

Links industry with university resources.

Grants for development.

Physical plant provision.

Description:

Science Park is now under construction. Located within a Connecticut Enterprise Zone, Science Park will develop a large tract of land in New Haven for a community

of companies engaged in the pursuit and development

of new scientific and technological products, processes

and related manufacturing. This project represents a joint

effort between Olin Corp., Yale University, and the City

of New Haven. The State has contributed $2 million to

help rehabilitate a vacant industrial building in New

Haven for Science Park. Olin and Yale have also independently entered into a cooperative research agreement.

Delaware

Delaware is the headquarters and research center for

many of the Nation’s largest businesses. However, aside

from a favorable tax structure that is available to all

businesses, there has been little direct effort to attract

or develop high-technology business to the State. This

may be changing.

Legislation has been introduced that would require

that all Delaware high school graduates be computer literate. The State also sponsors community college training programs geared to skill development in electronics

and science. These colleges also work with the Federal

Government to help with technology transfer from colleges to industry.

Programs

General industrial development

Delaware Tax Incentives for Business

Delaware Tax Incentives for Business

Mr. David V. Brandon

Assistant Director for Business Development

Delaware Development Office, Townshend Bldg.

P.O. Box 1401

Dover, DE 19901

(302) 571-3156

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Reduction in State corporate business tax.

Abatement of local property tax.

Freeze on assessed value of improved property.

Description:

Although there are no State programs geared specifically to the development of high-technology industry, tax

incentives have been created for industry in general. In

addition, the State has initiated enterprise zone legislation, allowing a city or municipality to develop an enterprise zone and a related loan fund. At present, only

Wilmington has exercised the enterprise zone option. The

State runs a training program through its technical and

community colleges, including classes in electronics and

the sciences.

Florida has

Florida

developed a solid industrial base for

high-technology development, particularly in the socalled “Golden Girdle” and “Silicon Coast” areas that

stretch from Tampa on the gulf coast to Daytona Beach

on the Atlantic and south to Fort Lauderdale and Miami.

This includes a considerable amount of space-related industrial development around the Kennedy Space Center

at Cape Canaveral, as well as aerospace and electronics

manufacturing generally. One-fourth of Florida’s manufacturing employment is in high-technology industries,

according to State officials.

Florida began its focused high-technology effort in 1980

with the formation of a Governor’s Task Force, which

recommended special incentives targeted on industries

such as defense contracting, communications, electronics,

pharmaceuticals, and scientific instruments.

In the near future, the legislature is expected to consider a bill creating an umbrella program for State efforts in high-technology industrial development. Florida

is constitutionally prohibited from making loans or pro-
24 Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

vialing capital of any kind to private firms, but the State

government is helping to start a private venture capital

association. In addition, legislation was recently passed

to exempt certain types of new job creation from taxes

and to protect intellectual property developed under university-industry contracts.

Florida places considerable emphasis on these university-industry partnerships and has set up several government programs in this area. The University system participates in an entrepreneurship program and in a Statefunded Research and Development Parks program. In recent months Florida has also announced plain to develop

engineering and vocational-technical education programs

and efforts to enhance in-State research and development.

Programs

High-technology development

Interagency High-Technology Committee

Research and Development Commission

Technical Entrepreneurship Program

High-technology education

Office of High-Technology and Industry

General industrial development

Bureau of Economic Analysis

Industrial/Academic Council

Industry Services Training Program

Bureau of Economic Analysis

Mr. Maury Hagerman

Economic Analysis Supervisor

Bureau of Economic Analysis

406 Fletcher Bldg.

Tallahassee, FL 32301

(904) 487-1314

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

State resources promotion (infrastructure).

Links industry with university resources.

Description:

This office works to attract new businesses into Florida

and retain businesses already there. It emphasizes attracting new industry to the State rather than starting new

business within the State.

The Florida Legislature has passed three laws to create

incentives for business to develop facilities in traditionally underdeveloped or low-income areas. Part of this initiative was the creation of enterpise zones, wherein newly created jobs bring tax credits for salaries, tax credits

for contributions to community projects, and exemption

from the “school tax” portion of the development tax.

This amounts to almost tax-free development over a certain number of years. In addition, four research and development parks have been or are being formed in the

State, modeled after the Research Triangle in North

Carolina. In addition, the University of Florida is developing an “innovation center. ”

Industrial/Academic Council

Mr. Hank Hector

State University System

Florida Board of Regents

107 West Gaines St.

Tallahassee, FL 32301

(904) 488-7702

Date of establishment: 1983

Annual State funding (millions): $0.113

Program type:

General industrial development.

Program services:

State resource promotion.

Links industry with university resources.

Patent searches.

Description:

The Industrial/Academic Council, recently organized

by the Board of Regents, is designed to further coordinate

engineering activities within the State university system.

The membership consists of user business and industrial

groups, and coordinates the State Technology Applications Center, the Florida Engineering Education Delivery

System and the Engineering and Industrial Experiment

Station.

Industry Services Training Program

Mr. Jesse Burt

Director

Florida Department of

Vocational Training

107 West Gaines St.

Tallahassee, FL 32301

(904) 487-1040

Date of establishment:

Annual State funding (millions): N/A

Education, Division of

N/A

Program type:

General industrial development.
.——.———

. —

Appendix—Directory of State High-Technology Strategies and Programs ● 25

. . —. ...—.—-. -——— . -.——— ——.—. ——-.—

Program services:

Technical support provided by the State.

Trains technical staff for business.

Description:

This program provides customized training programs

for new and expanding industries funded entirely by the

State. Training is implemented through local vocational-technical schools and community colleges, and is

geared toward the development of skills for Florida’s increasing community of hig}~-technology industries.

Interagency High-Technology Committee

Mr. Kern Alexander

Director

Governor’s Office of Planning and Budget

Carleton Bldg.

Tallahassee, FL 32301

(904) 487-1880

Date of establishment: 1983

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Information dissemination.

Task force.

Description:

Florida’s most recent State initiative relating to high

technology is the establishment of the Governor’s Interagency High-Technology Committee, to plan and monitor high-technology industrial development initiatives

in the State. Representatives are drawn from education,

labor, and commerce agencies. This group will also coordinate the Divisions of Sponsored Research at the State

universities, administering State research trends.

Office of High-Technology and Industry

Dr. Marm Harris

Department of Education

College Building

107 West Gaines St.

Tallahassee, FL 32301

(904) 487-3134

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology education.

Program services:

Technical support provided by State.

Links university with industry resources.

Description:

The Office of High-Technology and Industry was organized by the Florida Department of Education with

existing resources to provide for increased State level emphasis on high--technology vocational training programs,

particularly at the community college level. The level of

State funding and specific responsibilities of the office

will be determined by the 1983 Florida Legislature.

Research and Development Commission

Mr. Tim Gray

Legislative Assistant to the Secretary of Commerce

College Bldg.

107 West Gaines St.

Tallahassee, FL 32301

(904) 487-3104

Date of establishment: 1978

Annual State funding (millions):

Program type:

High-technology development.

Program services:

Links industry with university

Description:

N/A

resources <

The State government has set up this Commission to

initiate incentives for research and development parks

in association with State universities. Four parks have

been established: Tampa Bay Research Park at the University of Southern Florida; Central Florida Research Park

at the University of Central Florida; Florida Research

and Technology Campus at the University of Florida;

and Innovation Park at Florida State University and Florida A&M University. Industrial revenue bonds may be

used in financing development.

Plans are currently underway at the University of Florida for the development of an incubator facility to support new high-technology companies.

Technical Entrepreneurship Program

Mr. Maury Hagerman

Economic Analysis Supervisor

Bureau of Economic Analysis

406 Fletcher Bldg.

Tallahassee, FL 32301

(904) 487-1314

Date of establishment: 1981

Annual State funding (millions): N/A

Program type:

High-technology development.
26 Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government lnltiatives

.—— —.——.————— ——. —————.—.— —- ——. ..——.— .

Program services:

Information dissemination.

State resources promotion.

Description:

This program, established to promote indigenous industry in Florida, mobilizes the components of the State’s

high-technology community. Its activities consist of:

1. organizing and leading public and private efforts to

evolve State high-technology strategies,

2. supporting and acting as a catalyst to individual and

joint efforts of various elements of the high-technology community to move ahead with actions supportive of State goals, and

3. continuing efforts to analyze economic growth.

The program works closely with the Florida “Venture

Capital Association (a private group), and with the

University of Florida in developing a prototype incubator

facility and innovation center. This program will also be

working closely with the Small Business High Technology

Council (Washington, D. C.) to develop an entrepreneurship network.

Georgia

Georgia has a well-established State strategy to encourage the creation and growth of high-technology industry. This strategy is centered on the Advanced Technology Development Center (ATDC), jointly run by the

State and the Georgia Institute of Technology. Much of

the impetus for the development of ATDC came from

Georgia Tech graduates who wanted to create challenging employment opportunities in the State. ATDC provides technical, financial, and management assistance in

the creation of new firms, as well as information and consulting services for relocating firms. Similar centers are

being developed at other universities.

The Department of Industry and Trade is working

closely with the education sector and ATDC to develop

a training strategy for high-technology development, and

the ATDC program and the vocational training initiatives are being integrated into the State’s general industrial development program. State development agencies are stressing the importance of education to meet

future needs.

In addition to the joint effort at ATDC, the State has

a vigorous industrial development program that is recruiting technology-based manufacturing operations such as

avionics and microelectronic research and assembly

plants. The State reports that high-technology ventures

targeted in the future will probably involve computer

software, communications, biotechnology, and solar

energy.

Programs

High-technology development

Advanced Technology Development Center

High-technology education

Georgia Engineering Technology Program

Governor’s High-Technology Advisory Council

Labor/technical assistance

Advanced Technology Development Center

Georgia Engineering Technology Program

Advanced Technology Development

Center (ATDC)

Mr. Jerry Birchfield

Director

Advanced Technology Development Center

Georgia Institute of Technology

Atlanta, GA 30332

(404) 894-3575

Date of establishment: 1980

Annual State funding (millions): $0.420

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Product development assistance.

Technical support provided by State.

Assists in finding venture capital.

Office or equipment provision.

Physical plant provision or assistance.

Description:

In 1980, the State of Georgia and the Georgia Institute

of Technology established the Advanced Technology Development Center (ATDC) to provide services for developing and expanding high-technology industries. The

office is independent of both the State government and

the university,, but maintains strong ties and shares personnel with these offices. In addition, ATDC maintains

close ties with the private venture capital community in

Atlanta. Services are available to new businesses as well

as to existing businesses wishing to relocate. Future plans

include providing office and laboratory space on the

Georgia Tech campus for the incubation of new, small

business.
Appendix-Directory of State High-Technology Strategies and Programs . 27 —..—..— — ——————-.———.— ——————————.———.—

Georgia Engineering Technology Program

Mr. Robert Mabry

Director, Postsecondary Instructional Programs

Office of Vocational Education

17th Floor Twin Towers East

Atlanta, GA 30334

(404) 656-2547

Date of establishment: 1982

Annual State funding (millions): $8

Program type:

High-technology education.

Labor/technical assistance,

Program services:

Technical training provided by the State.

Description:

This statewide education program offers an Associate

Degree in Applied Technology to answer the needs of

incoming industry for skilled technicians in several technical areas. The program curriculum is developed on the

State level, and administered at six community colleges.

The program takes a multidisciplined systems approach

to technical education given that many technologies include components from different technical skill areas.

Every faculty member has 2 years of industry work experience plus academic degree.

Governor’s High-Technology

Advisory Council

Mr. Robert Mabry

Staff Coordinator

Office of Vocational Education

Twin Towers East

Atlanta, GA 30334

(404) 656-2547

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology education.

Program services:

Task force.

Description:

This Council, established to advise the Governor, came

about largely through a recognition of the need for a program of excellent, high-technology education to attract

and retain advanced technology industries, and to secure

employment for students in high-technology industries.

As high-technology training programs help industry as

well as the State, 10 of the 12 members of the Commission are representatives of Georgia industry. The two remaining spaces are filled by a representative of the Advanced Technology Development Center, and the State

Board of industry and Trade participation.

Hawaii

The Hawaii Institute of Electronics Research, chartered

in 1979 to develop Hawaii's electronics research capabilities, works with the State Department of Planning and

Economic Development to obtain and administer research contracts involving both private business and the

faculty of the University of Hawaii. In addition, the State

has targeted tropical applications of biotechnology and

microelectronics as key areas of high-technology growth.

Hawaii’s Governor has proposed creating a High-Technology Development Corp. responsible for identifying

available land and financing to develop industrial parks

devoted entirely to high-technology firms. This research

and industrial effort targets alternative energy resource

development, in which Hawaii is a leader.

Programs

High-technology development

Hawaii Venture Development Fund

Hawaii Venture Development Fund

Dr. Hideto Kono

Director

Department of Planning and Economic Development

P.O. Box 2359

Honolulu, HI 96804

(804) 548-8741

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Loans–debt.

Market development assistance.

Product development assistance.

Licensing assistance.

Location assistance.

Description:

This Department has three separate projects designed

to help high-technology development in the State:

1. Inventor's Fund (Funding: $100,000) This project

provides seed loans for the development of new

products. In addition to capital, the staff assists with
28 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

patent and literature searches, and in finding venture capital for business development.

2. High-technology promotional funds. (Funding:

$l00,000)The Department has set aside funds to develop, attract, and retain high-technology industries.

The staff will assist in location of new and expanding industry, provide information on tax regulations,

licensing, permitting, labor, trade, and markets.

3. Capital Loan Program. (Funding: $1 million) This

program has a high-technology focus: the staff helps

identify new industries needing funds. The program

provides debt financing at below market rates (currently 7.5 percent) up to $100,000. Additional funds

are requested for fiscal year 1984.

A fourth effort expected to be passed in the State legislature this term is the development of a High-Technology

Development Corp. set up to develop Science Parks for

high-technology industries in the State. This program,

like the Hawaii Institute of Electronics Research (HIER),

will eventually be a private corporation, but will be initially administered through this Department.

Idaho

There are no State programs geared to the development of high-technology industry in Idaho, although the

State markets itself actively to expanding companies. Like

many Western States, Idaho has a lot of tax “incentives”

built into its tax laws, including low property taxes and

incentives for job creation and investment. In addition,

the State claims the lowest energy prices in the Northwest. The State government recently convened a Task

Force on capital development, and it has set up a program to use public pension funds for mortgage and business development.

Through the State Board of Education, an electronics

technical training center is being established at Idaho

universities with private industry funding. Teachers and

equipment will be supplied by area industries to train

students to meet their employment needs. Private sector initiatives include a State Marketing club set up

cooperatively by business and government to help draw

industry to the State. Such efforts have already attracted

branch plants of microelectronics firms to Idaho. The

State also works closely with the U.S. Small Business Administration, and uses CETA and block grant funds to

develop the work force and infrastructure needed to

strengthen its industrial base.

Programs

General industries development

Idaho State Tax Commission

Labor/technical assistance

Idaho Division of Economic and Community Affairs

Industry Training Program

Idaho Division of Economic and

Community Affairs

Mr. Jay Engstrom

Economic Development Specialist

Division of Economic and Community Affairs

108 State House

Boise, ID 83720

(208) 334-2470

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

Program services:

Tax—favorable business climate.

State resources promotion.

Links industry with university resources.

Technical training provided by State.

Physical plant provision.

Industrial revenue bonds.

Task force.

Description:

Idaho has no State programs geared to the development of high-technology industry, although the Governor has actively marketed the State’s resources to expanding corporations. The State takes advantage of Federal

funding through CETA, CDBG, and other development

money to improve the State infrastructure and make it

more attractive to incoming business. Cities and municipalities have also been participating actively in this area.

The State recently convened a Task Force on Capital

Development to discuss State resource promotion. A private sector “State Marketing Club” is being set up with

members from business and government-to promote the

resources of the State to businesses outside the State.

Idaho reports many tax “incentives” built into an already low tax base and claims to be the lowest indebted

State in the Nation; the property tax is 1 percent and

incentives have been created for job creation and investment (see Tax Commission program).
-. —.

Appendix-Directory of State High-Technology Strategies and Programs ● 2 9

—

Idaho State Tax Commission

Mr. Larry G. Looney

Chairman

Idaho State Tax Commission

700 West State St.

Boise, ID 83720

(208) 334-4624

Date of establishment: 1945

Annual State funding (millions): $11.7

Program type:

General industrial development,

Program services:

Tax—favorable business climate.

Training vouchers for new jobs.

Labor assistance.

Reduction in State corporate business tax.

Description:

The 1982 Idaho Legislature approved and Governor

John Evans signed into law a tax incentive package allowing an investment tax credit. The law provides a 3 percent tax credit for new investments made instate, not

to exceed 50 percent of the tax liability for the taxable

year. A carry-over provision of up to 5 years is included.

In addition, the Job Expansion Act of 1982 offers Idaho

businesses a tax credit for hiring new employees. This

credit is limited to $500 the first year, $300 the second

year, and $100 the third year for each new employee

hired. The law is retroactive to January 1, 1982.

Industry Training Program

Dr. Larry Sellend

State Administrator

Department of Vocational Education

650 West St.

Boise, ID 83720

(208) 334-3210

Date of establishment: 1978

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

Program services:

Training provided by the State.

Description:

This program assists businesses in new and expanding

industries to train personnel for growing needs. The program provides “customized” training through the State’s

postsecondary vocational-technical education system.

Training programs to meet new specific needs can be operational in a short time. The program is available for

industries new to Idaho and for expansion of business

and industries already in the State.

Illinois

The task force appointed by the Governor in 1981

identified four high-technology industries central to I1-

linois’ economic development: electronics, biotechnology, materials technology, and robotics. In addition, it

recommended that the State develop a network of hightechnology facilities associated with university and industrial centers. This task force has been replaced by a

permanent Commission on Science and Technology with

representatives from banking, business, labor, education,

and government. The Commission’s goal is the development of long-range economic goals and the implementation of the task force’s recommendations.

Illinois’ strategy for economic development is to publicize the advantages of the State to attract high-technology growth companies, but it will also encourage new

and expanding firms within the State. Like other heavily industrialized Midwestern States, however, Illinois also

needs to retain and strengthen traditional industry while

diversifying into high-technology areas. The State reports

that development is building on existing strengths: good

transportation, a skilled work force, a network of universities and scientific research facilities, and good educational and vocational training systems.

Part of this effort includes retraining workers for new

skill areas and setting up a biomedical research park in

Chicago. The State is also working closely with the Federal Government to develop a High-Technology Training Assistance Program, designed to provide technicaI

skills for economically disadvantaged students. Education sector initiatives include a Microelectronics Center

at the University of Illinois, set up to conduct basic research in electron beam lithography.

Programs

High-technology Development

Biomedical High-Technology Research Park

Faculty Research Assistance to the State

Governor’s Commission on Science and Technology

High-technology education

Biomedical High-Technology Research Park

Capital provision assistance

Illinois Industrial Development Authority
30 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

—

Labor/technical assistance

Faculty Research Assistance to the State

High Impact Training Services

Illinois Industrial Training Program

General industrial development

Illinois Industrial Development Authority

Biomedical High-Technology

Research Park

Mr. Norm Peterson

Executive Director

Governor’s Commission on Science and Technology

310 South Michigan Ave., Suite 1000

Chicago, IL 60604

(312) 793-3982

Date of establishment: 1982

Annual State funding (millions): $1

Program type:

High-technology development.

High-technology education.

Program services:

Links industry with university resources.

Physical plant provision.

Description:

The 46-acre high-technology Park is being established

to promote the development of high-technology industry

in the Chicago metropolitan area and in Illinois, and to

strengthen the partnership between high-technology

businesses and higher education.

Initial capital of $1 million was provided by the State

of Illinois to enable the university to lease an incubator

facility building. The State has agreed to provide the University with $10 million to purchase the building. The

City of Chicago has agreed to provide both planning and

construction of the infrastructure in the Park.

Leases in the incubator building are mainly for fledgling firms. Land leases for firms desiring to build their

own facilities would be long-term. The Park has no specific written criteria for occupants at this time. Park occupants are expected to be businesses or organizations

which will benefit from location in proximity to universities and their human and physical resources.

The Chicago area universities anticipate a high degree

of faculty participation in the many facets of the Park’s

operation, ranging from research consultation to the provision of faculty expertise in other areas to assist Park

occupants (e.g., architectural design, securing of venture

capital, etc.) A full range of services can be provided, from

library and computer facilities to conference facilities and

catering.

Faculty Research Assistance

to the State (FRATS)

Mr. Richard A. Zollinger

Director, FRATS Institute of Government and

Public Affairs, University of Illinois

1205 W. Oregon St.

Urbana, IL 61801

(217) 333-8770

Date of establishment: 1982

Annual State finding (millions): $0.082

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Information dissemination.

Links industry with university resources.

Description:

The FRATS program provides an on-line computerized information file of faculty research capabilities and

scholarly interests. The data base is a resource accessible to participating campuses and businesses in need of

obtaining information on research capabilities and personnel. The FRATS program provides a method by

which individuals/universities/businesses can receive

broad and rapid access to faculty research and teaching

capabilities in areas of interest, including science and

technology, economic development, and employment

training. During 1983, 4,500 faculty profiles will be collected and entered on-line into the data base.

Governor’s Commission on Science

and Technology

Mr. Norm Peterson

Executive Director

310 S. Michigan Ave., Suite 1000

Chicago, IL 60604

(312) 793-3982

Date of establishment: 1981

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Information dissemination.

State resources promotion.

Investment capital.

Description:

This 31-member Commission was appointed by the

Governor to carry out the recommendations of the State
——. —

Appendix—Directory of State High-Technology Strategies and Programs ● 31

————— .——. ..—

Task Force (which presented recommendations to the

Governor on March 24, 1982) to develop the State’s

high-technology effort. The Task Force targeted four industries as central to Illinois development: electronics,

biotechnology, materials technology (coal processing),

and robotics. The overall recommendation of the Task

Force was that the State should develop a network of

high-technology facilities associated with various universities and other centers of technical excellence throughout Illinois. As a result, the State established Chicago’s

biomedical research park in September 1982, and plans

to develop a $5.3 million Microelectronics Center at the

University of Illinois (Urbana/Champaign).

In addition, an Illinois Growth Investment Fund is being established to provide seed capital to help finance

new product development. The Fund will finance small

technologically innovative enterprises during their initial

formation and early development stages.

Specific investment criteria for the Fund will be established. These will include, for example, financial support

for companies that are located or agree to be located in

Illinois, have products or services sufficiently innovative

to have a potential market advantage, have adequate

management and technical support, and offer the potential for significant job creation and long-term growth.

High Impact Training Services

Mr. Jack Williams

Director

Illinois State Board of Education

100 North First St.

Springfield, IL 62777

(217) 782-5098

Date of establishment: 1978

Annual State funding (millions): $1.65

Program type:

Labor/technical assistance.

Program services:

Technical training provided by State.

Description:

The High Impact Training Services (HITS) program

offers “customized” training on a firm-by-firm basis. The

Illinois State Board of Education cooperates with the Department of Commerce and Community Affairs, Illinois

State Chamber of Commerce, Board of Education, and

the Illinois Community College Board in offering these

services. HITS, funded from State and Federal vocational

dollars, is intended to bridgc the gap between long-term,

in-school vocational training programs and the immediate short-term job training needs of business and industry. It provides financial assistance for local educational agencies to design and conduct job training programs. The program is available to any business or industry that is expanding, permanently increasing personnel levels through additional work shifts, and/or facilities

in excess of normal growth or turnover.

Illinois Industrial Development Authority

Mr. Lee Roy Brandon

General Manager

Illinois Industrial Development Authority

P.O. Box 397

Marion, IL 62959

(618) 997-6318

Date of establishment: 1968

Annual State funding (millions): $Bond

Program type:

Capital provision assistance.

General industrial development.

Program services:

Enterprise zones.

Industrial revenue bonds.

Loans.

Description:

The Authority helps create new jobs or retain existing

jobs within labor surplus areas of the State. The Authority concentrates its assistance on the projects designed to

create the maximum number of new jobs.

The Authority’s two part effort consists of: 1) direct

loans for periods up to 25 years, ranging from $10,000

to $150,000; and 2) issuing industrial revenue bonds on

behalf of qualified applicants. The Authority may not

have outstanding at any one time, bonds and notes in

an aggregate principle amount exceeding $1 billion. No

more than one-third of the total principle amount of

bonds and notes as authorized by the Illinois General

Assembly are issued for the development, construction,

acquisition, or capital improvements of commercial facilities. One hundred million dollars of the total authorized bonding power is reserved for use in Enterprise Zones

as established by the Illinois Department of Commerce

and Community Affairs.

Illinois Industrial Training Program

Mr. Chuck Baker

Department of Commerce and Community Affairs

320 W. Washington St., 5th Floor

Springfield, IL 62706

(217) 785-3206

Date of establishment: N/A

Annual State funding (millions): N/A
32 ● Technology Innovation, and Regional Economic Development: Background Paper—Census of State Government initiatives

— ..—. — . — —.- — .- ——

Program type:

Labor/technical assistance.

Program services:

Trains technical staff for business.

Technical training provided by State.

Links industry with university resources.

Physical plant provision.

Description:

The Department of Commerce and Community Affairs administers the Illinois Industrial Training Program

(ITP) to help Illinois industries expand and to assist industries locating in Illinois. ITP pays firms a portion of

the salaries of new workers while they are being trained.

ITP can be used to improve the skills of currently employed workers and to support on-the-job training in a

wide range of skill areas. ITP? activities can be coordinated

with CETA programs. To qualify for ITP funds, a firm

must be planning an expansion or permanent increase

in production that requires additional personnel. Such

expansion can take the form of additional work shifts

and/or facilities in excess of growth.

Indiana

Indiana is setting up a program to answer the specific

technology development needs of the State. The State

effort includes the Corp. for Innovation Development,

a not-for-profit organization set up in 1982 with funds

provided through a foundation. The 24-member board

of directors includes representatives from business, government, and education. The Corporation provides capital assistance to promising innovations, makes public

policy recommendations and designs programs to encourage further development of science and technology

in educational institutions and the industries within the

State.

The government plans to work closely with existing

industries to provide a favorable economic climate and

to encourage the growth of new industry within the

State. In addition, plans are in the works to develop

industry-university cooperative resources in research and

development.

Programs

High-technology development

Corporation for Science and Technology

Capital provision assistance

Corporation for Science and Technology

Labor/technical assistance

Laser and Electro-Optics Technology Training

Program

Corporation for Science and Technology

Mr. Robert Cummins

Acting Director

Indiana Department of Commerce

440 N. Meridian St.

Indianapolis, IN 46204

(317) 232-8810

Date of establishment: 1982

Annual State funding (millions): -OProgram type:

High-technology development.

Program services:

Task force.

State resource promotion.

Information dissemination.

Description:

This Corporation is designed to stimulate the development of science and technology in Indiana, and is set

up as a not-for-profit corporation. The Board of Directors consists of representatives from the private sector,

from education and from the State and local governments. One of the primary missions of the corporation

will be to encourage public-private cooperatives programs

in research and development.

Laser and Electro-Optics Technology

Training Program

Mr. Don Gentry

Executive Director

State Board of Vocational and Technical Education

401 Illinois Bldg.

Indianapolis, IN 46204

(317) 232-1814

Date of establishment: 1975

Annual State funding (millions): N/A

Program type:

High-technology education.

Labor/technical assistance,

Program services:

Technical training provided by State.

Links industry with university resources.

Description:

This training program has been set up within the Department of Vocational Education to address the needs

of industry with advancing technologies. The program

qualifies graduates as skilled technicians in design support, developmental assistance, sales, field service, and

maintenance.
--

Appendix-Directory of State High-Technology Strategies and Programs ● 3 3

.. ——————. . .- — —. — .— — ——. . . . . —— -- —— -.—.———-—— ——-— .—. ——.—.— .

Iowa

The former Governor’s High-Technology Task Force

was appointed in 1982 to examine the status of hightechnology industry in the State. The Task Force report,

after taking into account existing State resources, identified biotechnology, micrcelectronics, and energy technologies as important to the overall economic development of Iowa. It also cited the need for a better technology-transfer mechanism, and recommended the creation

of a permanent Commission to establish long-range goals

and oversee State high-technology issues.

The new Governor has introduced a legislative package

that echoes many of these recommendations, including:

the continuation of a permanent high-technology commission; a technology-transfer mechanism; challenge

grants for basic and applied research in agriculture and

industrial; a high-technology research tax credit; expansion of the State industrial development bond law to include high-technology research and development bonds;

and revisions in Iowa securities laws to encourage the

availability of venture capital.

The Iowa Development Commission has also worked

with local communities that are experiencing labor problems, trying to encourage local solutions to local problems

and to improve labor relations throughout the State by

forming labor/industry councils. In addition, the State

will be looking at policy alternatives in the longer term

development issues of education and training.

Programs

High-technology development

Iowa High-Technology Task Force

Iowa High-Technology Task Force

Mr. David Swanson

Director

Iowa Development Commission

250 Jewett Bldg.

Des Moines, IA 50309

(515) 281-3251

Date of establishment: 1982

Annual State funding (millions): -OProgram type:

High-technology development.

Program services:

Task force.

State resources promotion (infrastructure).

Information dissemination.

Description:

The high-technology Task Force reported on November 1, 1982 on its original mission to examine the status

of high-technology in Iowa. It recommended:

1.

2.

3.

4.

5.

6.

7.

8.

.,

targeting research and development efforts at biotechnology, microelectronics, productivity enhancement/process controls, and energy alternatives;

expanding technology transfer opportunities;

looking towards long-term development;

forming a commission to oversee efforts (a bill is

before the 1983 legislature to form this commission);

considering legislative changes;

developing human resources;

encouraging venture capital; and

expanding in tax and regulations State promotion

around the country.

Kansas

“Strategy for the Eighties,” a staff study commissioned

by the Governor, concluded that Kansas has, in its technically skilled work force, the basic ingredients needed

to compete in the arena of high-technology development.

The Governor has appointed a task force to follow up

on this study and develop specific policy recommendations based on its findings.

The Governor has also called for a program under

which the education system’s Board of Regents would

invest State money, with matching funds from the private

sector, to provide more support for high-technology research conducted at State schools. This includes a proposal to tax oil and gas revenues in order to avoid cutting other educational programs. Wichita State University, in cooperation with the local chamber of commerce,

has taken the lead in this area by establishing an innovation and entrepreneurship center to encourage new business development. The University of Kansas is also investigating the feasibility of a science and research park

in Lawrence. The State has also developed an aggressive

enterprise zone program to be developed and run by individual cities.

Programs

High-technology Development

Governor’s Task Force on High-Technology

Development

General industrial development

Kansas Department of Economic Development
34 TechnOlOgy, Innovationr and Regional Economic Development: Background Paper—Census of State Government Initiatives

——.-———.—.— — .- -..— . . . -..———. .- ——-. -— ———..— --——. --- — .——.————— .———— —..- ————— — --.———. -.—

Governor’s Task Force on HighTechnology Development

Mr. Charles Schwartz

Secretary

Department of Economic Development

503 Kansas Ave., 6th Floor

Topeka, KS 66601

(913) 296-3481

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services.

Task force

Description:

In October 1982, Governor ]ohn Carlin established

by Executive Order, the Governor’s Task Force on High

Technology Development, The Task Force is charged

with analyzing the conclusions and recommendations of

the study on Strategy for the Eighties: High Technology

Industrial Development, as well as exploring high-tech

nology development potential in Kansas. The Task Force

will make its report to the Governor in July 1983.

Kansas Department of

Economic Development

Mr. Charles Schwartz:

Secretary

Department of Economic Development

503 Kansas Ave., 6th Floor

Topeka, KS 66603

(913) 296-3480

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Trains technical staff for business,

Enterprise zones.

Reduction in State corporate business tax.

Training vouchers for new jobs.

Task force.

Description:

This Department recently completed a study entitled

Strategy for the Eighties: High Technology Industrial De

velopment, in which State officials concluded that Kansas

has the basic ingredients needed to compete in the arena

of high-technology development, hut must now create

State level programs that show high-technology industries a concern or commitment on the part of Kansas.

Recommendations for this action include: convening a

committee of business, education, and State leaders; considering legislative changes such as tax and R&D incen

tives; coordinating training with educational instructions;

and promoting the State resources to out-of-State business. At present, the State has an Industrial Training

Program, tax incentives for business and enterprise zone

legislation allowing cities to develop the zones in specially

designated areas.

Kentucky

The economic development strategy laid out by the

Governor includes the formation of a High-Technology

Committee to review all sectors of the State economy

ior possible high-technology industrial development. The

State already provides overall development assistance to

business, including a strong financing program and a re

cent emphasis on the importance of education for eco

nomic growth. Kentucky also has good vocational training programs, including a program designed for displaced

older workersj and has an aggressive State- local cooper -

ative enterprise nine program.

Development efforts by the education sector include

the Northern Kentucky University Foundation, established to develop a research/technology park adajacent

to Northern Kentucky University. In addition, the University of Kentucky Office of Continuing Education acts

as information broker on Federal funds for small business.\

development.

Programs

Capital provision assistancc

Kentucky Development Finance Authority

Labor,/technical assistance

Industry Training Program

General industrial development

Kentucky Development Finance Authority

Kentucky Enterprise Zones

Kentucky Development Finance Authority

Mr. Roger Peterman

Executive Director, Industrial Development Division

Kentucky Commerce Cabinet

Capital Plaza Tower

Frankfort, KY 40601

(502) 564-4554

Date of establishment: 1%2

Annual State funding (millions): N/A
Appendix—Directory of State High-Technology Strategies and Programs ● 35 ———— ..——.——.—. .— — . .————.— —..— ... .———.— ——.

puter training in manufacturing industries. This committee will identify the skills needed in high-technology industries, and then develop a training program around

these needs.

The Upgrade Training Program, another project in this

department, is a program designed to retrain older workers who do not have the skills to use new manufacturing equipment.

Kentucky Enterprise Zones

Louisiana

The Governor’s Task Force on High-Technology,appointed to look at possible economic diversification in

a State that is dependent on the petrochemical industry ,

includes representatives from business, education, gov

ernment, and finance. Goals developed by the Task Force

include better capital markets, enhanced technology

transfer between university and business, and changes

in the tax structure to encourage the development of

technology-based industries. Other State development

goals include strengthening the State’s research and development base, both public and private. The State development strategy includes all forms of innovation and

manufacturing.

Louisiana is looking forward to hosting the New

Orleans World Fair, which will emphasize high-technol-
ogy industrial development. The city of New Orleans,

too, is aggressively pursuing the development of hightechnology industries. This includes plans for a research

park, changes in city ordinances, and location assistance

for new and expanding industry.

Programs

High-technology development

Louisiana Task Force on High-Technology

Capital provision assistance

National Business Division

Labor/technical assistance

National Business Division

General industrial development

National Business Division

Louisiana Task Force on High-Technology

Mr. Kevin Couhig

Project Coordinator-Task Force on

High-Technology

Office of Commerce and Industry

P.O. BOX 44185

Baton Rouge, LA 70704

(504) 342-5372

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Ascription:

This Task Force is considering the future of Louisiana’s

economy, emphasizing the potential instability in continued State income reliance on the petrochemical industry. The concerns of the Task Force include access

to risk capital, and the role educational resources play

in the development of high growth industry. It consists

of university presidents and chancellors, the Commissioner of Higher Education, State Legislators, and members of the business community. The Task Force will

make recommendations to the Governor and the legislature in April 1983.

National Business Division

Mr. John Foltz

Director

National Business Division of the Department

of Commerce

P.O. BOX 44185

Baton Rouge, LA 70804

(504) 342-5370

Date of establishment: 1972

Annual State finding (millions): N/A

Program type:

Capital provision assistance.

General industrial development.

Labor/technical assistance.

Program services:

Enterprise zones.

Industrial revenue bonds.

Technical training provided by State.

Subordinated loans.

Links industry with university resources.

Abatement of local property tax.

Assists in finding venture capital.

Task force.

State resources promotion.

Information dissemination

Description:

Louisiana has developed incentives for business development including property and building tax exemptions

for up to 10 years; an Industrial Revenue Bond (IRB) financing program; and a training program which customizes a program on a firm-by-firm basis. The State recently began a new effort coordinating the efforts of the vocational-technical schools with the skill requirements of

industry. In addition, the State is looking for ways to

promote engineering and science skills.

A small business division of this department provides

loans and guaranteed loans; and some venture capital

is available through this office. This office also administers the State enterprise zones-two of the first four

firms in these zones were high-technology manufacturers.
—— ———- . —

Appendix—Directory of State High-Technology Strategies and Programs ● 37

— . — —.—.—.—..——..——

Maine

Maine, whose economy is made up almost entirely of

small businesses, has recently struggled with a declining

demand for its major product: shoes and leather goods.

Its strategy for overall economic development includes

the creation of a loan guarantee program and a Statechartered corporation to provide capital for new or expanding industry. There has been limited support for the

technical education that may be needed to attract hightechnology industries, but the State enjoys the cooperation of the university and private sectors in automating

the shoe industry and other traditional industries to

make production more efficient.

The New Enterprise Institute, a private nonprofit group

associated with the University of Maine, has been instrumental in developing computer--assisted design and

manufacturing in the shoe industry, working on a firmby-firm basis to implement innovative production processes. In addition, this group helps find research and development funds for further high-technology development.

Programs

Capital provision assistance

Maine Capital Corp.

General industrial development

Business Assistance Division

Maine Guarantee Authority

Business Assistance Division

Mr. Robert Hird

Director, Business Assistance Division

State Development Office

State House

Augusta, ME 04333

(207) 289-2656

Date of establishment: 1981

Annual State funding (millions): N/A

Program type:

General industrial development

Program services:

Training vouchers for new jobs.

Tax–favorable business climate.

Industrial revenue bonds.

Description:

The Business Assistance Division of the State of Maine

works closely with industry in the State to encourage

economic development. The office caters to the needs

of small business which comprises a large proportion of
38 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

brella Program which issues bonds to provide loans and

insurance, and 3) loans for building “shell” industrial

buildings. The program makes it possible for businesses

to acquire loans that would otherwise be beyond their

reach.

Maryland

The Maryland High-Technology Roundtable, created

in 1982, advises the Governor and legislature on issues

such as financial support, technical education, industrial

retraining, and engineering programs at Maryland’s universities. Maryland already has eight State financing programs for different types of businesses, including a venture capital program for new companies, and it aggressively promotes the resources available to expanding industry. There are plans to expand the existing Technology

Extension Service throughout the State to encourage

product development and manufacturing innovation. In

addition, several Maryland counties have launched successful high-technology programs of their own.

The University of Maryland plays a leading role in the

State’s efforts to promote advanced research and hightechnology development. Its University Research Foundation conducts technical research and assists businesses

in product and market development; the Center for Productivity and Quality of Working Life provides training,

technical assistance, and information to the public and

private sector; and the Engineering Research Center assists small business with technology-related product development. In addition, the University has recently announced plans to establish a research park, the Maryland

Science and Technology Center, to exploit its strengths

in computer science, engineering, and biomedical research.

Programs

High-technology development

Maryland High-Technology Roundtable

Capital provision assistance

Maryland Industrial Development Financing

Authority

Maryland Small Business Development Financing

Authority

Labor/technical assistance

Maryland Industrial Training Program

Technology Extension Service

General industrial development

Technology Extension Service

Maryland High-Technology Roundtable

Mr. James Roberson

Secretary

Department of Economic and Community

Development

2525 Riva Rd.

Annapolis, MD 21401

(301) 269-3176

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Description:

The Maryland High-Technology Roundtable acts as

an advisor and consultant to the Governor and State

legislature on significant issues in Maryland’s high-technology environment. The Roundtable is comprised of decisionmakers from high-technology businesses, financial

institutions, professional organizations, public and private

universities, and State and local government. Issues on

the Roundtable’s agenda include: the development of excellence in State university engineering programs; the

development of realistic industrial retraining programs;

the enhancement of technical education in primary and

secondary schools; promote capital formation; set up

committees on specific issues.

Maryland Industrial Development

Financing Authority

Mr. Oliver H. Fulton

Executive Director

MIDFA

The World Trade Center, Suite 2244

Baltimore, MD 21202

(301) 659-4262

Date of establishment: 1%5

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

Program services:

Industrial revenue bonds.

Long-term, low-interest loans,

State resource promotion.

Loan guarantees.
Append/x-D/rectory of State High-Technology Strategies and Programs 39

Description:

The Maryland Industrial Development Financing

Authority (MIDFA) approves issues, sells, and insures

tax-exempt industrial revenue bonds through two major

programs. Both programs assure low-interest, tax-exempt

financing for loan recipients to finance land, buildings,

and equipment. Because of the tax-exempt status, interest

rates are lower than those available through conventional

lending markets. The two programs are the MIDFA Umbrella Program for capital provision to small businesses,

and the MIDFA Insurance Progam guaranteeing loans

made to business.

Maryland Industrial Training Program

Mr. Ray Adcock

Director

Department of Economic and Community

Development

1748 Forest Dr.

Annapolis, MD 21401

(301) 269-2631

Date of establishment: N/A

Annual State funding (millions): N/A

Program type

Labor/technical assistance.

Program services:

Technical training provided by State.

Description:

The Maryland Industrial Training Program offers customized training on a firm-by-firm basis with special emphasis on new and expanding industries. The Program

offers skills training in high-technology areas such as computers, electro-optics, and robotics.

Maryland Small Business Development

Financing Authority

Mr. Stanley Tucker

Executive Director

MSBDFA

The World Trade Center-401 E. Pratt St.

Baltimore, MD 21202

(301) 659-4270

Date of establishment: 1980

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

Program services:

Assists in finding venture capital.

Description:

This program assists socially or economically disadvantaged businesspersons to obtain working capital needed

to continue and complete a project under a Federal,

State, or local government contract. Eligibility for loans

up to $150,000 per project requires that the applicant

be unable to obtain adequate business financing through

normal lending channels. A second program administered by this office can guarantee up to 80 percent of

a loan, up to $500,000 made by a lender to a qualified

applicant.

Technology Extension Service

Mr. Frank Moderachi

Director, Technology Extension Service

University of Maryland College of Engineering

Frostburg State College

Frostburg, MD 21532

(301) 689-2570

Date of establishment: 1978

Annual State funding (millions): $0.05

Program type:

Labor/technical assistance.

General industrial development.

Program services:

Product development assistance.

Patent searches.

Links industry with university resources.

Information dissemination.

Description:

This program was funded as a pilot program by the

Appalachian Regional Commission in 1978, to help businesses with product development and innovation. The

Director reports the program has been quite successful

in helping firms to adopt new technologies, and in linking firms with university technical assistance. This pilot

program, which was considered a success, has been extended statewide and will be funded by the State of Maryland.

Massachusetts

Massachusetts is often cited as an example of the benefits of high-technology development. It has been described as having no outstanding natural resources, but

it does have a well-trained technical labor force, excellent

educational institutions, and a business community that

has consistently fostered investment in technological in-
40 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives — —— --.—————

novation. Massachusetts boasts more venture capital

companies than any other State except California.

State government initiatives include an aggressive

training program for high-technology workers, tax incentives for investments by insurance companies, and a technology park that is currently in the planning stage.

Another initiative, the Massachusetts Technology Development Corp. (MTDC), was set up by the State to

provide venture capital to otherwise overlooked ventures.

MTDC has been highly successful in this role, and has

come to be a model for similar initiatives in many other

States.

Programs

High-technology development

Massachusetts Technology Development Corp.

High-technology education

Bay State Skills Corp.

Capital provision assistance

Massachusetts Industrial Finance Agency

Massachusetts Technology Development Corp.

Labor/technical assistance

Bay State Skills Corp.

Massachusetts Technology Park Corp.

Bay State Skills Corp. (BSSC)

Ms. Susan K. Moulton

Executive Director, Bay State Skills Corp.

McCormack Office Bldg.

One Ashburton Place, Rm. 2110

Boston, MA 02108

(617) 727-5431

Date of establishment: 1981

Annual State finding (millions): $5.0

Program type:

High-technology education.

Labor/technical assistance.

Program services:

Information dissemination.

Links industry with university resources.

Grants for training.

Description:

BSSC encourages and facilitates cooperative relationships between business, labor, government, and education aiming to develop and expand programs of skills

training consistent with employment needs. It also provides grants-in-aid to educational and training institutions making awards of over $5 million for conducting

skills training programs and education in a variety of

growth occupations. In addition, the corporation plans

to collect and disseminate information on employment

needs, and to conduct conferences and seminars. BSSC

will identify occupations that are in high demand, seek

out strong education and training organizations, and

fund creative skill training programs by using State

dollars to leverage financial assistance from the private

sector. All of BSSC programs require active involvement

of the private sector.

Massachusetts Industrial

Finance Agency (MIFA)

Mr. Robert E. Patterson

Executive Director

Massachusetts Industrial Finance Agency

125 Pearl St.

Boston, MA 02110

(617) 451-2477

Date of establishment: 1979

Annual State funding (millions): $100

Program type:

Capital provision assistance.

Program services:

Industrial revenue bonds.

Physical plant provision.

Description:

This agency was established to create jobs by stimulating private investment. Since its inception, the agency

has helped 769 industrial and urban revitalization projects to go forward, creating an estimated 40,000 new jobs.

The program provides low-cost capital for expansion

through the Industrial Review Bond (IRB) program.

MIFA uses the IRBs for three types of development projects—industrial companies , commercial projects, and

pollution control facilities.

Massachusetts Technology

Development Corp. (MTDC)

Mr. William F. Aikman

President .

Massachusetts Technology Development Corp.

84 State St., Suite 500

Boston, MA 02109

(617) 723-4920

Date of establishment: 1978

Annual State funding (millions): $1.6

Program type:

Capital provision assistance.

High-technology development.
— —

Appendix—Directory of State High-Technology Strategies and Programs ● 41

— —. . . . . -. — — . — -. —. — ———

Program services:

Assists in finding venture capital.

Direct investment in startup.

Investment in product development.

Venture capital–royalty or stock rights.

Loan–debt.

Equity loans.

Market development assistance.

Description:

This Corporation—often the model for programs in

other States—provides venture capital to new or small

high-technology-based companies. MTDC also provides

information on labor and market development, product

development assistance, and export promotion information. It will coinvest with private funds. MTDC helps

new businesses or inventors achieve commercial success

by providing debt, equity or royalty agreement capital,

and assistance in finding venture capital from other

sources.

Massachusetts Technology Park Corp.

Mr. Philip F. Holahan

Assistant Secretary and General Counsel

Executive Office of Economic Affairs

One Ashburton Place, Rm. 2101

Boston, MA 02108

(617) 727-8380

Date of establishment: 1982

Annual State finding (millions): $20

Program type:

Labor/technical assistance.

Program services:

Links industry with university resources.

Trains technical staff for business.

Technical training provided by State.

Physical plant provision.

Description:

This public corporation encourages industry to locate,

develop, and expand within the Commonwealth by increasing the capacity of postsecondary institutions to provide state-of-the-art training in certain emerging areas of

science and technology. At present, the Corporation is

designing a microelectronics center.

Michigan

Michigan is undertaking a comprehensive program to

stimulate the growth of new industries and bolster its

traditional industries. This strategy includes loan and

capital programs, training programs, a research and development (R&D) fund, university-industry cooperative

programs, university research centers, and changes in

R&D tax laws. Legislation passed in 1982 made the

State’s public pension funds eligible for equity investments in Michigan businesses. The focus is on technology-based, growth-oriented industries, with investments generally taking the form of stock or convertible

debentures. Michigan banks have also set up Small Business Innovation Centers in several cities, and a State

agency has a program to help with small business development.

The new Governor has called for a study of how the

State’s education system is tied to overall economic development, and how improvements can be made to enhance overall economic development in the State. This

comes in part from the recognition that Michigan’s unemployment problems, caused by permanent structural

changes in automotive and related industries, can be

eased only by developing new industries like robotics.

Government leaders also recognize that, if the State

is planning to compete effectively for new jobs and economic growth, there must be more cooperation between

the private, public, and academic sectors. A new private

sector initiative in this area is the Economic Alliance for

Michigan, a group of business and labor leaders that is

investigating high-technology industry as a means of

bringing new jobs to the State and expanding employment in existing industries.

Programs

High-technology development

High-Technology Equity Loans

High-Technology Resource Center

Industrial Technology Institute

Innovation Center

Metropolitan Center for High-Technology

Michigan High-Technology Development Corp.

Molecular Biology Institute

Capital provision assistance

High-Technology Equity Loans

Michigan Economic Development Authority

Michigan Job Development Authority
42 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census Of State Governmenf Initiatives

Labor/technical assistance

Comprehensive Employment Program

High-Technology Resource Center

General industrial development

Michigan Economic Development Authority

Comprehensive Employment Program

Mr. Rob Fraser

Office of Industrial Training

Michigan Department of Labor

309 N. Washington St.

Lansing, MI 48909

(517) 373-9180

Date of establishment: 1978

Annual State funding (millions): $0.99

Program type:

Labor/technical assistance.

Program services:

Technical training provided by State.

Links industry with university resources.

Technical support provided by State.

Loans.

Description:

This program designs and administers training programs to meet the expressed labor needs of new and/or

expanding businesses.

High-Technology Equity Loans

Mr. Bill Amerman

Director of Investments

Michigan Department of Treasury

P.O. Box 15128

Lansing, Ml 48901

(517) 373-3140

Date of establishment: 1983

Annual State funding (millions): $375 bond

Program type:

Capital provision assistance,

High-technology development.

Program services:

Equity loans.

Description:

This program is not yet implemented, but will be a “setaside” for high-technology business provided in conjunction with the State Pension Fund. It is likely that the

initial investments for the pension fund as a venture capital source will likely take place with other nongovernment institutional venture capitalists into a company that

would in turn make the direct equity purchases.

High-Technology Resource Center

Mr. Albert A. Bogdan

Director

Office of Economic Development, Michigan

Department of Commerce

P.O. BOX 30225

Lansing, MI 48909

(517) 373-35.30

Date of establishment: 1982

Annual State finding (millions): $0.15

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Grants for research.

Grants for development.

Assists in finding venture capital.

Links industry with university resources.

Description:

This Center administers the State Research Fund and

provides assistance to entrepreneurs in obtaining Federal

research and development grants. Also assists technology-based firms obtain venture capital, prepare business

plans, and access technical

universities.

Industrial Technology

Dr. Arch Naylor

Director

assistance from Michigan

Institute (ITI)

Industrial Technology Institute

2901 Baxter Rd.

Ann Arbor, MI 48109

(313) 763-9273

Date of establishment: 1981

Annual State funding (millions): $2.75

Program type:

High-technology development.

Program services:

Market development assistance.

Links industry with university resources.

Technical training provided by State.

Description:

ITI has been established to help the State capture an

increasing share of the growing computer-based automation and flexible automated manufacturing industries.

ITI will use Michigan’s higher education system, includ-
Appendix—Directory of State High-Technology Strategies and Programs ● 43

— —

ing community colleges, and work with the private sector to develop capabilities in advanced robotics research,

applied research, and retraining programs necessary to

integrate robotics into the workplace. Funding is expected to come from private foundations, private sector

individuals, and the State government.

Innovation Center

Mr. Don Smith

Institute of Science and Technology

University of Michigan

2200 Bonisteel Blvd.

Ann Arbor, MI

(313) 764-5260

Date of establishment: 1982

Annual State finding (millions): $0.15

Program type:

High-technology development.

Program services:

Technical assistance.

Description:

The main emphasis of this program is to help existing

Michigan firms expand their manufacturing capacity into

new products and markets, utilizing emerging technologies. This demonstration project brings university

resources to the private sector.

Metropolitan Center for High-Technology

Dr. M. A. Rahimi

Metropolitan Center for High-Technology

Wayne State University

2727 Second St.

Detroit, MI 48201

(313) 577-4722

Date of establishment: 1982

Annual State funding (millions): $0.50

Program type:

High-technology development.

Program services:

Product development assistance.

Technical training provided by State.

Description:

Wayne State University, with over $20 million of contract research a year, will play a pivotal role in Michigan’s

and particularly southeast Michigan’s plans to encourage

development of technology-based industries. The Metropolitan Center for High Technology will provide research

and development capabilities, special incubator environments, teaching and service capabilities, industrial training, and retraining. Key program components include

an Innovation Center, Incubation Center, and HighTechnology Outreach Services.

Michigan Economic Development

Authority (MEDA)

Mr. William A. Schwartz

Executive Director

Michigan Economic Development Authority

BOX 30234

Lansing, MI 48909

(517) 373-6378

Date of establishment: 1982

Annual State funding (millions): $10.0

Program type:

Capital provision assistance.

General industrial development.

Program services:

Loan-debt.

Bond issue to raise capital.

Long term, low-interest loans.

Grants for research.

Grants for development.

Description:

The Authority’s primary responsibility is to retain and

create jobs in Michigan. In addition it is to develop selfsustaining enterprises and to promote diversification of

the economy of the State.

MEDA provides necessary financial assistance to job

creating or job retaining projects capable of becoming

self-sustaining enterprises. It provides direct loans and

loan insurance enabling projects to obtain funds on terms

not otherwise available.

A separate responsibility of MEDA is to administer

grants to nonprofit research and development enterprises

that perform research and development in present and

emerging technologies and the application of such technologies to business and industry.

Michigan High-Technology

Development Corp.

Mr. Robert C. Law

Director

8623 N. Wayne Rd., Suite 200

Westland, MI 48185

(517) 373-3530

Date of establishment: 1982

Annual State funding (millions): $0.150

Program type:

High-technology development.
44 ● Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government /initiatives

Program services:

Task force.

State resources promotion (infrastructure).

Description:

This Corporation has the job of implementing the

Michigan High-Technology Task Force recommenda--

tions. The Corporation is designed to devise, promote,

and implement plans to increase development and

growth of technology-based businesses in Michigan. The

Corporation will coordinate all State, local, and regional

high-technology efforts.

Michigan Job Development Authority

Mr. William I. Cochran

Director

Michigan Department of Commerce

P.O. Box 30227

Lansing, MI 48909

(517) 373-0349

Date of establishment: 1978

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

Program services:

Investment capital.

Description:

The Michigan Job Development Authority (JDA) offers direct loans and loan participation for financing industrial construction, but cannot finance startup businesses or rescue failing businesses. Financing is available

for construction, acquisition, expansion, or rehabilitation of industrial buildings, machinery, and equipment.

The Authority requires, however, that successful applicant credit must be sufficient to attract revenue bond

buyers. In 1983, JDA will expand its services to commercial, agricultural, solid waste disposal, and forestry

facilities.

Molecular Biology Institute

Dr. Patrick Oriel

Molecular Biology Institute

276 Bessey Hall

Michigan State University

East Lansing, MI 48824

(517) 355-2277

Date of establishment: 1982

Annual State funding (millions): $1.0

Program type:

High-technology development.

Program services:

Links industry with university resources,

Grants for research.

Description:

Originally formed by Governor Mil!iken’s Task Force

for High Technology Industry and located close to

Michigan State University, the Molecular Biology Institute will be a biotechnology coordinating development

center spanning the entire State. Interuniversity projects

and university-industry collaboration will be emphasized

with a strong orientation toward projects with potential

for early commercialization. Building on Michigan’s

strong forest and agricultural resources, Biology Institute

scientists are dedicated to the development of new bioproducts and processes from renewable resources. Advanced biotechnology techniques including recombinant

DNA, plant tissue culture, and immobilized enzymes are

integral parts of the research and development program.

In addition, a project in protein design and function is

under development.

A scientific advisory board is being assembled consisting of nationally recognized scientists in the field of biotechnology. This group will help in the identification of

new research opportunities and guide progress of industry projects.

Institute startup funds were provided by the Kellogg

and Dow Foundations and a major grant has been provided by the Michigan Economic Development Authority. The Molecular Biology Institute will favor Michiganbased commercialization of its research and expects to

be self-supporting from industrial royalties and contracts

after 8 years.

Minnesota

Minnesota is distinguished by the aggressive economic

development efforts of its private sector and educational

groups. Several firms and industry-labor-education coalitions have set up programs to provide incentives for hightechnology industrial development. Minnesota Wellspring, chaired by the Governor, includes 28 representatives from labor, business, agriculture, education,

and government. Its goal is to mobilize statewide support for new and better jobs, technological innovation,

business growth, and changes in public policy. The University of Minnesota has created an agency for computer

literacy through local schools and community colleges.

In 1983, the State Legislature is considering a Minnesota

Challenge Grant Program to provide high-technology

skills training.

In addition, several private sector groups in Minnesota

are working to promote high-technology development.
— —— ..— ——

Appendix—Directory of State High-Technology Strategies and Programs ● 45

One of these is the Minnesota Information and Science

Center (MISC), which is largely funded by four major

corporations but has a board of representatives from

government, education, and industry. MISC formulates

broad policy recommendations, proposes strategies for

economic development, and designs training courses for

high-technology skills. This group plans to work closely

with other private sector groups such as the Minnesota

High-Technology Advisory Council, which is assessing

the technological needs and resources of the State, and

the Minnesota Seed Capital Corp., which will provide

startup financing for new firms. Another large private

sector initiative is the Business and Technology Center

in Minneapolis, sponsored by Control Data Corp., which

provides incubator space and technical and management

assistance to help entrepreneurs develop new hightechnology products and processes.

Programs

High-technology education

Microelectronics Information and Science Center

Labor/technical assistance

Microelectronics Information and Science Center

General industrial development

Minnesota Wellspring

Microelectronics Information and

Science Center

Dr. Ted Davis

Chairman, Department of Chemical Engineering

University of Minnesota

421 Wash Ave., S.E.

Minneapolis, MN 55455

(612) 373-2299

Date of establishment: 1982

Annual State funding (millions): $1.5

Program type:

High-technology education.

Labor/technical assistance.

Program services:

Grants available.

Grants for research.

Grants for startup.

Grants for development.

Links industry with university resources.

Trains technicians for business.

Description:

This private sector effort has a small amount of State

money through university funding. It has requested $1.5

million for 1983. Major private contributors are Sperry

Corp., Control Data Corp., and 3M. This project provides advice and technical assistance to high-technology

projects on a contract basis, and uses technical staff from

the universities in the State. In addition, money is available as seed for matching grants in new research ideas

initiated by the university which will be joint projects

with industry. The assistance is generally not product

oriented, and the Center does not help new firms get

started. The Center will offer courses to help keep technical people current in their field.

Minnesota Wellspring

Ms. Donna Knight

Executive Director

Minnesota Wellspring

101 Capital Sq.

St. Paul, MN 55101

(612) 296-4858

Date of establishment: 1981

Annual State funding (millions): $0.35

Program type:

General industrial development.

Program services:

Information dissemination.

Description:

This nonprofit corporation represents a collaborative

effort among Minnesota business, labor, education, and

government. The State provides one-third of the program

budget, with private sources supplying the rest. The mission of the corporation is to increase the number of new

jobs in the State, and to expand the State’s technology-based industry.

Mississippi

Mississippi has taken stock of its needs and made a

major investment in education to enhance its future economic growth. This includes a financial investment in

primary and secondary schools funded by a tax increase,

as well as reform of curriculum to reflect the increasing

emphasis on science and mathematics in the Nation’s industrial sector. In addition, the State already has an aggressive high-technology training program customized to

the needs of a particular firm.

Another State program is the Mississippi Research and

Development Center (MRDC) which coordinates public

and private resources to promote technology transfer.

MRDC’s Business Services Bureau and New Ventures

Branch provide complete analyses of the commercial potential of research projects, and they work closely with
46 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

industry to help with new product and process development. Both groups assist in preparing financial projections, finding sources of financing, locating sources of

raw materials, determining manpower needs, and obtaining or licensing patents. The Mississippi Legislature

recently passed a bill establishing enterprise zones and

high-technology zones for establishment of high-technology business and industry.

Programs

High-technology development

Mississippi Research and Development Center

High-technology education

Vocational Education Program

Capital provision assistance

Small Business Loan Guarantee Program

Labor/technical assistance

Industrial Development Division

Mississippi Research and Development Center

Vocational Education Program

General industrial development

Industrial Development Division

Small Business Loan Guarantee Program

Industrial Development Division

Mr. James Miller

Director

Industrial Development Division

P.O. Box 849

Jackson, MS 39205

(601) 359-3439

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

General industrial development.

Program services:

Industrial revenue bonds.

Tax–favorable business climate.

State resources promotion (infrastructure).

Information dissemination.

Description:

This office, with five individuals who travel throughout

the United States and two who travel internationally,

contacts industries that might be interested in relocating

in Mississippi. The State offers financing under the Industrial Revenue Bond program, and provides business tax

incentives such as exemptions from property taxes. This

office surveying of high-technology firms to determine

what the State can develop to attract these industries.

In addition, with a view towards overall economic development, the Mississippi Legislature recently passed a $106

million initiative to improve public education.

Mississippi Research and

Development Center

Dr. Jim Meredith

Director

Mississippi R&D Center

3825 Ridgewood Rd.

Jackson, MS 39211

(601) 982-6606

Date of establishment: 1964 f

Annual State funding (millions): $4.2

Program type:

High-technology development.

Labor/technical assistance.

Program services :

State resources promotion.

Market development assistance.

Information dissemination.

Product development assistance.

Description:

This Center coordinates industry and university resources, to help with product and process development,

and to transfer technologies from R&Q centers to industry. The Center also provides organizational and operational services to small business, manufacturing operations, and new ventures.

Small Business

Mr. James Miller

Director

Industrial Division

P.O. Box 849

Jackson, MS 39205

(601) 354-6700

Loan Guarantee Program

Date of establishment: 1977

Annual State funding (millions): $1.0

Program type:

Capital provision assistance.

General industrial development.

Program services:

Loan guarantees.

Description:

The State modeled this program on a Federal Small

Business Administration program that guarantees loans
— — .—— — .——

Appendix—Directory of State High-Technology Strategies and Programs ● 47

—.— — —-——— .—..———

for businesses creating new jobs. While not focused exclusively on high-tech firms, the program looks for companies that can expand and survive.

Vocational Education Program

Mr. Elwin Wheat

Vocational-Tech Division

State Department of Education

P.O. Box 771

Jackson, MS 39205

(601) 359-3088

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

High-technology education.

Labor/technical assistance.

Program services:

Trains technical staff for business.

Technical support provided by State.

Links industry with university resources.

Description:

This program provides labor for new and expanding

industry and provides training for displaced workers by

funding up to 100 percent of new and upgrade training

programs. The program accepts anyone who applies for

a job, and trains them to the level needed by industry.

It also helps workers who are not trained for a specific

position to find jobs. This program recently started a

series of three workshops in advanced technology skills.

The State maintains eight mobile industrial training units

that provide courses in computer-aided design, metalworking, and robotics.

Missouri

Missouri has developed an aggressive program to attract, develop, and retain high-technology industry. This

program is largely dependent on the interaction, through

research funding, of university and industry in the State.

Much of the initiative for this program came from industry, which saw the potential for high-technology product development in the basic research conducted at

Missouri universities.

In 1982, the University of Missouri at Rolla began a

computer-aided design and manufacturing (CAD/CAM)

and robotics center to train engineering students in stateof-the-art manufacturing technologies. Seven Missouri

and national firms have contributed funds and equipment to the center, which also receives National Science

Foundation (NSF) funds through Computer Assistance

for Undergraduate Science Education grants. Another

universit y program is the Office of Science and Technology, which has negotiated contracts for research with

local industry.

In addition, the State has taken stock of the training

needs of workers displaced from traditional industry and

developed a retraining program to teach new high-technology skills. The State also provides funding for business

development, tax incentives for new and expanding industries, and active local groups working on economic

development.

Programs

High-technology development

University of Missouri-Office of Science and

Technology

High--technology education

Higher Education Research and Applied

Projects Funds

University of Missouri-Office of Science and

Technology

Capital provision assistance

Higher Education Research and Applied

Projects Funds

Industrial Development Funding Act

Missouri Economic Development Commission

Labor/technical assistance

High-Technology Skills for Auto Workers

University of Missouri-Office of Science and

Technology

Higher Education Research and Applied

Projects Funds

Missouri Enterprise Zones

General industrial development

Industrial Development Funding Act

Missouri Economic Development Commission

Missouri Tax Program for Business

High-Technology Skills for Auto Workers

Mr. J. H. Frappier

Director

Consumer Affairs, Regulation, and Licensing

P.O. Box 1156

Jefferson City, MO 65102

(314) 751-3946

Date of establishment: 1982

Annual State funding (millions): $18

Program type:

Labor/technical assistance.
48 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

-—. ——.. -————. — -- - ———.—— . —— —

Program services:

Links industry with, university resources.

Technical support provided by State.

Description:

This program represents a cooperative effort between

General Motors and the State to retrain displaced autoworkers in new skills needed by automated manufacturing processes in automobile factories.

Higher Education Research and

Applied Projects Funds

Mr. Mike McManis

Coordinator

Missouri Department of Higher Education

600 Monroe St.

Jefferson City, MO 65102

(314) 751-2361

Date of establishment: 1982

Annual State funding (millions): $1,5

Program type:

Capital provision assistance.

High-technology education.

Labor/technical assistance.

Program services:

Grants for research.

Links industry with university resources.

Grants for development.

Description:

This program offers challenge grants to Missouri colleges and universities for research and applied development projects likely to stimulate private investment and

create new jobs in high-technology areas.

Industrial Development Funding Act

Mr. Barry Jackson

Manager of Financing

Missouri Division of Community and Economic

Development

P.O. Box 118

Jefferson City, MO 65102

(314) 751-2686

Date of establishment: 1982

Annual State funding (millions): $0.800

Program type:

Capital provision assistance.

General industrial development.

Program services:

Industrial revenue bonds.

Long-term,low-interest loans.

State resources promotion.

Physical plant provision.

Description:

The Missouri Division of Community and Economic

Development was established to enhance economic stability in the State. The Industrial Development Funding

Act program encourages businesses to locate in Missouri,

expand existing facilities in the State, promote foreign

investment, and increase State imports. In addition, the

program offers low-interest loans for capital improvement

needed to attract new industry. The program issues

bonds to help promote growth in diverse areas of industry

and trade.

Missouri Economic Development

Commission

Mr. Barry Jackson

Manager of Financing

Missouri Division of Community and Economic

Development

P.O. Box 118

Jefferson City, MO 65102

(314) 751-3674

Date of establishment: 1982

Annual State finding (millions): $0.700

Program type:

Capital provision assistance.

General industrial development.

Program services:

Loan guarantees.

Industrial revenue bonds.

State resources promotion.

Physical plant provision.

Description:

This Commission has the authority to pledge up to

$1 million from the State reserve to guarantee loans for

projects that will generate new jobs and contribute to

the economic well-being of the State, Approval also requires that the borrower can repay the loan, and the

properties financed are secured by a mortgage or deed

of trust. The commission can guarantee 90 percent of

the value of privately obtained loans, up to $1 million,

which must be for machinery, equipment, and/or

buildings,

In addition, this office provides special services to small

business through assistance in loan packaging for development using all sources of financial assistance.
. - — .— -— .

Appendix-LW??ctory of State High-Technology Strategies and Programs 49

—-—.—— .—— —-. .— — — ——— -—.—. .—— - ..- .—.—.——.

Missouri Enterprise Zones

Mr. Bob Simones

Manager

Missouri Division of Community and Economic

Development

P.O. BOX 118

Jefferson City, MO 65102

(314) 751-4849

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

Program services:

Enterprise zones.

Training vouchers for new jobs,

Tax–favorable business climate.

Abatement of local property tax.

Description:

This legislative initiative authorizes tax credits to businesses that establish or expand business operations in an

enterprise zone and invests in capital or creates new jobs.

Firms locating in a zone would be eligible for an investment tax credit equal to 10 percent of the first $10,000

in investments, 5 percent of the next $90,000, and 2 percent of the rest, up to $1,200 tax credit for each new

employee hired.

Missouri Tax Program for Business

Mr. John Kleindienst

Senior Research Associate

Missouri Division of Community and Economic

Development

Capitol Bldg.

Jefferson City, MO 65101

(314) 751-3674

Date of establishment: 1980

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Tax—favorable business climate.

Training vouchers for new jobs.

Description:

The Missouri tax program for business includes two

different packages-the Tax Relief Credit for New or Expanded Business Facilities, and Missouri Tax Increment

Financing:

1. The Relief Credit program offers tax credits for employers who create new jobs and generate new investment. The credit allowed to an existing business

employer is equal to $100 for each new job created

and/or $100,000 of new investment. The credit allowed to a new employer is equal to $75 for each

new job created and/or $100,000 of new investment.

2. The tax investment financing program rebates tax

funds to local community to repay Industrial Revenue Bonds used for development.

University of Missouri—Office of

Science and Technology

Dr. Thomas C. Collins

Associate Vice President

University of Missouri

309 University Hall

Columbia, MO 65211

(314) 882-4893

for Academic Affairs

Date of establishment: 1981

Annual State finding (millions): $0.1

Program type:

High-technology development.

High-technology education.

Labor/technical assistance.

Program services:

Training provided by the State.

Links industry with university resources.

Description:

This program coordinates industry and university resources, to help with product and process development

in the manufacture and use of robotics, and to transfer

this technology from research and development centers

to industry. The Center has recently received a $250,000

grant from the National Science Foundation for computer-aided design and manufacturing training.

Montana

As part of “Build Montana,” a general industrial development campaign, the Governor recently convened

an ad hoc Council of Technology to advise him on hightechnology development in the State. The State boasts

an excellent living environment and low taxes as incentives for industrial business development. In addition,

the State is exploring the use of State resources to develop

new technologies. The legislature is also considering a

proposal to allow Montana’s Unified Investment Fund

to invest in State industry.

The legislature also has before it a proposal to create

a Council on Science and Technology, which would develop specific priorities in scientific, technical, and
50 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

. — — .

engineering research for economic development purposes.

The Council will have the ability to conduct specific

scientific and research projects which may be of use to

high-technology firms in Montana. It may also have the

ability to develop technology transfer mechanisms for

licensing university-developed patents and disseminating

technological and engineering information.

Programs

General industrial development

Montana Department of

Montana Department

Mr. Gary Buchanan

Director

Commerce

of Commerce

Montana Department of Commerce

1424 9th St.

Helena, MT 59620

(406) 449-3494

Date of establishment: N/A

Annual State finding (millions): N/A

Program type:

General industrial development.

Program services:

State resource promotion.

Tax.

Physical plant assistance.

Description:

The State provides technical and management assistance in such areas as accounting, plant design, product

development, and marketing analysis. It provides assistance through grants utilizing private consulting services

and the university systems’ teaching and research staffs.

In addition, to encourage economic development in

the

●

●

●

State of Montana: -

local governments may issue industrial revenue

bonds;

local governments may authorize a 50 percent property tax reduction for the first 5 years of a business’

operation; and

State government may authorize tax credits against

corporate income tax for jobs created. (This provision virtually eliminates corporate income taxes during the first 3 years of operation for labor-intensive

firms.)

Industrial Development Division

Ms. Dolores Wilson

Industrial Analyst

Industrial Development Division

P.O. BOX 94666

Lincoln, NE 68509

(402) 471-3774

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Investment capital.

Links industry with university resources.

Description:

This office recently completed a study of State resources

and future economic growth, considering the development of high-technology industry in the State. As a

result, it recommended a closer working relationship between industry and the universities. In addition, the State

plans to strengthen university research and development

capabilities, and to target specific industries whose growth

in the State appears promising. In order to help new and

expanding business grow, the State provides funding for

plant development through the Development Finance

Fund. This office is also working closely with the Federal

Small Business Innovation Program.

Nebraska

The Governor plans to implement the recommendations of a recently completed study on State resources

in economic development. These include: promoting university-industry relations; strengthening university research and development; and targeting certain highgrowth industries for development in the State.

The State Department of Economic Development advises individuals and firms on product development. This

is done in cooperation with the University of Nebraska’s

College of Engineering, which evaluates product ideas.

Discussions are currently underway to expand these efforts. The University’s Business Development Center also

plans to assist small businesses with technical matters

relating to research grants under the Federal SBI Program.
. — .—— —

Append/x-D/rectory of State High-Technology Strategies and Programs . 51

— — . —..—-— - ——- — —-—.——-——— —

Programs

Labor/technical assistance

Patent Development Program

General industrial development

Industrial Development Division

Patent Development Program

Mr. Darrell Unman

Manager, Licensing and Patent Office

Nebraska Department: of Ecomonic Development

P.O. Box 94666

Lincoln, NE 68509

(402) 471-3786

Date of establishment: 1967

Annual State funding (millions}: N/A

Program type:

Labor/technical assistance.

Program services:

Patent searches.

Grants available.

Licensing assistance.

Description:

The Nebraska Department of Economic Development’s

Patent Development Program is responsible for the administration and commercialization of patents owned by

the State of Nebraska. Efforts in commercialization have

been particularly sucessful because the Department, as

part of its regular programs, also works closely with companies interested in plant reloc ation and business expansion opportunities.

Benefits to the State may accrue in the form of royalties

and/or licensing fees, new industrial locations, expanded

employment and increased tax revenues. Moneys accruing to the program are reiinvested in additional contract

research projects.

Nevada

‘The Commission on Economic Diversification., appointed by the former Governor, recommended creating

a new public development organization—NEVADA

INC.–to assist new and expanding industries, with particular emphasis on economic diversification. Other

Commission recommendations included tax exemptions

for capital improvement and new equipment; State assistance to local governments for economic development;

and development of State education to promote technical

skilIs. The newly elected Governor, who campaigned

against cuts in university funding and in favor of diversifying the State’s industrial base, has indicated that he

will implement most of these recommendations.

Programs

General industrial development

Nevada Office of Economic Development

Nevada Office of Economic Development

New Hampshire

New Hampshire borders on eastern Massachusetts, a

major growth center for high -technology industries, and

it has received some of the benefit of proximity. The

State’s economic development strategy encourges new

and expanding businesses, and several high-technology

companies have located branch plant in New Hampshire to take advantage of its favorable tax structures and

the availability of capital and skilled labor. The State

works closely with private business and universities

through the nonprofit Center for New Hampshire's Future, but to date there are no dedicated government programs to develop high-technology industry.

The new Governor, himself an engineer and the founder of a high-technology company, supports such development and places greatest emphasis on industry-university

partnerships, with the private sector taking the lead.

However, he recently told his fellow governors that “We

like all of you will plagiarize all the good ideas” that have

been developed in other States. He has also stressed the
52 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives — —

need to define “high technology” more broadly, so as

to include the delivery of health care and social services.

Programs

General industrial development

New Hampshire Department of Resources and

Economic Development

New Hampshire Department of Resources

and Economic Development

Mr. George Gilman

Commissioner

Department of Resources and Economic Development

P.O. Box 856

Concord, NH 03301

(603) 271-2591

Date of establishment: N/A

Annual State finding (millions): N/A

Program type:

General industrial development.

Program services:

Market development assistance.

Assists in finding venture capital.

Licensing information.

Description:

The department offers to business: a list of industrial

location recommendations; documented labor analysis;

community and regional information; financial assistance; market demand studies; commercial retail market

statistics; and marketing assistance programs. In addition,

six Vocational-Technical Colleges and the State Technical Institute are located throughout the State to permit

high school graduates obtain advanced training and develop skills.

This department also supports the Industrial Development Authority, which offers guaranteed loans and industrial revenue bond financing. In addition, it refers

businesses to financial sources in other State government

offices and the private sector.

New Jersey

New Jersey has recently set up a Commission on Science and Technology to develop an overall strategy for

the development of high-technology industry in the

State. The-Commission’s four task forces will identify

technologies to be targeted and mechanisms for mobilizing the State’s considerable resources, including venture

capital, skilled labor, strong universities, and a private

research base in pharmaceuticals and telecommunications.

Several high-technology bills have been introduced in

the legislature, including proposals to create a public

foundation to assume the functions of the Commission,

and a public-private corporation to provide venture capital and technical assistance for high-technology entrepreneurs. An earlier State initiative of this kind, the Office for Promoting Technological Innovation (OPTI), suffered from financial and design problems that will be corrected in future initiatives.

The State also has the advantage of a private, nonprofit corporation, the Research and Development Council of New Jersey, which makes policy recommendations

in science and technology and promotes university/industry relations in the high-technology field.

Programs

High-technology Development

Governor’s Commission on Science and Technology

Governor’s Commission on

Science and Technology

Mr. Edward Cohen

Executive Director

Governor’s Commission on Science and Technology

225 W. State St., CN 542

Trenton, NJ 08625

(609) 292-1970

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Description:

The Governor of New Jersey created the Commission

on Science and Technology to develop a comprehensive

plan and make policy recommendations to foster a hightechnology economy, especially where economic growth

and job creation are concerned. A primary objective is

to strengthen linkages between New Jersey’s industries

and universities for applied research, with government

facilitating these relationships.

New Mexico

The Committee on Technical Excellence in New Mexico, in its report on Enhancing New Mexico's Lea&-

ship in H&h- Technology lndustry Development, has

recommended the promotion of a “Rio Grande Research

Corridor,” the promotion of technical excellence at New
.

. .—— -—. -—

Appendix—Directory of State High-Technology Strategies and Programs ● 53

Mexico’s universities, and the commercialization of desirable technologies by firms in the State.

The new Governor has also called for the further development of centers of excellence in high-technology

fields and for strengthening university/industry cooperative ventures. State agencies have also- targeted hightechnology industries in their general economic development programs, and government officials are looking into

the development of venture capital and product development agencies.

Programs

High-technology development

Department of Commerce and Industry

Economic Development Division

High-technology education

Technology Programs at Albuquerque Technical

Institute

Labor/technical assistance

Technology Programs at Albuquerque Technical

Institute

Department of Commerce and Industry

Mr. Russell Autry

Secretary

Department of Commerce and Industry

State Capital Bldg.

Santa Fe, NM 84501

(505) 827-3008

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Tax—favorable business climate.

Licensing assistance.

Description:

This office administers the recommendations of the

State Task Force on Technical Innovation and Excellence. In addition, it helps new and expanding industry

obtain licensing, train new workers, find plant locations,

help with mortgage financing and residential property

location. In addition, one division works closely with

small businesses to help them become established.

Economic Development Division

Mr. James Garvin

Director

Economic Development Division

Bataan Bldg.

Santa Fe, NM 87503

(505) 827-6026

Date of establishment: 1983

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force,

State resources promotion (infrastructure).

Description:

This department administers recommendations of the

Governor’s Committee on Technical Excellence. It is currently helping develop the Rio Grande Research Corridor, promote focused areas of technical excellence at New

Mexico Universities, and encourage industrialization

with desirable industries.

Technology Programs at

Technical Institute

Mr. Robert Dorak

Albuquerque

Chairman of Technology Programs

Albuquerque Technical Vocational Institute

525 Buena Vista, S.E.

Albuquerque, NM 87106

(505) 848-1400

Date of establishment: 1979

Annual State funding (millions): N/A

Program type:

High-technology education.

Labor/technical assistance.

Program services:

Labor assistance.

Technical support provided by State.

Trains technical staff for business.

Description:

This Institute has targeted several important technologies for developing the skills of students and industrial

workers. The programs specialize in areas such as solar

power development and installation, computer programing, robotics, and fiber optics. The courses offer training to young people in advanced technologies and retrain

displaced workers who wish to advance their careers.
54 . Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government Initiatives

New York

The primary goal of New York’s high-technology development strategy is to retain and expand the State’s

existing technology-related industrial base. The former

Governor designed comprehensive policies for advancing high-technology economic growth, as well as the continued development of the traditional industrial base.

The new Governor is expected to continue this overall

strategy. Its goals include improving the efficiency and

productivity of the State’s existing industry and nurturing the growth of small high-technology firms.

Overall, this State’s approach is considered more

sophisticated and rigorous than those of many other

States. The New York Science and Technology Foundation, reconstituted in 1981, coordinates efforts to

stimulate research and encourage technological innovation. Many of the initiatives launched by the Foundation have later been integrated with the programs of the

Commerce and Education Departments.

State officials report that there is strong support for

further high-technology development from the private

sector, including the State’s existing high-technology

firms, and from the university and educational systems.

One innovative program at SUNY Stony Brook is the

Center for Industrial Cooperation, which assists member

businesses in technology transfer, product and market

development, and research. The State also reports being

successful in attracting venture capital and foreign investment,

Programs

High-technology development

New York Science and Technology Foundation

Corp. for Innovation Development

Capital provision assistance

Corp. for Innovation Development

New York State Urban Development Corp.

New York Job Development Authority

Labor/technical assistance

New York Job Development Authority

New York Science and Technology Foundation

New York State Department of Commerce

General industrial development

New York Job Development Authority

New York State Department of Commerce

New York State Urban Development Corp.

Corp. for Innovation Development

Mr. John Defiggos

Deputy Executive Director for Operations

New York State Science and Technology Foundation

99 Washington Ave.

Albany, NY 12210

(518) 474-4349

Date of establishment: 1981

Annual State funding (millions): $1.1

Program type:

Capital provision assistance.

High-technology development.

Program services:

Loan–debt,

Equity loans.

Subordinated loans.

Stock or royalty rights.

Investment capital.

Market development assistance.

Product development assistance.

Assists in finding venture capital.

Description:

The New York Corp. for Innovation Development,

established within the Science and Technology Foundation, provides financial assistance and technical services

to innovative technology-based new business ventures/

startups. A special grant from the U.S. Department of

Commerce (EDA) funds this Corporation, which focuses

on startup situations with no track record but with significant potential. The Corporation will generally invest between $50,000 and $100,000 but not more than $250,000.

New York Job Development Authority

Mr. Robert T. Dormer

President

New York Job Development Authority

3 Park Ave., 34th Floor

New York,, NY 10016

(212) 578-4181

Date of establishment: 1962

Annual State funding (millions): Bond

Program type:

Capital provision assistance.

General industrial development.

Labor/technical assistance.
Appendix—Directory of State High-Technology Strategies and Programs ● 55

Program services:

Bond issue to raise funds.

Low-interest loans.

Description:

The principal activity of the Job Development Authority (JDA) is making business and industrial loans, technically described as “special purpose” loans. JDA functions as a bank, making long-term, low-cost loans for real

estate, machinery, and equipment. It may lend up to 40

percent of project costs in connection with construction,

acquisition, rehabilitation or improvement of industrial

or manufacturing plants, research and development facilities, or other eligible business facilities.

JDA may also participate in financing the purchase of

machinery and equipment to be located and used within

the State. These loans may not be subordinate, but may

cover up to 90 percent of machinery and equipment

costs. JDA is set up to act as a catalyst for the investment of private funds.

New York Science and Technology

Foundation

Mr. John Defiggos

Assistant Director

New York State Science and Technology Foundation

99 Washington Ave.

Albany, NY 12210

(518) 474-4349

Date of establishment: 1982

Annual State funding (millions): $1.4

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Information dissemination.

Market development assistance.

Assists in finding venture capital.

Grants for development.

Technical support provided by State.

Grants available.

Investment capital.

Physical plant provision.

Description:

The purpose of this Foundation is to identify and shape

the “critical massing” of industrial, scientific, and academic talent and resources necessary to foster high-technology industries in New York. A nine-member Board

of Directors represents the private sector, with the Commissioners of Education and Commerce also serving. The

mission of the Foundation is: to assume a central role

in stimulating research and development; to support and

encourage technological innovation; to diffuse benefits

derived from new developments in science and technology; and to strengthen the State’s leadership position as

a research and development center. The Foundation has

six major program areas:

●

●

●

●

●

●

Policy and Strategy Development-studies expansion

possibilities;

Assistance and Services–develops special training

programs;

Regional High Technology Development—encourages locally formed high-technology councils;

Research and Development-awards research and

development grants for university-based research

with commercial application;

Centers for Advanced Technology Development–

grants to universities; and

Corp. for Innovation Development–see above.

The Foundation has targeted two technology areas

which represent the greatest economic opportunity for

the State: electronics/information and medical/biological.

New York State Department of Commerce

Mr. William J. Donohue

Commissioner

New York State Department of Commerce

99 Washington Ave.

Albany, NY 12245

(518) 474-4100

Date of establishment: N/A

Annual State funding (millions): $27

Program type:

General industrial development.

Labor/technical assistance.

Program services:

State resource promotion.

Tax—favorable business climate.

Physical plant provision.

Information dissemination.

Technical training provided by the State.

Description:

The Department of Commerce promotes domestic and

international investment in New York State to create

private sector jobs and to generate additional tax revenue. The Department works with new and expanding

industry, imports and exports, and State infrastructure

to enhance the overall State economic welfare.

In addition, this office administers the State tax program which includes the following: Job Incentive Program, Capital Investment Credit, Employment Incentive

Credit, Research and Development Tax Credit, Small
56 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government /initiatives

Business Tax Incentives, and Business Property Tax

Exemption.

New York State Urban Development Corp.

Mr. Donald Glickman

Acting Chief Executive Officer and Vice President

New York State Urban Development Corp.

1515 Broadway, 52nd Floor

New York, NY 10036

(212) 930-0200

Date of establishment: 1968

Annual State finding (millions): $800 bond

Program type:

Capital provision assistance.

General industrial development.

Program services:

Bond issue to raise venture capital.

Product development assistance.

Market development assistance.

Description:

The Urban Development Corp. (UDC), a corporate

governmental agency of New York State, executes financing and development programs designed specifically to

help business and industry expand, modernize, or relocate and assists new companies coming into the State.

UDC has the power to purchase, lease, sell, and acquire

property, apply for and administer grants, and issue taxexempt revenue bonds. Working in partnership with private enterprises, UDC’s economic development programs

maximize private sector opportunities for growth and

stimulate investment in the economy of the State. Since

its inception in 1976, UDC economic development programs have generated $800 million worth of projects,

which have been completed or are presently under construction. UDC’s staff includes financial analysts, lawyers, engineers, architects, and planners who can provide technical services and expertise to accelerate and

facilitate projects.

North Carolina

The State of North Carolina is often looked to for leadership in the area of high-technology industrial development. Starting with the North Carolina Board of Science

and Technology and the Research Triangle Park, the

State has become a model of government-industry-university cooperation to develop new technology-based industries. In addition, the State works aggressively to retain existing industry and attract new firms to the State.

To date, in fact, the State has been more successful in

attracting branch plants and relocating facilities, rather

than encouraging the creation of new businesses.

The Board of Science and Technology, chaired by the

Governor, was established in 1963. It functions as a

“nerve center” connecting research institutions with State

and local government agencies and with the private sector. Working closely with the State university system,

the Board has helped to encourage cooperative university-industry research and development. More recently,

the Governor appointed a Science and Technology Task

Force in 1982, composed of Board members plus 15 leading citizens, to recommend policy in science and mathematics education, research and higher education, and

technological innovation.

Programs

High-technology development

North Carolina Board of Science and Technology

High-technology education

Microelectronics Center of North Carolina

North Carolina Biotechnology Center

General industrial development

Division of Industrial Development

Division of Industrial Development

Mr. Alvah H. Ward, Jr.

Director, Division of Industrial Development

North Carolina Department of Commerce

430 N. Salisbury St.

Raleigh, NC 27611

(919) 733-4151

Date of establishment: N/A

Annual State finding (millions): N/A

Program type:

General industrial development.

Program services:

Market development assistance.

Location assistance.

Labor.

Description

This office offers many different services to help industry locate or relocate in the State. It provides: industrial

information about State communities; business trends

and market development possibilities; industrial location

services; environmental services; labor availability services; and financial services such as finding capital for

physical plant or product development. In addition, this

office makes new industries aware of the tax and regulation structure, offers marketing services, and helps with

international trade, importing, and exporting.
—

Appendix—Directory of State High-Technology Strategies and Programs “ 57 ———

Microelectronics Center of

North Carolina (MCNC)

Dr. Donald Bielman

Director

Microelectronics Center of North Carolina

P.O. Box 12889

Research Triangle Park, NC 27709

(919) 541-7286

Date of establishment: 1981

Annual State funding (millions): $24.4

Program type:

High-technology education.

Program services:

Links industry with university resources.

Description:

MCNC was created to help North Carolina’s universities educate students in fields related to microelectronics

by providing research and training facilities. MCNC is

a nonprofit coordinating body, helping five State universities work together in this area.

North Carolina Biotechnology Center

Dr. Quentin Lindsey

Science and Public Policy Adviser

Office of the Governor

116 W. Jones St.

Raleigh, NC 27611

(919) 733-6500

Date of establishment: 1981

Annual State funding (millions): $0.1

Program type:

High-technology education.

Program services:

Links industry with university resources.

Description:

The North Carolina Biotechnology Center conducts

research and development in biotechnology. The Center

acts as a State cooperative effort to experiment and “learn

by doing.” The Center plans: to stimulate further development of North Carolina’s interdisciplinary research

community; to facilitate mutually beneficial collaboration between industry and universities; and to stimulate

the biotechnology industry in the State.

North Carolina Board of

Science and Technology

Dr. Quentin Lindsey

Science and Public Policy Adviser

Office of the Governor

116 W. Jones St.

Raleigh, NC 27611

(919) 733-6500

Date of establishment: 1979

Annual State funding (millions): $0.4 (1968 original

funding)

Program type:

High-technology development.

Program services:

Links industry with university resources.

State resource promotion.

Research and development.

Description:

The Board’s mission is to identify and support research

needs of public and private agencies, institutions and

organizations, and to recommend policies, procedures,

organizational structures, and financial requirements that

will promote effective use of scientific and technological

resources in fulfilling research needs.

The Board work plan is organized into programs, including: R&D in North Carolina; Scientific Personnel,

Equipment and Facilities; Institutional Support for Economic Development; Environmental Management; Human Resources Development; Local Government-Related

Research; Public Understanding of Science; Small Grants

Program; and Exploration of New Fields. Each program

is implemented through specific projects, sponsored by

the Board and generally carried out through joint effort

by research institutions and government finding.

The Board consists of seven members from the public

sector, six from the university sector, and two from the

private sector, with the Governor acting as Chair. The

Board is divided into committees that guide particular

activities pertaining to the need and/or use of scientific

resources in relation to the following objectives: strengthening science and technology base, improving public

understanding of science, forming policy, assisting State

agencies and local governments, and assisting private industries and institutions.
58 ● Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

North Dakota

The State government provides numerous incentives

for general industrial development, and the Governor

places particular emphasis on the need to create challenging jobs in the State. As one official put it, “North

Dakota’s largest export is its young people.” The State

provides a tax package favorable to business development

and offers labor training for new and expanding industry.

The private sector has joined with the universities to

set up an “Industry North Dakota” program, which will

take inventions by citizens to the universities for development. North Dakota also boasts the only wholly Stateowned and State-operated bank in the Nation, established in 1919 to encourage industry, commerce, and agriculture. Most of the bank’s financial assistance is currently provided to the agricultural community, but there

is a new “Beginning Businessman’s Program” that will

finance up to 60 percent of a new business, in hopes of

encouraging growth in technology-based industries.

Programs

Capital provision assistance

Bank of North Dakota

General industrial development

Economic Development Commission

Bank of North Dakota

Mr. Herb Throndall

President

Bank of North Dakota

P.O. Box 1657

Bismark, ND 58502

(701) 224-5600

Date of establishment: 1919

Annual State finding (millions): N/A

Program type:

Capital provision assistance.

Program services:

Loans.

Loans guaranteed.

Description:

This bank, the only State-owned and operated bank

in the Nation, has a special program for small and new

businesses called the “Beginning Businessman’s Program,”

which pays up to 60 percent of startup costs for a new

venture. In addition, the bank guarantees loans, provides

funding for physical plant acquisition and improvement,

and helps businesses relocate into the State. According

to State information, this program has helped many types

of small business.

Economic Development Commission

Mr. David Torkelson

Chief Research Analyst

Economic Development Commission

1050 E. Interstate Ave.

Bismark, ND 58501

(701) 224-4190

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Tax—favorable business climate.

Link industry with university resources.

Reduction in State corporate business tax.

State resources promotion (infrastructure).

Technical training provided by State.

Abatement of local property tax.

Description:

This office develops industrial possibilities for the State.

It aims to increase the amount of science and math taught

in schools, help upgrade engineering taught in the State

universities, provide tax incentives for business, and help

businesses locate in the State.

Ohio

In 1982, as part of a high-technology development strategy, the Ohio Legislature created the Industrial Technology and Enterprise Board to make recommendations

to the Governor about industrial development. This

Board will also work closely with the Ohio Development

Financing Commission (ODFC) to provide capital and

product development assistance to new and expanding

industry in the State. The Governor plans to implement

other changes designed to encourage high-technology development in a State that must cope with both high unemployment and a changing industrial base.

The State has enacted enterprise zone legislation to encourage development in underdeveloped areas; the zones

will be administered on the local level. Active local initiatives are already under way in several cities, including

Columbus, Cleveland, and Toledo.

Programs

High-technology development

Industrial Technology and Enterprise Board of ODFC

Capital provision assistance

Economic Development Financing Program

Industrial Technology and Enterprise Board of ODFC

Ohio Development Financing Commission
Appendix-Dkectory of State High-Technology Strategies and Programs 59

General industrial development

Ohio Development Financing Commission

Ohio Enterprise Zones

Economic Development

Financing Program

Ms. Mary Beardan

Loan Officer, Special Services

Department of Development

P.O. Box 1001

Columbus, OH 43216

(614) 466-7784

Date of establishment: 1980

Annual State funding (millions): $70 bond

Program type:

Capital provision assistance.

Program services:

Long-term, low-interest loans.

Bond issue to raise capital.

Loans.

Description:

This corporation was created by legislative mandate

to provide direct loan assistance and guarantees to Ohio

companies that want to expand their facilities and in so

doing provide new jobs or preserve existing ones. Funding for this program is obtained by designating 15 percent of liquor profits, to retire original bond debt. The

types of assistance available are: I) State guarantees which

would provide for repayment of up to 90 percent of the

unpaid principal amount of a project loan upon default;

and 2) direct loans, at favorable rates, of up to 75 percent of project cost. In order to be eligible, the proposed

project must be located in an “economic needs” area of

the State, must be financially sound, adequately secured,

and the applicant must be unable to obtain necessary

financial assistance at comparable terms through ordinary financial channels.

Industrial Technology and Enterprise

Board of ODFC

Mr. Steve Holtzman

Director, Industrial Technology and Enterprise Board

Ohio Development Financing Commission

P.O. Box 1001, 30 E. Broad St.

Columbus, OH 43216

(614) 466-5420

Date of establishment: 1982

Annual State finding (millions): $0.15

Program type:

Capital provision assistance.

High-technology development.

Program services:

Venture capital provision assistance.

Direct investment in startup.

Loan-stock or royalty rights.

Loan-equity.

Links industry with university resources.

Description:

The Industrial Technology and Enterprise Board

(ITEB) of the Ohio Development Financing Commission

(ODFC) administers two grant programs: 1) the Development Grant program, and 2) the Resources programs.

Modeled after the Massachusetts Technology Development Corp., this program was set up to support the

growth of high-technology firms, and to encourage en--

hanced university/industry cooperation. This program

has just been established; a request for $10 million in

operating funds has been made of the 1983 Ohio Legislature.

1. The ITEB Development Grant Program will furnish

capital to small- and medium-sized innovative firms

whose projects will benefit the State by creating jobs

and promoting the development of new technologies.

2. The Resources Program is designed to investigate

and assist the implementation of programs and projects that could enhance cooperative university/

industry relations in Ohio.

Ohio Development Financing Commission

Mr. Louis Kuhman

Director, Ohio Development Financing Commission

P.O. Box 1001

30 East Broad St.

Columbus, OH 43216

(614) 466-5420

Date of establishment: 1963

Annual State funding (millions): $7

Program type:

Capital provision assistance.

General industrial development.

Program services:

Industrial revenue bonds.

Long-term, low-interest loans.

Subordinated loans.

Loans guaranteed.
60 ● Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives

Description:

The Ohio Development Financing Commission

(ODFC) operates three industrial financing programs:

1) Direct Loans; 2) Economic Development Revenue

Bonds; and 3) Guaranteed Loans. Since its inception in

1965, OFDC has helped finance more than a quarter

billion dollars of projects.

1.

2.

3.

Direct Loans. -This program is designed to lend up

to 30 percent of the total cost of land and buildings

for an industrial project. ODFC attempts to target

direct loan funds into what they term “future-oriented” industries.

Economic Development Revenue Bonds –This program allows the State to finance up to 100 percent

of the fixed assets of a project at an interest rate usually 3 percent below the conventional rate. The

funds from the bond issue may be used for land,

building and certain equipment as well as professional costs such as attorney, architect, and underwriting

fees.

Guaranteed Loans. -This program authorizes the

State to use the Ohio “unclaimed funds” to insure

payment of first mortgage loans made by lending institutions to an expanding company. This guarantee

allows a company to obtain a loan which would

otherwise be difficult to obtain.

ODFC also operates a financial clearinghouse service

to identify potential capital sources for expanding businesses throughout the State.

Ohio Enterprise Zones

Mr. Larry Blake

Director

Department of Development, Special Services

P.O. Box 1001

Columbus, OH 43216

(614) 466-7784

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Enterprise zones.

Training vouchers for new jobs.

Tax—favorable business climate.

Description:

This Enterprise Zone program is a cooperative venture

of local and State government, in which the State defines

an enterprise zone in local areas in need of industrial

development. The local area grants some real estate or

personal property tax deductions relating to the creation

of jobs, wages to unemployed, or day care expenses.

Oklahoma

Oklahoma has a two-part plan to attract and retain

industry in the State: 1) create subdivisions that can independently develop infrastructure or change local ordinances to attract specific kinds of industry; and 2) provide a customized training program for industry. However, there are at present no State programs specifically

targeted on high-technology development.

The State has a strong program in vocational/technical

training, and the government works closely with the private sector in economic development, with strong input

from labor. An example of this is the privately funded

Oklahoma Productivity Center at Oklahoma State University, which serves as a resource for worker involvement in decisionmaking and innovation. Another nonprofit organization is the Industrial Research and Development Center, which develops innovations of economic

benefit to rural parts of the State.

Programs

General industrial development

Oklahoma Department of Economic Development

Oklahoma Department o f

Economic Development

Mr. Eastal Hart

Director

Department of Economic Development

P.O. Box 53242

Oklahoma City, OK 73152

(405) 521-2401

Date of establishment: 1955

Annual State funding (millions): $2.1

Program type:

General industrial development.

Program services:

Labor assistance.

State resources promotion (infrastructure).

Information dissemination.

Tax–favorable business climate

Description:

This office is working closely with political subdivisions

in the State to develop infrastructure and train labor to

attract industry.

The State reports a favorable tax climate for business,

claiming a corporate tax rate of “only 4 percent. ” Other

tax incentives for industry include industrial exemptions

from retail, sales, and use taxes, and a constitutionally

limited property assessment. Oklahoma has 100 percent

industrial revenue bond financing available for land,

buildings, and equipment.
Append/x-Directory of State High-Technology Strategies and Programs . 61

Oregon

Oregon has a well-established industrial base in electronics and has attracted a considerable amount of hightechnology development, partly due to its proximity to

California. High-technology growth, centered primarily

in the Portland area, has thus far taken place without

significant direct State assistance.

The Governor has appointed an Economic Development Action Council to plan changes in the State approach to growth, with the goal of attracting high-technology industry. The Economic and Employment Recovery Plan and the Orgeon Economic Growth Plan are two

parts of Governor’s strategy to enhance economic development in the State. These plans include a computerized inventory of all industrial land in the State; State

technical assistance to the business community; and a

revolving loan fund to provide the infrastructure necessary for industrial development.

Programs

General industrial development

Economic Development Department

Economic Development Department

Mr. Peter Tryon

Development Specialist

Economic Development Department

155 Cottage St., N.W.

Salem, OR 97310

(503) 373-1200

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

General industrial development.

Labor/technical assistance.

Program services:

Loans.

Industrial revenue bonds.

Abatement of local property tax.

Tax—favorable business climate.

State resources promotion (infrastructure).

Task force.

Assists in finding venture capital.

Licensing assistance.

Description:

Although there is no dedicated high-technology development program operated by the State, the State government has encouraged the growth of the high-technology

sector. The State has prepared an Economic and Employment Recovery Plan and the Oregon Economic Growth

Plan which are designed to diversify its industrial bases.

Both plans recommend a variety of action that will assist

and encourage all areas of industrial growth. The Economic and Employment Recovery Plan would create a

computerized inventory of all industrial land statewide,

and establish a revolving loan program to help counties

provide public services for business development. The

Oregon Economic Growth Plan contains over 30 separate

projects such as improving State permit procedures, coordinating educational offerings with industry needs, and

encouraging international trade activities.

Special training programs are offered by the Oregon

Community Colleges, and others. Generally, these programs are tailored to meet the needs of a particular industry. On the university level, several of these programs are

aimed at high-technology skills development.

In addition to these efforts, the State has put together

a list of high-technology firms located in the State to attract other firms to the State.

Pennsylvania

Pennsylvania reports a major initiative to advance technology development and promote future economic

growth in the State. The key to this effort is a plan to

diversify the State’s economy away from its traditional

reliance on basic manufacturing and resource-based industry, and thus to minimize unemployment resulting

from the economic troubles of older industries. In addition, State planners are looking toward advanced production technologies to improve efficiency, productivity, and profitability in traditional sectors.

The Governor, along with the State Department of

Commerce, has proposed a four-part plan to promote

high-technology development:

1. increase capital and financing available to advanced

technology industries;

2. provide technical assistance to new and expanding

industry;

3. enhance labor skills; and

4. promote the expansion of high-technology markets.

The State has begun to pursue this strategy by setting

up new high-technology programs and assisting businesses through existing programs. Dedicated programs

include: funding technology innovation centers; targeting

State economic assistance to technology-based firms; and

increasing marketing and recruiting of high-technology

firms. The State Department of Commerce has targeted

27 industry groups for special attention from State agencies. In addition, the State is working closely with the

education sector at all levels to enhance math, science,

and technical education in the State.
62 c Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Programs

High-technology development

Ben Franklin Partnership Fund

Pennsylvania Industrial Development Authority

High-technology education

Pennsylvania School for the Sciences

Capital provision assistance

Ben Franklin Partnership Fund

Labor/technical assistance

MILRITE Council (“Making Industry and Labor Right

in Today’s Economy”)

PENNTAP

General industrial development

MILRITE Council

Pennsylvania Industrial Development Authority

PENNTAP

Ben Franklin Partnership Fund

Mr. William J. Cook

Director, Bureau of Technological Development

Department of Commerce

462 Forum Bldg.

Harrisburg, PA 17120

(717) 787-4147

Date of establishment: 1982

Annual State finding (millions): $1.35

Program type:

Capital provision assistance.

High-technology development.

Program services:

Grants available.

Grants for research.

Grants for development.

Links industry with university resources.

Product development assistance.

Assists in finding venture capital.

Description:

This partnership of government, business, and education would provide $1 million in seed money to stimulate

Pennsylvania research, development, and training in advanced technology industries through the Pennsylvania

Science and Engineering Foundation (which has recently

been reactivated). The Partnership will link resources and

skills in the public, private, and academic sectors to expand and encourage the development of scientific and

technological education, research, and innovation in the

State.

Governor Thornburgh has requested for the 1982-83

budget year that funding be increased to $10 million, to

be matched on a one-to-one basis by the private sector

and higher education. This Challenge grant program will

create regional Advanced Technology Centers. These

centers, which will be designated by the end of February,

will focus on joint research and development, education,

and training and entrepreneurial development.

In addition, the Board has $350,000 available this year

for the funding of miniresearch and development

projects.

MILRITE Council (“Making Industry

Labor Right in Today’s Economy”)

Mr. Gregg Robertson

Executive Director

MILRITE Council

513 Finance Bldg.

Harrisburg, PA 17120

(717) 783-7408

Date of establishment: 1979

Annual State funding (millions): $0.21

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Task force.

Labor.

Description:

and

The Pennsylvania MILRITE Council is an independent

State economic development agency, created to seek solutions to Pennsylvania’s economic problems through the

cooperative efforts of business, labor, and government.

Its board has 15 members-five each from business, labor,

and government. The Council has undertaken a program

to create a venture capital

be capitalized with public

limited partnership that will

and private pension funds.

PENNTAP

Mr. Paul Houck

Information Coordinator

Pennsylvania Technical Assistance Program

J. Orvis Keller Bldg.

University Park, PA 16802

(814) 865-0427

Date of establishment: 1965

Annual State finding (millions): $0.15

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Links industry with university resources.
Appendix—Directory of State High-Technology Strategies and Programs ● 63

Technical support provided by State.

Market development assistance.

Technical training provided by State.

Trains technical staff for business.

Information dissemination.

Description:

The Pennsylvania Technical Assistance Program

(PENNTAP) offers access to technical information and

assistance for State business, encouraging economic

growth. It services primary technology-transfer and technical assistance for small business. PENNTAP acts as a

“technology middleman” by helping firms with technical

problems access technology resources that can produce

answers and solutions. The Advisory Council consists

of 15 executives from the private sector who help guide

and plan program activities.

Pennsylvania Industrial

Development Authority

Mr. Gerald Kapp

Director

Pennsylvania Department of Commerce

405 Forum Bldg.

Harrisburg, PA 17120

(717) 787-6245

Date of establishment: 1956

Annual State finding (millions): $15

Program type:

General industrial development.

High-technology development.

Program services:

Physical plant provision.

Description:

The Pennsylvania Industrial Development Authority

(PIDA) was created in 1956 to stimulate acquisition and

construction of industrial buildings to increase employment in the State. It participates in three kinds of projects: industrial development projects; industrial park projects; and multiple tenancy building projects.

The authorizing legislation allows PIDA to make loans

for projects in “critical economic areas,” designated based

on unemployment statistics. The percentage of costs

PIDA will finance depends on the area of the development and the nature and size of the buyer or tenant.

PIDA also generally requires participation by an individual development agency.

For small businesses, a new emphasis in the Agency,

PIDA can provide as much as 70 percent of financing

for eligible projects .

In addition, the PIDA Board recently approved a new

policy earmarking 25 percent of its annual cash flow to

advanced technology industries. Since 1980, the amount

of PIDA loans to advanced technology industries has

steadily increased.

Pennsylvania School for the Sciences

Mr. John McDermott

Director, Pennsylvania School for the Sciences

Pennsylvania Department of Education

333 Market St.

Harrisburg, PA 17108

(717) 783--6598

Date of establishment: 1982

Annual State funding (millions): $0.1

Program type:

High-technology education.

Program services:

Links industry with university resources.

State resource promotion.

Description:

This program offers summer school courses in math

and science for students interested in high-technology

careers. A number of students took advantage of this program in 1982, and the program will continue in the

future.

Puerto Rico

The Governor has recently introduced a bill in the

Puerto Rican Legislature which would extend to research

and development companies the same package of tax exemptions currently enjoyed by qualifying manufacturing firms. This is just one part of an aggressive industrial

development strategy that includes several programs for

encouraging high-technology growth. The Commonwealth’s Economic Development Administration offers

training, research grants, and labor analysis for hightechnology firms. The education sector supports hightechnology development through the Center for Engineering Research, which provides product and market

development assistance to new and expanding firms. The

University of Puerto Rico is also the home of the Center

for Energy and Environmental Research, which is coordinated by the U.S. Department of Energy.

Programs

Capital provision assistance

Government Development Bank

Labor/technical assistance

Economic Development Administration

Electronics Industry Centers
64 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government /initiatives

General industrial development

Economic Development Administration

Government Development Bank

Economic Development Administration

Mr. Jose R. Madera

Administrator

Economic Development Administration

G.P.O. Box 2350

San Juan, PR 00936

(809) 758-4747

Date of establishment: 1950

Annual State finding (millions): $17.2

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Tax—favorable business climate.

Reduction in State corporate business tax.

Training provided by the State.

Location assistance.

Description:

The Economic Development Administration (EDA) is

the agency responsible for the expansion of manufacturing activity in the Island. Besides monitoring performance

of the economy and conducting economic research projects of immediate interest, EDA actively promotes the

development of new manufacturing plants and industries

in Puerto Rico.

The industrial training section of the EDA offers

specialized services to manufacturers in the identification,

study, implementation, and evaluation of training programs for technicians, supervisors, and production workers in advanced job skills, It also advises manufacturers

on the organization, time requirements, and training

costs for necessary personnel.

EDA offers scholarships in managerial, scientific, and

technical areas.

Special locational incentives in the form of negotiable

cash grants are available for establishing manufacturing

facilities in areas of high unemployment in Puerto Rico.

The incentives are administered by the Puerto Rico Industrial Development Co., which is responsible for construction and maintenance of industrial buildings on the

Island.

Electronics Industry Centers

Mr. Luis Diaz Gandia

Director

Economic Development Administration

P.O. Box 6419

Caguas, PR 00626

(809) 833-2955

Date of establishment: 1981

Annual State funding (millions): $2.7

Program type:

Labor/technical assistance.

Program services:

Technical training provided by the State.

Description:

The main thrust of the two Electronics Industry

Centers is a specialized, intensive, 38-week training program, leading to a certificate in digital electronics and

computer techniques.

The Economic Development Administration, jointly

with the Puerto Rico Industrial Development Co.

(PRIDCO) created the Electronics Industry Center.

PRIDCO provides funding for the facilities and equipment.

Personnel, books, and expenditures are paid from locally generated funds of the Puerto Rico Department of

Labor and Human Resources.

Government Development Bank

Mr. Julio Pietrantoni

President

Government Development Bank

Box 32001, Minillas Station

Santurce, PR 00940

(809) 726-2525

Date of establishment: 1942

Annual State funding (millions): N/A

Program type:

Capital provision assistance.

General industrial development.

Program services:

Long-term, low-interest loans.

Description:

The Government Development Bank has been active

and effective in fostering economic growth with its loan
Appendix-D/rectory of State High-Technology Strategies and Programs ● 65

to finance fixed assets and working capital. Normally

loans are made for up to 70 percent of the appraised value

of the real estate and up to 50 percent of the appraised

value of machinery and equipment. The rate is tied into

the prime rate of major New York banks, although negotiated rates are also possible.

Rhode Island

This State has begun an examination of high-technology possibilities for its economy. This effort includes a

proposal to put a computer in every elementary and secondary school, as well as in community and vocational

colleges.

A Strategic Development Commission has studied the

possibilities of using State resources in high-technology

economic development and has recommended targeting

specific industries and linking university research capacities with high-technology industry.

Programs

High-technology development

Strategic Development Commission

Labor/technical assistance

Strategic Development Commission

Capital provision assistance

Industrial Development Bond Program

Industrial Development Bond Program

D r. Norton Berman

Acting Director

Rhode Island Department of Economic Development

7 Jackson Walkway

Providence, RI 02903

(401) 227-2601

Date of establishment: 1966

Annual State funding (millions): $250 bond

Program type:

Capital provision assistance.

General industrial development.

Program services:

Industrial revenue bonds.

Loans.

Product development assistance.

Inscription:

This program was revived in 1977 to provide financing for industrial development. The program encourages

growth of Industrial Parks, offers mortgage guarantees

and insurance to industry, and helps the State in its efforts to attract high-technology industry.

Strategic Development Commission

Dr. Norton Berman

Director

Rhode Island Department of Economic Development

7 Jackson Walkway

Providence, RI 02903

(401) 277-2601

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Task force.

State resources promotion.

Links industry with university resources.

Description:

This Commission was set up to identify high-technology growth possibilities for the State of Rhode Island,

and to link industry with university resources. This program, only recently started, will identify target industries

for the State.

South Carolina

South Carolina has long been recognized for its outstanding vocational training program. This has been extended into the high-technology area with “Design for

the Eighties,” a plan to provide high-technology skills

training in the State’s 16 community colleges, in order

to produce a work force that will make the State attractive to expanding high-technology firms.

The State government has targeted seven specific industries and is planning to develop research parks around

its three major universities: Clemson, the University of

South Carolina, and Charleston Medical College. The

legislature is also considering the creation of a finance

authority and State support for cooperative research.

These efforts will be coordinated with several small business development centers in the university system,

funded by the U.S. Small Business Administration.

Programs

High-technology development

Task Force on Industrial Development

kfigh-technology education

Design for the Eighties

Labor/technical assistance

Design for the Eighties

Task Force on Industrial Development
General industrial development

South Carolina Development Board

Design for the Eighties

Mr. William Dudley

Director

Design for the Eighties

111 Executive Center Dr.

Columbia, SC 29210

(801) 758-6915

Date: of establishment: 1978

Annual State funding (millions): $0.45

Program type:

High-technology education.

Labor/technical assistance.

Program services:

Technical training provided by State.

Technical support provided by State.

Links industry with university resources.

Trains technical staff for business.

Description:

Design for the Eighties is now establishing training

resource centers for the development of high-technology

skills needed in six fields: robotics, machine operation,

computer design, microprocessors, advanced office systems, and water control. South Carolina has traditionally

offered strong technical education, and these centers

should enhance capabilities for the high-technology

sectors.

South Carolina

Mr. Robert Leak

Director

State Development

P.O. Box 927

Development Board

Office

Columbia, SC 29202

(803) 758-3145

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Links industry with university resources.

Trains technical staff for business.

Industrial revenue bonds.

Task force.

Description:

South Carolina has targeted seven industries to attract

or promote within the State. These include pharmaceuticals, microprocessors, machine tools/robotics, agricultural processing, defense-related industries, structural

fibers and plastics, and fiber optics.

In addition, the Board is proposing to the State legislature that it establish a finance authority to pool small

Industrial Revenue Bond issues, and establish financing

plans for small and large manufacturing firms. The Board

works closely with the Federal Small Business Development Centers.

Task Force on Industrial Development

Mr. John S. Hooks

Director

Office of the Governor

P.O. Box 11450

Columbia, SC 29211

(803) 758-3208

Date of establishment: 1981

Annual State funding (millions): N/A

Program type:

High-technology development.

Labor/technical assistance.

Program services:

Task force.

Links industry with university resources.

State resources promotion (infrastructure).

Information dissemination.

Description:

This group proposed an Industrial Research Board to

promote the economic development of high-technology

industry in South Carolina, and to enhance the capabilities of South Carolina’s State and private universities.

Board membership would include representatives from

government, education, and industry. Its objectives

would include promoting and maintaining a high level

of interaction between industrial and academic researchers in the State. In addition, the State hopes to attract

high-technology industry by developing industrial research centers on land adjacent to State universities.

South Dakota

This State’s economic strategy does not include a specific plan to encourage high-technology industry, but officials report a favorable business climate and a cooper-
Append/x—D/rectory of State High-Technology Strategies and Programs ● 67

ative relationship between the banks and industry. South

Dakota emphasizes the autonomy of its communities, but

the State government works closely with local efforts in

towns that are aggressively seeking industrial development. The State also supports six vocational-technical

training schools that can provide a customized training

program for any new or expanding industry, including

an increasing number of skills required in high-technology manufacturing.

Programs

General industrial development

Bureau of Industrial Development

Bureau of Industrial Development

Mr. Eugene Miller

Director

Bureau of Industrial Development

221 S. Central Ave.

Pierre, SD 57501

(605) 773-3158

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Tax–favorable business climate.

Labor assistance.

Industrial revenue bonds.

State resources promotion (infrastructure).

Description:

This State boasts a favorable tax package to attract industry. In addition, it has six vocational technical schools

that will design customized programs for firms.

Tennessee

This State has a large manufacturing sector, and like

that of the industrial Midwest it has been hard-hit by

economic changes. The labor and financial communities,

therefore, are looking to high-technology growth as a

source of jobs and revenue.

The overall objective is to capture a larger share of new

jobs in emerging growth sectors that are dependent on

advances in technologies. Part of this effort is reflected

in the Governor’s strong support for the Knoxville

World’s Fair, which centered on new energy technologies

and other innovations. In addition, the Governor established a Technology Corridor Task Force to study regional development and technical education in the Knoxville-Oak Ridge area. This task force has been replaced

by the Technology Corridor Foundation, which will implement its recommendations.

The State’s high-technology development strategy is

focused on nurturing new ventures as well as attracting

expanding industry. Part of this effort includes a “State

inventory” of existing technology-based firms and resources. Among these are the Oak Ridge National Laboratory, the Tennessee Valley Authority, and the University of Tennessee, all of which have contributed to

the birth of a small high-technology business community around Oak Ridge-Knoxville.

Programs

High-technology development

High-Technology Initiative for Industries

Tennessee Technology Corridor Foundation

High-technology education

Tennessee Comprehensive Education Study

Task Force

High-Technology Initiative for Industries

Dr. John Crothers

Director of High-Technology Development

Tennessee Department of Economic and Community

Development

1011 Andrew Jackson State Office Bldg.

Nashville, TN 37219

(615) 741-5070

Date of establishment: 1981

Annual State funding (millions): $0.135

Program type:

High-technology development.

Program services:

Assists in finding venture capital.

Task force.

Capital provision assistance.

Description:

With State funding, the Department of Economic and

Community Development created the Division of High

Technology, Finance, and Service Sales. This office also

acted as the host for the Governor’s Technology Task

Force. In addition, it is looking at in--State development

and recruitment of high-technology industries. The Department is evaluating State resources, and plans to find

venture capital sources for new and expanding businesses.

This office will also work closely with the university sector to link research with lndustrial development.
68 ● Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government Initiatives

Tennessee Comprehensive Education

Study Task Force

Dr. William H. Payne

Executive Director

Tennessee Comprehensive Education Study

16th Floor–James Polk Bldg.

Nashville, TN 37219

(615) 741-5230

Date of establishment: 1981

Annual State funding (millions): $0.3

Program type:

High-technology education.

Program services:

Task force.

Links university with industry resources.

Description:

This Task Force works closely with the recommendations of the Regional Technology Corridor Governor’s

Task Force, and implemented joint recommendations for

industry and education. The State plans to establish a

$20 million comprehensive technical institute to be

located within the Knoxville/Oak Ridge Technology

Corridor. This will allow interaction between university

personnel and industry, transferring technology between

the two groups. In addition, this group will study the

organization structure of the State.

Tennessee Technology Corridor Foundation

Dr. David Patterson

Staff Director

Tennessee Technology Corridor Foundation

P.O. BOX 2752

Knoxville, TN 37901

(615) 966-2804

Date of establishment: 1982

Annual State funding (millions): $1.5

Program type:

High-technology development.

Program services:

Market development assistance.

Assists in finding venture capital,

Product development assistance.

Description:

This office helps implement the State strategy to develop a high-technology corridor in the Knoxville/Oak

Ridge area, coordinating industry with educational and

State resources, The Foundation expects to have a 1983

funding level of between $4 million and $5 million, which

will permit the completion of the initial development of

the Knoxville/Oak Ridge area and allow similar support

services to other selected areas of the State.

Texas

The Governor recently received the report from the

Texas 2000 Commission, which was appointed by his

predecessor. This Commission looked at long-range economic planning issues, including high-technology industrial development, and recommended that the State

concentrate on strengthening its research and development facilities. It also recommended establishing a Research and Development Council, coordinating R&D

efforts with the private sector; increasing salaries to retain university faculty; providing technical assistance to

entrepreneurs; and working with the Federal Government to create incentives for private sector research.

Efforts in university research include a planned electronics research center uniting the resources of Texas

A&M, Rice, and the University of Houston. A new Institute for Ventures in Technological Innovation at Texas

A&M will work with both the private sector and Federal

agencies to promote technological innovation. Considerable high-technology development has also occurred

in Austin, in part because of resources and programs at

the University of Texas.

In addition to these State efforts, Texas has a tradition of community-based initiatives. One of the most forward-looking communities is San Antonio, which is developing the human resources to become a high-technology center in the years to come.

Programs

High-technology development

Institute for Ventures in New Technology

Labor/technical assistance

Industrial Start-up Training

General industrial development

Texas 2000 Commission

Texas Engineering Experiment Station

Industrial Start-up Training

Mr. Joe Ferran

Manager

Texas Industrial Commission

P.O. Box 12728, Capitol Station

Austin, TX 78711

(512) 472-5059
Appendix—Directory of State High-Technology Strategies and Programs ● 69

Date of establishment: N/A

Annual State funding (millions): N/A

Program type:

Labor/technical assistance.

Program services:

Trains technical staff for business.

Links industry with university resources.

State resource promotion.

Description:

The Texas Industrial Commission, through its Industrial Development Department, serves as a liaison between new and expanding industry and the VocationalTechnical Division of the Texas Education Agency. The

Commission encourages the Education Department to

structure education programs to accommodate the needs

of industry currently locating or expanding. It aims to

put trained people in touch with jobs.

Institute for Ventures in

New Technology (INVENT)

Mr. Franklin Sekera

Director

The Texas Engineering Experiment Station

The Texas A&M University System

College Station, TX 77843

(713) 845-0537

Date of establishment: 1982

Annual State funding (millions):

Program type:

High-technology development.

Program services:

Links industry with university

$0.856

resources.

Market development assistance.

Product development assistance.

Description:

INVENT integrates science and engineering with the

commercial disciplines of marketing, management, and

finance to help determine the “credibility” of new ideas.

Texas 2000

Ms. Meg Wilson

Director of Policy Research

Texas 2000

Governor’s Office, P.O. Box 13561

Austin, TX 78711

(512) 475-8386

Date of establishment: 1980

Annual State finding (millions): $0.40

Program type:

General industrial development.

Program services:

Task force.

State resources promotion.

Information dissemination.

Links industry with university resources.

Description:

The Texas 2000 Commission reports periodically to the

Governor and legislature on the role of research and

development, advanced technology, and the State, in

economic development. The mission of Texas 2000 is to

look at long-range planning issues for State economic

development, including high-technology industrial development. The Commission’s concerns include rapid

growth, research and development, water resources, energy resources, transportation availability, government

financing, and Mexican relations.

The Commission recommended that the State focus

more clearly on research and development facilities and

establish a research and development center. It also

recommended that the State coordinate research and

development efforts with the private sector, ensure resources for research and development, compensate university faculty on a market basis to retain them, evaluate

agencies’ roles in research and development, develop

technical assistance to entrepreneurs, provide capital

through State channels, and work with the Federal Government to create private sector research and development efforts. The Commission helped develop the Institute for Ventures in Technical Innovation (INVENT)

at Texas A&M University, which will link university

resources with entrepreneurs. The Commission also

worked to reorganize traditional industrial development

offices to attract advanced technology industries to the

State.

Texas Engineering Experiment

Mr. W. Arthur Porter

Director

Station

The Texas Engineering Experiment Station

The Texas A&M University System

College Station, TX 77841

(713) 845-0537

Date of establishment: 1914

Annual State finding (millions): $30

Program type:

General industrial development.

Program services:

Links industry with university resources.

State resource promotion.
70 ● Technology Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Description:

The primary purpose of the Texas Engineering Experiment Station (TEES) is to serve and support the business

and industrial community of Texas and the Nation

through research and development. TEES has 25 separate research divisions with at least that many identifiable

subdivisions. There are a total of some 800 people involved in the collective research activities of more than

400 projects annually. Funds to support this research are

generated primarily through outside sponsored research

projects with a small but very important percentage coming from State general revenue funds.

Utah

Utah has a strong high-technology manufacturing base

to build on, particularly in microelectronics, robotics,

and computer graphics. Utah firms also conduct advanced research in biomedical and aerospace technologies. State officials report that Utah has had the fifth

highest growth rate in high-technology jobs in the Nation over the past 5 years.

The State government cooperates closely with the private sector through the Office of Industrial Development.

The University of Utah also has several initiatives to promote high-technology innovation, including a nonprofit

Research Institute and an Industrial Research Park where

university and industry cooperate on R&D projects. Private sector programs include the Utah Innovation Center

in Salt Lake City, which assists small- and medium-sized

firms in product and process innovation.

Programs

General industrial development

Office of Economic Development

Office of Economic Development

Ms. Evelyn Lee

Director

Economic Development

200 South Maine, Suite 620

Salt Lake City, UT 84101

(801) 533-5325

Date of establishment: 1968

Annual State finding (millions): $0.85

Program type:

General industrial development.

Program services:

State resources promotion.

Industrial revenue bonds.

Description:

Utah has had an ongoing program to attract high-technology firms and to nurture the growth of existing hightechnology firms since 1975.

Over one-third of the division budget is targeted to

high-technology industries such as biomedical and bioengineering, computer and electronics, and pharmaceuticals and medical instruments. The office helps new and

expanding high-technology industry in locating plant

operations; provides information on area marketing,

wages, and education; provides training; and will assist

in locating capital.

The office works closely with the University of Utah

Research Park, the Utah Innovation Center, and the

Governor’s Council on Science and Technology in attracting and retaining new industry.

The State reports a good and rapidly growing technological base and an educated labor force.

Vermont

The Governor supports higher education as a means

of strengthening the State’s economy and preparing the

way for high-technology industrial development in the

future. The State also has a number of general loan programs for businesses, several of which are reported to be

more liberal with high-technology industries given their

special capital needs.

Programs

General industrial development

Vermont Industrial Development Authority

Capital provision assistance

Vermont

Vermont

Mr. Albert

Manager

Industrial Development Authority

Industrial Development Authority

Coffrin

Industrial Development Authority

109 State St.

Montpelier, VT 05602

(802) 828-2384

Date of establishment: 1972

Annual State funding (millions): $1.1

Program type:

Capital provision assistance.

General industrial development.

Program services:

Loans.
Append/x—D/rectory of State High-Technology Strategies and Programs ● 71

Long-term, low-interest loans.

Subordinated loans.

Industrial revenue bonds.

Description:

This program, currently being implemented, has a “setaside” for high-technology business provided in conjunction with the State Pension Fund. The initial investments

for the pension fund as a venture capital source will likely

take place with other nongovernment institutional venture capitalists in a private company that would make

direct equity purchases.

Virginia

In 1982, the Governor appointed a Task Force on Science and Technology to assess the current state of technological development within the Commonwealth and

to prepare recommendations for the Governor and General Assembly. The Task Force, which consists of 36

members drawn primarily from the business and academic communities, will address such issues as education,

finance, and State intervention.

The State government feels strongly that existing industry should not subsidize new industry, so there are

no targeted loans or special financing for new and expanding industry. However, the State has a good business

climate and an excellent higher education system, as well

as growing high-technology concentrations in the Norfolk and Charlottesville areas and in the suburbs of

Washington, D.C. The State provides labor training

through the community college system and has a good

supply of technically trained personnel. Its banks are fairly conservative, so venture capital is hard to find inside

the State, a situation the Task Force is expected to

address.

Programs

High-technology development

Governor’s Task Force on Science and Technology

Science, Engineering, and Technology Advisory

Service

General industrial development

Department of Industrial Development

Department of Industrial Development

Mr. Hugh Keogh

Assistant Director

Department of Industrial Development

100 Washington Bldg.

Richmond, VA 23219

(804) 786-3791

Date of establishment: 1%2

Annual State funding (millions): $4.2

Program type:

General industrial development.

Program services:

State resources promotion (infrastructure).

Labor assistance.

Information dissemination.

Market development assistance.

Industrial revenue bonds.

Description:

Although there are no special tax incentives for new

or expanding industry, the State reports a low business

tax in the State, with strong support for business. In addition, the State boasts a good overall location, good access to transportation, and an excellent higher education sector. The State is currently exploring ways to be

more responsive to the high-technology sector through

a Governor’s task force which will report in 1983.

Governor’s Task Force on

Science and Technology

Mr. Scott Eubanks

Director

Department of Industrial Development

100 Washington Bldg.

Richmond, VA 23219

(804) 786-3791

Date of establishment: 1982

Annual State funding (millions): N/A

Program type:

High-technology development.

Program services:

Task force.

Description:

This Task Force will report to the Governor in June

1983, on Virginia’s science and engineering community

on how to mobilize talent in support of high-technology

industry. The Task Force is currently working in six committees preparing reports on different aspects of the

State’s economic development.

Science, Engineering and Technology

Advisory Service

Mr. Robert J. Griffis

Director

Department of Planning and Budget

P.O. Box 1422

Richmond, VA 23211

(804) 786-8303
Date of establishment: 1982

Annual State funding (millions): $0.01

Program type:

High-technology development.

Program services:

Task force.

Description:

This office acts as the technical consultant to the Task

Force on Science and Technology. In addition, it helps

new and expanding industries develop products, and

helps businesses develop contacts with university technicians. The office is helping coordinate the efforts of

university research and the development of high-technology industry in the State.

Washington

The Governor’s Committee on High-Technology

Training and Advancement, established in 1982, will examine engineering education, tax and land use policy,

development of high-technology centers, specialized

training programs, and the attraction of high-quality

teachers. Its mission is to identify programs that encourage innovation and to recommend legislation that

will promote high-technology growth.

Other State initiatives include the Washington Research Foundation, funded primarily by private sector

sources, which was set up to coordinate university R&D

activities with the needs of industry. The University of

Washington is also working with local corporations and

businessmen to promote innovation and entrepreneurship in the Seattle area.

Programs

High-technology development

Washington Research Foundation

High-technology education

Governor’s High-Technology Training and

Advancement Committee

Labor/technical assistance

Washington Research Foundation

Governor’s High Technology Training

and Advancement Committee

Mr. Alan Hager

Committee Coordinator

Department of Commerce and Economic Development

101 General Administration Bldg.

Olympia, WA 98504

(206) 753-3065

Date of establishment: 1981

Annual State funding (millions): N/A

Program type:

High-technology education.

Program services:

Task force.

Description:

The mission of this Committee was to develop policy

recommendations aimed at developing high-technology

industr y in the State of Washington. Specific issue areas

considered include: engineering education, tax and landuse policy, development of high-technology centers

around State universities, developing specialized training

programs, and attracting and maintaining high-quality

personnel to the State.

Washington Research Foundation

Mr. Hunter Simpson

Staff Director

Governor’s High-Technology Transfer Task

State Capitol

Olympia, WA 98504

(206) 000-0000

Date of establishment: 1981

Annual State funding (millions): -OProgram type:

High-technology development.

Labor/technical assistance.

Program services:

Task force.

Links industry with university resources.

Description:

Force

The Foundation, funded primarily by private industry

sources, resulted from the Governor’s High Technology

Transfer Task Force. The purpose of the Foundation is

to finance applied research and development on new

technology-based products.

West Virginia

West Virginia is looking for ways to diversify its industrial base by encouraging product and process innovations in the manufacturing sector. The State government

also works closely with local development authorities to

plan and develop industrial parks, and to attract expanding industry. Targeted industries include robotics, electronics, chemicals, and energy.

The University of West Virginia established a Center

for Entrepreneurial Studies and Development in 1981 to
— — . —.

Appendix—Directory of State High-Technology Strategies and Programs ● 73

bring the resources of university faculty and students to

the direct support of West Virginia businesses, particularly small and developing enterprises.

Programs

General industrial development

Governor’s Office of Economic and

Community Development

Governor’s Office of Economic and

Community Development

Mr. Douglas Scaff

Director of Economic Development

Governor’s Office of Economic and Community

Development

Capital Complex

Charleston, WV 25305

(304) 348-2234

Date of establishment: 1977

Annual State funding (millions): $22 bond

Program type:

General industrial development.

Labor/technical assistance.

Program services:

Long-term, low-interest loans.

Industrial revenue bonds.

Training provided by the State.

Site location.

Market development assistance.

Information dissemination.

Description:

This agency is the economic development arm of the

Governor’s office, providing new and expanding industry

with: financial assistance and packaging, labor studies,

marketing research, facility location, and training packages. The organization serves as interface for industry

with other State agencies.

A close relationship exists with local development

authorities in bringing plans for local industrial parks to

fruition. Targetted industries include: robotics, electronics, chemicals, high energy users, as well as supporting

industries.

This agency works closely with the West Virginia

Development Authority (WVDA). WVDA was set up

by legislative mandate, and has funds appropriated by

the State, but works independently of State control.

WVDA provided low-interest loans (4 percent) to qualified high technology, (as well as any industry qualifying)

to fund up to ) 50 percent of new and expanding projects.

Wisconsin

Wisconsin’s aggressive program to attract high-technology industr y is distinguished by the efforts of the private

sector and public-private coalitions. The State is actively marketing its resources as a high-technology center,

and government industrial development efforts include

customized labor training, licensing and finance assistance, and tax credits for R&D and job creation. The

legislature will soon be considering proposals to increase

technical training, tax incentives, and R&D tax credits.

Two private sector groups working closely with the

State government are Competitive Wisconsin and Wisconsin for Research. Both are nonprofit groups representing business, education, and government, Another

group, the Wisconsin Alumni Research Foundation of

the University of Wisconsin, holds patents on alumni

inventions; income received as a result of licensing

agreements is channeled into further university research.

At the community level, the State works closely with

the Greater Milwaukee Committee and the Milwaukee

Chamber of Commerce to develop high technology in

that city. In addition, the Heritage Bank in Milwaukee,

a privately chartered bank, has committed $50 million

to the development of high-technology industry in the

city.

Programs

General industrial development

Business Development Services

Wisconsin Department of Development

Business Development Services

Mr. Fred Pearce

Director

Business Development Services

P.O. Box 7970

Madison, WI 53707

(608) 266-0165

Date of establishment: 1960

Annual State finding (millions): N/A

Program type:

General industrial development.

Program services:

Information dissemination.

State resources promotion (infrastructure).

Links industry with university resources.

Market development assistance.

Licensing assistance.
74 . Technology Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Description:

This office is responsible for a significant amount of

the State effort in attracting targeted high-technology industry by providing services they need. These services

include information about State resources, and helping

business use them. Although established as a general industrial development effort, this office is now targeting

advanced technology industries for special services.

Wisconsin Department of Development

Ms. Kay Plantes

Division Administrator

Wisconsin Department of Development

P.O. Box 7970

Madison, WI 53707

(608) 266-1018

Date of establishment: 1980

Annual State funding (millions): N/A

Program type:

General industrial development.

Program services:

Link industry with university resources.

Tax-favorable business climate.

Description:

This office is charged with guiding coordinated and

economically efficient development of the State’s general

industrial development. Recently, however, the State has

recognized the importance of high-technology development, and is pursuing a number of strategies to encourage

such development: through university-industry ties, research and development tax credits, matching State funds

for university-industry consortia, and other tax incentives to draw equity and/or venture capital investments

into the State.

Wyoming

High-technology industry is part of Wyoming’s agenda for economic development, but thus far the State legislature has taken a cautious approach. There is valid concern about the secondary effects of development, particularly for the environment, and there is a natural constraint in the lack of water. In addition, there is high

unemployment in the State but the existing work force

is not trained in high-technology skill areas.

The Wyoming Industrial Development Corp., established by the legislature in 1967, is authorized to provide financing to Wyoming businesses as venture capital

or for expansion. Although it receives no State funding

at this time, it works closely with the Wyoming Office

of Economic Development. The State does boast the lowest tax structure in the Nation, and there is a concentrated effort at the community level to attract new industry. This is usually traditional manufacturing industry, but it is hoped that it will provide a foundation

for future high-technology growth.

Programs

General industrial development

Wyoming Economic and Planning Development

Commission

Wyoming Economic and Planning

Development Commission

Mr. John Logan

Chief, Industrial Division

Economic and Planning Development Commission

Barrett Bldg., 3rd Floor

Cheyenne, WY 82002

(307) 777-7285

Date of establishment: 1969

Annual State funding (millions): $1.14

Program type:

General industrial development.

Program services:

Tax—favorable business climate,

Information dissemination.

State resources promotion.

Description:

This office is responsible for providing technical assistance to existing industries in the State considering expansion, and to outside firms for possible location to

Wyoming. The State labor force is predominately skilled

to semiskilled, with some shortages in professional and

management areas. State infrastructure dictates that concentration is placed on smaller manufacturing firms that

will hire up to 500 employees. The State Industrial Division and those active local economic development councils work together to attract industry and diversify the

economic base, emphasizing smaller high-technology

firms.

The University of Wyoming has expanded its research

and development centers to include state-of-the-art skills

and machinery in high-technology areas. Training programs are also being established throughout the State

through efforts of the Division of Manpower Planning.