Washington State YOUR REPRESENTATIVES. Washington State Governor Jay Inslee.
Inslee Building a New Economy for Washington
Transcript of Inslee Building a New Economy for Washington
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JayInsleeApproachtoJobCreation
Weareinacompetitionwithstatesandcountriesthatwanttotakethejobswehaveandthejobswe
want.Tocompete,wemustnurturelocalindustries,prepareourchildrenandworkersfora21stCentury
economy,changethewaygovernmentagenciesdobusinesswiththeirboss,thetaxpayer,andpartner
withhealthcareproviderstovaluequalityoverquantityandlessenthecostburdenonworkersand
employers.
ToBuildaWorkingWashingtonandrebuildthemiddleclass,weneedtotakecontrolofourown
destiny.Wecannotrelyonaseriesofblueribboncommissionsandone-offpolicyinitiativeswithouta
unifyingstrategytocreatelong-termprosperity.Aspartofanongoingjobsagenda,JayInsleewillbe
announcingasetofspecificpolicyproposalsfocusedonthefollowing:
● BuildingaNewEconomyforWashington
● EducationandWorkforceDevelopment
● LoweringHealthCareCosts
● ReformingGovernment
GuidingPrinciples
RebuildtheMiddleClass–Effortsmusttargetmiddle-classjobcreationandeconomicdevelopmentthat
ensuressustainedandeconomy-widejobcreation.
Wake-UpCall–Weareinaninternationalrace,fallingbehindinsomerespects,andthemiddleclassis
bearingthebruntofthisimpact.Wecannotcontinuetorelyongoodlucktogrowjobs.
LocalandfromtheGroundUp–Jobswillcomefromtheprivatesector,workingwithlocalleadersand
industry.Solutionswillbefromthegroundup,nottopdown.Opportunitiesinoneareaofthestatemayrequireaverydifferentapproachfromotherareasofthestate;wemustharnesstheuniquestrengths
oflocalcommunities.Thereisno“one-size-fits-all”solution.
WashingtonValues–Wewillachievelong-termeconomicgrowthbyprotectingourcorevalues,
fosteringinnovation,protectingourenvironment,deliveringqualityeducation,andmeeting
infrastructureneeds.Wewillnotgettherebyunderminingthesevaluesandscapegoatingworkersas
hasbeendoneinotherstates.
InvestinTodayandTomorrow–Economicdevelopmentandjob-creationpoliciesmustinclude
measurestargetingnear-termjobcreation,medium-termdevelopment,andlong-termgrowth.ThisincludesinfrastructureprojectsthatputWashingtonianstoworkimmediately,policiesthatnurturekey
industries,andinvestmentsineducationforsustainedgrowth.
OngoingReforms–MakeongoingsystemicchangestothewaythestateandGovernor’sofficefacilitate
jobcreation.Bythemselves,blueribboncommissionsandreactionaryresponsestothelatestcrises
oftenfailtoachieveongoingresultsabsentsystemsintheGovernor’sofficetodriveconstantchange.
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NoExcusesfromtheTop–TheGovernorneedstobeheldaccountableforsuccessandfailuresof
facilitatingjobcreation.Wemustmakegovernmentmoreefficientandeffective,activatingallagencies
toalignpoliciesandremovebarrierstojobcreation.
BuildingaNewEconomyforWashington
JayInslee’spoliciesaredesignedtogetWashingtonStateinthegameof21stCenturyjobcreation,
expansion,retention,andbusinessrecruitmentbyimprovingthebusinessenvironmentandtargetingthoseindustriesuponwhichthefutureforWashingtonState’seconomyhinges.
Theworldismorecompetitivetodaythaninanyothertimeinhumanhistory.Wemustadoptdirected
policiestonurturethoseindustriesinwhichWashingtonStatehasaneconomicedge—aninherent
advantagethatwecanrelyupontogrowmorejobs.Thosetargetedindustriesare:LifeSciences,
Aerospace,MilitaryBases,CleanEnergyTechnology,Agriculture,andInformationTechnology.Itwas
oncecommonlysaid,“AsgoesBoeing,sogoesWashington’seconomy.”Wenowknowthatasgoes
thesesixindustries,sogoesWashington’seconomy.
Thisjobcreationapproachcreatesmiddle-classjobsinthetargetedindustriesaswellasmultiplier
middle-classjobsinancillaryindustries—fromconstructionandsalestosupermarketsandrestaurants.
Wealsomustfosterthegrowthofsmallbusinessesandhelpthemprosperinaglobaleconomy,while
givingworkersthetoolstheyneedtothriveinarapidlyevolvingeconomy.
Weneedagovernorwhoacceptsnoexcusesingettingthejobdone,andwhocaninstituteasystemic
plan—ongoing,coordinated,anddynamic—toensurethatwearealwaysevaluatingour
competitiveness,makingadjustments,andidentifyingnewideas.Thisalsorequiresustotakeacritical
lookatalltaxincentivesanloopholes,ensuringallthatareonthebooksareprovenmethodsofcreating
jobs.
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Chapter1:LayingtheGroundwork
BuildingaWorkingWashingtonstartswithrebuildingthemiddleclass,anditisthejobofstate
governmenttoadoptsmartpoliciesandregulationsthatfostertheretentionandcreationofjobs.These
policiesincludemaintainingahighqualityoflifebyprovidingthebestpubliceducation,protectingour
environment,makingnecessaryinvestmentsininfrastructure,adoptinghigh-qualityandlow-costhealth
caredelivery,andprovidingefficientgovernmentservicesandreliableandexpeditiouspermitting.
Wealsoneedtorestructureouroftenadhocjobcreationandeconomicdevelopmentcapabilitiesto
operateinamoreconsistent,systemic,andstrategicmanner.Weneedtoreplacereactionwith
proactivity.
ReformourEconomicDevelopmentCapabilities
Wecancreateeconomicdevelopmentandcompetitivenesscapabilitiesthatallowustocompeteina
21stCenturyeconomyandhelpfacilitateprivate-sectorjobcreation.Fortoolong,oureconomic
developmenteffortshavelurchedinfitsandstarts,respondingtothelatestcriseswithoutadequately
addressingunderlyingproblems.
Pastattemptstoreformthestate’seconomicdevelopmentstructureshavefailedinmanyrespects.
BoththeDepartmentofCommerceanditspredecessorhavenotbeenprovidedtheneededfocuson
keyindustries;havebeenmixedwithunrelatedgovernmentagencies;havefailedtoincorporatea
systemtocontinuouslyevaluateandimproveourcompetitiveness;andhavebeeninadequately
empoweredtobreakthroughagencysilostostreamlineregulationsandpermittingrules.
Despiteitsname,onlyasmallfractionofthestaffandfundingattheDepartmentofCommerceare
dedicatedtoeconomicdevelopment.Economicdevelopmentandtradeprogramsareprimarilyfunded
inthesamebudgetthatpaysforvitalsafetynetprograms,suchaschildren’shealthinsuranceand
housingfordisabledWashingtonians.Thiscompetitionforfundsandyearsofbudgetcutshasleftonlya
smallgroupofemployeesandcontractorsavailabletohelpfacilitateprivatesectorjobcreation.
Atthesametime,businessrecruitmentbyourstategovernmentislargelyutilizedonlywhen
opportunities“arise,”whereasstateslikePennsylvania,SouthCarolina,Texas,andDelawarehaveseen
successfromaggressivecompany-recruitmentefforts.Whenitcomestomarketingourstatewehavea
greatstorytotell–ahighqualityoflife,beautifulenvironment,andahighlytrainedworkforce.
● EstablishanewOfficeofEconomicCompetitivenessandDevelopmentwithinthegovernor’s
officetoprovideeconomicdevelopmentandtradeexecutionandpolicydevelopment.This
smallorganizationwillbeleadbythenewly-created,acabinet-levelpositionwhoisdirectlyaccountabletothegovernor.
Elevatingtheseactivitieswithingovernmentwillenablethisofficetoworksmoothlyacrossmultiple
agenciesandlevelsofgovernmentbecausetheyarenotconnectedtoanexistingdepartment.Making
theDirectoracabinet-levelpositionandlocatingitintheOfficeofFinancialManagementwillgivethe
groupthemantleoftheGovernor,whichwilladdcredibilitywhenworkingwithinboththeprivateand
publicsectors.Finally,removingthesefunctionsfromtheDepartmentofCommercewillleavebehind
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anagencywithcommunity,housingandinfrastructureprograms.Legislationpassedin2009expressed
thestateLegislature’sinterestincreatingsuchanagency.1
ResponsibilitiesoftheOfficeofEconomicCompetitivenessandDevelopment:
● Provideadirectlinkbetweenindustrieskeytoourfutureprosperity,theGovernor,andother
partsofstateandlocalgovernmentthroughnewlycreatedsectorleads.
● Executestate-levelbusinessrecruitment,retentionandexpansionopportunities,including
targetingsuppliersofouranchorcompaniesandindustriestotoutthebenefitsofco-location
andoperatinginourvigorousindustryclusters.
● EstablishanAmbassadorProgrammadeupofbusinessrecruitmentteamsintargeted
industriestohelprecruit,retainandexpandcompanies.Teamswillincludethegovernor,state
agencies,membersofthebusinesscommunity,laborrepresentativesandwhereappropriate,
spousesandcommunitymemberssuchaseducationprofessionalswhomayhelpinfluence
relocationdecisions.
● Inducecollaborationandcooperationamongandbetweenstateagencieswhenconsidering
sitelocation,statepermitrequirements,andregulatorybarriers.
● Consolidateeconomicdevelopmentagencyfunctionsandcreateasinglepoint-of-contactandone-stopshopforindustryengagement.
● Workwithstate’sAssociateDevelopmentOrganizationstosynchronizeandcollaborate
activities.
● ProvidetradeassistancetoWashingtoncompanies,coordinationoftrademissionsand
internationalleadgeneration.
● Marketthestatedomesticallyandinternationallyasagreatplacetovisitanddobusiness,
usingwebsites,socialmedia,tradeshowpresence,andcollateralmaterial.
● Coordinatethestate’sjobcreationstrategies,suchasourInnovationPartnershipZones,and
CommunityEmpowermentZones.
ImproveP-12,HigherEducation,andWorkforceTrainingSystemstoProvideOurYouthwith
OpportunityandtoMeetEmployerNeeds
Itisimpossibletooverstatetheintegralrolethateducationplaysinshort-andlong-termjobcreation.In
thecomingweeks,Jaywillbeproposingamorecomprehensiveandspecificplanonreformingand
improvingourstate’seducationsystemtomeetourstate’sfutureworkforceneeds.Forthepurposesof
thisdocument,itisimportanttonotethatawell-educatedandhighly-trainedworkforcefacilitates
companygrowthinindustriesacrosstheboard.Asimportantly,ahigh-qualitypubliceducationsystemis
essentialtopreparingouryouthfortomorrow’sjobs,andisaleadingfactorinourabilitytoattractand
retainnewbusinessesandeducated,entrepreneurialtalenttocontributetoourstateeconomy.Nobody
wantstomoveacrossthecountrytoputtheirchildreninsub-parschools.WashingtonStateranksamongthetop10statesfortechnologyworkforce,buthasfailedtoprovidethe
educationalopportunitiesourcitizensneedtoparticipateintheirownstate’seconomy.Werank42ndin
per-capitaspendingineducation.2Lessthanhalfofoureighthgradestudentsareproficientinmath3and
1http://www.governor.wa.gov/news/news-view.asp?pressRelease=1355&newsType=1
2http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx
2http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx
3 http://nces.ed.gov/nationsreportcard/pdf/main2011/2012458.pdf
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science.4Inthe2010-2011schoolyear,only76%ofourstudentsgraduatedhighschoolontime.5We
rank37thinBachelor’sdegreeproductionpercapita,6andwearethebiggestimporterofindividuals
withBachelor’sdegreesorhigheronaper-capitabasis.7Inshort,weareunderfundingourschools,our
schoolsareunderperformingforourchildren,andourfour-yearcollegesanduniversitieshave
insufficientsupporttomeettheneedsofstudentsandemployers.
Inordertocompeteinthe21stCentury,wemustofferWashington’sstudentsastrongfoundationatthe
P-12level,andourcommitmenttodevelopingahighlyskilled,competitiveworkforcecannotendaftergraduation.InprovidingasolidbackgroundinP-12Science,Technology,Engineering,andMathematics
(STEM)Education,weprepareourkidstoexcelinburgeoningfieldswithrapidlyexpandingworkforces—
fieldslikeInformationTechnology,CleanEnergy,andtheLifeSciences–andempowerthemtobuildand
growthenextgenerationofcompaniesandindustriesthatwillfueleconomicgrowthandprosperityin
ourstate.WemustfollowastrongP-12foundationwithapprenticeshipsandtechnicaleducation
directedtowardproducinganexcellentnext-generationworkforce,andwithdramaticallyincreased
Bachelor’scapacityinkeyfields.
● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversitiessothataswe
restoreourstate’scommitmenttohighereducation,weexpandstudentaccesstocrucialfields
likecomputerscience,engineering,andbiotechnology.● ConnectP-12studentswithindustryleadersandworkerstointroduceandinspiretheminto
realworldscienceandtechnologycareers.
● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhighereducation
–buildingpartnershipsincurriculaandpost-graduaterequirements.
● Strengthenexistingcertificationandapprenticeshipprogramstoincreasetheproductionof
skilledworkers,withanemphasisonservingnewhighschoolgraduatesandmilitaryveterans.
InvestinandSupportWashington’sWorkers
Washington’sworkersareourgreatestasset.GivingWashingtoniansmoretoolstoimprovetheir
knowledgebaseandtheirskillsetshelpsthemachievetheirdreamswhilealsopoweringoureconomy.
Awell-trainedandwell-educatedworkforcehelpscreateanenvironmentthatfeedsoninnovationand
competition.Thereisnogreaterinvestmentthestatecanmakethaninitscitizens,andthestatehasan
importantroletoplayintheirempowerment.
● Allowworkerstocreatealifelonglearningaccountwithmatchedsupportfromtheir
employersinordertosaveforfutureretrainingneeds.
● Ensurethattaxincentivesandloopholesdesignedtocreatejobsarebenefitingworkers.All
taxincentivesandloopholesshouldonlybeextendedbydemonstratingtheirjobcreation
impacts.
Increasethespeedofourcommercebygettingproduceandgoodstomoremarketsfasterthrough
freightmobilityimprovements.
4 http://nces.ed.gov/nationsreportcard/pdf/main2009/2011451.pdf
5http://reportcard.ospi.k12.wa.us/summary.aspx?year=2010-11
6http://seattletimes.nwsource.com/html/localnews/2011764312_bellevuecollege03m.html
7http://lazowska.cs.washington.edu/STEM.pdf
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Wemustprioritizetransportationprojectsthatimprovecommerceandcreatejobsbyfindingfunding
solutionsforneededrailandshippingprojects.Wecan’tallowdelaysinthedeliveryofourstate’s
productsandproduce,whetherit’sapplestothelocalfarmers’marketorairplanestomarketsacross
theocean.
● Prioritizeinfrastructureimprovementsandfreightmobilityprojectsthatexpeditecommerce
andtradethroughoutthestate,throughourportsandbeyond,overthelong-term.
● Streamlineregulatoryprocessestoreducetimedelaysinpermittingsignificantinfrastructural
upgrades
LowerthecostofdoingbusinessinWashingtonbybendingthehealthcarecostcurve
Anyeconomicdevelopmentplanwouldbeincompletewithoutaddressingoneofouremployers’top
concerns:therisingcostofhealthcareandcoveragefortheiremployees.Employersdon’twanttohave
tochoosebetweenlayingworkersoffandeliminatinghealthbenefits.FortoomanyWashington
businesses,healthcareinflationisforcingthatdecision.
Weneedtoimprovethequalityandcostefficiencyofourhealthcaresystem.Byfocusingonthreepillarsofhealthcarereform:prevention,evidence-basedmedicine,andinnovation,Washingtoncan
changethehealthcarestatusquoandpreservethewellnessofitscitizens.
KingCountyhasshownhowapreventative-basedmodelsavedthem$61million8—expandingthisidea
totheentirestatecouldresultinsavingsofbetween$300-$455million.Evidence-basedcarewillhelp
ensureourdollarsarebeingspentonthetreatmentsandcaremostproventowork.Finally,innovation
ateverystageofcare,fromcutting-edgesciencetopatient-centeredpaymentmethods,isvitalto
sustainingourhealthcaresystem.
Aftergatheringinputfromdoctors,physicians,andotherhealthcareprofessionalsacrossthestate,wemustchartanewvisionforourhealthcaresystemthatwillbuilduponthebestpracticesadoptedby
businessesandmunicipalitiesthathavesuccessfullyreinedincostsandimprovedoutcomesforpatients
andtheircareproviders.Tostart,wemust:
● Rewardhigh-qualityandefficientcarethroughimprovedcoordination.
● Fundamentallychangethe“fee-for-service”modelbyaligningpaymentincentiveswiththe
kindofcarewewantandthekindofqualityoutcomesWashingtoniansexpect.
● Fosterasenseofcollaborationamongproviders,tobreakdownthesilosthatkeepproviders
frommoreeffectivelycollaboratingandintegrating.TheGovernorcanplayacentralrolein
conveningstakeholdersinthesystemtoimprovepatientcare.
● UseinnovationsinMedicaidandthepurchasingpowerofthestatetosetanexampleofthekindofcollaborationwe’dexpecttoseeinWashington.
● Reducemedicalerrors.
● Supportarobusthealthcareexchangeatthestatelevel.
8http://seattletimes.nwsource.com/html/localnews/2016323871_countybudget27m.html
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Chapter2:FocusonSmallBusinesses
Oursmallbusinesses,companiesof50peopleorless,employabout41%ofWashington’sworkforce9.
Theysitattheforefrontofeconomiccyclesandareoftenthehardesthitduringeconomicdownturns.
Theyarealsokeytopullingusintooureconomicrecoveryandwerethefoundationthatpulledusoutof
ourlastrecession.
Targetingthesixindustryclustersthatwillmostlikelydictateourprosperity–aerospace,lifesciences,agriculture,military,informationtechnology,andcleantechnology–willincludemanysmallbusinesses
employingthousandsofpeople.Inaddition,strongjobcreationintheseindustrieswillsupport
thousandsofsmallbusinessesfrommaterialsuppliers,todrycleaners,torestaurants.
Manyofthepoliciesoutlinedhere–fromworkforcetraininginRentontoirrigationprojectsinYakima-
willimpactoursmallbusinesses,eitherdirectlyorindirectly.Investmentsbythestateinourworkforce
andinourinfrastructure,aswellasprocurementpreferencesandtimelyandpredictableregulatory
processallbenefitourlocalbusinesses.
Providetaxreliefforsmallbusinesses
ToharnessthepowerofsmallbusinessestoBuildaWorkingWashington,wecanbetteralignourtax
policiesinamannerthatworksforthesejobcreators.Thefollowingtaxincentivesshouldbeenactedin
amannertoencouragejobcreation,whilepreventingoverlapand“doubledipping.”Further,eachtax
incentiveshouldbefinite,narrowinscope,andsubjecttoreviewforjobcreationperformance.
● EstablishaJobCreationTaxCredit,givingaB&Otaxcreditforsmallbusinessesaddingworkers
totheirpayroll.Creditshouldbeincreasedwiththewagespaid,andtopoutat$4,000for
everyjobcreatedandtheprogramwillbecappedat$8million.
● Encouragesmallstart-upbusinessesinhigh-growth,andoftenhigh-capitalindustrieslike
biotechnology,biomedicine,cleanenergytechnologyandinformationtechnologybyproviding
B&Otaxreliefforthefirstthreeyearsofthecompany’sexistence.● Encouragesmallstart-upbusinessesinhigh-capitalindustriesbyallowingpre-revenue
companies,withinappropriatelimits,accrueR&Dcreditsforresale.
Makegovernmentworkforsmallbusinesses
Interactionwithgovernmentshouldbeaseasy,predictable,andtimelyaspossible.Stategovernment
needstoremovebarrierstoworkingwiththestatesoourbusinessescanfocusonsuccess.Whenit
comestosmallbusinesses,Washingtonranksamongthetopwithitshighnumberofstartups.10Buttoo
often,theseshopsclosetheirdoorsforgoodwithintheirfirstfewyears.Runningasmallbusinesscanbe
adauntingtask,withobstaclesseeminglyateveryturn.Navigatingoverlycomplexgovernmentbureaucraciesshouldn’tbeoneofthem.Thisputsdollarsbackintothepocketsofsmallbusinessowners
andallowsthemtoreinvestintheircompaniesandhireWashingtonians.Governmentcanbeapartner
inthesuccessofabusiness,notahindrancetoit.
9http://www.washingtonpolicy.org/publications/facts/snapshot-small-businesses-washington
10http://money.usnews.com/money/business-economy/small-business/articles/2009/01/06/the-7-best-states-to-start-a-
business
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● Investinourregionalprocurementtechnicalassistancecenters(PTACs).PTACsareakintothe
economicdevelopmentcouncilsoftheprivatesector,providingthetechnicalassistanceand
know-howtosmallbusinessespursuingUSDepartmentofDefensecontractingwork.
● Expandthestate’sonline,open-bidprocurementprocesstoallowsmallbusinessestocompete
forstatecontracts,increasecompetitionforstatepurchases,andallowmembersofthepublic
toreviewopenandcurrentbiddingandcontracts.
● ExpandLeanManufacturingtechniquesinallstateagenciestoempowerstateemployeesto
improveoperations,providemorecertaintyandtimelinessinregulatorydecisions,improve
customerservice,anddelivermoreserviceforeachtaxpayerdollar.
Improveworkforcetraining
Everysuccessfulhomegrownbusinessinourstateoncestartedoutasaone-ortwo-personoperation.
First,ittakesanidea.Thenittakestheknow-howtogetitofftheground.Andthatknow-howcomes
fromatrainedandeducatedworkforce.Ourstatemustcontinueconnectingoursmallbusinesseswith
theworkerstheyneedbytrainingthoseenteringtheworkforcewithappliedskillsets,andretraining
thosewhoseekoutnewskillsandcareerpaths.
● Developaprogramtorapidlytrainworkers,similartoprogramsinGeorgiaandNorthCarolina,
withaskillsetspecifictoabusinessorindustry’sneeds,workinginconjunctionwithexisting
assetsatourregionalworkforcedevelopmentcouncils.Thiswillbeaservicewecanprovide
businessesandserveasarecruitmentandretentiontool.
● Strengthenthebondsbetweenourcommunityandtechnicalcollegesandouremployers,
throughappliedcurriculainhigh-demandfieldsdevelopedwithemployer-inputandtechnical
assistance.
● Increaseexistingcertificationandapprenticeshipprogramstoincreaseproductionofskilled
workers,withanemphasisonservingnewhighschoolgraduatesandmilitaryveterans.● Expandthesuccessfulsmallfarminternshipprogramfromoneregiontotheentirestate,
allowingopportunitiesforeducationandtrainingtoyoungfarmers,andthefarmassistance
neededontoday’sfarms.
Expandexportopportunities
WashingtonStateisthecloseststateinthecontinentalUStothefastgrowingeconomiesofAsia,yet
currentlylessthanfivepercentofallWashingtoncompaniesexport.11Byaggressivelytargetingthese
marketsforWashingtonproducts,wecanhelpinsulateourstate’seconomyfromtherecessionarycycle
ofdomesticmarkets.
● Providesmall-andmedium-sizedbusinessesmarketinformation,technicalsupport,andaccess
financialassistancethatisavailable.
● EmbracePresidentObama’sGlobalExportInitiativeandpartnerwiththefederalgovernment
togivemoresmallandmediumsizedWashingtoncompaniesaccesstoglobalopportunities
andmarkets.
11
http://www.governor.wa.gov/news/news-view.asp?pressRelease=1517&newsType=1
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Chapter3:LifeSciences
Continuedgrowthandrevolutioninthelifesciencesmeetsgrowinghealthneedsandprovidesnew
opportunitiesforinnovation.Lifesciences,includingbiotechnology,biomedicaldevices,globalhealth,
andpersonalizedmedicineisanindustryinwhichtheUnitedStatesremainstheunquestionedglobal
leader.WeneedtoensurethatWashingtonStateisoneofthetoplifesciencescentersintheworld.
Thesebusinessesandnon-profitscurrentlyaccountforover22,000directjobsinWashingtonState,andmaycontributetoanother55,000indirectjobs,accordingtotheCityofBothellandtheWashington
ResearchCouncil.12Continuedsuccesswillbringthousandsofmoredirectandindirectjobstoourstate.
WhilemanyinnovatorscallWashingtonhome,otherstatesmoreaggressivelycourtthisgrowth
industry.Earlierthismontharespectedbiotechtradepublicationcarriedthefollowingheadline:“New
BiotechClustersintheU.S.areScramblingtoChallengeEstablishedRegions.13”Thearticlefeatured
severalotherregionsengagedinpolicyinitiativesaimedatovertakingestablishedclusters–including
Seattle.WashingtonStatecannotrelyoncontinuedadhocdevelopmenttoremaincompetitive—we
needaconcertedandintentionalpolicyfocustohelpfacilitatejobcreation.
JayInsleehasworkedforyearstohelpthelifesciencesindustrysucceedindevelopinginnovativebiologicsandcreatingjobs.Jaystooduptopartypoliticsbypassingabipartisanbilltogetmore
affordablegenericmedicationstoconsumerswhileensuringthatthelifesciencesindustryretainedthe
incentivesneededforfurtherinnovation.Jayhasbeennamedthenational“LegislatoroftheYear"by
theBiotechnologyIndustryOrganization(BIO)inrecognitionofhislongstandingleadership.
Ahands-onapproachtorecruitmentandsupportfortheindustry
Ourstateneedsahands-onapproachtobusinessrecruitment,retention,andexpansionopportunities.
Wealsoneedtocreateahigh-levelpolicypositiontoworkwiththeGovernorandindustrytoachieve
policyobjectives.
● Createalifesciencessectorlead,chargedwithworkingwiththeGovernorandindustryto
ensurethestate’songoingsupportforthelifesciencessectorsanditsworkforce.
● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthyclimate
forindustrydevelopmentandassistindustryleadersinterestedinlocatinginWashingtonwith
everythingfrominventorysourcingtositeselection.
● AttractnewbusinessestoWashingtonbypersonallyleadingrecruitingeffortswithlifescience
businessesandurgingthemtolocateinoneoftheworld’sgreatestlifesciencesindustry
clusters.
12
http://www.ci.bothell.wa.us/Site/Content/Economic%20Development/Development%20Sites/IPZ/HealthLifeSciencesImpa
ctReport.pdf 13
http://www.genengnews.com/insight-and-intelligence/new-biotech-clusters-in-the-u-s-are-scrambling-to-challenge-
established-regions/77899526/
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Aligntaxincentivestoencourageinvestmentinlocallifesciencesstartups
Lifesciencescompanieshavehugepotentialtocreatemanyjobs,butareoftencash-starvedwhilein
startupphase.Theymustraisecapitalandspenditonresearchanddevelopment.Suchcompaniesare
inaraceagainsttime–theyneedtoconductresearchtovalidatetheirinnovativeideasinorderto
grow.Iftheyrunoutofcapitaltoosoon,thecompanyfailsanditsinnovativeideasoftendissolve
withoutcomingtofruition.
TheB&Otaxcanunfortunatelyacceleratethedeathrateforsomelifesciencestart-ups.Many
companiesspendlargesumsofcashonresearchanddevelopmentforyearswithoutgenerating
revenue.ThesecompaniesareunabletotakeadvantageoftheR&Dtaxcreditduringthesezero-
revenueyears.
Thefollowingtaxincentivesshouldbeenactedinamannertoencouragejobcreation,whilepreventing
overlapand“doubledipping.”Further,eachofthesetaxincentivesshouldbecapped,finite,narrowin
scope,andsubjecttoreviewforjobcreationperformance.
● Provideathree-yearB&Otaxreliefforstart-upresearch-basedcompanieswith50orfeweremployees.
● Allowpre-revenueresearch-basedcompaniesto,withinlimits,accrueandsellR&Dtaxcredits.
Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestments
intolocalcompanies
ThevastmajorityofbasicresearchintheUnitedStatesisdoneinpublicresearchinstitutions,suchas
universitiesandnationallabs.14Asthelargestpublicuniversityrecipientoffederalresearchdollars,15our
publicuniversitiesareoneofourstate’sgreatesteconomicassets,havingspunoutsuchcompaniesas
Immunex,Sonosite,andZymogenetics.Theseresearchinstitutionsbecomeenginesofeconomicgrowth
byspinningoffjob-creatingcompaniesformedaroundnewinventions.
Ourresearchinstitutionshavemadegreatstridesinrecentyearstostepupandimprove
commercializationefficacy.Findingwaystobuildupontheseimprovementscanleadtolong-termand
sustainedjobcreationinourstate.WealsomustkeepourpromisestoourR&Dinvestmentstogrow
promisingtechnologies.
● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemflexibilityin
takingequitypositionsinspinoffcompaniesandusingfundsgeneratedfrompatentand
technologylicensingtoreinvestinothertechnologies.Thismayrequireanarrowconstitutionalamendment.
● Identifyandremoveadditionalregulatory,statutory,orculturalbarrierstocommercialization
effortsandworkwithresearchinstitutionstoremovethem.
MeettheWorkforceTrainingNeedsoftheLifeSciencesIndustry
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Meetingtheworkforceneedsofourlifesciencesindustriesisbothachallengeandanopportunity.Itis
anopportunitybecauseitrepresentswell-payingjobsforWashington’sworkersandtheirfamilies.Itis
achallengebecauseourcurrentdemandforengineers,techniciansandbiologistsoutstripsour
universities’andcommunitycolleges’abilitytoproducedegrees.
● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversities,soaswerestore
cutstohighereducation,weincreaseourgraduatesincrucialfieldslikecomputerscience,
engineering,biotechnology,andmath.
● ConnectP-12studentsandindustryleadersandworkerstointroduceandinspiretheminto
realworldscienceandtechnologycareers.
● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhigher
education—buildingpartnershipsinfunding,curriculum,andpost-graduaterecruitment.
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Chapter4:Aerospace
Ittouches28counties16withover600businessesacrossthestate.Itemploysaround84,000workers17.
Andit’sthebesttheworldhaseverseen.18
TheaerospaceindustryandWashingtonStatehaveenjoyedauniquepartnershipoverthelastcentury,
butwemustmakesmartdecisionstoleveragethisrelationshiptodayandmovetowardmore
investmentstokeeptheaerospaceindustryathome.
Inadditiontotraditionalmethodsofindustryrecruitmentsuchastaxincentives,competingstatesare
makingstrategicinvestmentsinP-12STEMeducationprograms,andareintegratingtheaerospace
industryintothecurriculaoftheirresearchuniversities—actionsthatthreatenWashingtonState’sskills
advantage.
Duringthisuncertaineconomictime,Washington’shighereducationsystemhassuffereddeepercuts
thanotherstates’,limitingourabilitytoproducetheinnovative,highqualityengineeringtalentrequired
tosustainBoeingandotheraerospacefirms.
Gatheringinputfromaerospaceengineers,manufacturers,educators,organizedlabor,andlawmakers,Jayhastakenprovenmethodsforsecuringtheworkforceneedsofourindustryandforgedanew
proactivevisionforWashington.Newpartnershipsandtrainingsupport,andanewapproachto
recruitmentandpromotionofouraerospaceindustrywillensurealongfutureinairplane
manufacturingthroughoutWashington,fueledbyahomegrown,highlyskilledworkforce.
TheagingincumbentaerospaceworkforcecreatesbothachallengeandanopportunityforWashington
State.Withinthenextdecadenearlyhalfofallcurrentaerospaceworkerswillbeeligibletoretire.This
createsatime-criticalwindowofopportunitytotransfertheknowledgefromthoseworkersonfactory
floorsandengineeringcubiclestothenextgenerationofaerospaceworkers.Maintainingourcurrent
competitiveskilledworkforceadvantagewillrequiregrowingtheworkforce-trainingpipeline.Thepayoff
fortheseinvestmentswillbethegrowthofgoodaerospacemanufacturingjobsforourcitizensandourstate.
BuildtheFoundation:STEMEducationandWorkforceDevelopment
ThefutureofWashington’saerospaceeconomywillbedeterminedbyourinvestmentinfosteringan
educated,skilledworkforce.Thebuildingblocksareinplace:astrongindustrypresenceandtop-flight
researchinstitutionsandtechnicalcollegesgiveusthetoolsnecessarytocultivatethehighestquality
nextgenerationofaerospaceworkersinWashingtonState.JayInsleeiscommittedtobuildingupon
theseassetstomaintainandgrowaerospacejobs.
● ExpanduponprogramssuchasLaunchYeartopreparehighschoolstudentstomeetthenew
demandsofthe737MAXworkforce.
● ExposestudentsinWashington’sP-12systemtoanearlyintroductiontocareerpossibilitiesin
aerospacemanufacturingandprovideaccesstotherelevantcareerandtechnicaltraining
classesintheP-12system.
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http://www.washington-aerospace.com/Email-Blast/aug-09_west.html 17
http://www.choosewashington.com/industries/aerospace/Pages/default.aspx 18
http://www.washington-
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● Additionally,justasimportanttothesestudents,thestatemustcreateaclearlyarticulated
roadmapfromhighschooldiplomatocollegeand/orapprenticeshipcredentials.Aerospace
employerswillbenefitfromapipelineofhighly-skilledyoungpeopleenteringthefieldwell
intothefuture.
● IncludeaerospaceexpertsinP-12curriculumdevelopmentandinourclassroomtoexpose
younglearnerstothemanyjobopportunitiesinouraerospaceindustry.
● Strengthenexistingaerospacecertificationandapprenticeshipprograms,withanemphasison
servingnewhighschoolgraduatesandmilitaryveterans.
● Worktofurtherdeveloprelationshipsbetweentheaerospaceindustryandhighereducation—
buildingpartnershipsincurricula,andpost-graduaterecruitment,aswellasexpanding
aerospace-relevantresearchattheUniversityofWashington&WashingtonStateUniveristy.
● Meetemployers’needsbymeasuringhowmanySTEMgraduatesfindworkintheirfield
againstemployerdemand.Thiswillallowtheuniversitiesandstatetobemoredynamic,
adjustingprogramsandtrainingwhennecessary.Providenewlevelsofaccountabilityand
oversighttohighereducationprograms,ensuringthatwe’remeetingemployer’sneedsand
ourstudentsarereceivingandkeepingjobsintheirrespectivefields.We’llmeasurehowmany
STEMgraduatesfindworkintheirfieldagainstemployerdemand,allowingthestateto
dynamicallyadjustprogramsandtrainingwhennecessary.
Anaerospace-friendlyWashingtonthroughbetterbusinesspractices
WhileBoeingmaybeatraditionalengineofthestate’seconomy,Washingtoncannotaffordtotakethe
industryforgranted.Otherstatesandcountriesarevyinghardforaerospacebusiness,withstiff
competitionfromAirbus,aswellasemergingaerospacemanufacturersinAsiaandSouthAmerica.To
continuetoretainandattractaerospacejobs,WashingtonStatemustbecreativeandproactiveinits
approachtoindustrysupport.
● Providelong-termstabilityandsecuritytothemanufacturingbasebyextendingstatetax
creditsforinvestmentsinmanufacturingandresearch.● ImprovecoordinationwithWashingtonState’sCongressionaldelegationtomaintainfunding
andsupportforaerospace-relevanteducation,workforcedevelopmentandtraining,and
research.
Ahands-onapproachtorecruitmentandsupportfortheindustry
Ourstateneedsahands-onapproachtobusinessrecruitment,retention,andexpansionopportunities.
Wealsoneedtocreateahigh-levelpolicypositiontoworkwiththeGovernorandindustrytoachieve
policyobjectives.
● Createanaerospacesectorlead,chargedwithworkingwiththeGovernorandindustrytoensuretheState’songoingsupportfortheaerospaceindustryanditsworkforce.
● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthyclimate
forindustrydevelopmentandassistindustryleadersinterestedinlocatinginWashingtonwith
everythingfrominventorysourcingtositeselection.
● Bolstertieswithourmilitaryinstallations,creatingnewpartnerships,academccentersof
excellence,andlandingmoredefensecontractshereinWashington,builtwithWashington
workers.
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● Attractnewbusinesstothestatebypersonallyleadingrecruitingeffortswithaerospace
manufacturersandsuppliersacrossthecountryandtheglobe,urgingthemtoco-locateherein
thegreatestaerospaceclusterintheworld.
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Chapter5:MilitaryandVeteranSupport
Spending$12.2billioninWashingtonState,19themilitaryisasignificantdriveroftheeconomy,and
servestorecruitgreatminds,hardworkers,andmanynewinnovationsandmanufacturingpartnerships.
Still,despitehavingoneofthetop-tenlargestmilitarypopulations,ourstateranks23rdinlanding
militaryprocurementprojects.20Wecandobetterthanthat.
TheMilitarysectorrepresentsasignificantopportunityandnaturalresourcethatmustbesupported
andpartneredwith,justasourstatehasdonewithaerospace.Currently,thereistremendoussynergy
betweenouraerospaceindustryandtheDepartmentofDefense,withcountlessmilitaryveterans
currentlyworkingatBoeingandotherindustriesthroughoutourstate.
Toooften,theeconomicimportanceofourmilitarybasesandtheskilllevelofourveteransgo
unrecognized.WemustdoeverythingwecantobolsterourbasesandkeepthemrelevanttotheUS
military’smissionnowandwellintothefuture,lestweloseaninstallationtoaBaseRealignmentand
Closure(BRAC)process.
Mostimportantly,ourveteransreturninghomeafteroverseastoursofdutyfacetheprospectoflookingforanewjobduringtheworsteconomicrecessionandthehighestunemploymentindecades.
ReturningheroesareoneofAmerica’sbestresourcesforskilledlaborandJayInsleeiscommittedto
connectingthemwiththetrainingopportunitiesandjobstheyneedanddeserveaftertheirmilitary
careershaveended,buildingonthetremendousjobbyourstateDepartmentofVeteransAffairs.
Jayiscommittedtoourservicemembers,theirfamiliesandthehundredsofthousandsofveteransand
retireesthatcallWashingtonStatehome.Heisreadytobringanunprecedentedlevelofattentionto
theimportantissuesandopportunitiesfacingourmilitaryandleveragetowardgreateroutcomes.
WashingtonStatenotonlyneedstobethebestplacetoretirefromtheMilitary,weneedtobethebest
placetoworkaswell—andwemustcommittohavingastrategicandrobustdefensesectoreconomy.
WashingtonStateistheperfectplacetomergeagreatworkforce,second-to-nonequalityoflifeandacommitmenttoexcellenceasaleaderintheneweconomy.WearenotonlyagatewaytotheEast,but
agatewaytothefuture.
BetterconnectourlocalbusinesseswiththebusinessofDefense
Whetherit’sthenewP-8replacementsatWhidbey,acyber-warfarefacilityatJBLM,oraNationalGuard
UAVschoolattheArmy’sYakimafacility,ourstateneedsahigh-levelexperttodriveprojects,facilities,
andequipmenttoWashingtonStatebases.TheUSCorpsofEngineersoftenbringintheirapprovedlist
ofcontractorsbasedintheSouth,leavingourlocalcontractorsshutoutoftheMultipleAwardTask
OrderContract(MATOC)orSingleAwardTaskOrderContract(SATOC)procurementsystems.This
processhasnotprovidedgreateraccesstoourlocalprovidersandourstateneedstobestrategicwithseekingDepartmentofDefensework.
WemustprovideexpertsupporttoourcontractorsandworkforcetoensureWashingtonworkersare
providedthegreatestaccesstosuccessfullysecuringDepartmentofDefensework.Wehaveoneofthe
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mostskilledworkforcesinthenationandwemustleveragetheirskillstoensurewearenolonger
middleofthepackofstateswhenitcomestosecuringimportantjobcreatingcontracts.
Withoutaguideandastrongvoiceintheprocurementprocess,tryingtowinaDepartmentofDefense
contractisadauntingchallengeforourlocally-ownedbusinessesandtheassistancetheyneedis
stretchedtoothin.WemustclosetheprocurementgapandlandDepartmentofDefensecontractswith
localcontractors.Stateswithactiveandaggressivemilitaryaffairsofficeshaveseensignificantgainsto
theirstates’economiesfromfocusedattentiononthedefenseindustry.21
● CreateamilitaryliaisonandambassadorforWashington,answerabledirectlytotheGovernor.
Akeycomponentoftheposition’smissionwillbestrengtheningtherelationshipbetween
militaryinstallationsandtheirhostcommunities.
● Investinourstate’sprocurementtechnicalassistancecenters(PTACs).PTACcounselorsassist
Washingtonfirmsincreatingaroadmaptosuccessfullycompeteonfederal,stateandlocal
governmentcontracts,includingDepartmentofDefenseopportunities.Thistechnical
assistanceresultsinmoregovernmentcontractsbeingawardedtolocalfirms.
CreateandattractnewCentersofExcellenceinburgeoningmilitarytechnology
Co-locatingsuppliers,manufacturers,andtheengineeringworkforceinWashingtonmakessenseand
ensuresalongmilitarypresenceinWashington.Justasweinvestintheworkforceandtechnological
advancesatourcentersofexcellenceinaerospaceandagriculture,wecanbuildthesamekindof
trainingpartnershipswithourbases.WeknowthatWashingtonStateisthesecondmostrequestedfinal
dutystationinthenation,22sowehaveaninherentadvantagetokeepthesehighlyskilledservice
membersprovidingpositivelytoourstate’seconomicfuture.
● SecureaNationalGuardUAV(unmannedaerialvehicle)trainingschoollocatedattheYakima
TrainingFacility.Thenextgenerationofaerospacevehicles,andtheirworkforce,shouldbe
locatedinWashingtonState.Wehavetheworkersandtheknow-howtobuild,maintain,andtrainthisburgeoningfieldinournationaldefense.
Supportforthemilitary’senergyindependencemovement
Thetechnologicalinnovationscreatedbythemilitaryoftendriveinnovationinothersectorsofour
economy.Thisholdstrueforalternativeenergytechnologies.JointBaseLewis-McChordhasitssightsset
onaninitiativetogeneratezerowasteandconsumezero-energyfromthegridby2020.23Throughthe
Army’sNet-Zeroprogram,theNavy’sGreenFleet,andAirForce’sexplorationofbiofuelsdrivingan
energyindependencemovement,thereareampleopportunitiestosecureWashingtonbusinessesas
theproviderofthosealternativefuelsandenergy-generatingequipment.
● Incentivizealternativeenergyproducersandforgenewpartnershipsandopportunities,
connectinglocalproducers,manufacturersandcontractorswithourmilitaryinstallationsin
ordertofulfillourmilitary’smissionandfosternation-leadingtechnologiesherein
Washington.
21
TheLatestTrendsinState-LevelMilitaryAffairsOffices,http://www.defensecommunities.org. 22
http://community.seattletimes.nwsource.com/archive/?date=19940904&slug=1928742. 23
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● PartnerwiththeproposedWSUadvancedbiofuelscenterwiththeDepartmentofDefenseina
“FieldtoFlight”program,focusedonresearchanddvelopmentoflocallygrownfuels.
Expandopportunitiesandsupportforourreturningveterans
Withmorethan45,000activemilitarypersonnel,65,000militarydependents,andover640,000
veterans,almosteverylifeinWashingtonisconnecteddirectlyorindirectlytothemilitary.24Thereare,
infact,over44,000employeesonJBLMalone,25makingthebasethestate’sthirdlargestemployerby
itself.26
Manyofourreturningveteranscomehomeonlytofacehighunemploymentratesanddifficulty
transitioningbackintocivilianlife.Ourcurrentsystemthrowsuproadblockstoveteranslookingtoenter
tradessimilartotheirserviceinthemilitary.Thestateneedstodobetter.
● ExpandtheHelmetstoHardhatsprogram,asuccessfulmodelthathelpsveteransconnectwith
thetradesthroughapprenticeships.Thisprogramshouldbeexpandedandassistedby:
○ Expandingveteranapprenticeshiputilizationoncapitalprojects
○ Increasingaccesstomid-sizeprojectsaroundstate
○ Providingarevenuestreamforoutreach/liaisingwithvetsandcontractors○ Providingavet’sombudsmanateachstatecommunityandtechnicalcollege
● Builduponthesuccessofmilitaryfamilyemploymentprogramswithinthestateandacrossthe
nation,bypartneringwiththemandprovidingonecentralonlinehubforallservicesavailable.
We’llbehelpingmilitaryfamilymembersfindemployment,aswellashelpinglocalemployers
tapintoawell-qualifiedworkforcepool.
24
http://psrc.org/assets/5613/MilitaryStrategy.pdf 25
http://seattletimes.nwsource.com/html/localnews/2014632121_scaparrotti30m.html 26
http://www.army.mil/article/71905/Federal_grant_to_help_ease_JBLM_traffic_congestion/
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Chapter6:CleanTechnology
Risinggasolineprices,dependenceonfossilfuels,andclimatechangerealitieshavedrivenworld
demandforcleanenergytechnology.Asthisdemandcontinuestogrow,jobcreationfollows.
Whenitcomestocleanenergy,WashingtonStateisoneofthemostinnovativeplacesontheplanet.27
AccordingtotheWashingtonStateEmploymentSecurityDepartment,Washington’scleantechnology
economyemploysaround61,775peopleinourstate.28Duringthedowneconomy,PugetSound’sProsperityPartnershipestimatesthatthesectorwouldstilloutperformtherestoftheeconomy.29
JayInsleehasworkedforyearstohelpbuildacleanenergyindustryinourstate.Hechampioned
Washington’sEnergyIndependenceAct,whichhaschangedourenergylandscapewhilecreating
thousandsofjobsandgeneratingmillionsintaxrevenuetofundruralschoolsandfirstresponders.30To
helpcreatejobsacrossthestate,hechampionedadvancedsustainablebio-jetfuelsbypartneringwith
theDepartmentofDefenseandsecuringlocalfunding.Jayalsoco-authoredabookoncleanenergyjob
creation, Apollo’sFire:IgnitingAmerica’sCleanEnergyEconomy .
PromoteOurEnergyIndependence
Energyisthelifebloodofourstate’seconomy.Affordableelectricityhashelpedindustriesgrowacross
ourstate,andcleanenergyisattractingnewbusinessestoday.Washingtoniansspendover$20billion
eachyearonenergy,31withasignificantamountbeingpurchasedfromoutofstate.
32Ifwereducethat
economicleakage,wecaninvestourdollarsintomorejobcreatingenergysourcesinWashington
communities.
JayInslee’sproposalswillbuildonthestate’scompetitiveadvantageofaffordableandcleanenergyto
positionWashingtonStateforsuccessinanational,low-pollutionenergyfuture.Byleadingtheregion
andthecountryincleanenergyinitiatives,Washingtonwillgrowlocaljobsbyexportingour
technologiesandexpertise.
Leadthecountryindevelopmentandproductionofadvancedsustainablebiofuels
Ofthe$20billionthatWashingtonStatespendsonenergy,over$15billionperyeargoestooilandgas
companiesfortransportationfuels.33Wecanlessenthateconomichitbyseizingtheopportunityto
createjobsinWashingtonbygrowing,processing,refininganddeployingadvancedbiofuelsata
commercialscale.
27
http://www.brookings.edu/reports/2011/0713_clean_economy.aspx28
https://fortress.wa.gov/esd/employmentdata/docs/occupational-reports/green-economy-jobs-report-2009.pdf
29http://www.washingtoncelc.org/filestore/Navigant_CELC_Leadership%20Final%20Report_FINAL_Dec-9--2010.pdf
30http://www.nwenergy.org/news/washingtons-clean-energy-future-at-risk/
31http://www.commerce.wa.gov/site/526/default.aspx
32http://www.commerce.wa.gov/DesktopModules/CTEDPublications/CTEDPublicationsView.aspx?tabID=0&ItemID=10206&
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Thisisanareawhereindustry,environmentalleaders,andcommunitieshaveidentifiedvastneedandas
muchopportunity.Itaddressesakeystrategicchallengeforoneofourstate'sgreatesteconomic
sectors,aerospace,anddrawsonthefullrangeofourcapabilities,fromhigh-techcompaniestoworkers
inforestryandagriculture.
AlaskaAirlines,Boeing,PortofSeattle,andSpokaneAirportareworkingwithWashingtonState
Universityandenvironmentalleaderstofacilitatethecommercializationoflocallyproducedfuelsto
powertheaviationindustry.34Localcompanieshavealreadymadedrop-inbio-jetfueltopowerU.S.militaryaircraftliketheU.S.Navy’sF/A-18SuperHornetandBoeingjets.35Homegrownfeedstockscan
beproducedinallcornersofthestateandincludeagriculture-basedcrops,woodwastes,solidwastes,
andevenalgae.36
WecanbuildonthisworkandputWashingtonStateonthemapasanindustryleaderinadvanced
biofuels.
● CreateanAdvancedSustainableBiofuelsCenterofExcellence,ledbyWashingtonState
University,topartnerwithprivateindustry,local,state,andfederalgovernment.TheCenter
willfacilitateresearch,feedstockgrowth,sourcing,processing,andthedeploymentof
commercialscaleproduction.
TheBiofuelsCenterofExcellencecanhelpcreateconditionsforindustryleadershipinproducing
advancedrenewablefuels,includingproductionscalerefinerybyleadingeffortsto:
● Coordinate,support,andaccelerateproposalsforresearchandtechnologydevelopment.
● Advocateforprivate,non-profit,andfederalfunds.
● Supportproductionandpilotscalerefineriestoproduceadvancedrenewablefuelsatscale.
● WorkwiththeDepartmentofDefenseandlocalbasesinordertomaximizeopportunitiesaround
supplyingsustainablefuelsforaviationandlocaljobcreation.
Wecanhelptocreate“marketpull”toencouragelocaldemandforbiofuelsthatwillhelpcreatelocal jobsforfarmers,haulers,andmanufacturers.
● PartnerwiththeDepartmentofDefenseandWSUina“FieldstoFuels”efforthelpthe
departmentmeetitsbiofuelsgoalswhilecreatingjobsfromthefarmergrowingcrops,tothe
truckerhaulingitandthetechnicianrefiningitintofuel.
● Provideatechnology-neutralmarketmechanismtospurdevelopmentoflocalandregional
alternativetransportationfuels,includingadvancedsustainablebiofuels,electricvehicles,and
naturalgas.
● Identifyandpursueopportunitiestoincreasetheuseofadvancedfuelsinstateandlocal
operations.
34
http://www.safnw.com/about-safn/ 35
http://www.businesswire.com/news/home/20091215005518/en/14-Airlines-Sign-Landmark-MOU-Camelina-based-
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UpdateourEnergyIndependenceActandhelpelectrifythetransportationsector
TheCleanEnergyIndependenceActhasalreadygeneratedover$7billioninnew,cleanenergy
investment,providingthousandsofjobsandhelpingruralcommunitiesbuildstrongerlocaleconomies.37
Still,morecanbedonetomakeitworkbetterandcontinuetocreatejobsfortheentirestate.
Wecanaimhigheranddobetter,atlowercost,iflocalutilitiesareprovidedmoreflexibilitytobepartofthesolutioninawaythatworksbestfortheircommunities.Wecanalsoleverageourclean,lowcost
hydropowerandwindresourcestoleadthecountryinthemovetowardvehicleelectrificationwhile
decreasingthe$15billionWashington’seconomylosesannuallytopayforoilandgasimports.
● GrowanddiversifyWashington’scleanenergycommitmentbyacceleratingthedevelopment
ofhydroefficiencies,safeandsustainablebiomass,combinedheatandpowersystems,and
electrificationofthetransportationsystem.Withincreasedflexibility,theEnergy
IndependenceActcanaccomplishmoreandworkbetterforallWashingtoncitizensand
utilities,includinglow-loadgrowthutilities.
● Expandopportunitiesforcommunitiestoachievecleanenergygoalswhileadvancingcritical
localprioritiessuchascleanair,reducingoildependence,andlocaleconomicdevelopment.● BuildacleanenergyeconomytolastinWashingtonbyincreasinglong-termrenewableenergy
goalsandbetteraligningcleanenergygrowthwithutilities’powerrequirements.
Removebarriersforrenewableenergyprojects
RenewableenergyprojectshavecreatedjobsineverycornerofWashingtonState.EasternWashington
farmersbenefitfromincreasedlandrevenuesfromwinddevelopments,andportworkersinVancouver
movehundredsofturbinesperyear.Inotherruralareas,anaerobicdigestersconvertanimalwasteinto
energy.Yet,barriersremaintocreateamorerobustdeploymentandjobcreation.AsWashington
positionsitselftoleadinthecleanenergysector,itisvitaltodevelopcleanenergyfacilities,likewindturbines,solarcollectors,combinedheatandpowergenerators,districtenergyprojectsandnext
generationalternativeenergysystems.
● Driveastakeholderprocesstoaddresshighwind/highwatereventsinamannerthatdoes
notrequireshuttingdownrenewablepowergenerationbyconsideringthedeploymentoflow-
cost,innovativesolutionssuchasvirtualbatteries,scheduledtransmissionimprovements,and
powerswaps.
● ExtendthetimeframeandincreasethelimitsforWashington’scurrentproductiontaxcredit
forrenewableenergydevelopment.
FosterthegrowthofCleanEnergy/TechnologyCompanies
CleanenergytechnologyisasectorinwhichWashingtonStatehasanopportunitytoflourish.With
Washington’srichhistoryinagricultureandnaturalresources,inconjunctionwithalegacyofinnovation
andleadershipininformationtechnology,ourstateiswellpositionedtocreatejobsbypromotingthe
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developmentofcleanenergybusinesses.Accordingtothestate’sCleanEnergyLeadershipPlan,with
therightpolicieswecouldproduce25,000directcleanenergyjobsby2020.38
Aligntaxincentivestoencourageinvestmentincleantechnologystartups
Manycleantechnologystart-upcompanieshavethepotentialtocreatealargenumberofjobsiftheir
technologyisproveninthemarketplace.Notallwillsucceed–that’sthepriceofinnovation.Despitethe
challenge,itisinourstate’sbestinteresttogivethesetechnologiesachancebytakingstepstoimprovethetaxenvironmentatcriticalstagesofdevelopment.
Thefollowingtaxincentivesshouldbeenactedinamannertoencouragejobcreation,whilepreventing
overlapand“doubledipping.”Further,eachofthesetaxincentiveshouldbecapped,finite,narrowin
scope,andsubjecttoreviewforjobcreationperformance.
● Provideashort-termB&Otaxreliefforstart-upresearch-basedcompanieswith50offewer
employees.
● Allowpre-revenueresearch-basedcompaniesto,withinlimits,accrueandsellR&Dtaxcredits.
● EstablishaJobCreationTaxcredit,givingaB&Otaxcreditforsmallbusinessesaddingworkers
totheirpayroll.Creditshouldbeincreasedwiththewagespaid,andtopoutat$4,000for
everyjobcreatedandtheprogramcappedat$8million.
Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestment
intolocalcompanies
ThevastmajorityofbasicresearchintheUnitedStatesisdoneinpublicresearchinstitutions,suchas
universitiesandnationallabs39.Asourcountry’slargestpublicuniversityrecipientoffederalresearch
dollars40,theUniversityofWashingtonisoneofourstate’sgreatesteconomicassets,havingspunout
suchcompaniesasEnergy2andImmunex.Theseresearchinstitutionsbecomeenginesofeconomic
growthbyspinningoffjob-creatingcompaniesformedaroundnewinventions.
Ourresearchinstitutionshavemadegreatstridesinrecentyearstostepupandimprove
commercializationefficacy.Findingwaystobuildupontheseimprovementscanleadtolong-termand
sustainedjobcreationinourstate.WealsomustkeepourpromisestoourR&Dinvestmentstogrow
promisingtechnologies.
Cleanenergytechnologycompaniesfacesignificantfinancinghurdlestoovercomeresearchand
developmentexpensesandsignificantscaleupcosts.Statepoliciesmustbealignedtohelpovercome
thesechallenges,nothinderthem.
● Giveinvestor-ownedutilitiesmoreflexibilitytoinvestinthedemonstrationanddeploymentofcleanenergytechnologieswhileincludingdurableratepayerprotections.
● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemflexibilityto
takeequitypositionsintheirspinoffcompaniesandtousefundsgeneratedfrompatentand
38
http://www.washingtoncelc.org/filestore/CELC_Navigant%20Final%20Report_Final.pdf 39
http://www.nsf.gov/statistics/nsb0803/nsb0803.pdf 40
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technologylicensingtoreinvestinothertechnologies.Thismayrequireanarrowconstitutional
amendment.
● Identifyandremoveadditionalregulatory,statutory,orculturalbarrierstocommercialization
effortsandworkwithresearchinstitutionstoremovethem.
Jobcreationthroughhomeandbuildingefficiencies
WashingtonStateresidentsspendover$5billioneachyeartoheat,coolandlightourhomesand
workplaces.Accordingtothe2009McKinseyReport,anaverageof30%ofthisenergyiswasted
throughinefficiencies.41Thisresultsinthewasteofmillionsofdollarsofpotentialjob-creatingcapital.
JayInslee’sproposalswillgetWashingtonworkingbyreinvestingthesewastedresourcesintothe
buildingenergyefficiencyindustrywhilesavingconsumersmoney.Energyefficiencyisthemostcost-
effectiveresourcetopoweroureconomyanditbecomesevenmoreattractiveaswelookattheair
pollutionandenvironmentalconsequencesofmanyotherenergysources.Theenergyefficiency
industryalreadyemploysalmost25,000workersinthestate,42butourpolicyislaggingbehindother
regionsinitscommitmenttocreatingefficientbuildings.
Alignutilityandcustomerinterestsinenergyefficiency
Currently,Washingtonregulationsforinvestor-ownedutilitiescreateadisincentiveforthemtofully
investinenergyefficiencyprogramsforalltheircustomers.Wecanunlocktheseinvestmentsby:
● UpdateUTCpoliciesandratemakingapproachestobetteralignutilitybusinessinterestswith
theinterestsoftheircustomers.Suchchangeswillenhanceenergyefficiencyservicesforthe
customersofthestate'sfiveinvestor-ownedelectricandnaturalgasutilitiesandensure
consumerandindustrialcustomerprotections.
Attractandleveragepublic-andprivate-sectorcapital
Althoughbeingcost-effectiveoveraperiodoftime,energyefficiencyretrofitsareoftenstymiedbythe
upfrontcostofefficiencymeasures.Thisconditionprovidesanopportunitytoattractthird-partyfunders
toprovidefinancingoptionstopropertyowners.Publicpoliciescanreducetheriskoftheseinvestorsby
providingreliablere-paymentmechanismsandbyenhancingthecreditofenergyefficiencyloanpools.
● Allowhomeownersandbuildingownerstheoptionofpayingforenergyefficiencyupgrades
overtimeontheirutilitybillsbyrequiringregulatedenergyutilitiestoprovidemeter-based
financingoptionsforcustomers.
● AllowcommercialbuildingownerstheoptionofpayingforenergyefficiencyupgradesovertimeontheirpropertybillsbycreatingaPropertyAssessedCleanEnergy(PACE)program.43
41
http://www.mckinsey.com/Client_Service/Electric_Power_and_Natural_Gas/Latest_thinking/Unlocking_energy_efficiency
_in_the_US_economy 42
http://www.energy.wsu.edu/Documents/Energy_Efficiency_Workforce_Study.pdf 43ACommercialPACEprogramwillprovidecountyauditorswithamechanismtocollectpaymentsonpropertytaxbillsasa
feeservice.
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● Establishabondingprogramthatusesexistingrevenuestreamstoinvestinstateinfrastructure
andefficiencyinvestmentsthatcanspurjobcreationnowandrealizeenvironmentalbenefits
sooner.Thebondinglevelmustnotbesetatlevelthatjeopardizesstate’screditrating.
Adoptahands-onapproachtorecruitmentandsupportfortheindustry
Ourstateneedsahands-onapproachtobusinessesrecruitment,retention,andexpansionopportunities.WealsoneedindustrysectorexpertstoworkdirectlywiththeGovernorandkeyindustry
sectorstoachievepolicyobjectives.
● CreateaCleanEnergysectorlead,workingwiththeGovernortoensuretheState’songoing
supportforthecleanenergysectorsanditsworkforce.
● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthy
climateforindustrydevelopmentandassistindustryleadersinterestedinlocatingin
Washingtonwitheverythingfrominventorysourcingtositeselection.
● Attractnewbusinessestothestatebypersonallyleadingrecruitingeffortswithcleanenergy
businessesacrossthecountryandtheglobe,urgingthemtoco-locatehereinoneofthegreatestlifesciencesindustryclustersintheworld.
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Chapter7:Agriculture
At160,00044strong,agricultureisWashington'sbiggestemployer.The$40billionindustry45isthe
secondmostdiverseagriculturally,46growingeverythingfrompotatoestopeppermint,toraspberries,
hops,wheatandapples.Nearly$13billionofagriculturalproductsareexportedthroughWashington
portsin2010.47
Despitetheindustry’ssuccess,however,ourfarmersandgrowersarefacingdifficultchallengesrangingfromwatertoworkforce,andfrompeststoports.
Weneedagovernorwhounderstandsbothsidesofthestate,andhowthisindustrydrivestheeconomy
ofmanycitiesandtownsoutsidetheshadowoftheSpaceNeedle.
AsaStateRepresentativeandCongressmanfromYakimaValley,JayInsleeworkedcloselywiththis
industrytoexpandmarketsandsecuremorewaterforirrigatedagriculture.JayworkedwiththeClinton
AdministrationtogetUSapplesintotheJapanesemarketsandhelpedpassintolawtheYakimaRiver
BasinEnhancementActtobalancewatersuppliesforgrowerswithincreasedin-streamflowsfor
salmon.
WeneedanadvocateforthisindustryintheGovernor’sofficetopromoteourproductsthroughoutthe
world,andhelpourindustrydelivergoodstomoremarketsfaster,cheaper,andmoreeffectively.
AddressthewaterneedsforWashington’sgrowers
Foryears,theYakima,Columbia,andWallaWallabasinshavesufferedfromascarcityofitsmost
preciousresource:water.Theproblemisexacerbatedindroughtyears,withgrowerslockedina
perennialbattleoverwaterrightsandriverbedsunabletosupportwildfishruns.
Developmentoftheselong-termprojectswilladdressthewaterresourceandecosystemproblems
affectingouragricultural,municipalanddomesticwatersupplies,andfishstocks.Withoutprogresson
thewatersupply,hugeswathsofonce-productivelandwillwitherandfarmswillgobankrupt.Wemustforgeapathaheadontheseprojects,andworkwithallpartiesinvolvedtofindsolutionsandshared
fundingsourcesfromthestate,municipal,andfederallevel.
● Workwithlocal,stateandfederalpartnerstofindfundingsolutionsandmoreforwardonthe
YakimaRiverBasinWaterEnhancementProjectforthesurvivabilityofournaturalfishstocks,
ouragriculturallands,andthosewholiveandworkintheregion.
● Workwithlocal,stateandfederalpartnerstofindfundingsolutionsandmoveforwardonthe
Columbia-OdessaSubareaAquiferProject,tosupplytheagricultureindustrywiththewaterit
needs.
● BuildontheprogressmadeintheWallaWallaBasintofindfundingsolutionstofullyfunda
neededpumpexchangeprojectthatwillreplenishdryriverbedsandsustainourstate’swine
grapegrowersintheregion.
44
http://agr.wa.gov/AgInWa 45
http://agr.wa.gov/AgInWa 46
http://foundation.wsu.edu/campaign/bigideas/index.html 47
http://agr.wa.gov/AgInWa
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Helpmeetourgrowers’workforceneeds
Whenitcomestoharvestseason,there’snotimetowaste.That’swhyprovidingasolid,stable
agricultureworkforceiskeytoourgrowers’success.TheagriculturebusinessinWashingtoncanbevery
volatile.Seasonsgetcutshort,theweatherbecomesunpredictable,andthewindowforpickingcan
closesuddenly.
Astableandskilledworkforceiscrucialtothesuccessofthisindustry.
● Re-establishtheFarmworkerHousingInfrastructureLoanProgram,fundedintheCapital
Budget,toprovidefarmerswithlow-andno-interestloanstoconstructhousingforseasonal
andmigrantworkers.Suchloansmustbeusedforon-siteinfrastructureimprovementsornew
constructiontoprovidequalityhousingforfarmworkers.Thishousingmustbeoperatedona
not-for-profitbasis;rentandfeescannotexceedoperatingexpenses.
● Providemorerecruitmentopportunities,outreach,andassistancetofarmersnavigating
employmentopportunities,guest-workersprograms,andstateregulations,throughthestate’s
agriculturalservicesprogramandregionalWorksourcecenters.
● Expandthesuccessfulsmallfarminternshipprogramtotheentirestate,allowing
opportunitiesforeducationandtrainingtoyoungfarmers,andthefarmassistanceneededon
today’sfarms.
MakeWashingtonthenation’sleaderinqualitygrapesandwines
AlthoughCalifornia’swineindustrymaybelargerbyvolume,Washington’swineindustryissetto
becomethepreeminentsourceofthenation’shighestqualityandvaluewines.Ourindustryhasgone
fromnearlynon-existentonlyafewshortdecadesagotogrowingover400%overthepasttwelve
years.48Wenowboastover700wineriesandmorethan40,000acresofgrapesplantedstatewide.The
Washingtonwineindustryisa$3+billionindustryannually,thesecondlargestinthecountry.49
Theonlywaytosustainthatkindofgrowthandcontinueoursuccessishavingagovernorwhowill
partnerwiththeindustry.Wemusthelpmarketourhomegrownwinesacrosstheglobe,andprovide
thetechnicalandacademicresourcesneededtoensureWashingtonwinestaketheirrightfulplacenext
totheworld’sgreatest.
● Re-establishapartnershipwithexistingorganizationstopromotetourisminourstate.
Workingwithourlocalgrapegrowersandwineries,ourstatewillbepoisedtobenefitgreatly
fromwinecountrytourism.
● UsherinarenaissanceinWashingtonwinesthroughnewscienceandresearchwithfull
supportfortheWSUWineScienceCenter,whichwillonedayhouseastate-of-the-artresearch
andteachingfacilitythroughthestate’sViticultureandEnologyprogram.● ModernizestateLiquorControlBoard’sregulations,emphasizingflexibilityandacustomer-
focusedapproachwhilestillmaintainingpublicsafetystandards.Manyolderregulationson
thebooksestablishedinthePost-Prohibitionerafailtoreflectcurrentneedsofthewine
industry,andlimitourstate’swineries’abilitytopromotetheirproduct.
48
http://www.wawgg.org/index.php?page_id=103 49
http://washingtonwine.org/wine-101/state-facts/
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Supportourgrowersinthemilitary’senergyindependencemovement
Thetechnologicalinnovationscreatedbythemilitaryoftendriveinnovationinothersectorsofour
economy.Thisstandstrueforalternativeenergytechnologiesandbiofuelsinparticular.Coupledwith
effortsintheprivatesector,ledbysuchcompaniesasBoeingandAlaskaAirlines,weareuniquely
positionedtoleadandgrownewagriculturejobsbygrowingbiofuelcorps.JointBaseLewis-McChord
hasitssightssetonaninitiativetogeneratezerowaste,water,andconsumezero-energyfromthegrid
by2020.50ThroughtheArmy’sNet-Zeroprogram,theNavy’sGreenFleet,andAirForce’sexplorationofbiofuelsdrivinganenergyindependencemovement,thereareampleopportunitiestosecure
Washingtonbusinessesastheproviderofthosealternativefuelsandenergy-generatingequipment.
● CreateanAdvancedSustainableBiofuelsCenterofExcellence,ledbyWashingtonState
University,topartnerwithprivateindustry,local,state,andfederalgovernment.TheCenter
shouldfacilitateindustryprogressonallaspectsofsustainablebiofuelsdevelopment;including
research,feedstockgrowth,sourcing,processing,andthedeploymentofcommercialscale
production.
● PartnerwiththeDepartmentofDefenseandWSUina“FieldtoFlight”efforttohelpthe
departmentmeetitsbiofuelsgoalswhilecreatingjobsfromthefarmergrowingcrops,tothe
truckerhaulingit,andthetechnicianrefiningitintofuel.
● PartnerwithDepartmentofDefensetohelpthedepartmentachieveitsrenewablefuelgoals
whilegrowingjobsacrossthestate.
50
http://www.army.mil/article/55370/joint-base-lewis-mcchord-wins--three-environmental-honors/
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Chapter8:InformationTechnology
WashingtonStateishometoanactive,broadinformationtechnologycluster.Inadditiontoanchors
suchasMicrosoft,Valve,andAmazon,Washingtonisaleadinginnovatorinenergyefficiencyandcloud
computing.Washington’sinformationandcommunicationtechnologyworkforceisnearly120,000
strong,51whichplacesitattheforefrontofthecountryinthisrespect.
Majorout-of-stateandoverseasbusinessesareattractedtothestate'shighlyskilledITworkforce.Inadditiontosoftwaredevelopment,Washington’sITindustryisavanguardininteractivemedia,
telecommunication,ande-commerce.Ingamedevelopmentandpublishingalone,morethanathirdof
the$10billionindustrynationwideisgeneratedinthegreaterSeattlearea.52
JayInsleehasbeenalongtimechampionofWashingtonState’shightechindustryandhasbeenthego-
toleaderforWashington’sinformationtechnologyindustry.JayhasfoughttosaveInternetradio,to
protectintellectualpropertyrightsandtocombatsoftwarepiracy.Hehasalsohelpedlocalindustry
growinotherways,includinghelpingtosecurefundingfortheWashingtonInteractiveMedia
Acceleratortohelpgrowthatindustrycluster.
Itiscriticaltohaveagovernorwhounderstandsthisindustryanditsneeds,andwhoiswillingtoenactpoliciesthathelpmaintainouredgeingeneratingthemiddleclassITjobs.
ImproveP-12,HigherEducation,andWorkforceTrainingsystemstoprovideouryouthwith
opportunityandtomeetemployerneeds
Itisimpossibletooverstatetheintegralrolethateducationplaysinshort-andlong-termjobcreation.In
thecomingweeks,Jaywillbeproposingamorecomprehensiveandspecificplanonreformingand
improvingourstate’seducationsystemtomeetourstate’sfutureworkforceneeds.Forthepurposesof
thisdocument,itisimportanttonotethatawell-educatedandhighlytrainedworkforcefacilitates
companygrowthinindustriesacrosstheboard.Asimportantly,ahigh-qualitypubliceducationsystemis
essentialtopreparingouryouthfortomorrow’sjobs,andisaleadingfactorinourabilitytoattractand
retainnewbusinessesandeducated,entrepreneurialtalenttocontributetoourstateeconomy.Nobody
wantstomoveacrossthecountrytoputtheirchildreninsub-parschools.
WashingtonStateranksamongthetop10statesfortechnologyworkforce,buthasfailedtoprovidethe
educationalopportunitiesourcitizensneedtoparticipateintheirownstate’seconomy.Werank42ndin
per-capitaspendingineducation.53Lessthanhalfofoureighthgradestudentsareproficientinmath54
andscience.55Inthe2010-2011schoolyear,only76%ofourstudentsgraduatedhighschoolontime.56
Werank37thinBachelor’sdegreeproductionpercapita,57andwearethebiggestimporterofindividuals
withBachelor’sdegreesorhigheronaper-capitabasis.58Inshort,weareunderfundingourschools,our
schoolsareunderperformingforourchildren,andourfour-yearcollegesanduniversitieshave
insufficientsupporttomeettheneedsofstudentsandemployers.
51
http://www.choosewashington.com/industries/tech/Pages/default.aspx 52
http://www.choosewashington.com/industries/tech/Pages/default.aspx 53
http://www.k12.wa.us/Communications/PressReleases2012/StatementQualityCountsReport.aspx 54 http://nces.ed.gov/nationsreportcard/pdf/main2011/2012458.pdf
55 http://nces.ed.gov/nationsreportcard/pdf/main2009/2011451.pdf
56http://reportcard.ospi.k12.wa.us/summary.aspx?year=2010-11
57http://seattletimes.nwsource.com/html/localnews/2011764312_bellevuecollege03m.html
58http://lazowska.cs.washington.edu/STEM.pdf
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Inordertocompeteinthe21stCentury,wemustofferWashington’sstudentsastrongfoundationatthe
P-12level,andourcommitmenttodevelopingahighlyskilled,competitiveworkforcecannotendafter
graduation.InprovidingasolidbackgroundinP-12Science,Technology,Engineering,andMathematics
(STEM)Education,weprepareourkidstoexcelinburgeoningfieldswithrapidlyexpandingworkforces—
fieldslikeInformationTechnology,CleanEnergy,andtheLifeSciences–andempowerthemtobuildand
growthenextgenerationofcompaniesandindustriesthatwillfueleconomicgrowthandprosperityin
ourstate.WemustfollowastrongP-12foundationwithapprenticeshipsandtechnicaleducation
directedtowardproducinganexcellentnext-generationworkforce,andwithdramaticallyincreased
Bachelor’scapacityinkeyfields.
● PrioritizeSTEMdegreeproductionatourfour-yearcollegesanduniversities,soaswerestore
ourstate’scommitmenttohighereducation,weexpandstudentaccesstocrucialfieldslike
computerscience,engineering,andbiotechnology.
● ConnectP-12studentsandindustryleadersandworkerstointroduceandinspiretheminto
realworldscienceandtechnologycareers.
● Furtherdeveloprelationshipsbetweenemerging,job-creatingindustriesandhighereducation
–buildingpartnershipsincurriculaandpost-graduaterecruitment.
Piracyandstateprocurement
Theftofinformationtechnologyisanepidemic,andiscostingWashingtonstatejobs.Insomecountries,
over80percentofallpackagedsoftwareisstolen.59Reducingglobalsoftwarepiracywouldcreate
almostahalfamillionjobs,60thousandsrighthereinWashington.Asasociety,wehaveaverylow
toleranceforpeopleandbusinessesthatusestolenphysicalproperty,suchascars,desks,and
computers.Yetwhenitcomestosoftwareandotherdigitalproductsandservices,toleranceoftheftis
unacceptablyhigh.WashingtonStatehastakenafirstandveryimportantsteptochangethis
unfortunaterealitybycreatingaprivaterightofactionagainstpiracy,butmorecanbedone.
● Incorporateintothestate’sprocurementprocessassurancesthatmanufactureshaveadopted
bestpracticestominimizepiracyintheirsupplychains.
Facilitatetechnologycommercializationactivitiesatourresearchinstitutionsanddriveinvestments
intolocalcompanies
ThevastmajorityofbasicresearchintheUnitedStatesisdoneinpublicresearchinstitutions,suchas
universitiesandnationallabs61,includingtheUniversityofWashingtonandWashingtonStateUniversity
thatareworldleadersinresearch.Theseresearchinstitutionsbecomeenginesofeconomicgrowthby
spinningoffjobcreatingcompaniesformedaroundnewinventions.
Ourresearchinstitutionshavemadegreatstridesinrecentyearstostepupandimprove
commercializationefficacy.Findingwaystobuildupontheseimprovementscanleadtolong-termand
59
http://portal.bsa.org/globalpiracy2010/ 60
http://portal.bsa.org/globalpiracy2010/index.html 61
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sustainedjobcreationinourstate.WealsomustkeepourpromisestoourR&Dinvestmentstogrow
promisingtechnologies.
● Enhancecommercializationcapabilitiesatourresearchinstitutionsbygivingthemmore
flexibilityintakingequitypositioninspinoffcompaniesandusingfundsgeneratedfrompatent
andtechnologylicensingtoreinvestinothertechnologies.
● Identifyandremoveadditionalregulatory,statutory,orculturalbarrierstocommercialization
effortsandworkwithresearchinstitutionstoremovethem.
AligntaxincentivestoencourageinvestmentinlocalITstartups
FormanyITstartupcompanies,itcantakealongtimebeforebusinessesbecomeprofitable.Inthe
interim,companiesinvestheavilyinproductdevelopment,andmarketinganddistribution.Whilethese
companieshavehighjob-growthpotential,theycaneasilyrunoutoffundingandendupfailingbefore
havingthechancetoreachtheirpotential.Asataxongrossrevenueandnotprofits,theB&Otaxcanbe
acontributortosomecompaniesprematurelyrunningoutoffunding.
Thefollowingtaxincentivesshouldbeenactedinamannertoencouragejobcreation,whilepreventing
overlapand“doubledipping.”Further,eachtaxincentiveshouldbecapped,finiteintime,narrowin
scope,andsubjecttoreviewforjobcreationperformance.
● Provideashort-termB&Otaxexemptionforresearch-basedcompanies’start-upwith50or
feweremployees.
● Allowpre-revenueresearch-basedcompaniesto,withinlimits,accrueandsellR&Dtaxcredits.
Adoptahands-onapproachtorecruitmentandsupportfortheindustry
Ourstateneedsahands-onapproachtobusinessesrecruitment,retention,andexpansionopportunities.WealsoneedindustrysectorexpertstoworkdirectlywiththeGovernorandkeyindustry
sectorstoachievepolicyobjectives.
● CreateanInformationTechnologysectorlead,workingwiththeGovernortoensurethe
State’songoingsupportforthesectoranditsworkforce.
● Establisha“one-stopshop”forindustryrecruitment,topromoteWashington’shealthy
climateforindustrydevelopmentandassistindustryleadersinterestedinlocatingin
Washingtonwitheverythingfrominventorysourcingtositeselection.
● Attractnewbusinessestothestatebypersonallyleadingrecruitingeffortswithinformation
technologybusinessesacrossthecountryandtheglobe,urgingthemtoco-locatehereintheoneofthegreatestindustryclustersintheworld.