Department of Business & Economic Development. January 24,2012

Transcription

1 Department of Business & Economic Development January 24,2012 Martin O'Malley Governor Anthony G. Brown Lt. Governor Christian S. Johansson Secretary Dominick E. Murray Deputy Secretary The Honorable Thomas V. Mike Miller, Jr. President, Maryland Senate State House, H-1 07 Annapolis, Maryland The Honorable Michael E. Busch Speaker, Maryland House of Delegates State House, H-101 Annapolis, Maryland RE: Maryland Economic Development Commission Annual Report Dear President Miller and Speaker Busch: In accordance with Economic Development Article, Section 2-207(a) of the Annotated Code of Maryland, the Maryland Economic Development Commission is pleased to submit its 2011 Annual Report to the General Assembly. This report includes a review of the activities undertaken by the Commission. We look forward to your review of the report and will be pleased to provide any additional information regarding the Maryland Economic Development Commission. Ifwe can be of further assistance, or if you have any questions regarding this report, please contact Michelle Jackson, Director of Boards and Commissions, Maryland Department of Business and Economic Development at Sincerely, Christian S. Johansson Secretary, DBED Steve Dubin Chair, MEDC Enclosure World Trade Center 401 East Pratt Street Baltimore, Maryland ChooseMd

2 2011 Annual Report to the General Assembly of the Maryland Economic Development Commission Submitted by The Maryland Department of Business and Economic Development (DBED) January 2012

3 Table of Contents Executive Summary 2 MEDC Overview 3 MEDC Membership Review of Activities Action Plan 9 Conclusion 9 Appendices 10 1

4 Executive Summary The Maryland Economic Development Commission (Commission), in accordance with of the Economic Development Article, hereby submits to the General Assembly of Maryland, a report of the 2011 activities of the Commission. The past year has been a busy one for the Commission, with the release of a five-year strategic plan, the start of a new initiative, the influx of nine new members, and the appointment of new Chairman, Steve Dubin and Co-Chair, Kevin Johnson. With these changes, the Commission is attempting to take a more active coordinating and advocacy role with the various other economic development organizations and boards and commissions that exist both within the Maryland Department of Business and Economic Development (DBED) and in the larger business community. In doing so, the Commission hopes to be able to better leverage the knowledge and resources that exist in Maryland to focus on its mission to create and retain jobs, and improve the conditions that support job creation. Support for InvestMaryland The Commission began its work in 2011 supporting and advocating for an important piece of legislation which holds great promise to help make Maryland a hotbed of entrepreneurial activity. The InvestMaryland program received the full support of the Commission and its members who participated in advocacy efforts on behalf of the program. Release of Five-Year Strategic Plan With the summer release of the Commission s five-year strategic plan, a framework for the Commission s activities was developed that laid out a vision for the four work groups that compose the Commission. The work groups are Business Climate, Infrastructure, Regional & Economic Diversity, and Collaboration & Commercialization. Each work group will focus on the broad principles laid out in the strategic plan as they continue to define problems and propose solutions. Maryland Made Easy In 2011, Governor O Malley also championed and directed DBED to implement an important program that began as an idea developed by the Commission. The Maryland Made Easy fast track permitting program and its streamlined Central Business Licensing initiative are ideas that the Commission recommended. These initiatives will help State businesses to navigate permitting processes more easily and will fast track key economic development projects. ExeConnect In September, the Commission rolled out a new signature initiative called ExeConnect, at GEICO s Chevy Chase headquarters. ExeConnect, to be held quarterly, is an executive-level open discussion about industry and economic issues. The goal of the program is to engage some of the top business leaders in the State and to learn about the latest ideas, tactics, and future 2

5 trends. This tool, developed by the Commission, will enable the Commission to learn how the State can better support the needs of businesses and will generate new ideas and potential partnerships. In the coming year, the Commission will continue to engage Maryland s business community and to develop actionable recommendations for the O Malley Administration and the General Assembly in order to ensure Maryland remains a great place in which to do business. Mission Maryland Economic Development Commission Overview The mission of the Commission is to establish economic development policy in the State and to oversee DBED s efforts to support the creation, attraction, and retention of businesses and jobs. Organization Purpose Maryland is uniquely positioned to support an economic development environment where knowledge is transformed into products, processes, systems and services, and where entrepreneurship flourishes within a diverse economy. The State s research universities, federal labs, and highly educated workforce create a knowledge base that is ready to meet the challenges of tomorrow s innovation economy. Complementing these advantages is Maryland s rich cultural and environmental heritage. The Commission s role is to build on these existing strengths by guiding the State s decision-makers to encourage a climate where business leaders and entrepreneurs experience Maryland as ideal for both commercial endeavors and quality of life. Organization Structure Founded in 1995, the Commission draws upon the expertise of the State s business leaders to inform State economic development efforts. The 31-member Commission provides a comprehensive evaluation of the State s business climate and recommends to the Governor the strategic adaptation and creation of certain policies and programs, as well as spending priorities. MEDC work groups include Business Climate, Infrastructure, Regional & Economic Diversity, and Collaboration & Commercialization. Board members are appointed by the Governor to three-year terms. 3

6 Maryland Economic Development Commission Membership Steve Dubin, Chair Principal, SDA Ventures, LLC Kevin Johnson, Co-Chair President & CEO, Commercial Interiors, Inc. Timothy Adams President & CEO, Systems Application and Technologies, Inc. Paul Ausley President, Ausley Associates, Inc. Maria Beckett President, The President s Roundtable, Inc. Richard Bernstein President & CEO, LWRC International, LLC Thomas Burlin President & CEO, Burlin Consulting Services Susan Ganz CEO, Lion Brothers Company, Inc. Seth Goldman Co-Founder, President & TeaEO, Honest Tea Timothy Hodge, Jr. Principal, Miles & Stockbridge P.C. William Brit Kirwan Chancellor, University System of Maryland Aris Mardirossian CEO, Technology Patents, LLC Ricardo Martinez President & CEO, Project Enhancement Corporation John McLaughlin President & CEO, DAP Products, Inc. Ronald Peterson Healthcare Executive, Johns Hopkins Hospital & Health System Jan Russell Co-Owner, Savage River Lodge David Severn Principal, Severn, O Connor, & Kresslein, PA A. Nayab Siddiqui President & CEO, Scientific Systems and Software International Corporation Robert Smelkinson Chairman (Retired), Smelkinson Sysco Food Services Harold Stinger Chairman, Stinger Ghaffarian Technologies Inc. Walter Tilley, III Managing Partner, Tilley Investments, LLC Tracy Tyler President & CEO, Cambridge International Alan Wilson Chairman, President & CEO, McCormick & Company, Inc. 4

7 Ex-Officio Members Christian Johansson Secretary, Maryland Development of Business and Economic Development Harold Adams Chairman Emeritus, RTKL Associates, Inc. James C. Dinegar President & CEO, Greater Washington Board of Trade Donald Fry President, Greater Baltimore Committee Kevin F. Kelly Vice President, Van Scoyoc Associates Ackneil Muldrow, II CEO, Parker Muldrow & Associates, LLC Kathleen Snyder President, Maryland Chamber of Commerce H. Thomas Watkins President & CEO, Human Genome Sciences, Inc. Staff Michelle D. Jackson Director, Office of Boards and Commissions, Maryland Department of Business and Economic Development Review of Activities The year 2011 saw a significant amount of turnover on the Commission, with nine new members joining the Commission, bringing with them a variety of business experiences. Accompanying these new members was the release of a five-year strategic plan (Appendix B) outlining an economic development vision for the State which seeks to capitalize on Maryland s competitive advantages. With new members and a new plan, the Commission stands poised to engage with new ideas and new economic realities to address the challenges and identify the opportunities presented by a global economy that is in transition. Below is a summary of how the Commission contributed towards moving this work forward in Commission Advocacy of InvestMaryland Commission members began 2011 by helping to champion one of the O Malley Administration s signature economic development initiatives, the InvestMaryland program. Commission members advocated for this legislation because they believed that it would play a vital role in supporting early-stage business development in Maryland. The Commission participated in a number of events and also spoke to legislators about the importance of this program. In addition, members acted as a sounding board during the program s development. 5

8 MEDC Strategic Plan In April, a meeting was held at Johns Hopkins Science and Technology Park located in Baltimore City. This meeting unveiled the Commission s five-year strategic plan (Appendix B), which had been developed in the preceding months. Governor Martin O Malley spoke at the event, highlighting four main strategies which will be guiding the Commission s work. The four strategies are: Position Maryland for Growth This strategy involves encouraging and accelerating efforts to sustain a knowledgedependent, global, entrepreneurial economy. By focusing on entrepreneurship and the commercialization of knowledge and technologies, Maryland has a tremendous opportunity to become a leader in new and emerging industries Build on Existing Strengths This strategy encourages investment in economic sectors where the State already has competitive advantages; to include life sciences, cyber security, military, scientific and technical services, and emerging sectors such as space, earth, and green technologies. Embrace Regional and Economic Diversity This strategy seeks to support Maryland s rich diversity of enterprises, including many that are of a regional nature. These include agriculture and seafood, travel and leisure, and manufacturing. The strategy also recognizes the importance of informed interaction and cooperation between the State and local officials. Make it Easy to do Business in Maryland The final strategy focuses on promoting predictability, transparency, and automation in the areas of permitting and regulation. In seeking to provide regulatory certainty and clarity for businesses, the Commission will be pushing a strategy that aims to make it easier for businesses to grow and expand in the State. Workgroup Assignments During the May meeting the Commission began to work to identify and assign key strategic plan takeaways to Commission work groups. Commission members were assigned to work groups based on preferences and expertise. The workgroups are charged with developing implementation plans for various recommendations contained in the strategic plan. Assignments were also made according to a ranking system developed to prioritize the strategic plan strategies and recommendations. The strategic plan s strategic framework will be moved forward by the four workgroups, as outlined below: 6

9 Business Climate The Business Climate workgroup has taken up the strategic plan s call to enhance Maryland s business climate. The work is focused on areas such as improving licensing and permitting processes, ensuring effective business incentives and financing mechanisms, growing and keeping an educated workforce, and focusing on a culture of customer service amongst State agencies. Collaboration & Commercialization The Collaboration & Commercialization workgroup is focusing on those strategic plan recommendations that help businesses capitalize upon the competitive advantages provided by the State s business incubators, trade groups and federal, academic, and private research and development activities. Regional & Economic Diversity The Regional and Economic Diversity work group s task is to move forward the strategic plan s goal of promoting the State s economic diversity by focusing on understanding Maryland s regional strengths and competitive advantages and by supporting regional economic development priorities. Infrastructure The Infrastructure work group is focused on the State s infrastructure environment and seeks to preserve and improve Maryland s physical capital. Maryland Made Easy During July s meeting, the Commission received an update from DBED regarding the implementation of the Maryland Made Easy program. In an effort to improve and streamline the permitting process for important economic development projects, the Commission developed the concept behind the program, which DBED then presented to Governor O Malley. The Governor has since championed the idea and directed, via Executive Order, all agencies involved with the permitting process to coordinate and work in concert to streamline procedures, simplify regulations, and improve communications. As part of this process, the State is also developing a Central Business Licensing (CBL) website, which is another concept advocated for by the Commission. Both DBED and the Department of Information Technology are spearheading this project, which involves the creation of a centralized, online system for all business licenses and permits. Once complete, CBL will provide businesses with a one-stop shop to complete and submit various applications and permits regardless of agency or type of business. 7

10 ExeConnect In September, the Commission rolled out a new signature initiative, called ExeConnect (Appendix C), at GEICO s Chevy Chase headquarters. ExeConnect is an executive-level open discussion that engages some of Maryland s top business leaders to learn about the latest business and economic ideas, tactics, and trends. Hosted by some of the state s most exciting and innovative companies, the goal of this initiative is to better understand not only how the State can better support existing business needs, but how to position Maryland for next generation industries and emerging economic conditions. The first meeting was attended by Governor O Malley and allowed attendees to hear the insights and concerns of GEICO CEO, Tony Nicely. The Commission also invited a variety of State and regional business groups and executives to the meeting to broaden the discussion and solicit input and ideas from leaders who might not attend the Commission s regular meetings. As ExeConnect events continue, the Commission will consider incorporating any new ideas generated into the strategic plan and upcoming Commission reports. Furthering MEDC s Coordinating Role As described in the Executive Summary, the Commission has had a significant influx of new members this year, with nine new appointees joining the Commission s ranks, and the appointment of a new Chair and Co-Chair. With such a large number of new members, it has been important to familiarize them as much as possible with the other major economic development organizations and commissions that exist in the State. The Commission is doing this not only to familiarize new members but to better capitalize on a role for which the Commission is well-suited: a coordinating and advocacy body. In 2011, the Commission took a more active role in seeking to better understand and collaborate with a variety of other DBED boards and commissions and with the larger business community. In embracing this role, the Commission hopes to be able to better advocate for the business community and to better leverage existing resources and expertise. With both the ExeConnect rollout event and the November Commission meeting, the Commission gained insight on other State economic development organizations. November s meeting introduced the Commission to the work being done by three groups: 1) the newly established Task Force on Industrial Job Creation in Baltimore County, 2) the Maryland Port Administration, and 3) the Maryland Economic Development Corporation (MEDCO). By hearing from these groups, the Commission has a better idea of the activities being undertaken by each and at the same time these groups also learned that they have an ally that they can turn to to help move economic development conversations forward. The Commission will continue to hear from other groups in the year ahead, and will invite other relevant organizations to participate in activities and events. 8

11 2012 Action Plan The Commission has had a busy and successful 2011, and looks forward to the work in the year ahead. The Commission already has a number of activities planned for 2012 and the Commission s four work groups are busy exploring options to further the goals of the strategic plan. Regional Roundtable Discussions One major initiative planned for 2012 is a series of roundtable discussions that will bring in DBED s regional business development representatives to explain the needs and opportunities for economic development Statewide. These DBED representatives, located at satellite offices throughout the State, know the regional trends and economic landscape best and are a valuable resource for policy development and coordination with local businesses and economic development offices. This will provide Commission members with a better understanding of how to engage Maryland s diverse business sectors. Commission members will gain important insights into how to best preserve and expand the State s regional economic bases. Commission Meetings & Work Group Planning In January, the Commission will hold a roundtable discussion on the future of Maryland s transportation system and will discuss how the business community might become more involved in furthering beneficial outcomes. The Commission also has a number of other economic development boards and organizations scheduled to present to the Commission and engage in a discussion of how collaboration on mutual goals might be achieved. The Commission s work groups will also be developing actionable recommendations during the course of the year that will be submitted to the General Assembly and the O Malley Administration. Using a focused planning methodology and working through DBED s support staff, the work groups will design a practical strategic approach to develop workable recommendations and action items that will be designed to achieve the Commission s mission of creating jobs, saving jobs, and improving the conditions that support job creation. Conclusion Through initiatives such as Maryland Made Easy, the Central Business Licensing project, ExeConnect, and regional and topical roundtable discussions, the Commission believes it is wellequipped to further the goals outlined in the strategic plan. In continuing to proactively engage the business community and hold events that generate interest in the Commission s work, the Commission is setting a framework for collaboration and cooperation that is essential to informed program and policy development. We look forward to the hard work ahead and to continuing to ensure that Maryland remains a great place to do business. 9

12 Appendices Appendix A: MEDC Statute Appendix B: MEDC Strategic Plan Appendix C: ExeConnect Flyer 10

13 MARYLAND ECONOMIC DEVELOPMENT COMMISSION (MEDC) Maryland State Code, Economic Development Article, secs through Title 2, Subtitle 2. Maryland Economic Development Commission Definition Commission Created Composition of Commission Officers; Executive Committee Meetings, Voting, and Compensation Duties and Powers of Commission Reporting Requirements. **MEDC involvement required** Title 5, Subtitle 3. Maryland Economic Development Assistance Authority and Fund (MEDAAF) Eligible Industry Sectors.

14 MARYLAND ECONOMIC DEVELOPMENT COMMISSION Definition. In this subtitle, Commission means the Maryland Economic Development Commission Commission Created. (a) There is a Maryland Economic Development Commission in the Department. (b) The purpose of the Commission is to establish economic development policy in the State and oversee the Department s efforts to support the creation of, attract, and retain businesses and jobs Composition of Commission. (a) (1) (i) The Commission consists of not more than 25 voting members appointed by the Governor with the advice and consent of the Senate. (ii) The Secretary is a nonvoting ex officio member of the Commission. (2) The geographic representation of the Commission shall cover the entire State and shall include at least one representative from: (i) (ii) the upper Eastern Shore; the lower Eastern Shore; (iii) Calvert County, Charles County, or St. Mary s County; (iv) Allegany County or Garrett County; and (v) Carroll County, Frederick County, or Washington County. (3) When appointing Commission members, the Governor shall consider geographic and industry representation. (4) The members appointed shall reflect the racial and gender diversity of the population of the State. (b) The appointed members of the Commission shall have substantial interest or experience in business or knowledge of business and economic development. (c) The Commission and its members are subject to the Maryland Public Ethics Law. (d) (1) The term of an appointed member is 3 years. (2) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (3) A member appointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (4) The terms of the members are staggered as required by the terms provided for members of the Commission on October 1, [See 13 of Ch. 306, Acts of The terms of the appointed members serving on October 1, 2008, end as follows: (1) five on July 1, 2009; (2) six on July 1, 2010; and (3) six on July 1, 2011.] (5) A member may be removed by the Governor with or without cause.

15 Officers; Executive Committee. (a) The Governor shall designate a chair or co chairs from the voting members of the Commission. (b) The Commission may elect an executive committee from its members to exercise the powers and functions of the Commission between meetings of the Commission Meetings, Voting, and Compensation. (a) (1) The Commission shall meet as often as its duties require, but not less than quarterly. (2) The chair or co chairs shall designate a time and place for meetings of the Commission. (b) (c) A majority of the voting members of the Commission is a quorum. A voting member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to reimbursement in accordance with the Standard State Travel Regulations as provided in the State budget. (d) The Department shall provide staff support to the Commission Duties and Powers of Commission. (a) The Commission may: (1) adopt bylaws for the conduct of its business; (2) hire consultants; and (3) do anything necessary or convenient to carry out its powers and the purposes of this subtitle. (b) The Commission shall: (1) develop and update an economic development strategic plan for the State; (2) seek ideas and advice from each region of the State to develop the economic development strategic plan; (3) incorporate into the economic development strategic plan the Maryland Port Administration strategic plan developed for the Helen Delich Bentley Port of Baltimore; (4) recommend to the Governor the program and spending priorities needed to implement the economic development strategic plan; State; (5) review the allocation of financing incentives; (6) participate in marketing the State and encouraging new businesses to locate in the (7) seek contributions from the private sector to supplement economic development programs and financial incentives to business; and

16 (8) carry out other economic development activities that the Governor requests. (c) The Commission may spend money raised under subsection (b) of this section only in accordance with the State budget. (d) Departmental regulations that pertain to financing programs shall be approved by the Commission before adoption Reporting Requirements. (a) On or before January 15 of each year, the Commission shall report to the General Assembly, in accordance with of the State Government Article, on its activities during the previous year. (b) The report shall include a review of initiatives taken by the Commission and the Department to implement the economic development strategic plan.

17 MARYLAND ECONOMIC DEVEOPMENT ASSISTANCE AUTHORITY AND FUND (MEDAAF) Eligible Industry Sectors. (a) (1) After consulting with the Department and the Department of Labor, Licensing, and Regulation, each year the Maryland Economic Development Commission shall: (i) evaluate the potential employment and economic growth of Maryland s industry sectors; and (ii) recommend eligible industry sectors to the Authority. (2) Each year the Authority shall: (i) consider the recommendation of the Maryland Economic Development Commission; and (ii) from the Fund. establish a list of industry sectors that will be eligible for financial assistance (3) In determining whether an applicant is engaged in an eligible industry sector, the Department shall consider the definitions set forth in the North American Industry Classification System. (b) (1) For the purpose of providing financial assistance under this subtitle, the following are deemed to be in eligible industry sectors: (i) (ii) animal waste technology projects; aquaculture projects; (iii) arts and entertainment enterprises; (iv) arts and entertainment projects; (v) redevelopment of qualified brownfields sites; (vi) creation or expansion of child care facilities; (vii) projects in areas that are declared to be federal disaster areas within 1 year before the Department receives an application for financial assistance under this subtitle; and (viii) feasibility studies. (2) The requirements specifically imposed on significant strategic economic development opportunities and local economic development opportunities under this subtitle do not apply to the items listed in paragraph (1) of this subsection.

18 To succeed in the 21st century, state economies must be knowledge dependent, global, entrepreneurial, rooted in information technology and driven by innovation. 1 Introduction Over the past 18 months, the Maryland Economic Development Commission (MEDC) actively engaged the state s business community to outline a long-term economic development strategy focused on the core mission of creating jobs, saving jobs and improving the conditions that support job creation by businesses large and small by building on inherent strengths in innovation, science and discovery. Vision Maryland supports an economic development environment where knowledge is transformed into products, processes, systems and services; technology-creating and technologyusing companies are born and expand; all companies employ technology to improve productivity and profitability; and citizens thrive and build wealth. Principles The MEDC was guided by the following principles: Technology-driven economies bring benefits across all sectors and regions and connect new and traditional businesses. Robust private investment is a necessary and key ingredient to growth. Skillful execution is as important as soundness of strategy, and doesn t necessarily mean creating expensive new public programs. Meaningful collaboration between industries, academic institutions, government and investors is critical. True competition is global. Economic Development Strategies With input from 250+ business owners at four regional roundtables and a thorough analysis of key data, the Commission designed Discovery, Diversity & Opportunity: Maryland s Economic Development Plan based on four core strategies: I. Position Maryland for Growth. Accelerate efforts to sustain a knowledge-dependent, global, entrepreneurial economy. II. Build on Leading Drivers of Economic Growth. Continue investing in life sciences, information technology and federal and military-related economic activity III. Embrace Regional & Economic Diversity. Invest and transform agriculture, manufacturing and tourism. IV. Make it Easy to do Business in Maryland. Ensure transparency, predictability and automation.

19 Position Maryland for Growth Accelerate efforts to sustain a knowledge-dependent, innovation-based and technology-driven entrepreneurial economy. Human capital is the key driver of growth and innovation. People are not only the beneficiaries, but also the providers of the key inputs to the everchanging process of technology-based economic growth: making discoveries, creating companies, improving productivity and profitability, and creating attractive, high quality-of-life environments where people want to live. 2 Positioning the state for growth in an innovation-based economy includes seven building blocks: 1. Discovery & Innovation Sources Hold on to federal and military market share in R&D. Support excellence in and collaboration among research universities. Improve incentives for firms conducting commercial R&D. 2. Commercialization of Knowledge Reinvigorate Maryland s commercialization resources and invest in existing vehicles aligned with state and federal initiatives. Develop innovation clusters by integrating, crossfertilizing and accelerating commercialization at incubators and research parks and leveraging federal laboratory presence. Encourage small and mid-sized firms to expand into domestic and global markets and take advantage of broader networks of customers, suppliers and partners. Provide aggressive support to Maryland bidders on federal contracts. 3. Entrepreneurship Recruit and retain researchers and academics whose work generates significant business creation potential. Build a culture that celebrates entrepreneurship, understands failure and embeds promising start-ups in an ecosystem needed to grow from small to mid or larger. Continued on page 4 Build on Existing Strengths Invest in life sciences, information technology and federal and military-related economic activity. High performing companies (1%) generate roughly 40% of all new jobs in any given year and the fastest growing young firms account for less than 1% of all companies, yet generate 10% of new jobs each year. 3 Life Sciences & Cybersecurity Maryland is known for preeminence in life sciences and cybersecurity, two economic development priorities. While concentrated in the central corridor, these sectors are growing in every region. Each requires ongoing focus and investment in order to maintain primacy among growing ranks of competitors nationally and around the world. These custom strategies were outlined in BioMaryland 2020 and CyberMaryland and specific recommendations from those reports are included in the comprehensive plan. Military, Scientific & Technical Services Maryland holds a strong and growing competitive edge in the scientific and technical services sector that includes R&D, engineering, computer systems design and consulting services. Over one-quarter of the sales of companies that provide these services are made to the federal government. The burgeoning Fort Meade and Aberdeen areas are the most visible representations of the BRAC-related market. The special characteristics of these contractors markets and competition warrants focused attention. Emerging Sectors: Space, Earth and Green Technologies Space and climate change research in the State represents significant potential for commercialization and business formation. A second emerging area of growth opportunities includes research and development and commercialization of renewable energy technologies and generation, water and energy conservation and sustainable agriculture. 2

20 Embrace Regional and Economic Diversity Support innovation and investment in industries critical to specific regions such as agriculture, manufacturing and tourism. Economic benefit accrues to the locations where commercialization of the innovations generated by new knowledge takes place. This is the central challenge facing states in a global economy fueled by innovation. 4 State policy and investments need to be aligned with the specific needs of diverse regions. Technology and innovation can generate transformative results on the Eastern Shore or western Maryland to the same degree as in more populous areas. Stronger efforts to link Maryland s federal assets with its rural areas could result in greater competitiveness for landing federal facilities, increased private investment and R&D in emerging areas such as sustainable agriculture, biofuels and water quality. General Regional Diversity Ensure that local economic development concerns, priorities and plans are known to State officials and legislators and considered in strategic and legislative initiatives. Make meaningful connections among state innovation field staff and their local partners and specialist knowledge in other parts of the state. Give top priority to expansion of broadband in Maryland. Manufacturing Accelerate manufacturing partnerships that link high value-added small manufacturers across supply chains and encourage next generation manufacturing. Position Maryland to be a center of research, development, testing and engineering. Agriculture & Seafood Seize the opportunity for innovation linking agriculture with technology. Encourage agricultural diversity and increase the share of value-added products. Travel & Leisure Expand the reach of marketing efforts to enhance Maryland s perception. Make it Easy to Do Business in Maryland Through predictability, transparency and automation. Innovation depends on harvesting knowledge from a range of disciplines besides science and technology. Innovation flows from shifts in mindset that can generate new business models, recognize new opportunities and weave innovations through the fabric of society. It is as much about new ways of doing and seeing things as it is about the breakthrough idea. 5 The extent to which government gets in the way of business is inherently difficult to quantify, yet the topic is very real to the business community. Lack of certainty and clarity in policy and regulatory spheres hold back growth and innovation. The Commission concentrated on permitting and regulatory issues to make it easier to do business in the State. Technology can vastly improve coordination and introduce increased efficiencies. Agencies that are responsive and flexible play an equally critical role in providing an environment that encourages business growth and success. Instill a powerful culture of customer service in State and local agencies handling business permitting and regulatory reviews. Standardize and streamline State licensing and permit applications. Establish mechanisms that regularly coordinate complex reviews among relevant State and local entities. Liberalize criteria governing MBE businesses to reflect market realities and growth of mid-sized firms. Review rules that limit the ability of Maryland firms to do business with the State. 3

21 Innovation occurs at the intersection of invention and insight. It s about the application of invention the fusion of new developments and new approaches to solve problems. 6 Continued from page 2 4. Human Capital Create a workforce prepared for employment in growing sectors. Increase access to community colleges for 2-year programs and for re-tooling worker skills. 5. Financial Capital Create financing mechanisms that target high potential Maryland companies. Bring early-stage equity capital to start-up and very young companies. Protect and enhance the most effective State financing tools. 6. Physical Capital Provide robust broadband access to and utilization in every corner of state. Increase Maryland s energy generation and transmission capacity. 7. Quality of Life Enhance and promote Maryland s desirability as a place to live. Assure efficient car and transit mobility. Further Information Discovery, Diversity & Opportunity: Maryland s Economic Development Plan available at The full report includes background information, state economic profile and competitive standing, and detailed recommendations. It summarizes and incorporates the sector strategies of BioMaryland and CyberMaryland and highlights the economic analysis that led to including new focus sectors. The plan profiles traditional industries, incorporating existing state strategies, as well as the state s regions, summarizing various strategic plans, identifying common themes and recommending actions to support regional prosperity. Lastly, the plan summarizes issues raised by stakeholders and includes recommendations to help make doing business in the state easier and more profitable. Editors: Ursula Powidzki, DBED; Marsha Schachtel, Johns Hopkins University Research: Richard Clinch, University of Baltimore; Nancy McCrea, DBED Maryland Economic Development Commission Elias Zerhouni, Johns Hopkins Dawn Rich, American Electronics Steve Dubin, Martek Biosciences Corp. Timothy Adams, SA-Tech Richard Bernstein, LWRC International Susan Ganz, Lion Brothers Timothy Hodge, Jr., Miles & Stockbridge Kevin Johnson, Commercial Interiors Brit Kirwan, University System of Maryland Aris Mardirossian, Technology Patents Ricardo Martinez, Project Enhancement Corp. John McLaughlin, DAP Products Karen Myers, Wisp Resort Development Sagar Patal, GE Mechanical Systems Ronald Peterson, Johns Hopkins Hospital & Health System Robert Smelkinson, Smelkinson Sysco Food Services Harold Stinger, Stinger Ghaffarian Technologies Walter Tilley III, Tilley Investments Alan Wilson, McCormick & Company Ex-Officio Christian Johansson, DBED Harold Adams, RTKL Associates James C. Dinegar, Greater Washington Board of Trade Don Fry, Greater Baltimore Committee Kevin F. Kelly, Van Scoyoc Associates Kathy Snyder, Maryland Chamber of Commerce Tom Watkins, Human Genome Sciences Department of Business & Economic Development 401 E. Pratt Street, Baltimore, MD ChooseMD ChooseMaryland.org Martin O Malley, Governor Anthony G. Brown, Lt. Governor 1 Information Technology and Innovation Foundation and Kauffman Foundation, State New Economy Index 2 State Science and Technology Institute 3 Diane Stangler, Ewing Marion Kauffman Foundation, State Science and Technology Institute 5 John Kao, Innovation Nation (2007) 6 Sam Palmisano, Chairman & CEO, IBM 4

22 ExecConnect is an executive level open discussion about industry and economic issues, ideas, opinions, strategies, tactics and future trends. Listen to top executives from Maryland s fastest growing and innovative companies Learn about the State s unique business landscape and leading next generation industries Leverage business partnerships for economic growth and sustainability Sponsored by: Maryland Economic Development Commission (MEDC) & the Department of Business and Economic Development (DBED) Attendees: business and academic professionals and city, county and state public officials Agenda: Optional Meeting. The Maryland Economic Development Commission will host a regular bi-monthly meeting at the location. Company staff and special guests can listen and participate in Commission activities. Company Profile. The ExecConnect host will provide a company/industry overview including economic impact, future growth trends and recommendations on ways the State can assist them in meeting their mission objectives. Roundtable Discussion. Facilitated by the MEDC, host or special guest speaker, the designated topic/defining issue will be presented for an open discussion on ways to stimulate economic growth throughout the State. Note: New concepts/ ideas developed during the discussion will be incorporated in the MEDC strategic plan implementation process and posted on DBED s Business Pulse E-Newsletter For more information: To host an ExecConnect event or to attend contact Michelle D. Jackson at or mijackson@choosemaryland.org. Martin O Malley Governor