Be Bold Wisconsin Making Wisconsin More Competitive

1. Be Bold WisconsinMaking Wisconsin More Competitive Wisconsin Legislative Council Nanotechnology Brian Doudna, President Wisconsin Economic Development Association Deloitte Consulting LLP and NKF Global Corporate Services

2. Regulation & Education of Enabling Technology Federal EPA – Introducing rules EPA is waiting for additional data… Complex issues in global marketplace WI should understand EPA rules prior to considering a different set of rules/policies Additional research needed, economic opportunity for WI researchers??? Registry: Difficulty in managing process & participation? Which compounds/chemicals to monitor? What scale and scope is appropriate? How would it truly result in enhancing the health and safety of the people of WI? Wait for EPA Rules Emergency Services & Workforce Concerns: Is nanotechnology really the concern? Chemicals and compounds in small amounts Web Site: Focused on consumer education of products Regulation – Wait & See Education Grow WI Economy Experiences and models for your consideration

3. Be Bold Wisconsin - Steering Committee Structure Members of the Steering Committee: Senator Julie Lassa Senator Randy Hopper Representative Peter Barca Representative Rich Zipperer Kim Kindschi, UW-System Rolf Wegenke, WI Assoc. of Ind. Colleges & Universities Mark Bugher, University Research Park James Zylstra, WI. Technical College System James Otterstein, Rock County EDC Bruce Kepner, Alliant Ron Becher, JP Cullen Sue Marks, Pinstripe Myron Schuster, NWRPC John Torinus, Serigraph Ted Penn, Integrys Energy Scott Vandersanden, ATT Wisconsin Laurie Benson, LB Unlimited Kathi Seifert, Retired Executive Eric Borgerding, Wisconsin Hospital Assoc.David Newby, AFL –CIO Rob Kleman, WEDI Mike Theo, Wisconsin Realtors Association Cheryl Welch, Workforce Dev. Assoc. Lead Organizations: Study Partner: Executive Committee: Cory Nettles, Former Commerce Secretary Michael Knetter, Dean, WI School of Business Tom Hefty, Retired Executive Linda Salchenberger, Dean, Marquette Business School

4. Stakeholder Survey Results (Gov’t, UW, Private, Non-Profit) How successful do you think Wisconsin is, as a state, in terms of economic development? The survey was developed at project onset to assess various stakeholders’ attitudes and beliefs related to economic development in Wisconsin. The survey was distributed to stakeholders via Survey Monkey, an online survey tool, and included 7 questions and 100 participants.

5. Sample Stakeholder Survey Results (Continued) Currently, what do you think are the largest obstacles to advancing economic development in Wisconsin? Weighted Scores from Survey (1 = Biggest Obstacle) Main Obstacles: Organizational & Policy Factors The survey was developed at project onset to assess various stakeholders’ attitudes and beliefs related to economic development in Wisconsin. The survey was distributed to stakeholders via SurveyMonkey, an online survey tool, and included 7 questions and 100 participants.

6. Project Approach Recommendations • Determine gaps between current operations and leading practices • Identify controllable challenges • Recommend tangible actions for immediate improvement • Suggest specific implementation steps for consideration

7. State of Affairs Wisconsin per capita income is $37,770, nearly $2,400 less than the national average for 2008 Per Capita income rank has fallen from 19th to 27th in the past 30 years. Wisconsin ranked 44th over the last decade in percent change in per capita income. It’s time to increase WI’s capacity to attract, grow and retain capital investment and employment opportunities.

8. Overarching Goals The Study proposed nine recommendations, designed to help Wisconsin achieve two overarching goals… • Wisconsin will rank among the top 10 states for starting a business by 2016 • Currently ranked #28 in Kauffman Index of Entrepreneurial Activity • Wisconsin will rank among the top 10 states for expanding a business by 2016 • Currently ranked #29 on CNBC’s America’s Top States for Business … with the ultimate objective of raising WI’s per capita income and creating a stronger, more sustainable business development climate.

9. Recommendation: Create a single purpose entity to oversee WI’s economic development (jobs & Investment) efforts. • Focus its organizational mandate on economic and community development activities. • Execute a comprehensive, statewide industry-focused strategy/roadmap. • Attract and retain top-level, industry-focused talent. • Governed by a Board of Directors, with Governor as Chairperson. • Accountable to performance metrics (independently reviewed). • Implement/coordinate WI’s statewide retention and expansion strategy. • Manage WI’s economic development attraction and branding efforts. Supporting Information 1 WI Department of Commerce responsibilities include: Business Development, Community Development, Housing, Export and Trade, Petroleum and Tanks, Safety and Buildings 2 FDImarkets.com database (published by Financial Times); database consists of major business investment announcements and may not be fully comprehensive.

10. Recommendation: Create a statewide, not-for-profit entity to centralize and streamline innovation programs / funding. • Create “Wisconsin Pioneers” to focus on investment in and the acceleration of early-stage and second-stage high-growth companies. • Move Act 255 programs and innovation funding decisions into an Innovation focused organization. • Fund companies directly; help in-state venture firms develop and address key gaps (access to capital & management). • Lead by an Executive Director and a Managing Commission. • Staff and Advisory Board of capital markets experts. • Implementation team of former executives to embed into startups. Supporting Information Venture Capital Funding ($ per capita) Source: National Venture Capital Association MoneyTree Report – Per Capita VC dollars

11. Kansas Model - $581 Million Income Tax TID to Grow BIO Goal: Dynamic/Game Changing growth not incremental Set Baseline Tax Revenue for Bioscience Companies and Research Institutions Measure Actual Incremental Growth in State Bioscience Taxes Repeat annually for 15 years Increment of Growth to Bioscience Fund Baseline to State General Fund Kansas Bioscience Authority Fund Programs & Repay Bonds

12. What Activities Are Funded by Kansas Innovation Model Goal: Dynamic “Game Changing Growth” not Incremental

13. De-Risking Projects – Assistance with “Go to Market” Strategies

14. Fund Investments & Return on Investment Measurements Venture Capital Investment 2004: $0 Expansion & Attraction: $7.1 Million Eminent Scholar Program - $4.5 Million Centers of Innovation - $5.0 Million $61 Million in calendar year 2009 Expansion & Attraction ROI: $203.1 Million Eminent Scholar ROI: $52.8 Million Centers of Innovation ROI: $5.5 Million Return on Investment Goal/Types of Investment - 2004 $9.41 return to the state’s economy for each $1 invested

15. More Information – Kansas Innovation Model Kansas Model –PowerPoint http://weda.org/media/cushycms/RegionalConferences_34_3673062585.pdf Kansas Model Video http://www.youtube.com/view_play_list?p=5EE8B38CC91F40F4 Be Bold Study http://weda.org/be-bold-wisconsin