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Montana is On the Move! – DOC Director, Dore Schwinden Talks About Entrepreneurial Companies in Montana

Dore Schwinden, Director of the Montana Department of Commerce http://commerce.mt.gov/ recently spoke to the MEDA Annual Conference http://matr.net/article-44427.html in Bozeman.

MATR asked if we may have the opportunity to share his thoughts with our readers to give them a better idea of the vibrant innovation and entrepreneurship in Montana. We thank Mr. Schwinden for providing the text of his speech.

***

Good afternoon. I’m Dore Schwinden, Director of the Montana Department of Commerce. I’m happy to be here with you today.

As many of you may know, I have a long history of government service in Montana. I also have a good deal of experience working for the private sector and running a small business – operating my family farm for many years.

I mention this because, as I look around the room today, I see individuals who represent a wide swath of Montana’s economy. You have diverse backgrounds. You represent the public and private sectors, entrepreneurs, and higher education.

This room full of experience is very valuable to MEDA and the state, but it is particularly significant to this conference and its theme – innovation.

The act of innovating means the introduction of new things or methods. In terms of Montana’s economy, this means moving forward. Thinking outside the box…Leading…Doing.

By nature, Montanans are leaders. We are doers. But we must work together, utilizing our experience, backgrounds and resources to truly, collectively, lead the way to innovation in Montana.

INNOVATION ENHANCES ECONOMY

Montana’s economy, at one time based primarily on agriculture, natural-resource extraction, and more recently, tourism, is experiencing the emergence of an important new economic sector–the research, development, and commercialization of innovation and technology.

* One of the numerous positives of this new development is that it doesn’t detract from Montana’s other economic sectors in any way. On the contrary, it contributes to these other sectors by helping them become more competitive:

* Natural-resource extraction–whether mining, fossil-fuel exploration and production…like HydroFRACKING, timber harvesting and lumber production–they are all benefiting from innovations that improve efficiencies and lower costs.

* We’re seeing every day how cutting-edge technology is enhancing agricultural planting, growth, harvesting, yield, and economics.

* What would tourism be today without GPS? In fact, this and other technologies are making it possible for Montana’s tourism industry to attract and capture more out-of-state tourist dollars than ever before.

INNOVATION RESEARCH BRINGS DOLLARS TO MONTANA

The emerging technology sector of the economy has been led traditionally by researchers throughout Montana’s University System, who continue making significant strides in such fields as photonics, bioengineering, alternative energy resources, and the agricultural and life sciences, to name just a few.

* The importance of the advancements made by these researchers is reflected by a corresponding increase in the level of R&D funding brought into the state from outside sources.

* In 2009, this funding reached almost $170 million; in 2010, it increased to $186 million; and though the totals for 2011 are not yet known, it is expected to be another strong year.

* These dollars represent numerous learning and earning opportunities for our college students at all levels, and often lead to these students being able to remain in Montana.

Equally important is that these dollars attract increasing levels of private-sector investments in such companies as
Bridger Photonics (http://www.bridgerphotonics.com/ )

Native Seedsters (http://www.nativeseedsters.com/)

Bee Alert (http://beealert.info/)

Rivertop Renewables (http://www.rivertop.com/)

Veridical Research & Design (http://www.veridicalresearch.com/index.htm)

SAJE Pharma (http://www.sajepharma.com/index.html)

and Zdye (http://www.zdye.com/)

among others … all of which work closely with our universities.

* As these companies multiply and grow, they are not only creating new, Montana-based wealth and job opportunities, but they are also attracting new synergistic companies and supporting organizations to Montana.

* Example: Blue Marble Biomaterials (http://bluemarblebio.com/), which is in the process of relocating new production facilities from Seattle to Montana.

* Example: Nu-Trek (http://www.nu-trek.com/), a San Diego-based company, has maintained a Bozeman office with 4-6 high-paying technical positions in order to access expertise growing out of the MUS.

* Example: The Rocky Mountain Supercomputing Center (http://www.rmscinc.org/), whose own efforts in supporting both Montana and non-Montana-based companies are attracting substantial new investment into the state and creating many new, tech-based jobs.

* Examples include:

the National Center for Health Care Informatics (http://www.nchci.org/)

TerraEchos, Inc. [a subsidiary of S&K Technologies, but working on its own with the Supercomputing Center]( http://www.terraechos.com/)

S&K Technologies (http://www.skt-llc.com/)

LGT Advanced Technology, Ltd. out of the UK, which has selected Montana as the home of its new wind-energy technology HQs (http://www.lgt-at.com/)

NaturEner’s Glacier County Wind Farm (http://www.naturener.net/)

Washington DC-based private-equity firm, Lionchase Holdings (http://lionchase.com/), working to secure investments to support the R&D of novel diesel-backup, electrical-generation technology at MSU-Northern.

The result is a Montana economy that is moving ever closer to a critical mass of technology companies needed to:

* attract a steady flow of out-of-state revenue for R&D and investment in Montana companies;

*provide an ever-increasing stream of new employment opportunities to Montana’s graduates and residents,

* broaden the diversity of Montana’s economy, and

* replace tax base lost in some of our natural-resource industries.

MONTANA’S TECH SECTOR IS GROWING AND DIVERSIFYING

As the technology sector of our economy emerges, it is also interesting to notice the breadth of technologies involved. These technologies range from:

* innovative new harvesting equipment designed specifically for the harvest of native seeds [Native Seedsters, Alzada (http://www.nativeseedsters.com/)]

* to novel life-science drug therapies promising relief from diseases such as asthma and diabetes [SAJE Pharma, Kalispell (http://www.sajepharma.com/); Big Sky Biotechnologies, Missoula]

* to cutting-edge water treatment technologies [AlgEvolve, Corvallis (http://www.algevolve.com/); Drake Water Technologies, Helena (http://www.drakewater.com/)]

* and state-of-the-art laser technologies and materials sciences [S2 (http://www.s2corporation.com/) and Bridger Photonics (http://www.bridgerphotonics.com/), Bozeman].

We also have companies striving to develop and commercialize new technology capable of:

* delivering mobile wind power [Pine Ridge Products, Belt (http://www.pineridgeproducts.com)], unique Unmanned Aerial Vehicles [Zynke Unmanned Aerial Systems, Kalispell and Terrestrial Data Systems, Billings], and unmatched amphibious utility vehicles [PFM Manufacturing, Townsend (http://www.landtamer.com/)] and communications [Nomad Technologies, Kalispell (http://www.nomadgcs.com/)] to our military;

* opening the door to cleaner, safer development of our abundant coal resources [Coal to Liquids, Billings; Drake Water Technologies, Helena(http://www.drakewater.com/); and Global Engineering, Butte];

* collecting and reporting oceanic, atmospheric, and meteorological profiling data for tracking the condition of our environment [Anasphere, Bozeman (http://www.anasphere.com/); Sunburst Sensors, Missoula (http://www.sunburstsensors.com/)]; and

* enhancing habitat, improving farm and ranch land, and rehabilitating disturbed lands [Westscape Nursery, Bozeman (http://www.westscapenursery.net/); Land EKG, Bozeman (http://www.landekg.com/); Native Yards, Missoula (http://www.nativeyards.com/); SMK Plants, Billings (http://www.smkplants.com/)].

TECH INNOVATION IS HAPPENING ACROSS MONTANA

I am also pleased to learn how widely dispersed these technology firms are throughout the state:

* As expected, we have many tech-based companies located in our larger communities, often to be near our major university units in Bozeman and Missoula;

* But we also have technology firms successfully developing and commercializing new technology in many of the state’s smallest communities:

* Sidney [Safflower Technologies International (http://www.safflowertech.com/)]

* Alzada [Native Seedsters (http://www.nativeseedsters.com/)]

* Townsend [PFM Manufacturing (http://www.landtamer.com/)]

* Belt [Pine Ridge Products (http://www.pineridgeproducts.com/)]

* Corvallis [AlgEvolve (http://www.algevolve.com/) and Blue Marble Biomaterials (http://bluemarblebio.com/)]

* Miles City [Technology for Manufacturers]

* St. Ignatius [S&K Technologies (http://www.skt-llc.com/)]

* Sunburst [Great Northwestern Growers (http://www.greatnortherngrowers.com/)]

* Clancy [Senergy Works]

* Alberton [Promiliad BioPharma (http://www.promiliad.com/)]

* Glendive [Yellowstone Caviar]

* Moccasin [Spika Welding (http://www.spikawelding.com/)]

* Stanford [Rose Canyon]

Such breadth in the array of innovation, and in its geographical dispersion throughout the state, strongly suggest that everyone engaged in the development of Montana’s economic future may have an opportunity to benefit from this new economic sector.

* If the benefit doesn’t come directly from the location of innovation-based companies in your area, it may be realized indirectly by helping your existing companies become more competitive through the increased adoption of innovative new technology.

THE MONTANA DEPARTMENT OF COMMERCE SERVES AS A VALUABLE RESOURCE FOR TECH INNOVATION

In addition, there are numerous resources available to help your organizations and the companies you want to serve.

* If you’re working with companies engaged in the research, development, and commercialization of new innovations, there may be critical seed capital available through the federal Small Business Innovation Research (SBIR – http://www.sbir.gov/) and Small Business Technology Transfer (STTR – http://www.sba.gov/content/small-business-technology-transfer-program-sttr-0) programs or the state’s Montana Board of Research and Commercialization Technology (MBRCT – http://businessresources.mt.gov/mbrct/default.mcpx). The Department of Commerce’s Montana Technology Innovation Partnership (MTIP – http://www.mtip.mt.gov/default.mcpx) exists to provide in-depth coaching and assistance to companies interested in pursuing these highly competitive funding resources.

* Additional investment capital may be available from one of the growing number of local angel funds popping up in Montana, first in Kalispell, then in Missoula, and now developing in Bozeman and Billings. These funds are not in any way geographically restricted in their investment decisions. Thus, they are open to being approached by companies from throughout the state.

* For companies seeking capital for construction or operating expenses, as well as those firms looking to upgrade the efficiency of their operations, there is an array of lending options, all reachable through any of Montana’s 10 Small Business Development Centers (http://sbdc.mt.gov/offices.mcpx) located throughout the state.

* Finance programs available through the Department of Commerce (http://commerce.mt.gov/) can be used for workforce training, working capital, equipment costs and fixed asset financing. These important resources and the knowledgeable staff that administer them, are helping Montana’s innovation economy continue to grow and prosper.

Full Speech: http://www.matr.net/files/MEDASpeech-DoreSchwinden.pdf

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