As the legislative session comes to a close, hopes are high that lawmakers will advance the cause of reading education by allowing the Indiana Department of Education to end social promotion from 3^rd to 4^th grade if students aren’t reading at grade level.  Reading is the basic skill that makes all other learning possible – it’s common sense that if students are falling behind, schools should be obligated to get them the help they need to catch up rather than simply passing them along and compounding their struggles.

Unfortunately, some defenders of the current system would rather pay lip service to reading reform than accept the core responsibility of teaching our kids.  For example, John Ellis, executive director of the Indiana Association of Public School Superintendents, recently penned an editorial in the Indianapolis Star that rejects the idea of retaining students who can’t read at the end of third grade.

The Indiana Department of Education and State Board of Education have made early reading education a top priority.  They’ve endorsed a policy framework that includes increased classroom time allocated to reading, intensive professional development for teachers on research-based reading instruction, and tools for assessing student reading proficiency on an ongoing basis in grades K-3, to catch problems early and devote more existing resources to struggling readers.

Under this model, retention is a last resort – a final opportunity to get students back on track with more intensive instruction on reading (not just holding back students in the same classroom with the same approach).

Mr. Ellis conveniently ignores this broader strategy and issues dire predictions of ‘mass retention.’  But if reading is the most important activity in our classrooms, and schools have 3,500+ hours of instruction from kindergarten to 3^rd grade within which to teach kids to read, how little confidence must Ellis have in our public schools – his constituents – to fulfill their fundamental duties? 

He also attempts to undermine the progress made in Florida, which ended social promotion as part of an approach similar to what Indiana envisions.  Florida actually climbed from 31^st to 21^st in 4^th grade public school reading scores from 2002-2007, cutting failure rates by a third.  (During the same time, Indiana slid from 15^th to 27^th in national reading scores.)  He implies that minority students were left behind by the Florida reforms – in fact, African-American, Latino, and low-income students all improved their reading performance in Florida from 2003-2007 while closing the ‘achievement gap’ with the general student population (Gauging the Gaps: A Deeper Look at Student Performance – The Education Sector).

Questionable statistics are a poor answer to inarguable logic:  Our schools must teach their students to read. Absent new instructional strategies and measures holding them accountable, the job won’t be done.

Ellis reaches a rhetorical low when he says that the retention policy would ‘label our children as failures.’  No one is calling children failures.  It’s our schools that are failing too many of their students, and this has to change.

Mr. Ellis closes with an excerpt that cites more questionable studies and asserts that “…learning is difficult when leaders or anyone else is driven by ideology.”  I’d submit that the issue here isn’t ideological, but it does involve two competing philosophies:  Ours embraces accountability, his seems wedded to the status quo.  When it comes to preparing future generations of Hoosiers to succeed in school and in life, we can’t afford the latter.

I wanted to draw your attention to this insightful column by former Cummins Vice-Chairman Joe Loughrey, who chairs CICP’s Conexus Indiana and Energy Systems Network initiatives.  Loughrey emphasizes the need for a proactive focus on workforce development to maintain Indiana’s competitive edge in ‘green economy’ areas like vehicle electrification (as highlighted by the U.S. Department of Energy's visit to Indianapolis-based EnerDel last week). 

A version of this piece appeared in today’s Star, here.

Keep focus on tomorrow’s workforce

Joe Loughrey

Last week, a delegation from the U.S. Department of Energy visited Central Indiana to finalize a $118 million grant to Indianapolis-based EnerDel, the only current U.S. manufacturer of lithium ion batteries for hybrid and plug-in electric vehicles.

Leveraging this grant and private investment, EnerDel is creating more than 1,400 new jobs in Central Indiana, building a new manufacturing facility in Greenfield.  It’s a major economic success story for the region.

EnerDel is just part of a growing ‘green vehicle’ industry in the state.  Last year, Think North America chose Elkhart as the site of the first U.S. factory for its line of electric cars.  In Anderson, Bright Automotive is also engineering state-of-the-art plug-in hybrids.  Established Indiana manufacturers like Cummins, Remy, Delphi and Allison Transmission are also major producers of hybrid components.

We can be proud that Indiana is a leader in putting electric vehicles on the road, helping our environment and making the U.S. less dependent on foreign oil.  Taking advantage of the growing market for plug-ins and hybrids is also good for Indiana’s economy.  But we do face a longer-term challenge to sustaining and strengthening this leadership position in the green economy – educating the next generation of employees for this fast-growing, rapidly-evolving industry.

The factories that produce hybrids and plug-ins are increasingly high-tech, just like the cars themselves.  These vehicles feature microcontrollers and other advanced technologies, along with the standard automotive electronics – installing, testing and troubleshooting these components takes a skilled workforce, with technical training beyond high school or two-year associates degrees.

It’s not just the green automotive industry that requires more educated employees.  There are very few ‘low skill’ jobs left in manufacturing in general today.  In a study by the Federal Reserve Bank of New York (‘A Leaner, More Skilled U.S. Manufacturing Workforce’), economists divided manufacturing jobs into low-, medium- and high-skill and observed that between 1982 and 2002, high-skill manufacturing occupations grew 37% while low- and medium-skill jobs declined 24% and 18% respectively.

Indiana boasts a rich reservoir of engineering talent and a strong manufacturing workforce – it’s a key competitive advantage that allowed us to attract companies like EnerDel, and why other clean technologies firms are looking to locate and expand in the state.  But to maintain this edge, we have to ensure that our workforce pipeline stays strong, with young workers getting the right degrees and certifications to take advantage of advanced manufacturing careers in electric vehicles and other high-tech fields. 

Initiatives like Conexus Indiana are hard at work bringing private industry and higher education together to create up-to-date manufacturing training programs, and marketing these career paths to young people through its ‘Dream It. Do It.’ campaign.  Purdue and Ivy Tech Community College received a $6 million federal stimulus grant to create specific degree and technical programs for electric vehicles, and the state’s Department of Workforce Development is also focused on green job training.  At the K-12 level, it’s critical that technical education programs are spared from budget cuts to get students on the right track early on.

These efforts have to be a top priority for policymakers, educators and manufacturers alike.  Pursuing economic development without a parallel focus on education will ultimately frustrate the ambitions of both the companies that can’t find skilled workers to fulfill their growth plans and the Hoosiers who find themselves unqualified for better jobs. 

Announcements like EnerDel’s are great news for Indiana’s economy; a steady supply of talented workers has been a catalyst for this success.  But we also have to keep a proactive focus on tomorrow’s workforce to keep the momentum going.  Looking ahead, degrees and certificates awarded are economic development metrics just like jobs and investment – the path towards a green advanced manufacturing economy for Indiana starts in the classroom.

Loughrey is the retired Vice-Chairman of Cummins, and chairs the Conexus Indiana and Energy Systems Network initiatives for the Central Indiana Corporate Partnership.

The last week has brought positive stories from several areas of the Indiana economy that are represented by CICP initiatives – anecdotal evidence that these industry clusters continue to represent our best prospects for future growth.

Last week, U.S. Department of Energy (DOE) officials traveled to Indianapolis-based EnerDel to meet with company officials and representatives of Central Indiana’s clean technology industry, recognizing our region’s emerging leadership position in vehicle electrification.

EnerDel, the only U.S. manufacturer of advanced lithium-ion batteries for hybrid and plug-in electric vehicles, received a $118.5 million grant from the Department of Energy through the American Recovery and Reinvestment Act (ARRA) in August.  EnerDel and other partners have also joined in a major demonstration project of electric vehicles in the Greater Indianapolis region, dubbed Project Plug-IN, under the auspices of CICP’s Energy Systems Network (ESN) initiative.

The DOE team led by Gil Sperling, Senior Advisor to the Office of Energy Efficiency and Renewable Energy, highlighted both developments, applauding EnerDel’s role in enhancing U.S. innovation and manufacturing capacity in clean energy and recognizing Project Plug-IN as an important initiative that will help make plug-in electric vehicles a practical choice for the American driver.  Indiana’s growing ‘green vehicle’ industry represents a great opportunity for both our energy and advanced manufacturing sectors.

In logistics, s2f Worldwide, a third-party logistics and supply chain service provider, chose to locate its operations in Plainfield this week, a deal projected to create 250 new jobs by 2013.  Central Indiana continues to strengthen our position as a global distribution hub, leveraging our strong infrastructure and inherent geographic advantages into new logistics opportunities.  Our Conexus Indiana initiative is poised to release a comprehensive logistics strategic plan for the state, and is also working to expand intermodal capabilities at the Avon railyard in Hendricks County, putting the region in an even stronger position going forward. 

Indiana continues to rank among the top ten states in logistics employment per capita – these efforts are paying off in good jobs for Hoosiers.

And finally, in technology, I was struck by an interview on Inside Indiana Business with Gerry Dick with Bill Godfrey, Chairman of on-demand marketing software provider Aprimo.  Godfrey asserts that Indiana is becoming a market leader in the e-marketing arena, with companies like ExactTarget, ChaCha, Compendium, Cantaloupe and others joining Aprimo here.  Jim Jay, President of our TechPoint initiative, wrote a piece on this very topic at about this time last year – check it out here.

And speaking of TechPoint, the organization has extended the deadline for its Mira Awards, celebrating Indiana’s high-tech success stories – go here to nominate an Indiana technology innovator today.

Spring is finally right around the corner - to belabor a metaphor, stories like these appearing with greater frequency seem to foreshadow an economic thaw for Indiana to match the warming weather.

Last week, our Central Indiana Transit Task Force publicly released its final report, presenting its recommendations to policymakers and the citizens of the region.  This report lays out a regional multi-modal transportation system with financing and governance recommendations, backed up with a rigorous cost-benefit analysis.  Now that the Task Force findings are in the public domain, we’re kicking off a year-long input campaign  – Indy Connect – that will invite a dialogue about Central Indiana’s transportation future, using our plan as a starting point.

I’d like to again thank co-chairs Al Hubbard, Bob Palmer and John Neighbours for their leadership, and all of the Task Force members – including CICP co-chair Jo Ann Gora – for their energy and insight in crafting this impressive study.

Their work will serve the region well.  We’ve lacked an integrated, forward-looking plan for regional transportation, and have paid the cost in terms of economic competitiveness, workforce connectivity, the vitality of our urban core and the potential for new investment and neighborhood redevelopment.  Our blueprint addresses all of these issues; now it’s up to elected officials and the public across the region to make the plan their own and decide if they’re willing to invest in it.  Please offer your two cents at indyconnect.org.

As the public thinks about transit, it’s important to understand the tremendous economic development impact that transit can have – I hope you’ll take a moment to read this excellent editorial from this weekend’s Star from Chuck Cagann of Mansur Real Estate, a Transit Task Force member, that addresses this issue:

Transit investments mean economic payoffs

When we think about economic development, we're likely to focus on tax breaks and other incentives for growing companies, competing against other regions for business opportunities.

That's true, but it's only one part of a bigger picture.  I'd argue that economic development has to be tied to what kind of community we want to build for ourselves and our families:  Do our citizens have access to diverse job opportunities?  Is our region growing?  Do we have great housing options, with thriving retail establishments and other amenities to serve our neighborhoods?

If we embrace this broader definition of economic development, then it's clear to me that a strong regional mass transit system is an important catalyst.

I was proud to serve on the Central Indiana Transit Task Force, a private sector-led group that last week unveiled a comprehensive transportation plan that includes strategic highway investments and an expanded regional bus system connected with light rail to serve the metropolitan area.

As business leaders, we understand a good investment when we see it – regional mass transit is an investment that will pay off in a healthier economy for employers, for taxpayers, for all of us.

Mass transit has been shown to create significant economic investment, as dense commercial and residential development grows along the transit lines.  For example, the Portland streetcar system has generated $1.4 billion along its 4.7 mile loop since 2001, a handsome return on its $300 million cost.  In Cleveland, more than $4 billion in private development is planned or in progress along the Euclid Avenue light rail corridor.  In Dallas, another $4.2 billion in business and new housing sprang up along the DART (Dallas Area Rapid Transit) system between 1999 and 2007.

This transit-oriented development boom can lead to higher property values and a broader tax base, easing the burden for other homeowners and businesses.  In Dallas, for example, high-value development along the DART lines is generating an estimated $127 million in additional tax revenues every year.  In Arlington, Virginia, half of all county property tax revenues are generated from its METRO transit corridors – allowing the county to maintain the lowest property tax rates in the region.

The right system will help our region attract and retain talented people, the skilled workforce that is a magnet for new business opportunities in our knowledge-based economy.  The regions of choice for educated workers provide diversity, arts and culture, an array of recreational amenities.  These regions also offer transit options – the ability to walk or bike to a rail or rapid bus station, to work on your laptop or chat with friends on the way to work.

By allowing employees to get to work more efficiently and affordably, a truly comprehensive regional system also allows local businesses to access a broader workforce, while giving commuters more disposable income to reinvest in the local economy rather than at the gas pump.

The Task Force strategy for mass transit is based on thoughtful planning and a rigorous cost-benefit analysis – but it’s only the beginning.  Now that this plan has been turned over to the public sector for action, every citizen will have an opportunity to weigh in during a series of public meetings and online at www.indyconnect.org. 

The dividends from investing in transit are many and far-reaching: Cutting commutes and putting more job opportunities within reach.  Connecting local businesses with more customers.  Spurring development that creates new jobs and tax revenues while rebuilding our neighborhoods.  The proposed transportation system may evolve over the next year, but it’s certain to be a winning economic development proposition  for all of us – please take part in the conversation and encourage your local elected officials to help turn this vision into reality.

Chuck Cagann is President of Mansur Real Estate Services; he serves on the Central Indiana Transit Task Force, which recently unveiled a strategy for a comprehensive regional transportation system.

The New Year has brought new opportunities for Indiana’s growing green manufacturing sector – the first few weeks of 2010 have seen several announcements that, collectively, show the momentum behind Hoosier manufacturing’s effort to electrify vehicles, make renewable energy sources a practical reality and more.

First, there was the news that Think North America had chosen Elkhart as the site of its first U.S. factory for its line of electric cars, joining Electric Motors Corp and NaviStar as the hub of a growing green vehicle cluster along Indiana’s northern border.

In Central Indiana, EnerDel – the only U.S. manufacturer of the cutting-edge lithium ion batteries that power hybrid and plug-in electric vehicles – announced a major manufacturing facility in Greenfield, Indiana, expanding a footprint that already includes its northeast Indianapolis headquarters and facilities in Hamilton County.  The Greenfield site will ultimately employ nearly 1,100.

Elsewhere, Brevini Wind (in Muncie) has earned $12.8 million in federal tax credits for its work manufacturing the gear boxes and other technologies for the turbines that generate electricity from wind.  Just two weeks ago, Secretary of Energy Chu visited Columbus to announce $54 million in federal stimulus grants to Cummins to increase engine efficiency.

Just like any technology-intensive, innovation-driven industry, a skilled workforce is a critical need for green manufacturing.  Here too, Indiana is moving forward – the state’s Department of Workforce Development recently earned a $6 million grant from the U.S. Department of Labor to create new curricula and retrain industrial workers from other sectors to take advantage of new green job opportunities.

Look for more announcements ahead from Indiana’s green manufacturing and clean technologies industries, as well as CICP’s Energy Systems Network initiative, as the state continues to solidify its position as a crossroads of energy innovation. 

December brings gifts for our economic growth

We haven't had many weeks, in good times or bad, like the week of Dec. 14, one that saw nearly $120 million invested in Indiana's future as a life sciences community.

The Indiana University School of Medicine's announcement on Dec. 15 was first: a monumental $60 million grant from Lilly Endowment to implement a new Indiana Physician Scientist Initiative. This wonderful grant has many features, but at its heart the funding will allow the medical school to recruit, retain and advance a highly promising pool of talent, including 20 physicians who are researchers and innovators as well as practitioners. These current and emerging leaders in fields such as cancer, neurological and mental illness and diabetes will be looked to for discoveries that can transform health care Comments (0)

As we’ve reported in this space (here, here and here most recently), Indiana is making progress in building a more entrepreneurial economy, as measured by that most pragmatic of indicators – the amount of capital that private sector investors are willing to commit to the success of promising young companies.

The life sciences sector has led the way in this regard, and earlier this week our BioCrossroads initiative announced another major milestone in this journey towards a more diverse and dynamic ‘bio-economy:’ the creation of the $58 million INext Fund, the successor to the successful Indiana Future Fund announced six years ago as one of BioCrossroads’ first major initiatives.

INext, like the Future Fund, is supported by major institutional investors  - Eli Lilly, IU and Purdue, the Indiana State Teachers Retirement Fund, the University of Notre Dame and the Fairbanks Foundation – and will function as a ‘fund of funds.’  That is, INext will not invest directly in start-up firms, but rather in local and national venture capital firms that will in turn focus on Indiana opportunities.  This strategy lessens the risk to the Fund’s investors, and also attracts a broader pool of capital to Indiana. 

The Indiana Future Fund has been a rousing success, and support for the INext Fund shows the continued commitment among  the state’s corporate, public and university investors for continuing the strategy.  Here is the full press release on INext:

Indianapolis, Dec. 16, 2009 - Capitalizing on the continued strong growth of Indiana's life sciences industry and an active venture capital market, leaders from BioCrossroads, Eli Lilly and Company, Indiana State Teachers Retirement Fund, Indiana University, Purdue University, the University of Notre Dame, Richard M. Fairbanks Foundation, and Credit Suisse today announced the establishment of the INext Fund, a $58 million venture capital fund of funds.

Organized through BioCrossroads, Indiana's initiative to grow, expand and invest in the life sciences, and managed by the Credit Suisse Customized Fund Investment Group, the INext Fund includes investments from Lilly, the Indiana State Teachers Retirement Fund (TRF), IU, Purdue, Notre Dame, and the Fairbanks Foundation. This fund of funds is a capital pool that will invest in venture capital funds that are focused on the life sciences, thus encouraging and facilitating direct investment in Indiana life sciences opportunities.

"Six years ago, we launched the Indiana Future Fund to stimulate and grow Indiana's venture capital sector, and we've made incredible progress building a market where VC firms, both local and out of state, are investing in our promising life sciences companies," said David Johnson, president and CEO, BioCrossroads. "Launching a follow-on fund like the appropriately named INext Fund is proof of concept of BioCrossroads' mission, and evidence of the substantial market opportunities here in Indiana to put private equity to work. Capital formation is a huge problem for every region across the U.S., but Indiana's institutional investors have once again proven ready, willing and able to build and maintain strong funding sources for our entrepreneurial companies."

Lilly, one of the original participants in the Indiana Future Fund (IFF), has committed an investment in the INext Fund.

"The INext Fund will be a catalyst for the continued growth of Indiana's life sciences. Our investment in the fund is smart not only from Lilly's business perspective, but we also view it as a part of a collaborative effort to strengthen our community," said Bart Peterson, Senior Vice President of Corporate Affairs, Eli Lilly and Company. "Lilly's investment strategy is to find the best opportunities, and we look all over the world to find them. It just so happens that some of the best innovations are happening in our own backyard."

The Indiana Future Fund, a $73 million fund, has been the life blood of 14 Indiana life sciences companies, and continues to provide the foundation for Indiana's venture capital growth. The IFF has also been a trailblazer in securing additional capital from beyond Indiana for Indiana companies, helping to bring over $160 million to Indiana start-ups from venture capital firms across the country.

"Given the current challenges in the U.S. economy, building a return-driven fund of this magnitude is very impressive," said Phil Belt of Credit Suisse's Indianapolis office. "Indiana's life sciences industry is full of both promise and opportunity, and progress continues to be made. This state is now a life sciences leader and is on the map for venture capital firms from the east and west coasts and points in between."

Indiana has seen an increase in the number of entrepreneurial life sciences companies, both university-based and private start ups, since the formation of the IFF. One of the investments that the IFF firms made in 2006 was BioStorage Technologies, an Indianapolis based biomaterials storage and inventory management company. Since that time, BioStorage has tripled its workforce, announced a $6.1 million investment in a new facility in Indianapolis and will add another 125 employees by 2012.

"We brought this group of industry, university and community leaders together with a common goal -- to generate good returns on investment while doing good for our community," said Darren Carroll, vice president, Lilly New Ventures and chairman of the INext Advisory Committee. "This is how public-private partnerships work -- giving Indiana's life science companies the opportunity to compete and win in the global economy."

 "We continue to see promising innovations from our technology transfer offices more than 170 patents and 50 companies have come through the Purdue Research Foundation over the last six years," said Purdue University President France Córdova. "Having a vibrant venture capital community and bringing in new dollars from outside the state to help these companies grow is imperative. This funding builds the companies that will advance the life sciences and improve the health of Indiana's citizens."

Indiana University is tapping investments and private contributions to stimulate Indiana's economy. No tax or tuition dollars are involved. In early December, IU announced the formation of the $10 million Innovate Indiana Fund. "With incubators cropping up all over the state and breakthrough research coming out of our university labs, there continues to be great discoveries in our life sciences," said Indiana University President Michael McRobbie. "The INext Fund provides us with another way we can direct capital to talented and innovative companies and gives them another funding resource."

"By investing in INext, Notre Dame is supporting the advancement of the life-sciences industry in Indiana and throughout the nation, with the hope that this support will lead to new applications that will benefit the lives of many and also create successful businesses. It is a good investment from many perspectives," said Thomas Burish, Provost, University of Notre Dame.

Along with corporate and university investments, the INext Fund has received an investment commitment from Indiana's Teachers Retirement Fund as well as the Richard M. Fairbanks Foundation.

'Indiana's robust life sciences industry is one of the key drivers of our economy, and investing in INext is expected to deliver investment returns by capitalizing on that strength," said Steve Russo, Executive Director of the Indiana State Teachers Retirement Fund.

"The Richard M. Fairbanks Foundation is participating in the INext Fund both because we believe it is a good investment, but also because it is supportive of our goal of strengthening the economic vitality of our community," said Leonard J. Betley, president of the Richard M. Fairbanks Foundation.

About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana’s initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region’s existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.

As lawmakers gather at the Statehouse for Organization Day today, we urge them to forge ahead with the critical issue of local government reform.  As legislators ponder the growing gap between government collections and spending, and consider whether to include property tax caps in the Indiana Constitution, they can’t continue to ignore the fundamental need for structural reforms that would allow local government to do more with less. 

During the last session, the General Assembly rejected the common-sense government reforms recommended by the bipartisan Kernan-Shepard Commission, changes that could have saved taxpayers up to $600 million statewide (according to studies by Ball State economists).  This session, legislators should at least push for increased openness, oversight and accountability to ensure that tax dollars are used efficiently and effectively during these tough times.  As state-level lobbying reform and other government ethics proposals are in the headlines, transparency in local government (especially the oft-overlooked township offices) shouldn’t fall by the wayside.

We couldn’t make the case any better than this editorial from Gary Reiter – this version appeared in the Indianapolis Star a few weeks back.

Times too tough to ignore township government

Gary Reiter

The recession has hit Hoosiers hard – we’ve seen it in our 401(K) statements, the family checkbook, the fortunes of the businesses that make up our economy.  Government isn’t immune; there’s been a lot of attention over the last two weeks to the state’s plummeting revenues, short more than $250 million over the last quarter.

But even closer to home, local government is facing the budget axe, too.  The recession and the property tax caps passed by the General Assembly last year are a one-two punch that have forced Indianapolis into cutting funding for parks, the arts, correctional facilities (raising the specter of early inmate releases) and other public services. 

During times like these, there can be no sacred cows.  As Governor Daniels recently said, everything has to be on the table – and that includes the operations and oversight of township government.

A few weeks ago, the Indianapolis City-County Council held a hearing on the financial practices of Marion County’s township offices.  I attended to learn more, and came away more convinced than ever that we desperately need reform.  Tough times demand an informed public, but when it comes to township officials, taxing and spending happens largely out of sight and out of mind.

I heard several troubling facts during the Council hearing that led me to do additional research:

Marion County township governments are hoarding more than $48 million in unused surpluses.  We’re being overtaxed, and townships are sitting on more than enough excess cash to plug the budget deficit for the entire county – instead of maintaining our parks, restoring arts programs and keeping criminals behind bars, we’re padding the bank accounts of township trustees. 

Washington Township, for one, holds a $5.4 million surplus, enough to operate for two years without taxing citizens another cent.  You may recall that the Washington Township advisory board voted itself a 69% raise last year.

In Franklin Township, the trustee’s office held a surplus of more than $5.5 million at the end of 2008.  Wayne Township has an amazing $12.7 million surplus!  Imagine if these funds could be spent on public safety, economic development or mass transit…or used to cut property taxes for homeowners.

The townships are also inefficient in administering the money they did spend.  In Center Township, less than half of spending related to poor relief went directly to those in need.  In Warren Township, the trustee’s office spent $12.20 in administrative expenses for every dollar dedicated to poor relief and fire protection.  In Washington Township, the figure was $9.44 in overhead for every dollar in services. 

It’s incredible that tens of millions of our tax dollars continue to be funneled through this largely-ignored layer of bureaucracy during a fiscal crisis, while the City-County Council has little authority except to hold hearings. 

It’s time to shine a light on township government.  It’s time to push for oversight and accountability, and a real public debate over whether townships have outlived their usefulness altogether in providing services that could be more efficiently and effectively provided at the county level. 

This debate starts with taxpayers getting informed and  speaking up – please don’t fail to make your voice heard.

Gary Reiter is the Chief Financial Officer of KERAMIDA Inc., a Global Environmental, Health, Safety, and Sustainability firm located in downtown Indianapolis and a resident of Center Township.

Infrastructure plan needed to avoid economic gridlock

David Holt

We’ve all been stuck in gridlocked traffic – it’s frustrating, especially when you’re rushing to make it to work or an important meeting on time.

But imagine you’re stuck while hauling more than a thousand tons of cargo, trying to make a tight delivery schedule.  And imagine if the cause of this ‘traffic jam’ wasn’t typical rush hour congestion or a minor fender bender, but a catastrophic infrastructure failure.

This was the situation that confronted dozens of barges on the Ohio River on an otherwise tranquil Sunday morning, September 27^th, when one of the doors on the Markland Locks came unhinged and stalled traffic on the river.  They waited more than 20 hours while an auxiliary channel was opened.  The Markland Locks are located near Vevay, Indiana, about 25 miles east of Madison; they accommodate more than 55 million tons of freight every year.

Even with the alternate route open, it’s taking barges three times as long to navigate through Markland as the locks are repaired.  Lockmaster Gary Birge called the incident his “worst nightmare” and “catastrophic.”  Army Corps of Engineers officials were unsure how long repairs would take; the Corps recently gave the 40-year-old Locks a ‘D’ rating during a regular assessment for corrosion and cracking.

The incident at Markland isn’t just about a temporary inconvenience to shippers.  It’s a warning about the importance of investing in our infrastructure for our broader economic health.

Indiana is a leader in the transportation of goods – our ‘Crossroads of America’ slogan is more than just marketing fluff.  We’re located within a day’s drive of 75% of the U.S. and Canadian population and businesses.  We’re ranked 1^st in the nation for interstate highway access, 9^th in rail miles and 14^th in cargo moved by water, with three quality maritime ports (two on the Ohio River and one on Lake Michigan).

This adds up to a sizable logistics industry; Indiana ranks among the top ten states in per capita logistics jobs.  Our distribution strength also supports our manufacturing industry, giving these companies the ability to quickly and efficiently get their products to customers across the country and around the world.  So preserving our status as a logistics juggernaut must be a critical economic priority.  We can’t afford to simply coast on our geographic advantages – we have to proactively invest in our infrastructure assets. 

To that end, Conexus Indiana, the state’s logistics and manufacturing initiative, has embarked on the development of a statewide logistics strategic plan. The plan is being put in place by a group of 35 statewide industry executives representing all facets of the logistics and manufacturing industries – air, rail, trucking, infrastructure, warehousing/distribution and service firms – and has already identified opportunities and challenges Indiana faces in ensuring the continued flow of goods that originate and terminate in Indiana and add value to the logistics industry. 

In fact, Conexus Indiana has identified decaying locks and dams on the Ohio River as a serious threat. With the disaster caused by the broken gate at the Markland Locks, it’s clear we need to think ahead to prevent future incidents and protect our waterways as commerce corridors for the state. 

After all, when one cog in the supply chain wheel breaks, the effects are felt broadly – not only by the producers of these goods who depend on the waterways as a means of transportation, but also by all those who touch their products in the supply chain.

Later this year, Conexus will issue this report addressing the state’s logistics strengths, opportunities and challenges; not just for waterborne freight, but rail, highway, and bringing these modes of transportation together as an integrated system.  A solid roadmap for our logistics industry is essential to avoid economic gridlock, and squandering a critical competitive advantage for Indiana.

David Holt is Vice-President of Operations and Business Development for Conexus Indiana, the state’s advanced manufacturing and logistics initiative.

BioCrossroads has collected nearly $80 million through its two investment vehicles, the Indiana Future Fund and Indiana Seed Fund, and is putting it to work in promising new companies.  Here’s an announcement on the Seed Fund’s latest investment, FAST, which has commercialized a new diagnostic technology for the testing and treatment of acute kidney injuries: 

Indianapolis, IN, Oct. 19, 2009 --  BioCrossroads’ Indiana Seed Fund has made a follow-on investment in FAST, a rapidly growing, Indiana-based life sciences start-up.  FAST is using patent-pending technology to develop a tool for healthcare professionals treating acute kidney injury, a condition afflicting some 3.5 million Americans.  The percentage of patients hospitalized for acute kidney injury has increased 500% in the last twelve years.

 “We are thankful for BioCrossroads’ support,” said Joe Muldoon, CEO of FAST.  “The lackluster capital market has proven to be a challenge.  We have remained capital efficient, advanced product development and initiated the FDA approval process – all of which have been key components of our additional investor support.  We are very excited about our upcoming pre-clinical trials this year.”

FAST has had other recent fundraising successes, including an announced commitment by the Purdue Research Foundation/Purdue University Emerging Innovations Fund to invest $200,000 and a $1.1 million grant from the National Institutes of Health.  The company has also received significant follow on funding from its original shareholders and angel investors.

The FAST investment is part of a positive trend for seed and early stage capital investment in Indiana, which doubled from 2007 to 2008 based on deals tracked by the National Venture Capital Association, and is on track to grow another 40% in 2009 based on data available to date.  I should note that another CICP initiative, TechPoint, is also helping drive entrepreneurial growth in Indiana through its HALO angel investor network – this group has invested more than $10 million in high-tech start-ups since 2008.

It’s no secret that U.S. students are falling behind their international peers when it comes to math and science.  The latest Program for International Student Assessment (PISA) test scores shows our students performing below average among other industrialized countries in both math and science – indeed, our average scores rank us 24^th out of 25 industrial (OECD) nations.

Today, the latest National Assessment of Educational Progress (NAEP) math scores show progress has stalled nationally and here in Indiana – another bad sign.

But here in Indiana, our BioCrossroads initiative is tackling the need to improve science, math and technology education through its I-STEM (Science, Technology, Engineering and Math) Network, a resource for K-12 teachers designed to raise the level of STEM education in Indiana.  I-STEM, which brings together higher education institutions with private and philanthropic partners, offers curriculum ideas, professional development opportunities and other resources for educators.

Today, the Lilly Endowment announced its continues support for I-STEM – valuable aid in the battle to boost student achievement in these critical disciplines.  More details:

Investing in the future: $2 million Lilly Endowment grant to CICP Foundation will support Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network I-STEM's services provide rigorous and quality professional development programs  --  more than 6,000 teachers and counting

INDIANAPOLIS, October 15, 2009- The Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network announced today that a $2 million grant from Lilly Endowment Inc. to the Central Indiana Corporate Partnership Foundation will support the I-STEM Resource Network. The initiative was established in 2007 and partially funded by a $3.4 million grant from the Endowment.

The Network is a statewide consortium of 18 Indiana higher education institutions dedicated to measurably improving K-12 student achievement in the STEM disciplines.  Over the last two years, the Network has focused on providing research-based professional development for current Indiana math teachers to help meet statewide academic standards. More than 6,000 teachers, who work with more than 150,000 K-12 students throughout Indiana, have participated in I-STEM professional development programs.

"Lilly Endowment is pleased to support the I-STEM Network, which impressively marshals the intellectual resources of Indiana colleges and universities," said Sara B. Cobb, the Endowment's vice president for education. "This unprecedented collaboration should significantly help

K-12 teachers enhance the impact of their teaching in these STEM disciplines so critical to our state's future," added Cobb.

 While programs are being developed across all STEM disciplines, the I-STEM Resource Network has focused on statewide programs in mathematics, including coursework for middle level mathematics teachers and the development of the Indiana Algebra Readiness Initiative, a series of conferences and workshops led by nationally-recognized experts, to help teachers prepare students for success in algebra.

Algebra is a "gateway" course  and a focus for the teacher training because it is a critical building block for the more advanced mathematics courses. Math educators agree that learning algebra is absolutely critical if a student has any aspirations for a career in the life sciences.

"More than ever, algebra teachers need a variety of resources to help all students in Indiana improve their algebra skills. The Network provides those resources," said Bill Reed, past president of the Indiana Council of Teachers of Mathematics and algebra and calculus teacher at Hamilton Southeastern High School in Fishers. "It is imperative for teachers to continue to improve their knowledge and methodologies for teaching algebra."

"By providing Indiana's current teachers with easy access to rigorous and quality professional development opportunities in the STEM disciplines, I-STEM has provided the foundation for strategic, systemic change in STEM education in Indiana," said Anne Shane, vice president of BioCrossroads and one of the founders of the Network. Improving achievement in science and math will maximize students' opportunities to succeed in the future life sciences workforce. To nurture and help build this life science sector  is one of BioCrossroads' key initiatives.

 "Research shows that the most important factor in accelerating student achievement is teacher quality. The I-STEM Network provides access to professional development that allows teachers to brush up on their subject matter expertise in math and science that they need to be more effective in the classroom," said Tony Bennett, Ph. D., Indiana superintendent of public instruction.  "The programs are also a powerful tool to develop our future workforce and to encourage students to enroll in the STEM disciplines in postsecondary education." The Indiana Department of Education has been instrumental in the development of I-STEM.

Besides providing professional development tied to Indiana's academic standards, STEM Resource Centers at each partnering institution in the Network have been providing grassroots education opportunities for teachers in their regions and throughout the state.

The Math Matters program in Southeastern Indiana is a joint project that Indiana University-Bloomington's School of Education and a team from the Lilly Endowment-funded initiative in the region, Economic Opportunities

2015 (EcO15),  have  instituted to bring project-based learning into math instruction.

K-6 Teacher Science Institutes have been held at St. Mary's College and Integrated Math-Science Workshops (MS2) for teachers in grades 5-9 were organized at Notre Dame. 

PRISM and the Homework Hotline at the Rose-Hulman Institute of Technology, both also funded by Lilly Endowment, continue to provide support to teachers and students looking for information on how to teach and learn STEM subjects.

"Teachers just don't have the time to search online for quality resources to aid in classroom instruction. PRISM has done the research for us," said Diedre Adams, a science and math teacher at West Vigo Middle School in Terre Haute who was a 2008 Albert Einstein Distinguished Educator Fellow at NASA.  "The lessons and information it provides are invaluable in helping STEM teachers supplement classroom materials, locate the latest research, and find new and fun ways to motivate students in science and math."

The Network is also involved in building a strategic plan for science education reform with the Indiana Department of Education.  The development of new professional development programs to be offered through the I-STEM Network for science teachers is in progress.

"In its short history, the I-STEM Network has made significant progress in providing Indiana's STEM teachers with new professional training opportunities, and this additional funding will build upon that foundation," said Bill Walker, executive director of the Network.

"Instructors bring new ideas and energy into these professional development classes. This is good for the teachers and their students."

Purdue University provides day-to-day management for the I-STEM Resource Network.  The participating institutions are: Ball State University, Indiana University Bloomington, Indiana University Purdue University Fort Wayne, Indiana University Purdue University Indianapolis, IU Southeast, Marian University, Northwest Indiana Consortium for Teacher Education (Valparaiso University, Purdue Calumet, IU Northwest, Purdue North Central and Calumet College at St. Joseph), Purdue West Lafayette, Rose-Hulman Institute of Technology, University of Indianapolis, NISMEC (University of Notre Dame, St. Mary's College  and IU South Bend) and the University of Southern Indiana.

INDIANAPOLIS (October 6, 2009) – Senior Business Development Director Scott Fulford accepted Indy Partnership’s three Excellence in Economic Development Awards today at the International Economic Development Council annual conference in Reno, Nevada.

Indy Partnership was named the winner in two award categories and received an honorable mention in a third. The annual Excellence in Economic Development Awards are meant to recognize the world’s best economic development programs and partnerships, marketing materials, and the year’s most influential leaders. The awards are broken down into three population tracks – under 50,000; 50,000-200,000; and more than 200,000 people. Indy Partnership competed in the population of more than 200,000 people category.

Excellence in Economic Development Awards won by Indy Partnership include:

·Best Economic Development Website in America – WINNER

·Best Economic Development Newsletter in America – WINNER

·Best Economic Development Magazine in America – Honorable Mention

Indy Partnership President Ron Gifford, who is currently in China with the Indiana Pacers on a business and cultural exchange, said that this is the second time this year that Indy Partnership has been recognized for excellence by national and international organizations. Site Selection, a leading national economic development trade magazine, named Indy Partnership one of the top 10 economic development groups in the country in May.

“The International Economic Development Awards are our industry’s Academy Awards or Grammy’s,” Gifford said. “When you consider that we were competing against regions that are many times our size – regions including more than 100 other major metros such as New York, Los Angeles, Chicago and Houston – it really speaks to the quality of the work that Indy Partnership is doing on behalf of Central Indiana.”

For Indy Partnership, these awards follow 18 months of strategic planning and execution of a new brand identity, which includes the award winning website, newsletter and magazine.

The Indy Partnership website (www.indypartnership.com) is an advanced interactive economic development tool with geographical information system (GIS) mapping that allows both point data and thematic data to be plotted on the same map. Indy Partnership’s site was the first dedicated economic development website in the U.S. to offer this technology, which is marketed as Indy InSite™ to site selection consultants and corporate location managers worldwide.

The Indy Partnership monthly electronic newsletter, which also carries the Indy InSite moniker, is distributed nationally to site selection consultants, business leaders and Indy Partnership investors. The newsletter prioritizes data and information downloads, quick-read facts and figures, and multimedia that appeal to a broad economic development audience.

Indianapolis Region, which received an honorable mention for best marketing magazine in America, is a 52-page annual profile of the Indianapolis Region. It includes 10 original feature articles on the advantages of doing business in the 10-county Indianapolis Region, and other content of interest to economic development and general business readers. Indianapolis Region is produced in partnership with and as a supplement to the Indianapolis Business Journal.

The Excellence in Economic Development Awards are adjudicated by a distinguished, international group of economic development experts from both the public and private sectors.

About The International Economic Development Council

The International Economic Development Council (IEDC) is the premier membership organization dedicated to helping economic development professionals create high-quality jobs, develop vibrant communities and improve the quality of life in their regions. Serving more than 4,600 members, IEDC represents the largest network of economic development professionals in the world. IEDC provides a diverse range of services, including conferences, certification, professional development, publications, research, advisory services and legislative tracking. For more information about IEDC visit www.iedconline.org.

About The Indy Partnership

The Indy Partnership is a privately-funded, not-for-profit organization dedicated to bringing new jobs and capital investment to the Indianapolis Region—10 central Indiana counties including Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan, Monroe, and Shelby counties. Working collaboratively with local economic development officials, government, universities, and the business community, the Indy Partnership secures the Indianapolis Region relocation of companies through superior economic development services. Key services include point of contact for business development leads, incentives assistance, business research and demographic data, and regional marketing. For more information about Indy partnership visit www.indypartnership.com.

Warsaw, IN, September 23, 2009 – The future of Warsaw, Indiana, the orthopedics capital of the world, received a significant boost today: the single largest private foundation grant ever awarded in the region.

“Indiana is indeed fortunate to be home to this extraordinary cluster of orthopedic companies in the Warsaw community,” said N. Clay Robbins, president of the Endowment.  “We are pleased that a promising plan and framework have been developed, after many months of deliberation and good effort, to secure and enhance the region’s competitive appeal to the orthopedic industry now and in the future.

The OrthoWorx initiative was created out of a comprehensive Endowment-funded study conducted by BioCrossroads, Indiana’s public-private collaboration for investment, development and advancement of the state’s signature life sciences strengths.  Released Sept.10, the report, "Warsaw, Indiana: The Orthopedics Capital of the World  -- An overview, analysis and blueprint for future industry and community growth", explores the sector's current assets and challenges and sets forth a series of action-oriented recommendations designed to secure and advance the community's current position as home to nearly a third of the world's orthopedic device industry.

For example, within a talent and workforce development initiative, OrthoWorx will engage the Indiana Department of Workforce Development, Ivy Tech, Grace College and other higher education institutions, to help identify gaps in training and associate and baccalaureate degree programs. They will then work to develop new educational programs through state and federal grants and other sources of funding to fill such gaps. OrthoWorx also will explore ways to enrich and expand K-12 options in the region and develop further the research collaborations among orthopedic companies and Indiana’s research universities. It also will build relationships with the human resources, management and manufacturing departments of the various Warsaw-based orthopedics companies to ensure that companies can get the specifically trained workers they need.

“Much as BioCrossroads has become the supporting brand for Indiana's broad field of life sciences assets, OrthoWorx will become the voice that promotes the presence and potential of the Warsaw-based orthopedics industry and the community that supports it,” said David Johnson, president and CEO of BioCrossroads.  “As the epicenter of the orthopedics industry, Warsaw offers both a unique industry and a unique community. OrthoWorx will bridge the two to put the best strategic opportunities into action.”

“While many have contributed to the development of this plan, we are especially impressed by the leadership and dedication of the president of Grace College, Ron Manahan; the executive director of the Kosciusko County Community Foundation, Suzie Light; and the leaders of the orthopedic industry and BioCrossroads. Without their tireless efforts we would not be here today,” Robbins added.

Check out these columns by TechPoint President Jim Jay, which highlight different facets of the growing strength and diversity of Indiana’s technology community.  One describes an exciting new market where Indiana has an emerging strength – digital media and electronic marketing.  The other describes how Indiana’s manufacturing sector has become increasingly high-tech and innovative to continue to grow in the global economy.

Both pieces mention an important upcoming event – TechPoint’s annual Innovation Summit, which is being held on September 29^th at the Indiana Convention Center in Indianapolis.  This year’s Summit focuses on how we can encourage and capitalize on innovation as a state and within our own companies, focusing on high-growth industries like information technology, advanced manufacturing, the life sciences, energy and logistics.  Visit www.techpoint.org/summit for more details.

Central Indiana: New Media Marketing Mecca?

This month, we celebrate the 40^th anniversary of the Internet, and also recognize an Indiana social media milestone – it’s projected that the number of Hoosiers using the Facebook network will reach 1.5 million in early September, nearly a quarter of our total population.

The Facebook statistic is just one indicator of our near-universal adoption of digital media, at home and in the workplace.  It’s changed the way we live, and I’d argue that no discipline has felt the impact more than marketing:  Read more…

Advanced manufacturing: Center stage in the innovation economy

It’s obvious that we live in an innovation-driven economy.  In the past, economic success was often defined by access to physical advantages (raw materials, transportation infrastructure); today the most precious resources are educated workers and new ideas.  Most economic analysis shows that the educational attainment of the workforce and its level of innovation (often measured by patents-per-employee) have the most reliable connection to rising incomes, low employment and economic output.

Read more…

Clearly, entrepreneurial companies will play a tremendous role in pulling the U.S. out of the recession – these businesses create an estimated two of every three new jobs and are the major source of innovation and productivity growth in today’s economy. 

A recent study by the Kauffman Foundation may make us take another look at what the next generation of entrepreneurial pioneers who will forge a path out of the slump will look like.  The popular image of the entrepreneur is young – the Silicon Valley whiz kid, or the ‘creative class’ guru ready to strike out on his own.  But the Kauffman report – “The Coming Entrepreneurial Boom” – turns this picture on its head:  In every year over the last decade, the rate of entrepreneurial activity has been highest among Americans aged 55 to 64, far outpacing their younger (20-34 year old) counterparts.

Cementing this data, Kauffman conducted a survey of 5,000 young companies (launched in 2004) and found that two-thirds of their founders were between the ages of 35 and 54.

Kauffman attributes the rise of the older entrepreneur to a number of factors, including increasing job turnover among Americans of all ages and a desire for second or third careers within a workforce that’s staying healthier and living longer.

From my anecdotal perspective, this makes sense.  Working with our TechPoint initiative in particular, I’ve encountered any number of ‘serial entrepreneurs’ who are still starting and mentoring new firms at an age when our fathers and grandfathers would have been settling in for the stretch run towards retirement.  They bring invaluable experience to these new ventures from having been ‘around the block.’

For Indiana, attracting and retaining young college-educated workers must still be the top economic development priority – we desperately need to increase the educational attainment of our workforce, starting by catching those who are dropping out of high school or failing to pursue education beyond 12^th grade.   But we shouldn’t ignore the entrepreneurial ambitions of the 1.6 million Hoosiers between the ages of 45-64; according to Kauffman, they could represent a significant opportunity for new business growth.

Indianapolis, September 10, 2009 – Now generating more than $11 billion in annual revenues, the global orthopedics sector concentrated in Warsaw, Indiana, represents more than half the U. S. market share and more than one- third of the world’s market for developing orthopedic medical devices. 

How does an industry -- contained within a community -- continue to maintain its strong economic presence and position itself for future growth?  BioCrossroads, Indiana’s organization for investment, development and advancement of the state’s signature life sciences strengths, explores and outlines a series of action-oriented responses to this question in a new published report, Warsaw, Indiana: The Orthopedics Capital of the World  -- An overview, analysis and blueprint for future industry and community growth. 

The report represents one of the most comprehensive studies ever conducted of Indiana’s outsized share of this remarkable industry, and it suggests a range of broadly supported steps that the industry, the community and the State can pursue to ensure this sector continues to thrive on Hoosier soil.

Initiated through a planning grant funded by the Lilly Endowment, Inc., the BioCrossroads report reveals stunning statistics that highlight the growth of a sophisticated business sector and the community supporting it:

Kosciusko County has grown its Health & Biomedical employment base by 39 percent since 2001 compared with 15 percent for both Indiana and the U.S.

In 2007, the concentration of jobs in Kosciusko County in the medical devices and equipment category had a location quotient of 51.86, which is nearly 50 times that for the national average, [resulting in] a location quotient that is literally “off the charts.”*

When compared with the larger Metropolitan Statistical Areas analyzed nationally in the Battelle Technology Partnership Practice biennial state by state industry analysis for the Biotechnology Industry Organization (BIO), the Warsaw, IN Micropolitan Area (population 12,500) would rank as the 15th largest regional employer in medical devices and equipment in the U.S.

“The Warsaw orthopedics community is one of the most robust and concentrated medical equipment development sectors in the world, and a world-class economic asset that powers growth for all of Indiana,”  said David Johnson, President and CEO of  BioCrossroads.  “The integration of all this research has resulted in a picture of an industry cluster in Warsaw, that is currently robust, respected and globally competitive.  While this orthopedics device sector has been tremendously successful to date, our research and the truly global scale of this sector’s reach make it very clear that global pressures now confronting our whole economy, including all our life sciences sectors, have sparked a broadly perceived need for a community and industry engagement strategy focused on education, talent recruitment and retention, workforce and community development to ensure sustainability. 

“We’re now in the process of developing a Warsaw-based, regionally focused organizational initiative that can better define and prioritize the challenges and opportunities, and then seek funding to bring the best and most responsive ideas to life,” Johnson added.

The report details seven initial focus areas for such an initiative to explore:

•             Branding and Awareness – promote the Warsaw community as the orthopedics capital of the world

•             Community Enhancement – develop and add specific, cultural and recreational amenities

•             Education – enhance options and opportunities for K-16 education

•             Talent and Workforce Development – further and focus the necessary collaboration among industry, government and education to identify future needs for this industry’s highly skilled management and workforce

•             Transportation and Logistics – analyze regional transportation challenges and develop specific options for improvement

•             Industry/Technical Support Enterprises – research market opportunities and business cases for specific enterprises that could provide valuable “business infrastructure” for Warsaw’s diversified orthopedics industry

•             College and Research University Engagement – promote and establish specific mechanisms and programs for collaboration among Indiana’s academic and research institutions and between academia and industry to promote innovation and enhance processes for research and development.

“The medical innovation coming out of Warsaw is some of the best in the world, so it’s critical that we have a plan for sustainability and growth.  With true and widespread business and community participation, BioCrossroads has created a roadmap to move us forward, and we are fortunate to have such an action-oriented champion for our community,” said Cheryl R. Blanchard, Ph.D., Chief Scientific Officer and Senior Vice President, Zimmer, Inc.  “Community and industry leaders are eager to become engaged in this effort and find the best ways to make a positive impact on our community.”

 “Warsaw’s economic vitality is driven by our orthopedics companies, not only for the success of the largest industry leaders, but also for the entrepreneurs and service companies that support this sector,” said David Findlay, Chief Financial Officer and Executive Vice President of Administration, Lake City Bank.  “The work that BioCrossroads has done in developing this strategic framework will help our community progress, enhancing our assets and filling in our gaps.  I can readily report that there is a lot of energy surrounding this initiative.” 

The report is available on the BioCrossroads Web site:  www.biocrossroads.com

The BioCrossroads report draws heavily upon research by Battelle– both a 2001 study and an update to that work completed in 2009.  In addition, a community study, including a number of in-depth interviews and facilitated discussions with key business and community leaders in the Warsaw region, was conducted and facilitated by Mary Walshok, Ph.D., an international expert in community and economic growth, professor of Sociology at the University of California, San Diego, and a principal in Global CONNECT at UC-San Diego.  The report also includes specific recommendations for new types of enterprises and facilities developed by distinguished orthopedic surgeons.

A trade delegation led by Governor Daniels is scouring the Far East in search of new jobs and business opportunities this week, meeting with business and government leaders in China and Japan in hopes of adding to the historic influx of foreign investment Indiana has enjoyed over the last several years.   Today, the Hoosier State is home to more than 200 companies from Japan alone, employing as many – or more – workers than Detroit’s Big Three automakers here.

That’s the upside of the global economy: Manufacturing jobs, lured to Midwestern states like Indiana by the weak dollar, a ready workforce and proximity to the world’s biggest consumer market.  But we also have to be mindful of the threats posed by globalization, primary among them the erosion of the United States’ biggest competitive advantage, our capacity to innovate. 

It’s great that Indiana is attracting jobs based on our low business costs, the technical proficiencies of our workers and our geographic advantages.  But to create long-term prosperity in the high-tech economy, we also have to be a place where new technological advances and scientific breakthroughs are brought to life and commercialized. 

But as a nation, we’re falling behind in the race for innovation.

We aren’t encouraging innovation the way we should.  A new study by the Information Technology & Innovation Foundation shows that we now lag behind many industrialized and rapidly-developing countries in R&D tax incentives.  We were the first nation to reward innovation through the tax code, implementing the R&D credit in 1981.  But over the last decade, we’ve slipped to 17^th among OECD countries in R&D tax generosity, and developing nations like China, India, Singapore and Brazil are also employing more aggressive R&D strategies.  (China, for example, provides a 150% tax deduction on R&D expenses if companies increase investment by 10% or more over the previous year.)

Ultimately, though, tax credits don’t create innovation – people do.  But the U.S also lags in the human capital competition.  I’ve written previously about the massive investments China has made in higher education over the last decade, but a few numbers bear repeating:  More than 800 new colleges and universities built, the number of students in higher education more than tripled, and the number of graduates exploding from 8 million annually to more than 30 million.

Because of these trends, it’s widely recognized that there will be significantly more PhD engineers and scientists in China  than in the U.S. as early as next year.  A broader study by Rice University makes the startling projection that, again by 2010, 90% of all the world’s PhD-level engineers will live in Asia. 

We can’t surrender our numerical superiority in scientists, engineers, and other skilled workers without eventually seeing our innovation edge disappear.

And in fact, we’re already seeing the impact.  This thoughtful piece by TechPoint Chairman Mark Hill explores how the U.S. is slipping in our innovation-based economy relative to global competitors; for example, over the last decade, the $30 billion trade surplus that the U.S. used to enjoy in advanced technology products turned into a $53 billion deficit.

The overseas exploration that Governor Daniels and regional economic development groups like the Indy Partnership are engaged in is a critical part of succeeding in the global economy.  But it’s also essential to tend to our innovation infrastructure here at home – building an educated, creative workforce and incentivizing them to bring new ideas to market.

Back to school season has brought a flood of new students to Ivy Tech Community College campuses across Indiana; Ivy Tech is welcoming more than 110,000 students to classes this week, a nearly 30% increase from 2008’s fall semester.

The Ivy Tech enrollment boom has caused some strain on the system, with overflowing classrooms and rush to hire new teachers.  But we agree with Ivy Tech President Tom Snyder that the increase is a good sign for the state – last week, Steve Dwyer of CICP’s Conexus Indiana penned this thoughtful column on the need to reenergize the state’s technical education pipeline to prepare young people for ‘middle skill’ jobs in industries like advanced manufacturing and logistics.

Hopefully, the Ivy Tech experience shows that more and more Hoosiers are acknowledging the truth of Dwyer’s words, especially in the midst of economic turmoil: “In today’s knowledge-based economy, a high school diploma doesn’t cut it.”

Don’t forget about middle-skill job opportunities

Steve Dwyer – President & CEO, Conexus Indiana

It’s hard to believe that summer has slipped by so quickly, and ‘back to school’ season is just around the corner.  Unfortunately, too many Indiana college students are making the fateful decision to drop out of school rather than head back to class.

A  recent report from the American Enterprise Institute (AEI) shows that many Hoosier students are struggling once they enter college to pursue their bachelor’s degree – just over half (53%) eventually graduate within six years.

Dropping out of college puts these young people back at square one when it comes to their job search, far behind their peers with a diploma:  2008 data from the Bureau of Labor Statistics shows that unemployment is twice as high and average earnings just over half as much for high school graduates versus those with a bachelor’s degree.

But high school graduates who don’t choose the 4-year college path don’t have to resign themselves to a life of low wages and limited career choices.  There are a wealth of opportunities in today’s job market that demand advanced training but not a bachelor’s degree.

Let’s start with a dose of reality:  In today’s knowledge-based economy, a high school diploma doesn’t cut it.  Twenty years ago, high schoolers could look forward to making a good living at a local factory after graduation.  Manufacturing jobs are still out there – one of every five Hoosiers has one – but they’ve become high-tech, and demand more education and training beyond high school.

A 2007 report by The Urban Institute (“America’s Forgotten Middle-Skill Jobs”) defines ‘middle skill’ occupations as those that require a two-year associate’s degree or some sort of certificate training, in areas like manufacturing, logistics, computer support, sales, skilled construction trades, and some administrative/clerical work.

The report estimates that these occupations make up roughly one half (48%) of all American jobs, with 35% of the remaining positions requiring a bachelor’s or advanced degree and 15% falling to service and unskilled labor. 

It also asserts that “wage gains per year of schooling for those with associate’s degrees are comparable to those with bachelor’s degrees.”  Paychecks don’t lie – these degrees in high demand, a trend that  should continue:  The Bureau of Labor Statistics has projected that 45% of all job openings from 2004 to 2014 require middle-skill qualifications, as compared to 33% high skill and 22% low skill.

Let’s look at manufacturing, the industry where I’ve spent my career.  Everyone knows that basic assembly line jobs have been disappearing for years, made obsolete by new technologies or moved overseas.  But new middle-skill jobs are being created, as today’s manufacturing workers need computer skills; ‘soft skills’ like critical thinking and teamwork; and advanced technical expertise operating high-tech equipment.  These jobs pay an average of 40% higher than the Indiana median income.

In Central Indiana alone, it’s estimated that more than 5,000 manufacturing openings will be available over the next year as skilled Baby Boomer workers retire.  And new growth is expected in exciting fields like hybrid-electric vehicles, aerospace, nanotechnology and more.

In logistics, we’re seeing similar trends – Indiana ranks among the top ten states in logistics jobs per capita, and employment is projected to expand at a steady pace over the next several years.  With manufacturing output and exports growing and the ‘just in time’ nature of business today, demand for middle-skill occupations like supply chain managers is robust.

The problem for Indiana isn’t a lack of middle-skill jobs, but a lack of middle-skill workers.  Statistics from the Lumina Foundation show that just 7% of the state’s younger workers have an associate’s degree (46% have a high school diploma or less, 23% have a bachelor’s degree or more).  As Baby Boomers start leaving the workplace in greater numbers, we face a severe workforce shortage at the middle-skill level – and if businesses can’t find qualified workers, industry will begin to shun Indiana.

The fact that half of our incoming college freshmen don’t finish their degrees is a major problem.  Indiana is a perennial bottom-dweller among states in the educational attainment of our workers – more emphasis needs to be placed on education at all levels, and our colleges and universities have to work harder at keeping students on the right track.

But it’s clear that the opportunities of the ‘information economy’ don’t just apply to people with four-year degrees.  If the bachelor’s degree seems daunting, these students must explore the many other educational options that are open to them – associate’s degrees through Ivy Tech, Vincennes University and others, a host of technical/vocational training programs. 

Preparing yourself for middle-skill opportunities means a better chance at a rewarding, well-paying career that you can be proud of – and a stronger economy for Indiana.

Steve Dwyer is President & CEO of Conexus Indiana, an initiative focused on the workforce and other needs of the state’s manufacturing and logistics industries; he formerly served as Chief Operating Officer of Rolls-Royce Corporation.

Recent data released by the U.S. Bureau of Economic Analysis has sobering news for the Indianapolis region – the metropolitan area ranks 325^th out of 366 metros in per capita income growth over the last five years.  The performance of our region – the center of economic activity for the state – mirrors the widening income gap that Indiana has seen over the last few decades.  The average Hoosier worker makes less than 90 cents for every dollar earned by the typical American.

President Obama visited Northern Indiana on Wednesday, August 5, to announce $416 million in federal stimulus grants to Hoosier companies focused on vehicle electrification and advanced battery technologies.  In all, Indiana received the second-largest infusion of federal grants for green vehicles of any state, behind only Michigan (where most of the money flowed to automakers already being supported by bailout funds or companies receiving significant state incentives to boost the struggling economy there).

In Indiana, the grants will accelerate the momentum of the state’s clean technologies sector, already making great strides in developing critical components for the next generation of plug-in electric/hybrid vehicles (from passenger cars to heavy-duty trucks).  While government has often proven itself ill-suited to picking winners in the marketplace, the volume of grants to Indiana certainly recognizes our rich heritage of energy innovation and the fact that companies here are working together (through initiatives like the Energy Systems Network) to bring exciting new technologies to market.

Please take a moment to look over two editorials by Paul Mitchell, President & CEO of CICP’s Energy Systems Network, which offer key insights on how these grants can trigger even more growth and investment in our cleantech industry:

Jump start for green vehicles - Indianapolis Star, August 17, 2009