[Editor’s Note: This commentary is written by Catherine S. Renault, former director of Maine’s Office of Innovation.]

Gov. Janet Mills
Gov. Janet Mills established the Economic Recovery Committee in mid-May

Last week, Gov. Janet Mills released a new economic plan aimed at plotting a recovery from the COVID crisis, written by a committee co-chaired by Laurie LaChance, a former state economist and current president of Thomas College in Waterville, and Tilson Technology CEO Josh Broder. Gov. Mills established the committee in mid-May, during the first surge of COVID-19, to provide insight into the economic impact of the pandemic and to develop strategies in response.

Among other things, Lachance is known for her criticism of Maine’s on-again, off-again approach to economic planning.

“Our history is littered with great programs and investments that were made, and we just peter out,” she told MSI’s own Whit Richardson in a Bangor Daily News article published in 2013. “We just let it die on the vine instead of staying the course.”

So, it is not surprising that many of the Economic Recovery Committee’s recommendations are familiar, having been made several times over the past twenty-five years, but never fully embraced or implemented by a succession of gubernatorial administrations and state legislatures.

The primary recommendations are to increase innovation and entrepreneurship through increased investment and to grow and attract a talented and trained workforce. This plan echoes the strategies laid out in the state strategic plan released late last year, calling for a $100 million annual investment in research and development, and advancement of “industry-led, public private initiatives” in key sectors.

What’s New

The plan does highlight one area that hasn’t been a priority in past economic development plans: A focus on expanding and cultivating the entrepreneurial ecosystem rather than just investing in entrepreneurs.

While this has been an impediment to Maine’s innovation economy for years, this is the most forceful statement of support for investment in this area, recognizing that a strong ecosystem will accelerate the success of Maine’s entrepreneurs.

Among the committee’s recommendations in this area are:

Elevate entrepreneurship at the executive level by including the “State of the Entrepreneurial Ecosystem” as part of the governor’s annual State of the State address and by highlighting the benefits to Maine people and communities throughout the state in public remarks whenever possible

Examine options for elevating entrepreneurship to the governor’s cabinet to coordinate relevant state agencies with the private and nonprofit sectors

Conduct a statewide review of the impact of existing rules and regulations on the creation of new businesses and eliminate barriers or revise laws as appropriate

Ensure DECD and DOL prioritize supporting entrepreneurs and new businesses

Examine how state contracting and procurement can support new and existing businesses and be more entrepreneur-friendly, including among underserved areas and populations

Support and strengthen Maine’s network of entrepreneurship ecosystem organizations, Maine Accelerates Growth (MxG) and the Roux Institute, and proactively engage leaders from communities underserved by traditional entrepreneurship resources.

Another new aspect is the holistic approach to the economy evidenced in this plan. Attacking the issues of lack of diversity, equity and inclusion as part of the approach to entrepreneurship and talent development demonstrates a deep understanding that all Mainers, new and old, have the capacity to contribute to Maine’s economic recovery and can be a source of economic growth and innovation. The plan calls for making Maine “more welcoming of immigrants, supportive of the success of entrepreneurs who are people of color, Native Americans, and women, and attractive to remote workers.” Further, the plan calls for a 10-year economic strategy for Diversity, Equity and Inclusion (DEI).

And, by adding access to affordable housing, early childhood education and broadband to the recommendations, the Economic Recovery Committee has acknowledged that these issues directly impact the ability of all Mainers to live and work in the economy that now faces us. The COVID crisis has brought home the importance of widespread high-speed internet, the challenges for workers when they do not have childcare and education options, and the tragic consequences of homelessness and evictions. While each of these issues has had its advocates in the past, this is a more forceful statement of the interdependence of the entire economy.

Of course, the proof is in the pudding, as they say. Whether or not the Legislature will be willing or able to fund these initiatives given the impending shortfalls in the state budget is unknown. Maybe this time Maine will follow through and not let another economic development plan “die on the vine.”

 

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