Friday, December 19, 2008

Inside Public Policy

Rhode Island continues foray into idea making

Over the last few decades Rhode Island’s economy has changed in fundamental ways. Like the rest of the nation, the state’s economy has shifted from a reliance on machinery and equipment to “knowledge workers” who generate ideas and information. The state must now compete in an economy where innovation and knowledge are the primary drivers of economic growth. Though daunting, the transition offers Rhode Island an opportunity to achieve greater prosperity now and in the years to come.
The Rhode Island Economic Development Corp.’s 2008 Economic Growth Plan described its strategy to accelerate economic transformation.

Top priorities have included programs to increase the availability of growth capital, a regional attraction campaign to promote company relocation and expansion. Others include a partnership to leverage property made available through the I-195 relocation, improvements to an expedited permitting program, programs that strengthen the workforce development platform, an effort to increase the state’s R&D capacity and stimulate new company creation, and a program to reduce the regulatory burden faced by small businesses.

As part of the focus on its technology resources, the Rhode Island Science and Technology Advisory Council’s Research Alliance program announced a $1.4 million investment to promote collaboration across academic and commercial institutions. The funding has provided support for projects such as the development of high-tech toys to aid children with cerebral palsy and new marine-based drugs to fight infection.

Rhode Island saw significant expansion and relocation activity in the tech space, including:

Neurotech Pharmaceuticals Inc., a biotechnology company focused on sight-saving therapeutics for chronic retinal diseases, opened a 27,000-square-foot manufacturing facility in Cumberland.

Concordia Medical, an innovator in specialty fiber-based medical implants and scaffolds for regenerative medicine, opened its 24,575-square-foot medical manufacturing facility in Warwick.

InQuest Technologies Inc., the developer of a platform for delivering web-based enterprise business applications, relocated its headquarters to Providence.

Kelly Space and Technology Inc., a California company focusing on aerospace, energy and homeland security technologies, established an East Coast operation in Rhode Island.

In 2008, Rhode Island also saw its progress highlighted in national rankings looking at economic development initiatives, R&D capacity, and overall competitiveness.

The state was cited as a top performer in the 2008 State New Economy Index, which ranked Rhode Island 11th in the nation in an analysis of how states transition to economic development strategies that focus on the creation and retention of high-wage jobs in growth industries.

Rhode Island ranked fifth in technology according to the Beacon Hill Institute’s State Competitiveness Report 2008. Rhode Island placed third in both NIH support and the number of science and engineering degrees awarded.

KPMG’s Competitive Alternative report rated Providence as having a low business cost, and Rhode Island ranked fifth among states and regions worldwide for research and development expenditures.

The Business Facilities Rankings Report gave Rhode Island high marks for education climate and for being a “green” state. Rhode Island’s education climate was ranked eighth in the U.S.

The American Electronics Association’s Cybercities report ranked the Providence-Fall River-New Bedford area as one of the nation’s top cities in several areas measuring the technology industry.

In 2009, the RIEDC will be focusing on further job growth in green sectors through its management of the state’s Renewable Energy Fund. The fund is an important asset in creating greater energy independence and in building the state’s capacity to create jobs. Rhode Island stands to gain significant benefits from activity in the green technology sectors and has an opportunity to more fully leverage its coastal location and green tech talent to grow high-wage jobs.
 

J. Michael Saul is the interim executive director of Rhode Island Economic Development Corp., based in Providence.