by Bret Mills
The Iowa department of economic development knows Growth in iowa will be dependent on iowa’s ability to develop an innovation economy. don’t confuse innovation with another economic development buzzword, technoloGy-based economic development. iowa has had Growth in its tech sector, but the end result of tech-based economic development is an end-product that is shipped or sold. it’s important to understand that innovation doesn’t always lead to an end product. rather, innovation is a service, process, or system that may be applied to any industry
or business.
the benefit of an innovation economy is not limited to larger metro areas and technology centers. one example of this is from two iowa agricultural companies, pioneer and monsanto. as they have increased yield in corn per acre, it has substantially increased return on investment for those companies and for farmers. it has also increased the wealth in communities and the overall wealth and economic stability of the state. another example is from the wind industry. smaller communities are taking advantage of innovation in the growth of this new industry. the growth in turbines installed, wind industry manufacturing, and even workforce training has largely taken its lead outside of iowa’s largest metro areas.
iowa has not had the same focus on innovation as some other states have had. in 1986, kansas established the kansas technology enterprise corporation (ktec) and began carving out a part of its economic development strategy around innovation-based economic development. the result of those efforts and 25 years of sustained funding and emphasis on innovation-based development has been that kansas has transformed its entire economy and created the infrastructure for an entrepreneurial culture. public-private partnerships made capital available for the funding of research centers of excellence and have expanded the commercialization of technology from its universities.
iowa has been working toward innovation-based economic development, but has been doing so through the efforts of multiple organizations that have led to fragmented results. that fragmentation is dissolving now through the efforts of the iowa innovation council (iic). because of these efforts, iowa is now on the cusp of being perceived as a progressive innovation-based economic development state. the creation of the innovation council has been a pivotal step toward that effort for the following reasons.
iowa’s innovation council is dictated by statute to be made up primarily of private sector companies and leaders. engagement and commitment of the private sector and the right mix of both small and large companies, rural and urban, are essential for producing results.
the iowa innovation council roadmap process will lay out the most comprehensive strategic plan for innovation that any state has embarked on over the last twenty years. with this comprehensive collaboration, large and small businesses, regent institutions, community colleges, business accelerators, and government are all working together to build the innovation economy for iowa. this intense level of collaboration, interaction, and dialogue occurring in iowa is what is needed to guide the effort forward. the success already occurring is a positive early outcome of aligning knowledge and resources for the betterment of iowa’s innovation economy.
as an additional commitment to action and success, the members of the iowa innovation council made a decision to work towards the creation of a nonprofit 501 (c) (3) corporation as part of the evolution of the iic, moving beyond providing advice to action. this public- private partnership is a focused and integrated collaborative effort with players from industry, universities, and government. the iic believes the 501 (c) (3) status will enable the organization to function as a business, which will aid in attracting, managing, and leveraging private equity and venture capital to support innovation.
Iowa Innovation Corporation will fulfill its purpose using the following means:
• Creating a statewide innovation strategy for Iowa, putting in place the components for innovation and aligning them in ways that provide advantages to Iowa companies identifying strategic targets of opportunity
• Assisting in financing the establishment and development of innovative
entrepreneurs, businesses, researchers, and scientists in Iowa
• Developing a common due diligence process for both public and private risk capital investors that will enhance return on investment • Supporting a value-added mentoring system for emerging innovators that will accelerate their rate of successful commercialization
• Seeking to secure and leverage state and other private and public sources of innovation funding that will attract federal and other science and technology resources to the state
the iowa innovation corporation strategy for sustainable funding of the required activities is based on the experiences and best practices of other states. a combination of state, federal, and private sector funds is required. we will work with entrepreneurs, early-stage firms, established companies, angel investors, venture capitalists, and universities to implement this strategy.
iowa needs to do all it can to ensure iowa companies can remain competitive for generations to come. so how and when will we know if our innovation-based efforts are working? we will know we are successful when we look first to our own hands and minds to create the products needed in the global economy, as the hands and minds of our forbearers created the greatest agricultural engine in the world. we will know we are successful when our children can easily find their futures in their home state. we will know we are successful when new wealth is created and high skilled/high paying jobs are the norm and not the exception.
