Presented to the Arkansas Executive

SummitWorkplace of the Future

April 19, 2006

Bring the best resources together to find optimal answers to compete in 21st Century Economy

Statewide Strategic Economic Development Plan

Cornerstones of knowledge, technology and entrepreneurship

Relevance Success Strategy Action DiscussionRelevance

Accelerate Arkansas Values In all we do, place the state of

Arkansas first Act highly collaborative; expect

this of others Encourage respectful

disagreement to arrive at best possible course of action

Are a non-political organization and will conduct ourselves accordingly

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Accelerate Arkansas Membership

Jerry Adams, Acxiom, Conway John Ahlen, ASTA, Little Rock Susan Allen, ASU, Jonesboro Phil Baldwin, Southern Dev. Bancorp,

Arkadelphia Jim Blakley, Ret. ADED, Hot Springs Jeff Collins, U of A Walton College,

Fayetteville Jerry Damerow, UAMS BioVentures, Little

Rock Danny Ferguson, SW Energy, Fayetteville Scott Ferguson, Former AR Rep, West

Memphis Len Fry, ASU, Jonesboro Watt Gregory, Kutak Rock, Little Rock Charles Hathaway, UALR, Little Rock James K. Hendren, Task Force Knowledge-

based Jobs, Little Rock Carmie Henry Elect. Coop. of Arkansas,

Little Rock Leslie Lane, Arkansas Capital, Little Rock Steve Lease, Ar Assoc Two Yr Colleges, Fort

Smith John Lewis, Team Lewis, Fayetteville Uvalde Lindsey, Northwest Ark. Council,

Fayetteville Emon Mahony, Mahony Corp, El Dorado

Chris Masingill, Bebee for Governor, Pine Bluff

Mike Maulden, Entergy, Little Rock Tim McFarland, Arkansas Capital,

Fayetteville Alan McVey, ADED, Little Rock Elise Mitchell, Mitchell

Communications, Fayetteville Ted Moskal, Lawrence County C of C,

Walnut Ridge Tim O’Brien, UAMS BioVentures, Little

Rock Stacy Pittman, Cranford Johnson,

Little Rock Mark Saviers, Sage Ptrs., Little Rock Sam Sicard, First National Bank, Fort

Smith Bill Thomas, Cross County Econ. Dev.,

Wynne Henry Torres, Rural Sourcing,

Jonesboro Ashvin Vibhakar, University of

Arkansas at Little Rock Sam Walls, Arkansas Capital Corp.,

Little Rock Dan Worrell, U of A Walton College,

Fayetteville

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Statewide membership

35 members and increasing

Public, private, and academic partnership

Private sector majority

Relevance

Focus on Arkansas Per Capita Personal Income

Arkansas Per Capita Personal Income as a Percentage of the National Average: 1929-2001

35.0%

40.0%

45.0%

50.0%

55.0%60.0%

65.0%

70.0%

75.0%

80.0%

1929

1933

1937

1941

1945

1949

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

Source: U.S. Bureau of Economic Analysis

Strategy / Goal: New and Better Jobs through knowledge-based industries driving per capita income to U.S. average by 2020

Broaden the Base – no tax increasesAdded State Tax Revenues: >$2

Billion

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Milken - CBER RESEARCH

SEPTEMBER 2004

ACCELERATE ARKANSAS

RELEASES ITS MAJOR

RESEARCH REPORT

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Overview of the Knowledge Economy High Tech – Tier One – 25 industries

-U.S. employment 6.4% -AR. employment 1.7%

Knowledge-based – Tier Two – 65 industries

-U.S. employment 16% -AR employment 8.0%

22.4% 9.7%

Where U.S. Job Growth Occurs!

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THE RISK OF INACTION

20202018

20162014

20122010

20082006

20042002

20001998

19961994

19921990

100

90

80

70

60

50

40

Percent Share

Source: Milken Institute

Arkansas-Percent of National Income Per CapitaBaseline vs. Alternative, 1990-2020

Arkansas (Baseline)Arkansas (Alternative)

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2005 LEGISLATIVE SESSION

10 Point Legislative Agenda Act 2092 Increased Seed Capital and Research Matching Funds Act 1232 Improved the competitiveness of various economic development laws

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Accelerate Arkansas Core Strategies Support job creating research Develop risk capital available for all stages of

the business cycle and especially in the funding gap

Encourage entrepreneurship and accelerated new enterprise development

Increase the education of all Arkansans and especially the achievement in science, technology, engineering and mathematics (STEM) education

Sustain Successful Existing Industry Through Advancing Technology and Competitiveness

Relevance Success Strategy Action DiscussionStrategy

Strategic Plan Support

Winthrop Rockefeller Foundation

Arkansas Department of Economic Development

Arkansas Science & Technology Authority

ACXIOM

AT&T

Arkansas Capital

Entergy

First National Bank – Fort Smith

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Strategic Planning

Four Strategic Plan Iterations (Using UALR / ADED Facilitation Technology and People)

– Iteration #1 – Strategic Planning Steering Committee– Iteration #2 – Accelerate Arkansas Full Membership– Iteration #3 – Six Regional Meetings across Arkansas– Iteration #4 – Content Experts

Data Collection – UALR IEA: National Comparisons

and Rural Best Practices– UA CBER: Scorecard

Relevance Success Strategy Action DiscussionStrategy

Strategic Planning ResultsJob-Creating Research

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1 Seek a greater portion of federal funding to come to Arkansas for research.

2 Create a pool of funds for seed research funding for aspiring researchers.

3 Encourage faculty/staff to collaborate in the development of commercially viable ideas and to partner with the business community.

4 Develop best practices and reduce impediments for how higher education and industry work together and reduce impediments to university-industry collaborations.

5 Invest in research, especially matching and equipment grants.

Strategic Planning ResultsEntrepreneurship

Development

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1 Provide tax incentives for entrepreneurs.

2 Promote, coordinate, inspire, and grow commercialization (entrepreneurship).

3 Mentor and support entrepreneurs by identifying and supporting resources/infrastructure to reduce the need for capital investment.

4 Develop processes for identifying high performers and keeping them in the state.

Strategic Planning ResultsRisk Capital

Relevance Success Strategy Action DiscussionStrategy

1 Create incentives for private investors to invest in early stage knowledge-based companies.

2 Link investors to new businesses.

3 Create a pool of funds that could be used for capital investments or matches consistent with other core strategies involving education, research, and entrepreneurship.

4 Improve availability of capital for early stage firms by linking deals to private inventors.

Strategic Planning ResultsSTEM Education

Relevance Success Strategy Action DiscussionStrategy

1K-12 Begin STEM education in early grades.

2K12 Include science, technology, pre-engineering, and math content in curriculum frameworks for all appropriate grades.

3K12 Create accelerated learning programs for students with an aptitude for STEM.

1HE Create scholarships for science, technology, and engineering that are hard to get, but easy to keep.

2HE Enhance teacher-training at colleges and universities to improve overall subject matter mastery and teaching techniques.

3HE Connect the K-12 STEM curriculum to the higher education curriculum.

Strategic Planning ResultsSuccessful Existing Industry

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1 Create economic incentives for existing knowledge based companies to expand within the state through technology.

2 Develop incentives for universities to do targeted research for existing/emerging industries.

3 Improve and enhance K-16 education to keep up with evolving technology.

4 Develop statewide R&D networks and promote university-industry collaborations.

5 Create competitive research and development incentives to stimulate R&D investments by existing industry.

6 Support technological training for emerging/existing industry to support high-paying jobs.

IN ORDER TO CATCH UP WE MUST RUN FASTER

Other States are not standing still Oklahoma – plans for $1 billion research endowment fund We are not competing with each other…we are competing in a global economy

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Stakeholders to Mobilize

EducatorsResearchersInvestorsIndustry LeadersEntrepreneursCommunities

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Resources

Public policy and investments are important enablers, but . . . The Accelerate Arkansas agenda also involves

– addressing conflicting commitments,– changing priorities, and – building new knowledge.

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Use the Plan

The value of the Accelerate Arkansas strategic plan is in its being used to

help inform decisions by stakeholders about the allocation of

scarce resources among many worthy, competing efforts.

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Contact Information

For continuing information, join the moderated email announcement list.

Send an email to:– AccelerateArkansas-subscribe@yahoogroups.co

m

By registering at yahoogroups.com, you can view archives and documents loaded there.

On behalf of Accelerate Arkansas, thank you for your attention and participation.

Relevance Success Strategy Action DiscussionDiscussion

Discussion

Let us hear your questions, ideas, and

suggestions.