A council convened by Gov. Donald L. Carcieri last April to come up with ways to strengthen Rhode Island’s “innovation economy” has issued a set of recommendations that include tax credits for “serial entrepreneurs” in science and technology and more investment in Wi-Fi.
The Science and Technology Advisory Council, which includes leaders in academia, government and business – from CVS to Amgen to Banneker Industries, also advised strengthening the University of Rhode Island and promoting collaborative research.
Altogether, the proposals, developed after interviews with nearly 100 people in business, would cost the state $2.2 million in fiscal 2007, and some would require changes in the law.
Jeffrey R. Seemann, dean of URI’s College of Environmental and Life Sciences and co-chair of the council, said the recommended initiatives would be a “first and necessary step” toward eliminating the disparity between Rhode Island and its neighbors.
A report commissioned by the council last year found that Rhode Island has difficulty competing with other states in science and technology innovation. It found the state kept losing young, educated workers, while it was falling behind in the number of patents issued here. In addition its academic researchers weren’t collaborating enough with business.
“The gap is closeable,” Seemann said. “Probably not in a few years … but we need to start the ship in the right direction.”
The council’s report, titled “innovate RI,” makes five recommendations:
*To support the creation of the R.I. Collaborative Research Alliance, investing $1.5 million to match a $6.75-million National Science Foundation grant the state recently received to help it strengthen its science research platform.
Eight of the state’s 11 colleges and universities benefit directly from the grant, and the rest benefit “indirectly,” Seemann said.
*To appoint a blue-ribbon commission to recommend ways to strengthen URI’s position as a “nationally competitive public research university.”
*To create a tax credit as an incentive to attract and retain “serial entrepreneurs” in science and technology and the investors who support them. (Many tech companies sell themselves to bigger companies when they’ve reached a certain level of success, so “serial” entrepreneurs who’ll take the proceeds and start yet another company are a prized commodity.)
Seemann said the tax credit idea was derived from a similar credit offered to the motion-picture industry. Under that program, producers are given financial incentives to bring their films or television shows to Rhode Island, and major investors in their films can get tax breaks as well.
n To invest $500,000 in the R.I. Wireless Innovation Networks (RI-WINs) initiative, which aims to develop the nation’s first statewide broadband wireless network here.
Seemann said the council targeted RI-WINs because it is a solid collaboration between public and private institutions that seeks to take advantage of Rhode Island’s small size to promote what the R.I. Economic Development Corporation calls “Innovation @ Scale.”
Seemann said the project, which is starting with pilot programs involving state workers and emergency responders, among others, could attract companies to Rhode Island to use the state as a test bed for new products and ideas.
“We thought there had to be a greater investment in public-private partnerships if economic development was ever going to move forward,” Seemann said.
n To extend the council’s work through fiscal 2007 with an extra $200,000 appropriation.
“All of these dollars we see as an investment,” Seemann said. “That’s why we feel the General Assembly will be investing a small portion of the resources they have.”
Anticipating the council’s recommendations, Carcieri has put “place holders” in his fiscal 2007 budget for this money, Seemann said.
“Rhode Island’s economic success depends on our ability to build an innovation economy that effectively taps our science and technology resources,” Carcieri said in a news release. “These recommendations will enable us to achieve this goal.”
The Science and Technology Council is co-chaired by Seemann and Andries van Dam, Brown University’s vice president for research. It also includes: David Bengston, vice president and general manager of Rhode Island operations for Amgen Inc.; Paul Choquette, chairman and chief executive officer of Gilbane Construction Co.; Saul Kaplan, director of business development for the EDC; Margaret Leinen, assistant director of geosciences at the National Science Foundation; Richard Nadolink, former chief of technology at the Naval Undersea Warfare Center; Thomas Rockett, a member of the board of governors for higher education and the vice provost emeritus at URI; Thomas Ryan, chairman and CEO of CVS Corp.; Cheryl W. Snead, president and CEO of Banneker Industries; Donald Stanford, president of Stanford Scientific; Joseph Amaral, president of Rhode Island Hospital; and David Hibbitt, chairman of Abaqus Inc.
