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Creation plan


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Creation plan

  1. 1. Job Creation Proposal prepared exclusively for Lt. Governor Phil Scott
  2. 2. Investment Thesis Mission Execute a focused strategy targeted to incent third party investment in the State in industries consistent with the Vermont brand. Vision Create a robust environment for business creation/incubation by aligning the operating goals of existing public and private enterprises. Critical success factors: • Work within the State’s existing financial framework to incent private sector investment in new targeted businesses – No up-front tax incentives. Facilitate operating cash flow (accelerated depreciation), reward success (capital gains ) in the future. • Establish productive collaboration between public and private agencies each with a vested interest in the programs success. – Establish the infrastructure needed to support the targeted industries • Focus on the sustained, continual development of available industry knowledge and resource • Execute independently as a stand-alone organization with clear, executable and measurable goals with the authority to bring together the appropriate partners to succeed.
  3. 3. The Vermont Brand from the O’Neal Strategy Group report dated May 21, 2003 3 Play to strengths: • Environmental awareness • New England work ethic • Life balance Address weaknesses: • High technology capabilities • Unfriendly business environment • Lack of infrastructure • Remoteness
  4. 4. Target industries 4 The best suited targets will: • Employ a highly creative, possibly tele- commuting workforce. • Embrace at the Corporate-level the need for employee life balance. • Be an enterprise that needs minimal customer interface at facility. • A business that aligns closely with the things Vermonters value highly. Technology targets: •High margin, low volume high tech manufacturing businesses •Fabless chip designers •Software •Renewable energy/Clean Tech businesses •IBM (how to preserve grow MFG and R&D activities) Other targets: •Craft food manufacturing leveraging the VT dairy industry (e.g. Artisan cheeses) •Direct marketing ‘made in VT’ products •Call centers
  5. 5. Geographic proximity supports a tech-focus 5 Hudson Valley Research Center IBM –Bromont Dalsa, Albany Center for NanoTechnology Rte 128 Curiously well situated to several tech centers but not well recognized as such. High tech hubs Boston 3 hours Albany 2 hours Hudson Valley Research Center 5 hours Montreal 2 hours Clean tech hub Boston 2 hours Financial Centers New York 1 hour flight Boston 3 hour drive
  6. 6. Current hindrances to investment 6 • Perceived hostile business environment • Lack of complimentary educational resources • Perceived remoteness • Lack of financing • Lack of business infrastructure
  7. 7. Essential collaborators 7 Realign existing programs in support of mission Program manager accountability • Assign responsibility, authority and accountability to an independent manager • Establish, measure and report on executable goals • Execute an image marketing campaign Local university support (including Dartmouth, RPI and SUNY Albany) • Invest in supporting academic programs and graduating a pool of skilled professionals Public sector support • Re-align state agencies missions to support effort. • Legislative commitment for long-term support Private industry support • Engage trade ass’ns to market VT as a business center • Forge partnerships with other industry tech centers. • Serve as a source of strategic investment Early stage investor support • Incent VC’s and angels to sponsor VT-based business Program Manager Local University support Early stage investor support Private Industry support Public Sector support
  8. 8. Role of the Program Manager 8 • Accountable for overall program success • Responsible for setting goals of the program • Responsible for maintaining the coalition of collaborators • Responsible for recruiting private industry participation and sponsorship • Responsible for marketing efforts
  9. 9. Role of University Partner 9 • Align academic program to focus on the target industry • Conduct industry-related research presenting results at industry conferences • Participate in industry trade associations to present the VT academic community • Enhancement of services provided by VCET
  10. 10. Role of Public sector 10 • Align existing public agencies mission to support tech-hub success  VEDA to aggressively pursue federal grant opportunities  Formulation of a compelling business case for doing business in VT  Development of inter-state cooperative agreements • Re-assessment of perceived regulatory issue (Act 250, et. al.) • Actively promoting the jobs creation strategy and its benefits to residents • Expand presence at international trade shows, trade magazines, VC forums, etc. • Provide seed funding to launch the tech-hub effort • Establish prospective tax benefits…for example:  Tax-free capital gains on early stage investment in VT.  On institutional and personal investment  On early stage equity (stock and options) issued to founding employees  Accelerated depreciation on capital investment.
  11. 11. Role of Private sector 11 • Engage trade associations to understand and communicate the benefits of VT as a business center • Collaborate with other companies to expand availability to a network of associated technology resource centers. • Strategic funding partner working with the organization to define program goals
  12. 12. Role of Private Investor 12 • Engage private sector to fully understand and communicate the financial benefits of VT as a business center. • Engage with state agencies to develop the finance packages needed by developing companies
  13. 13. How it could work assume the target is fabless MEMS design 13 • Define the basic program structure….investor and company benefits. • Announce the program….to investors, to industry, to academic community. • Leverage trade associations
  14. 14. Thank you.