State Spotlights
Spotlight on the State of Nebraska - May 2011
Steady and True Wins the Development Race
Taking its cue from a recent Battelle Technology Partnership Practice (TPP) report, the Nebraska Department of Economic Development has set its sights on more strategically and comprehensively filling the growing needs of a knowledge-based economy worldwide.
Made up primarily of three divisions-- Business Development, Community and Rural Development, and Travel and Tourism, the Department has served as the State’s lead economic development agency since it was first created by the Legislature in 1967.
Nebraska has managed to miss the brunt of the recession that took hold in 2008. Now it is taking slow, steady measures to position itself as the location of choice for 21st century change agents in 12 key industry clusters:
• Biosciences
• Renewable Energy
• Software & Computer Services
• Health Services
• Research, Development, & Engineering Services
• Transportation, Warehousing, & Distribution Logistics
• Financial Services
• Business management & Administrative Services
• Hospitality & Tourism
• Precision Metals Manufacturing
• Agricultural Machinery
• Agriculture & Food Processing
Based on TPP recommendations, the recently enacted Talent & Innovation Initiative includes four key proposals:
The Business Innovation Act (LB 387): Provides competitive grants for private sector research at Nebraska institutions, technical assistance in new product development and testing, and help expand small business and entrepreneur outreach efforts. The effort will be paid for with $1.5 million in existing, redirected funds and $5.5 million in new funding. This program will help new and existing companies expand product lines, create spinoffs and create a stonger link between industry and higher education in Nebraska.
The Angel Investment Tax Credit Act (LB 389): Encourages investment in high-tech and other Nebraska startup enterprises. The program would be capped at $3 million annually, with funds coming from redirected funds. Businesses eligible to benefit from angel investments must have 25 employees or less. This program also works in a linear fashion with the Business Innovation Act, as some companies that receive grants under that program will also qualify as certified companies under this program.
The Site & Building Development Fund (LB 388): Increases the number of industrial and commercial sites available and ready for business development using $3 million in redirected resources and at least a one-to-one match from communities. State funding will be focused on land and infrastructure costs with 40 percent of funding going to non-metro areas.
The Nebraska Internship Program (LB 386): Aims to increase the number of college and university students interning with Nebraska businesses. Funded with $1.5 million annually in redirected job training funds and a 100 percent match from companies creating new internships, the program would provide job experience for juniors and seniors at the state’s four-year institutions or students in their second year at a Nebraska community college.
Nebraska Advantage Act
Celebrating its fifth anniversary, the Nebraska Advantage Act has infused the State’s economy with significant new investment and highly sought employment. Under the Act, to date, a total 257 applications have been received approaching a potential $5.692 billion investment and 19,059 jobs.
When viewed by location, 120 projects were located in the greater Omaha metropolitan area of Douglas, Sarpy, Saunders and Washington counties; 48 projects were in the greater Lincoln metropolitan area of Lancaster and Seward counties; and 89 projects were spread throughout greater Nebraska.
Rankings Recognition
The State continues to earn accolades for a number of attributes, including:
• 2nd Best Job Market for Job Creation, 2009, Gallup
• 3rd Pro-Business Legal Climate, 2010, U.S. Chamber’s Institute for Legal Reform
• 5th Best States for Business, 2009, Directorship Boardroom Intelligence
• 5th State Highway Performance & Cost-Effectiveness, 2010, Reason Foundations 19th Annual Highway Report
• 6th Pro-Business State, 2010, Pollina Corporate Real Estate
• 9th Best States for Business, 2010, Forbes.com
• 10th Lowest Business Energy Costs, 2010, Small Business & Entrepreneurship Council
INDIANA SPOTLIGHT - January 2011
WISCONSIN SPOTLIGHT - February 2011