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Idaho creating new tech proposals

The state’s new plan for bolstering its technology industry might look a lot like the old plan, but there’s one key difference.

This time, taxpayers and legislators will be asked to fund programs to put the plan into action.

Julie Howard
The Idaho Statesman

http://www.idahostatesman.com/apps/pbcs.dll/article?AID=/20040910/NEWS0202/409100303/1029/NEWS02

The Governor’s Advisory Council for Science and Technology agreed Thursday to send a series of proposals to Gov. Dirk Kempthorne. The proposals call for everything from a technologies fund that would pay for research professors to the creation of a state fund that would provide matching funds for new business ventures.

"The general population has got to understand this is not free," said Bill Shipp, chairman of the advisory council. "We’re building a new economic base. It’s a transformational thing."

The basics of the plan are the same as those developed in 2000. At that time, six strategies were proposed: Develop a highly skilled workforce, invest in research and development, turn technology developed in Idaho into businesses, build an entrepreneurial culture, invest in needed infrastructure, and boost Idaho’s image as a technology state.

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The Governor’s Advisory Council for Science and Technology was established in 1999, and in late 2000 came out with six strategies to drive the state’s technology industry forward. After the slide in the technology economy, the Sept. 11 terrorist attacks and the long recession, the council didn’t meet for several years. The council reconvened in April.

Members are:

Dr. Bill Shipp, council chairman, retired president and general manger of Bechtel BWXT

Roger Madsen, director, Idaho Department of Commerce and Labor

Megan Ronk, representing Office of the Governor

Gary Stivers, executive director, Office of the State Board of Education

Archie Clemins, president, Caribou Technologies Inc.

Mark Durcan, chief technical officer, Micron Technology

Richard Bowen, president, Idaho State University

Tom Loutzenheiser, managing partner, Akers Capital venture firm

George Mulhern, senior vice president, Hewlett-Packard Co.

Jim Schmit, president, Qwest/Idaho Operations

Paul Kearns, vice president and lab director, Idaho National Engineering and Environmental Laboratory

J. Kirk Sullivan, Veritas Advisors, LLP

Some of the proposals

The Governor’s Advisory Council on Science and Technology is considering more than two dozen proposals to take to the governor in November, including:

• Create an Idaho Research Coalition to promote collaboration among the state’s research universities and private industry, and encourage joint endeavors throughout the state. It also would pursue funding for collaborative initiatives.

• Create the Idaho Futures Fund, to be used to invest in infrastructure, equipment and expertise to compete for federal and industrial research and development. Investments in the state’s research universities would help them buy equipment or hire professors in technology areas. The fund could be funded through legislative action or through a bond issue.

Here are some other proposals:

• Develop a statewide university-industry technology transfer program.

• Create a Web site to link entrepreneurs to resources.

• Provide incentives to encourage investment in early-stage venture funds and technology businesses.

• Hold an annual Governor’s Technology Summit.

• Initiate a statewide image campaign to market Idaho as an emerging technology center.

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This time around, however, advisory council members came up with specific ways those six strategies could be moved forward. Shipp acknowledged budget issues are a concern, but also told council members they needed to propose the best plan and let policymakers decide whether the components should be funded.

The council makes recommendations to the governor, who then can accept or reject part or all of the proposals.

"(The governor) is going to have to consider this in context with all the rest of the things on his plate," Shipp said. "But the fact is, other states are aggressively managing their science and technology."

The council timed its final report to the governor to coincide with planning for the next legislative session, which begins in January.

Technology is an emerging industry for Idaho, and is seen as a growth industry for the future, as the state’s natural resource industries are in gradual decline.

Already, technology exports dwarf all other state exports, comprising 70 percent of the products shipped out of Idaho.

"Our high-tech wages are double the state average wage, and 10 percent of our work force is in high-tech," said Roger Madsen, director of the state Department of Commerce and Labor and a member of the advisory council.

Advisory council members will continue to meet over the next month to fine-tune the proposals and to attempt to put cost estimates on those items requiring funding.

Thursday’s meeting, set in Idaho Falls, attracted a diverse audience, ranging from Boise technology business leaders to INEEL staff to university faculty.

Doug Hackler, CEO of Boise start-up American Semiconductor, attended the meeting to hear what strategies were being proposed that could impact growing businesses like his. He came away realizing there wasn’t a single answer.

"They talked about tax incentives that could be viable in attracting existing businesses, but tax incentives don’t help new businesses because they don’t have a revenue stream yet," Hackle said.

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