GAZE INTO FUTURE FOR STATE'S ECONOMY; KEYS TO GROWTH WILL BE THE BRAINPOWER TO CREATE BUSINESSES AND THE MONEY TO FINANCE THEM

Dane County's economy has become a crystal ball.

In that crystal, state policymakers should see the future of economic growth for much of Wisconsin.

Three news stories this month made the case:

TomoTherapy Inc., a fast-growing Madison maker of a radiation treatment machine, applied to raise up to $201 million in a public stock offering.

GenTel BioSciences Inc., a Fitchburg maker of chips used to test for proteins in blood, announced it had raised more than $2 million from angel investors to expand its fledgling operations.

Aruna Biomedical, a Georgia maker of kits used by stem cell researchers, said it wants to relocate to Wisconsin, to take advantage of stem cell research at UW-Madison, if it can raise the necessary money.

These stories highlight the importance to Wisconsin of two assets: brains and money.

In other words, Wisconsin's future depends on the knowledge-based economy and the capital to finance it.

For policymakers, that means: Invest in the state's educational system, especially the University of Wisconsin System, and use tax policy to encourage investors to supply the money to make business ideas grow.

To be sure, Wisconsin cannot neglect its metal-bending factories, many of which have opportunities to thrive. Nor can it overlook the fact that basic occupations such as health care and janitorial services will generate thousands of future jobs.

But to prosper in the 21st century, Wisconsin should look to the model exemplified by TomoTherapy, GenTel, Aruna and their financial backers.

TomoTherapy, 10 years old, already employs 500 people. Co-founded by two UW-Madison professors, it was financially backed by investment groups in Madison, Milwaukee and California.

The next step may be to follow Madison-area high-tech businesses Third Wave and Sonic Foundry into the public stock market.

GenTel, employing 17, started at University Research Park, has moved to Fitchburg and plans to open an office in North Carolina. The company has found additional financing from investors, including groups in Madison and Appleton.

Aruna sprouted from brainpower and research at the University of Georgia, but it licenses human embryonic stem cell technology from the Wisconsin Alumni Research Foundation. Because UW-Madison is a hotbed of stem cell research, moving its jobs and income to Wisconsin would make sense.

Smart people and willing investors are blazing Wisconsin's trail into the future. Policymakers should pave that trail so more can follow.