Life science paves way for aggressive year

To pass the time, he asked what their IQs were.

The first replied 190.

“Wonderful,” exclaimed Einstein. “We can discuss the contribution made by Ernest Rutherford to atomic physics and my theory of general relativity.”

The second answered 150.

“Good,” said Einstein. “I look forward to discussing the role of New Zealand's nuclear-free legislation in the quest for world peace.”

The third mumbled 50.

Einstein paused, and then asked, “So, what is your forecast for the budget deficit next year?”

As we head into the 2006 legislative session, my job as the director of the Department of Economic Development is to account for every dollar the department spends while advancing Missouri's economy.

Our economy is growing, robust and strong, but with tough budget times ahead, it will be necessary to continue streamlining the way we do business to better serve taxpayers and meet our goal of expanding economic development opportunities.

First and foremost, we must cut departmental expenses to save taxpayer dollars. So far, we have found $557,000 in savings that resulted from tough fiscal management and a staff committed to more efficient use of taxpayer dollars.

We also are committed to updating our programs to provide benefits to Missouri employers. In November, the department's Incentive Review Committee gave final approval to a series of recommendations on state and local incentives aimed at making the programs more cost-efficient for taxpayers and effective for those that use them.

DED offers more than 60 incentive programs. Under the recommendations, several programs will be combined to lessen costs and increase efficiency. The report also suggested improvements that could ease the approval process, expand eligibility, control costs or add or eliminate requirements that will increase the efficiency of some programs. Incentives must be reviewed constantly to keep up with economic changes.

We had some significant successes in 2005 with litigation reform, workers' compensation reform and the Missouri Quality Jobs Act that ties job creation to economic incentives. Companies such as Express Scripts, Pfizer and T-Mobile all utilized the Quality Jobs Act to create jobs in Missouri.

Now we must look ahead to 2006. Weare in the process of designing a strategic plan. Working with the governor's office and the legislature, I am supporting and promoting initiatives that will boost Missouri's economy and increase the state's competitiveness in the global marketplace, including efforts to expand life science and boost opportunities for small businesses and entrepreneurs.

There is a competitive race across the country to become the leader in life science research.

With Missouri being home to more than 390 plant and life science enterprises, which account for more than 170,000 direct jobs and indirectly support another 260,000 jobs, Missouri can win this race. Since 2001, the life science industry contributed $23 billion to Missouri's economy, or 13.5 percent of the gross state product, and we expect those numbers will rise.

The governor recently created the Advisory Council on Plant Biotechnology charged with attracting new life science companies to Missouri.

Since January, Missouri has created more than 27,000 new jobs leaving, Missouri's unemployment rate at one of its lowest levels in four years; however, more needs to be done. With 75 percent of Missouri businesses being small enterprises, it is necessary to strengthen their ability to survive and grow.

Our economy is on the move, but we need to keep our foot on the gas pedal. We need to create an environment that stimulates economic opportunity and growth. Missouri is ranked as the fifth-most diversified economy in the nation; however, top national corporate site seekers ranked Missouri only 24th for a favorable business climate.

We must continue to make strides that will move Missouri to the forefront as a favorable market to the outside world.

Someone once said, “Opportunities multiply as they are seized.”

I agree.

Greg Steinhoff is director of Missouri's Department of Economic Development.