SSTI Digest

Two new Governors, Bob Wise of West Virginia and Wisconsin's Scott McCallum, have put tech-based economic development in the forefront of their respective economic agendas.



West Virginia

In his first State of the State Address, delivered February 14, and the Economic Development Plan released during his campaign for office, Governor Bob Wise outlined several tech-based economic development and education initiatives for the state to pursue immediately. He followed up the address by giving the state assembly several specific legislative proposals.



Governor Wise's proposals include:

What can policymakers and practitioners do if the statistics and other metrics indicate a state, region or locality is not well positioned for the technology-based economy, but the elected leaders and economic development professionals are plodding along with traditional approaches to job creation and development? Or, on the other hand, what if there are several fragmented or isolated technology-related activities and success stories occuring that could benefit from a little political exposure and synergy?

Last Friday, Governor Tommy Thompson signed into law Senate Bill 429, establishing the Wisconsin Technology and Entrepreneurs Council (WITEC). The nonprofit corporation is to promote and support the creation, development, and retention of science-based and technology-based businesses “through the establishment and implementation of programs that focus on various elements that are important for the success of high-technology firms, such as entrepreneurs, seed and venture capital, universities and state government."

The Wisconsin Department of Commerce is required to organize and assist in maintaining WITEC, including providing a one-time grant of $50,000 for start up expenses. Commerce may provide additional funding on a matching basis. The total maximum Commerce contributions to WITEC are limited to $250,000 in any fiscal year.

In his recent State of the State address, Wisconsin Governor Tommy Thompson called for the establishment of a new High Tech Corporation to assist in the development of companies for the New Economy. Toward that end, a bill has been introduced in both houses of the Wisconsin Legislature to establish the corporation.

The bill requires the Wisconsin Department of Commerce to develop and maintain a nonprofit corporation to promote and support the creation, maturation, and retention of science and technology-based businesses in the state. The High Tech Corporation would be responsible for designing and implementing programs that focus on various elements of high-technology company development such as entrepreneurship, seed and venture capital, university involvement, and state government involvement.

The corporation would be overseen by a nine-member board that would supervise the activities of the corporation and raise a total of $250,000 per year in private sector funding.

Three separate public initiatives are underway in Wisconsin which could result in the availability of more than $100 million for new venture capital financing. The efforts are designed to spur venture capital investment in the state (ranked 45th in the 1998 Pricewaterhouse Coopers survey) and to increase entrepreneurial activity in the Wisconsin biotechnology community.