Imagine. Innovate. Iowa. ENTREPRENEURIAL AND EFFECTIVE: KEY CHARACTERISTICS OF A NEW KIND OF ECONOMIC DEVELOPMENT AGENCY Debi Durham, Director Iowa Economic Development Authority “Innovation is the central issue in economic prosperity.” Michael Porter Harvard Economist

Make Iowa the “Healthiest State” Re-establish Iowa’s World Class Educational System Cut the Cost of State Government by 15% Increase Family Income 25% 200,000 Private Sector Jobs The Governor’s Growth Agenda

New Economic Development Model Partnership for Economic Progress

Economic Development Authority Structure Director Debi V. Durham C.O.O. Craig Block Marketing & Communications/Tourism Tina Hoffman Community Development Tim Waddell Sales International Trade Regulatory & Workforce Asst. Compliance Business Finance General Counsel/Legislative Tim Whipple Community Investment Main Street Disaster Recovery HR, IT, Accounting Foundation Planning Continuous Improvement Vision Iowa/CATD City Development Board ICVS Business Development Administration & Finance Terry Roberson Small Business Energy

Focus Provided by Battelle » Financial Services – Data Processing / hosting – Distribution Centers – Financial Services – Insurance » Advanced Manufacturing – Building supplies manufacturing, Chemical manufacturing – Construction related equipment, Farm & Ag related equipment, Vehicle manufacturing – Food & Ingredient Manufacturing, Foundries, Medical Devices, Printing » Biosciences and Information Technology – Animal processing, Grain processing, Support activities for animal production, Support activities for crop production – Bio and alternative fuels, Biological Research, Chemical manufacturing, Pharmaceutical, Cleantech, Energy Industry and Wind Industry – Audio & video equipment manufacturing, Communication Network Services, Data processing & related, Electronic & communications equipment manufacturing, Electronic Instruments, Medical equipment & supplies, Research and testing laboratories – Internet & e-commerce, internet publishing & broadcasting, software development

2012 IEDA Legislative Priorities »Self-sustaining Financial Assistance Program IEDA will propose adding a direct assistance component to the High Quality Jobs program, which currently provides only tax incentives. The HQJ program’s ROI is $2 in tax revenues for every $1 spent on incentives, and a direct assistance component will help continue this program’s success. »Assistance for ESOP Formation by Iowa Companies IEDA will seek money for grant assistance to help businesses investigate ESOP formation and will seek a capital gain tax exclusion for sale of stock to an Iowa ESOP in order to incent owners to help keep their business in Iowa. »Supply-chain Development Initiative The IEDA seeks a net business income adjustment for supply chain companies, designed to help Iowa’s anchor manufacturers bring their supply chains into the state.

»Economic Development Role »Accelerate good ideas into bankable ventures »Provide the infrastructure for an innovation ecosystem »Link and coordinate capital providers to invest in Iowa ideas »Current Legislative Initiatives –New financial assistance fund –Innovation initiatives ·Seed Fund Tax Credits ·DEMO Fund ·SBIR/STTR Funding

Rethink Iowa: Creating a Culture Shift »Rebrand the state –Promote Iowa throughout the world –Leverage great Iowa events and institutions (RAGBRAI, The World Food Prize) –Grow the Innovation/entrepreneurship ecosystem »Differentiate our Workforce –Create work-ready certification (NCRC) standards »Grow our population –Building communities where people want to live Entrepreneurs are rare doers—and because of this, they are the most valuable people in the world, at least as far as the pursuit of economic development, GDP growth, and almighty job creation are concerned. Jim Clifton, The Coming Jobs War