Indiana's governor proposes big steps to build an innovation economy Thursday, December 05, 2002 Faced with an economy that is slowly losing its momentum, Indiana's Governor O'Bannon yesterday proposed a $1.4 billion, 10 year program to build an innovation economy. Business and research grants, college scholarships and investments in schools would be targeted to creating high-skill, high-wage jobs in four industry sectors: advanced manufacturing, life sciences, information technology and distribution. O'Bannon's plan will be the centerpiece of his legislative package next year, but it's no slam dunk. The state faces a $760 million budget deficit, and some legislators complain of borrowing against the tobacco settlement. (They seem to forget the other part of the equation...by investing these funds in research and education, the state generates significant long term returns.In addition, they ignore the financial leverage that comes from the state's investment.) The governor's plan hits the target. As I outlined in a speech before economic developers in Indiana last winter, the state's core economic development problem is a relatively low level of education and major imbalances in its education and workforce system. Each year, 41,000 young people enter Indiana's workforce with minimal skills, twice the level needed to supply entry level jobs. At the same time, the state faces a shortfall of 25,000+ workers each year with postsecondary skills. You can download my slides here. (You can also download a brief analysis of the Indiana program I prepared for the governor's staff in November. It demonstrates the power of financial leverage in the investment program.) You can learn more about the O'Bannon proposals here. You can download a booklet on the plan here. posted by Ed Morrison |		This work is licensed under a Creative Commons License. links Some Background on EDPro Weblog The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it. One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information. So, spread the word...Share the knowledge. Tell a friend about EDPro Weblog. If you are using a news reader, here is the link to syndicate this site: Here's the link if you are a bloglines subscriber: Speaking and workshops on Open Source Economic Development As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking. Background on Ed Morrison Download some background information on me here.

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