Massachusetts debating how the state should invest in ED Friday, April 25, 2003 A philosophical debate has broken out in Massachusets about where the state should invest in economic development. The Democratic Speaker of the House wants to invest $100 million in an Emerging Technology Fund. He believes that investments in emerging companies can help long term growth. The governor, a former venture capitalist, says he doesn't want state employees making investment decisions. He wants to invest in infrastructure instead. What's interesting about this debate is that both sides are right...and wrong. The Speaker is right in saying that state investments can acclereate technology development, but he has chosen the wrong vehicle to do it. MassDevelopment (where the Speaker wants the money to go) is an asset based lending organization, not experienced with venture finance or technology evaluation. The governor is right in thinking that investments by MassDevelopment will be too political. But he he is wrong to ignore the state's technology-based pioneer, the Massachusetts Technology Development Corporation (MTDC). MTDC is experienced in early stage technology evealution and has developed a strong network of investment partners among venture capital firms. I come down on the side of the governor on this one. Meanwhile, the legislature has ignored the governor's proposals to reform higher education in the state. Big mistake. 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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