The proposal summarizes a job creation proposal focused on incentivizing private sector investment in targeted industries in Vermont. The key points are: 1) The proposal recommends focusing on high-tech manufacturing, software, renewable energy, and craft food industries that align with Vermont's values and strengths. 2) It identifies collaborators needed including a program manager, local universities, public sector agencies, private industry, investors, and trade associations. 3) The roles of each collaborator are outlined, including marketing Vermont, aligning resources, and providing funding and industry connections. 4) The proposal provides examples of how the program could work, such as by defining benefits for investors and companies in a targeted industry like

1. Job Creation Proposal
prepared exclusively for
Lt. Governor Phil Scott

2. Investment Thesis
Critical success factors:
Mission
• Work within the State’s existing financial framework to
incent private sector investment in new targeted
Execute a focused
strategy targeted to businesses
incent third party – No up-front tax incentives. Facilitate operating cash flow (accelerated
investment in the depreciation), reward success (capital gains ) in the future.
State in industries
consistent with the • Establish productive collaboration between public and
Vermont brand.
private agencies each with a vested interest in the
programs success.
Vision – Establish the infrastructure needed to support the targeted industries
Create a robust
environment for • Focus on the sustained, continual development of
business
creation/incubation available industry knowledge and resource
by aligning the
operating goals of
existing public and
private enterprises. • 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. The Vermont Brand
from the O’Neal Strategy Group report dated May 21, 2003
Play to strengths:
• Environmental awareness
• New England work ethic
• Life balance
Address weaknesses:
• High technology capabilities
• Unfriendly business environment
• Lack of infrastructure
• Remoteness
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4. Target industries
The best suited Technology targets:
targets will:
•High margin, low volume high tech manufacturing
• Employ a highly businesses
creative, possibly tele- •Fabless chip designers
commuting workforce. •Software
• Embrace at the •Renewable energy/Clean Tech businesses
Corporate-level the •IBM (how to preserve grow MFG and R&D activities)
need for employee life
balance. Other targets:
•Craft food manufacturing leveraging the VT dairy
• Be an enterprise that
needs minimal industry (e.g. Artisan cheeses)
customer interface at •Direct marketing ‘made in VT’ products
facility. •Call centers
• A business that aligns
closely with the things
Vermonters value
highly.
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5. Geographic proximity
supports a tech-focus
Curiously well situated to several tech
centers but not well recognized as such.
IBM –Bromont
Dalsa, et.al.
High tech hubs
Boston 3 hours
Albany 2 hours
Hudson Valley
Albany Center for Research Center 5 hours
NanoTechnology
Rte 128 Montreal 2 hours
Clean tech hub
Hudson Valley
Research Boston 2 hours
Center
Financial Centers
New York 1 hour flight
Boston 3 hour drive
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6. Current hindrances to
investment
• Perceived hostile business environment
• Lack of complimentary educational resources
• Perceived remoteness
• Lack of financing
• Lack of business infrastructure
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7. Essential collaborators
Realign existing programs in support of mission
Program manager accountability
• Assign responsibility, authority and accountability to an
independent manager
Local • Establish, measure and report on executable goals
University
support • Execute an image marketing campaign
Local university support
(including Dartmouth, RPI and SUNY Albany)
• Invest in supporting academic programs and graduating a
Early pool of skilled professionals
Public
Sector
Program stage
investor
support Manager support
Public sector support
• Re-align state agencies missions to support effort.
• Legislative commitment for long-term support
Private
Private industry support
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
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8. Role of the Program
Manager
• 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
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9. Role of University Partner
• 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
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10. Role of Public sector
• 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.
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11. Role of Private sector
• 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
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12. Role of Private Investor
• 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
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13. How it could work
assume the target is fabless MEMS design
• Define the basic program structure….investor and company benefits.
• Announce the program….to investors, to industry, to academic community.
• Leverage trade associations
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14. Thank you.