Democratic gubernatorial candidate unveils economic plan

DATELINE: NEW CASTLE Del.

State treasurer Jack Markell on Wednesday unveiled an economic development plan based on entrepreneurism with the goal of creating 25,000 new jobs in Delaware during his first term as governor. 

Markell, who is battling Lt. Gov. John Carney Jr. for the Democratic gubernatorial nomination, released a 20-page economic development plan entitled Turning Ideas into Meaningful Employment, or TIME.

Markell, a former business executive who helped build Nextel from a startup firm into a telecommunications giant, said Delaware is not creating enough new opportunities to replace jobs that have been shed in recent years by large employers such as DuPont, General Motors and Chrysler.

The state's credit card-based financial services industry also has been shrinking, he noted.

"We value our longtime employers and will fight to keep them happy and productive in Delaware for many years," Markell's plan states. "And at the same time, we must get serious about growing small businesses to build lasting jobs here."

While refusing to grade the Minner administration on its economic development programs, Markell noted that Delaware ranks 45th among the states in the Kauffman Index of Entrepreneurial Activity, meaning fewer new businesses are started per 100,000 residents here than in almost any other state.

"We've got to focus like a laser beam on our economy and thinking differently about economic development," Markell said in an appearance at Mike's Famous Harley-Davidson, which owner Mike Schwartz planted on a rundown tract at the foot of the Delaware Memorial Bridge and grew into one of the most successful Harley-Davidson dealerships in the country.

"We need more stories like this," said Markell, arguing that Delaware's economic health cannot be pegged to a handful of large companies. Instead, Delaware needs to create a climate that fosters entrepreneurship across a wide variety of industries, he said.

Economic development is not just about persuading businesses to move to the state, but about "growing our own," Markell added.

A key component of Markell's plan is an educated work force able to keep pace with the changing global economy.

"Delaware must work with businesses to design curricula that reflect the basic skills and requirements of the kinds of knowledge-based businesses we want to attract," the plan reads.

The state also must strengthen ties between academia and industry to nurture new entrepreneurs and encourage faculty entrepreneurship at colleges and universities.

Other elements of Markell's plan include:

increasing the availability of risk capital for business startups and research and development

expanding exports of goods and services

creating a university venture fund and providing matching funds to leverage federal and corporate research grants

creating new jobs in rural areas, including deployment of broadband infrastructure

offering tax incentives for investors providing seed capital for new businesses

helping diversify agricultural production toward niche markets such as organic produce

While finding ways to improve its business climate, the state also needs to re-examine existing business tax incentives to ensure that the focus remains on sustainable, high-wage jobs, according to Markell.

"I'm less interested in tax incentives that just give away the store in order to attract any business to Delaware," he states in his plan. "... Obviously, we want businesses to create jobs. But I don't think we should reward businesses for creating jobs they would have created anyway."