Government’s role in spurring economy gets airing

(Corrected, Oct. 31, 1:50 p.m.)

This time government is in the room for discussions about the future of the Rhode Island economy, but it is only one source of debate among business leaders.
The newest series of private-sector conversations on how to improve the Rhode Island economy is being used to guide the state’s Rhode Map strategic plan and on some level the R.I. Economic Development Corporation.
As a result, where the Make It Happen forums last year overtly steered clear of government problems and solutions, this year’s “Intersections” debate, as it’s called by the EDC, faces them.
And like the broader population, business leaders attending the eight different focus-group-style discussions last week about the economy, were far from unanimous on whether state government should lead, help or get out of the way.
“The biggest economic opportunity is an about-face in the legislature,” said Daniel Shedd, president of manufacturer Taylor Box in Warren during the manufacturing/design/makers session last week. “What can the state do? Leave us alone,” Shedd said, although he noted public education and job training are critical. What he really wants, he said, is better value for this tax dollars.
Others argued there are valuable roles the state government can fill to help local companies, from workforce training to marketing to funding social-ventures enterprises to boost particular industries.
“We have to get over the 38 Studios mentality,” said Aidan Petrie, co-founder and chief innovation officer at medical-device maker Ximedica in Providence. “Policy is too slow and indirect. Let’s talk about high-value areas.”
Yet while the role of government may be the fastest way to spark debate among businesspeople, the sessions being held this fall show even greater differences of outlook based on organization type and market.
In fact, bringing together different branches of related industries is a central purpose of these latest events sponsored by The Rhode Island Foundation.
Along with manufacturing and design, the events also bring together, among other groups, biotech with public health, finance with real estate and technology with software.
Some of the biggest divisions appeared to be between those who identify with younger, innovation businesses or startups and older companies focused on an established product. Traditional manufacturers – including Davide Dukcevich, co-owner of cured-meat maker Daniele Inc. in Burrillville and Shedd at Taylor Box – expressed admiration for the German apprenticeship system and how young people there were attracted to manufacturing in a way their American counterparts are not.
Others closer to the startup and design world said the broader base that Americans receive should not be underestimated as a platform for innovation.
“I don’t want students who studied engineering since they were 5,” said Kipp Bradford, senior design engineer and lecturer at Brown University and co-organizer of the Rhode Island Mini Maker Faire. “Germany is great for turning people into manufacturing robots, but the U.S. is still the leader in innovation.”
Petrie at Ximedica stressed the importance of innovation in manufacturing and giving talented and trained young people a chance to reinvent and drive existing companies.
“Innovation is understanding where the market is going four years from now – Do we educate manufacturers in how to innovate?” Petrie said. “Innovation is a process.”
Cheryl Merchant, CEO of Hope Global in Cumberland, said the recession had decimated research and development at her company, which has largely been growing through improved efficiency instead of hiring.
Nearly all the manufacturers saw the state’s colleges and universities as a potential driver for growth and were optimistic that an 11-school collaboration started last year signaled a new focus on business.
The focus-group sessions of all eight industry groups will each meet again in November and December before The Rhode Island Foundation, which donated $75,000 toward the project, reports action steps in January.
After listening to the logistics and connectivity session, foundation President and CEO Neil Steinberg said the skills gap and business climate, as they had been in the original Make It Happen, have been recurring themes at the focus-group sessions so far.
Steinberg acknowledged that the atmosphere at the events had been different with direct government involvement, but that it is not a bad thing.
“Obviously when the government is discussed what comes out is people’s experiences and anecdotes,” Steinberg said. “That’s OK. We are asking [participants] to take their time to brainstorm.” •

A previous version of this story incorrectly identified Neil Steinberg as the executive director of The Rhode Island Foundation. He is the foundation’s president and CEO.

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