The
Governor’s Council to Take Action For Maine’s Economy —
Baldacci signs the executive
order creating the advisory council as Karen Mills, chair of the council, stands by.
by Ramona du Houx
Throughout
history, periods of economic transition have had dramatic impacts upon society. Maine once
was referred to as the "wood capital of the world." Boat builders came from far
and wide to buy Maine wood. When steel took over, the industrial revolution transformed
the boatbuilding industry in Maine and industries all over the world. Companies flexible
and ready to embrace change survived. New companies emerged. Some died out.
Maine is at the
crossroads of change again. With information technology making it feasible for companies
to locate anywhere they choose in the global economy, new opportunities are opening up for
Maine. Being a rural state may become an advantage, because with it, in Maine, comes a
quality of life.
"Maine is
poised for an era of sustainable prosperity," said Bruce Katz of the Brookings
Institute. Last November Brookings published a report, "Charting Maine’s Future:
An Action Plan for Promoting Sustainable Prosperity and Quality Places" that was
commissioned by GrowSmart. The comprehensive document recommends savings and investments
that would propel Maine’s economy forward.
During the last
four years, Governor Baldacci set the foundation for Maine to transition into the global
economy. He laid the groundwork when he established community colleges and PTZ economic
zones that offer business tax incentives; he increased investment in research and
development, started the ConnectME authority — which is improving information
technology access — and he worked to sustain our natural resources for future
generations.
"A
lot’s been done, but a lot needs to be done," said Baldacci. "We have come
far but must take the next steps to provide for opportunity in the years to come. The
Brookings report has offered us a roadmap to get there. The time is now for us to take
action."
Accordingly,
last December Governor Baldacci announced the creation of a fifteen member advisory group
- The Council on Jobs, Innovation and the Economy.
The group is
charged with developing an action plan for moving the state forward on the
innovation-focused and cluster development activities that will define the state’s
investment strategies.
Areas of growth
where economic activity has increased in Maine have created new clusters where the state
intends to help facilitate growth. These clusters are interconnected companies and
institutions — from manufacturers to suppliers to universities and to government
agencies — that enjoy unusual competitive success in a particular field. In the
nation, Silicon Valley is a prime example. In Maine, the financial sector leads the list.
An interesting
development within the last few years is making Maine boat building an important cluster,
and now the industry is utilizing a $15 million WIRED grant for composite research and
Maine boat building.
"I worked
for a year on the WIRED grant. I went all across the state with GrowSmart for the
Brookings report to find out how we can grow this economy," said Karen Gordon Mills,
who chairs the advisory panel. Mills is the managing director of Solera, LLC, a venture
capital fund. Solera Capital is a private equity investment firm that typically invests
between $10 million and $40 million in its target companies.
"There are
enormous opportunities in this state. Maine has the potential to build on its core
strengths in a number of growing sectors and create world competitive businesses and jobs.
The groundwork has been laid — now the work begins to make it happen," said
Mills.
"My world
is all about taking innovative companies and making them world-class competitive
companies. As I traveled around the state, I became quite energized listening to
businesses and people at forums. I realized that I have the experience that could help
Maine’s economy. I could give back to this place that has given our family a
wonderful home. That’s why I’m doing this. This is a real moment where we can
make a difference in the Maine economy. It’s an exciting time."
Baldacci said
the state needs to increase investments in research and development, to expand access to
higher education, and to bolster job-training opportunities.
"Maine
will focus its resources on investments in promising sectors, which will drive future
growth," said Governor Baldacci. "This group will utilize the expertise needed
to grow the economy further. Until everyone everywhere finds opportunity, our job is not
done."
The
council’s action plan — which will have specific recommendations the governor
intends to take to the Legislature to implement — is due out in February.
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