Maine urged to invest more
BYLINE: COVER, SUSAN M
By SUSAN M. COVER Staff Writer
AUGUSTA -- The state needs to invest more money on a consistent basis if it wants to help new companies and new ideas thrive in Maine, a panel of experts told lawmakers Wednesday.
And, it should do a better job coordinating existing resources, said Jake Ward, assistant vice president for Research, Economic Development and Government Relations at the University of Maine.
The state already invests in education, transportation, economic development, research and development, and the environment, he said.
"There's so many opportunities we're missing by not integrating those," he told the Joint Select Committee on Future Maine Prosperity.
As an example, he said the Department of Transportation could invest in new types of ferries built in Maine as a way of supporting an emerging industry.
Ward was joined by Betsy Biemann, president of the Maine Technology Institute, a state-funded private nonprofit, and Catherine Renault, director of the Office of Innovation, in a panel discussion about the role research and development investments play in the long-term success of the Maine economy.
Renault, whose office coordinates state research and development activities, said the state should be investing $120 million a year to help inventors and new companies succeed in the state. Instead, Maine is spending about $20 million a year and gets periodic boosts from bond money.
She said the $50 million bond on the November ballot -- Question 2 -- will be crucial to continue the state's investments. But it still falls "four or five times" short of what's needed.
"The sporadic and episodic nature of support for research and development has been one of our biggest challenges," she said.
Sen. Jonathan Courtney, R-Springvale, told the panel that it's unlikely the state will have the money in the near future to boost investments to $120 million a year.
"What can we do to have the largest impact the quickest?" he asked.
That's when Ward emphasized integration of existing resources and Renault talked about dilapidated labs across the state and a marine lab that has no pier.
Ward began his talk by saying that the problem of keeping young people in the state and diversifying the economy is not new. He quoted speeches from 1852, 1964 and 1985 that all talked about the need to provide new training for new jobs.
"What we're talking about is the same thing over and over again," he said. "We're never going to get there forever. It's got to be a continuous effort."
Some programs started in the 1980s were discontinued in the early 1990s because of a state budget crisis. Moving forward, the state can't try to cut corners with investments, he said.
"We can't afford to put an investment out there that only builds half a bridge," he said.
The legislative panel is looking for ideas to include in its proposal to set a long term agenda for helping the state grow. While the first two meetings have focused on gathering information, the group will switch to more discussion and decision making in future meetings, said House Chairman Rep. John Piotti, D-Unity.
The panelists said investing in new sectors works, with groups that receive support growing faster and paying higher wages.
"The road to prosperity is to grow the economic pie," Renault said. "To accomplish that will require investment and accountability of how that investment is being spent."
Susan Cover -- 623-1056