Here is a simple idea for accelerating the development of networks needed to support young entrepreneurs. With legislation recently passed by the Indiana legislature, Indiana communities can elect to offer incentive packages to attract young entrepreneurs. It's both a competition and a matchmaking. The young entrepreneurs will evaluate different bid packages before deciding where to locate their business

The initiative is targeted at entrepreneurs who are in an Indiana college or university pursuing a major, minor or certificate in an entrepreneurial program. The initiative also includes Indiana graduates with a major, minor or certificate on the turnaround program who completed their studies within the past 3 years.

The process starts with a business plan. So far, this isn't much different than most business plan competitions.
But here's the twist. Communities compete with incentive packages to attract the best entrepreneurs. The communities come up with the reward.
Instead of chasing the next company moving from Michigan the Mexico with incentive deals, participating communities design incentive packages to attract these promising young entrepreneurs.

My Purdue colleague, Scott Hutchison, is in the middle of the team implementing this initiative statewide. He's promoting the program to communities by encouraging them to think broadly about the different incentive packages that they can put together.
So, for example, a local health system to provide low-cost or no-cost health insurance to employees of the new company. Real estate developers could offer real estate packages that include both live and work spaces. Local restaurants could provide vouchers for free or reduced price meals. The downtown association could provide "shopping cards".
Accounting and law firms could offer reduced rate or free services. Local governments could offer a concierge service to help the new company navigate government regulations and programs. Community banks could band together to provide attractive financing packages. Angel investors could come together to mentor the new company. The local YMCA could offer free memberships. The list goes on.

This initiative doesn't cost the state government a dime. At the same time, it redirects local economic developers and civic leaders to the real source of future prosperity in their communities.

Brilliant.

A week ago, the Council on Competitiveness released a report that makes a dramatic, urgent call for a renewed focus on manufacturing as the "cornerstone of American independence, economic prosperity and national security". The report concludes that manufacturing's competitiveness demands igniting innovation.

The report goes on to set forth an array of actions that can improve the future trajectory of U.S. manufacturing firms. Read more.

 

Here's an interesting report from The Massachusetts Institute for a New Commonwealth.

The report explores on the economy's "lost decade" and the challenges for the Massachusetts presented by the growing divides among its citizens. One of the particularly troubling findings: the lost link between greater productivity and higher incomes per worker.

New York has been running a regional competition for state funds. Today, the governor made the announcement of where the funds end up. This article provides some background. 

A new report form the Heldrich Center at Rutgers paints a stark picture of the impact of the recession. Using a national survey, the authors construct a typology of the unemployed. The categories are based on several dimensions: 

The Wisconsin Technology Council has issued a report urging accelerated broadband development in rural WIsconsin.
The report lays out a compelling case for why broadband access is critical to the future development of rural counties: improved access to health care; more higher education options; stronger support for "traded" businesses that penetrate national and international markets; improved public safety; and a stronger infrastructure to support tourism development.

Tennessee has come up with a useful model for stimulating investment in high growth, emerging companies. The state is now seeking public comment. 

IBM chose Milwaukee as one of 24 "high-potential" cities around the world to receive expertise at no cost to improve quality of life in the areas of water, energy, health care, transportation, communication or social services. In each city, IBM teams set out to synchronize and analyze efforts among sectors and agencies. The goal is to establish a new architecture to anticipate problems and spot opportunities. 

Colorado's governor has launched a new initiative -- Colorado Innovation Network (COIN) -- to build the networks to accelerate innovation in the state. 

A new report from the Economic Development Administration places these types of public investment higher that other forms of infrastructure investment. Incubators generate 20 times more jobs than community infrastructure projects, like road or water projects. Effective incubator projects work for two reasons.