Indiana Governor Announces Plan to Advance Innovation, Entrepreneurship

Indiana Gov. Mike Pence announced plans to invest $1 billion over the next 10 years to advance innovation and entrepreneurship in the state, and to ensure the Hoosier State plays a leading role in solving 21st century challenges, while supporting Indiana’s long-term economic growth, job creation and talent attraction. The 10-year proposal centers on and seeks to enhance the collaborative partnerships between government, education and research institutions, as well as communities in the private sector, while focusing on further advancing Indiana’s current economic momentum and innovation activities. The proposal includes: requesting the Indiana Public Retirement System invest $500 million in in early stage and mid-market Indiana companies; $300 million for 21Fund, which directs investments and grants into early stage, mid-market and high-growth companies; $100 million for transferability of the Venture Capital Investment tax credit to increase the accessibility of private sector funding for innovators and startup companies; and, $100 million to further advance innovation and entrepreneurship education, programs and practice through strategic partnerships with higher education and research institutes in Indiana.

The proposal calls for:

• Developing partnerships with secondary school programs to encourage interest in innovation and entrepreneurship;
• Leveraging strategic partnerships to support and expand entrepreneurship or innovation programs, like the Purdue Foundry Accelerator;
• Establishing a system for sharing best practices across the state’s network of private and public institutions;
• Providing matching funds for regional/community investments in startups and companies that are scaling up, as well as supporting the startup costs and program development for co-working spaces, incubators and innovation centers;
• Seeking to accelerate investments in early stage, mid-market and high-growth companies by encouraging further investments from private investors, or through matching funds from either communities and/or education and research institutes; and
• Expanding opportunities for the state’s small businesses by integrating resources and micro-lending initiatives, encouraging local community development and developing new programs aimed at increasing opportunities for starting and growing a business.

Under the governor’s plan, the proposed initiatives and activities would be directed by the Indiana Economic Development Corporation (IEDC). Additionally, the governor issued an executive order to relocate and integrate several of the state’s business programs, such as the Office of Small Business & Entrepreneurship (OSBE), the Indiana Small Business Development Center (ISBDC) , and the Procurement Technical Assistance Center (PTAC) from the lieutenant governor’s office into the IEDC in order to fully align, and enhance the state’s efforts at creating a more effective one-stop shop of resources for entrepreneurs and businesses in all stages of their growth and development, including partners and investors.