Michigan carries a legacy of being the cradle of entrepreneurial innovation. Governor The Michigan Economic Development Corporation intends to carry on that legacy through constantly sharpening the state’s economic development tools to meet the demands of the 21^st century. The loss of manufacturing jobs has demanded that we be flexible and nurture collaboration to leverage all the available resources we have to conquer the wave of change. Michigan’s network of SmartZones helps bring together our state’s valuable resources and encourages collaboration between our top-notch educational institutions and high-tech business community to commercialize the ideas of tomorrow and produce Michigan’s next generation of entrepreneurial revolutionaries.

On January 31, I was honored to join Michigan State University President Lou Anna Simon, Mayor Virg Bernero and other local government and business leaders to celebrate the opening of the Lansing Regional SmartZone. This completes the network of 11 SmartZone technology clusters around Michigan. Although, this is a somewhat new initiative, the positive impact is already being demonstrated. Since the inception of the SmartZone program in 2002, more than 315 businesses have located or expanded in the zones, resulting in more than 4,500 jobs and $600 million in private investment.

Each of the SmartZones has a particular high-tech emphasis, ranging from alternative energy and life sciences to advanced engineering and nanotechnology. The Lansing Regional SmartZone will focus on business attraction, creation and expansion in the fields of life sciences, advanced manufacturing and information technology.

The SmartZone consists of four distinct geographic areas throughout Lansing and East Lansing which will utilize MBI International as its initial primary incubator facility.  Special attention will be given to helping firms capitalize on research and technical resources at Michigan State University and MBI. Firms that “graduate” from MBI will be encouraged to locate in other areas of the SmartZone.

Exciting developments in emerging technologies are being nurtured in SmartZones throughout the state. The Mt. Pleasant SmartZone, for example, has become one of the world’s premier centers for dendrimer research and development. It is home to Dendritic NanoTechnologies, a company spun out of research at Central Michigan University’s Center for Applied Research & Technology Building. The commercial potential of dendrimers and other nanoproducts is enormous. In 2005, $13 billion worth of manufactured products incorporated some sort of emerging nanotechnology.  That figure is expected to reach $2.6 trillion by 2014.

The Lansing Regional SmartZone will be closely linked with MSU to help commercialize cutting-edge research to create high-tech investment and jobs. It represents a major collaboration that includes the cities of Lansing and East Lansing, Ingham County, Lansing Community College, the Lansing Regional Chamber of Commerce, MBI International, Michigan State University, the Michigan State University Foundation and the University Corporate Research Park as partners. All have a vested interest in stimulating the growth of technology-based businesses in the Lansing region through this new initiative.

The operational setup of the Lansing Regional SmartZone is unique in that it will be overseen by a joint Local Development Finance Authority (LDFA) between the cities of Lansing and East Lansing and a 21- member consortium of local business and institutional leaders, 11 of whom will be from the private sector. The private sector emphasis will help ensure that the SmartZone will adequately serve the region’s business needs.

The LDFA concept is similar to the fundamental operational setup of the other SmartZones in that it provides access to a wide range of business development incentives to attract business including the use of tax increment financing to address the costs of high-tech infrastructure, grants and loans, property tax abatement, brownfield redevelopment and small business loans.

The consortium will serve as the clearinghouse and primary source of information on the zone, providing access to services and resources including:

• business planning and feasibility studies
• entrepreneurial training
• mentoring
• product development
• technology mining
• venture capital preparations
• public relations
• advertising assistance
• other sources of funding including federal grants.

For researchers and entrepreneurs, the SmartZone is akin to having a professional staff of experienced educators, economic development experts and business people all in one place.

The Lansing Regional SmartZone and its 10 counterparts serve as an excellent example of the kind of collaborative effort needed to sustain in order to diversify our economy to ensure good jobs for future generations. The zones are a key component of Governor Granholm’s “Jobs Today, Jobs Tomorrow” initiative, which also includes the $2 billion 21^st Century Jobs Fund to support commercialization, capital investment and commercial lending efforts to grow targeted high-tech, high-growth sectors. Together these initiatives have the potential to transform our economy by fanning the flames of Michigan’s entrepreneurial spirit and anchoring emerging industries in Michigan to create good-paying, high-tech jobs for many years to come.

For more information on Michigan’s network of SmartZones, I invite you to visit the MEDC Web site at www.michigan.org.

		James C. Epolito is the president and CEO of the Michigan Economic Development Corporation. Prior to joining the MEDC, he served as president and CEO of the Accident Fund Insurance Company of America and president and CEO of Blue Care Network – Health Central.