It was President Barack Obama’s time last week to address the nation and to lay out his agenda for innovation, competitiveness and growth. This week, it’s Gov. Scott Walker’s turn to do the same in Wisconsin.
Listen carefully, for these two very different political leaders may have more in common when it comes to economic prosperity than imagined.
In his annual State of the Union speech, Obama talked about the need to promote American innovation by investing in research and development. He also promised to overhaul the corporate tax code to spur private investment at home; urged investing in science and math education as a means of preparing more students to compete in the global economy; and called for connecting 90% of all Americans to the Internet within 10 years.
A day later, he toured Manitowoc to drive home his point that innovation can invigorate an economy still struggling to create jobs in the wake of the Great Recession. In that Lake Michigan city with a proud industrial past, Obama touted Orion Energy Systems Inc., a developer of energy-efficient lighting systems, as well as Skana Aluminum and Tower Tech Systems, which manufactures steel towers for wind energy projects.
"Jobs were lost, families were hurt, the community was shaken up," Obama told a Manitowoc crowd in referencing past plant closings, "but if you fast-forward to 2011, new manufacturing plants and new hope are now taking root. That’s part of the reason that the unemployment here is 4 (percentage) points lower than it was at the beginning of last year."
Same broad goals
Now, fast-forward to Tuesday, when Walker will deliver his first "state of the state" speech since winning the November election and taking office in early January. Walker’s "Open for Business" agenda has energized a legislative agenda and led to swift action on a mix of bills aimed at attracting or retaining business.
Walker’s goal of adding 250,000 jobs to Wisconsin’s private workforce within four years, while ambitious, is not beyond reach. However, it will require building on the momentum of his first month and drilling down into some of the same broad goals outlined in Obama’s speech.
Wisconsin is still the nation’s leading manufacturing state on a per-capita basis, with 18% of its workforce engaged in the sector. The exodus of manufacturing jobs from Wisconsin has slowed and even halted of late, in part because firms have embraced innovation as a way of doing business. Manufacturing productivity is up, in part because of technology.
Emerging sectors in Wisconsin include information technology, including software; communications services; high-tech manufacturing; engineering and technical services; biotechnology; food safety and value-added agriculture; electromedical equipment; electronic components; medical devices; and "clean-tech" industries, which range from water technologies to alternative energy.
In most cases, those are precisely the "innovation" sectors Obama singled out during his speech. They are already a part of the Wisconsin portfolio and poised for growth.
Talking points
Make no mistake: Obama and Walker have divergent views on the role of government, health care reform and much more, but when it comes to building an "innovation economy," they may find themselves advocating similar agendas.
Like Obama, Walker may address the need for a modernized telecommunications network in Wisconsin. Existing regulations make it more difficult to connect much of rural Wisconsin to the Internet and opportunities for e-commerce. In larger communities, organizations such as the Milwaukee Institute are helping build a stronger cyber-infrastructure.
Walker may also speak to the importance of research and development in Wisconsin – its universities and colleges spend $1.2 billion annually on R&D, most of it raised outside the state – and the need to put the findings to better use in the marketplace. The governor may also underscore the value of science, technology, engineering and math education, or STEM education, which is gaining traction thanks to a mix of public and private efforts.
Spurring entrepreneurship may also be a part of Walker’s address, given that creating 250,000 jobs will largely be a function of new and emerging companies adding five, 10 or 20 employees as they grow. The state’s economic development regions all have different strengths that can contribute to start-ups and jobs.
Like the State of the Union, the "state of the state" is a wide-ranging speech that often covers topics far beyond the scope of the economy, business climate and job creation. But in a year when unemployment remains stubbornly high, people are yearning for ideas that will put the nation – and Wisconsin – back on the road to prosperity.
Tom Still is president of the Wisconsin Technology Council and the Wisconsin Innovation Network.
