Can Huntsman hit an economic home run?
Pignanelli & Webb
For me, the role of government in economic development has always been rather murky. Utah's economy, for example, was in the tank only a few years ago. Now it is rolling along quite nicely, pumping out record tax revenues.
State government didn't really do much different in the good times and bad times. So what impact can state government really have?
I was prepared to be rather skeptical when I sat down a few weeks ago with Chris Roybal, Huntsman's economic development guru, to discuss the governor's plans.
I must admit I came away quite impressed with Huntsman's realistic and sensible approach to economic development.
Huntsman fully agrees that state government doesn't create jobs and can't stimulate the economy in any quick and dramatic way. There is no secret recipe or brilliant stroke that will produce a sizzling economy.
However, state government can, and must, establish a basic pro-business environment and infrastructure so that business can flourish and the economy can grow.
Three long-term fundamentals are crucial: tax structure, regulatory environment and a good transportation system. Those can make or break a state's economy, Roybal said, so that's where the state's focus will be. Initiatives are already being advanced in those areas.
• Better coordinate economic development efforts at state, local and private sector levels. Roles and responsibilities must be sorted out so that state initiatives are aligned with local and private efforts, including chambers of commerce and the Economic Development Corporation of Utah.
• Target recruitment and existing business development in industry clusters where Utah already has a niche or advantage.
• Build Utah's tourism brand to attract more visitors.
• Bolster international trade in focused, strategic manner.
• Improve technology transfer from university research to business start-ups.
• Develop an energy policy that takes advantage of the state's energy resources.
• Expand the U-STAR initiative focused on basic research and development in the biotech and aerospace sectors, coordinated with the state's Centers of Excellence program.
• Assist with recruitment of a strong state talent bank, especially good management for emerging firms.
• Attract sufficient capital. Utah is small, Roybal said, so efforts must be strategic and focused. "We have to pick a few niches where we can be best in class."
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