Jobs, jobs, jobs. That was supposed to be the focus of this past November’s elections, and though the legislature is being sidetracked by many other issues, from gun rights to abortion, there are three bills proposed that would have a direct impact on job creation. Those bills, LD 225, 439 and 842, all propose to have the state invest in research and development grants.
These grants fund the research for new, innovative technologies that grow into industries in Maine, creating well-paying white collar jobs that have a ripple effect on the entire economy. The money is doled out among private companies, universities and research hubs where people can focus on developing new ideas into money-making industries.
The Maine Technology Institute oversees the distribution of grant funds, through its Maine Technology Asset Fund. This fund has given companies seed grants that they must match and then pay back over time ”“ and MTI figures show that $12 of private investment is brought in for every $1 of state investment.
The bills now before the legislature are very similar: LD 225 proposes $50 million for R&D; LD 439 proposes $200 million over four years; and LD 842, sponsored by local Rep. Rob Hunt, D-Buxton, proposes $50 million plus $5 million for related infrastructure. We hope the legislature chooses to support one of these bills so that Maine can continue to be known as a place where new ideas are fostered to become revenue-generating industries.
The composites industry in Maine is one of the state’s R&D funding success stories, with the founding of the Orono Composite Wood Center in 1996, a center for technology development that has reshaped the boat building industry and led to improvements in public infrastructure was born.
In Sanford, Maine Manufacturing, which produces plastic products for the biotech industry, is making use of a grant to explore bioplastics that could be created from potato or wood waste.
Maine Manufacturing President William Emhiser said the grant gives his small, Maine-based company an “amazing market opportunity” to explore the next level of the plastics industry. Emhiser said his eventual goal is to switch the company over entirely to bioplastics, once the research confirms its viability, but will need help funding the initial R&D, from state, federal and private sources.
If the investment is made, it would change the dynamics of the industry and help the economy here by supporting potato farmers, he noted. We agree that this effort sounds like not only a great idea for reducing our dependence on oil-based products but also a way to boost the economy of Maine in particular. It’s a win-win for the business, its employees, Maine farmers, and the environment.
Some may say it is inappropriate for the state to invest money in start-up projects, but it seems clear that giving these types of efforts a kick start benefits the entire economy. The fund is run in such a way as to require accountability ”“ and it has a history of positive results that have created real, tangible jobs.
Success stories from the fund abound, with creation of jobs and products, from a composite tidal power turbine by Ocean Renewable Power Company to a new type of mircoelectrode for studying brain activity, created by FHC in Bowdoin. Along with the bioplastics efforts, other ongoing projects include creation of ethanol fuel from wood waste and a study on what whether the adhesive secreted by barnacles that cling to boats could be used for our own purposes.
When investors see that the state has committed funding, the projects draw private funds, too, because they know the proposal has been through a rigorous vetting process. Companies like Emhiser’s simply can’t afford to do large-scale R&D on their own. Maine Manufacturing, for example, already reinvests 7-8 percent of their profit toward research, he said, but needs state and federal support to take ideas all the way to production. Also notable is that federal monies ”“ and usually private investment ”“ don’t fund buildings, just research, so state grants also help create construction jobs that result in research facilities.
If Gov. Paul LePage is serious about jump-starting the economy and creating opportunities for Maine youth to stay in state, these R&D bills are the perfect opportunity. Fifty million is a small investment to support growth industries like biotech and composites that will bring career-type jobs, not minimum wage jobs, in R&D and manufacturing to our state. This is not the time to cut the funding for R&D and set Maine back in its progress.
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