Friday, July 11, 2008

How I See It

Innovation making quiet rise in Green Mountain State

For many years, Vermont’s visible technology sector could be summed up in three letters: IBM.

The Essex Junction facility of IBM Corp. remains the center of the tech universe in the state, is still the state’s largest private employer with nearly 6,000 employees, and is a crucial economic engine for the region.

But in recent years, there has been a quiet and steady expansion of Vermont’s technology and innovation sectors, especially among small to midsize firms. Many such as MyWebGrocer, Dealer.com, EpikOne, Global Classroom, Eating Well, Brighter Planet, GroSolar, Seventh Generation, Northern Power and Systems & Software are now leaders in their field.

There are a number of reasons for this, including a highly skilled and educated work force and the presence of many universities and colleges, but a key one is a focus on targeted investment in these industries by the state and federal governments in partnership with entrepreneurs and corporations.

Vermont Gov. Jim Douglas’ administration has featured a commitment to job creation, particularly innovation and technology jobs, exemplified by working with the Legislature to pass:

• A jobs creation proposal that included more than $100 million in new capital to Vermont companies through the Vermont Economic Development Authority;

• Sponsorship of the Vermont Software Developers Alliance to help spur  rapid growth of this important sector;

• Improving the state’s economic incentive program to better assist startup companies and;

• Deployment of an “E-State” infrastructure via the Vermont Telecommunications Authority as a public/private funding entity to create 100 percent broadband coverage.

During the recent legislative session, Vermont passed an economic stimulus package that includes provisions to further assist businesses including:

• Up to $18 million in low interest loans for business expansion or start up through the Vermont Economic Development Authority (VEDA);

• Low-interest VEDA loans or equity investments for manufacturers operating in areas with high unemployment rates to help preserve and stimulate the economy of those regions and;

• Up to $10 million in Vermont Employment Growth Incentive (VEGI) funds targeted toward Vermont businesses that provide environmental products or services.

These measures are on top of maintaining financial support for important technology incubators such as the Vermont Center for Emerging Technologies (VCET), which has received federal financial support courtesy of Sen. Patrick Leahy, the University of Vermont and the Douglas administration. VCET has a portfolio of 10 high-opportunity technology and life science companies ranging from “lab-on-a-chip” rapid diagnostics, enterprise software and online education among others.

These changes have helped spur some significant technology advances for Vermont businesses. For example, Omni Measurement Systems Inc., a small R&D company that developed a bladder-relief system for military pilots, managed to take its product from the drawing board to the assembly line here in Vermont with the help of state incentives and economic development partners. In addition, the state has created a package of job training, internship and educational assistance totaling $15 million over the last two years, and initiated the PursueVT program to recruit and retain young workers. 

One recent acknowledgement of the momentum for Vermont high technology success occurred when Fortune magazine named the town of Colchester, which is located along the shores of Lake Champlain, a Top 100 destination to start a technology business in the U.S. And the three letters of IBM have now grown to reflect today’s business climate attributes for innovation, best-in-class and momentum for entrepreneurs in the region. 

 

David Bradbury is an entrepreneur and president of the Vermont Center for Emerging Technologies (VCET), a technology incubator in Burlington, Vt. Contact him at david.bradbury@uvm.edu.