LEAD THE WAY TO GROWTH

An ambitious state plan that elevates the role of private business in building Maine’s research and development muscle was long and badly needed, so an inspiring proposal yesterday to boost R&D activity in Maine to $1 billion by 2010 was especially welcome. Now the governor and Legislature should do more than say nice things about this rock-solid form of economic development. They should have the state lead the way to growth.

The proposal, called the Science and Technology Plan for Maine and drafted by Janet Yancey-Wrona, director of the Maine Department of Economic and Community Development’s Office of Innovation, moves Maine from dabbling in R&D investments to becoming fully committed to expanding and diversifying the state’s economy. It does so by spending considerably more on the high-tech components of biotechnology, the environment, information, precision manufacturing and forestry.

Maine would be among the last states to make this investment, and it shows. Currently, it is 50th in university research, according to the Corporation for Enterprise Development. It is 40th in patents produced, 42nd in university spin-offs and 33rd in Small Business Innovation Awards. This isn’t the fault of the University of Maine or the other R&D centers in Maine – they do splendidly with what funding they get. This state simply hasn’t invested at the level of other states.

Maine spends about $45 million a year on R&D; the proposal calls for that to be increased to $120 million annually by 2010. That will require more than good intentions. It requires consistent funding from the Legislature, each year building on the last to expand the infrastructure.

It means increased technology transfer – converting scientific research into useful commercial products – and more cooperation among research centers in Maine. It means tripling the size of private sector economic activity, which in turn means making capital available for that purpose.

About 80 percent of R&D activity nationwide takes place in the private sector; in Maine, that number is only 60 percent. Ms. Yancey-Wrona hopes to get it to 75 percent in five years, which may be possible but only by growing both public and private sectors and encouraging Maine’s many small companies (this state has about 70 small biotech firms) to prosper. If there is a natural evolution to R&D funding, it is punctuated by periods of intense growth. Eight years ago was such a time; now is another.

The state’s economy will be worth something like $50 billion annually by 2010. While an increase in R&D from $430 million to $1 billion won’t be noticeable overall, it is important because of the kinds of jobs it creates: higher pay, more opportunity for advancement, more spin-offs, more adaptable to a changing economy. And it is better for communities – the jobs are in clean industries that reinvest locally and create further work for a wide range of skills.

Maine has seen what a low level of R&D funding has brought in just the last eight years. It has gained hundreds of jobs, dramatically expanded nonprofit labs and university research and created new opportunities for Maine students in high-level fields. This progress can continue at an even faster pace, helping all of Maine prosper. But before anything happens, lawmakers in Augusta must lead by committing state funding.