Local companies compete in the global market

The Lewiston-Auburn area has seen much change over the past decade. Today, the cities are reaping the benefits of efforts that began 20 years ago to combine city resources and attract new businesses in flourishing industries to replace traditional industries.

High-tech sectors such as precision manufacturing, information technology and composites have brought economic vitality to the Twin Cities, along with competitively-paying jobs and revitalized downtowns.

The same economic change that is occurring in Lewiston-Auburn is also happening in Maine, with the state’s efforts to boost research and development and the innovation economy. Investments that began 10 years ago are now beginning to yield results and bring new technologies to fruition. We must continue to support R&D investments in order to maintain the progress Maine has made.

The state has invested $300 million in R&D since 1996 but we are still lagging behind the nation and struggling to keep pace with the rest of the United States. Today’s global economy pits Maine against other states and countries that are dedicating large amounts of resources into strengthening their “knowledge-based” economy.

Ohio is in the fifth year of a 10-year, $1.6 billion initiative to expand the state’s R&D capabilities, Oklahoma has dedicated $225 million to R&D economic development and infrastructure upgrades and Michigan is planning an $800 million investment into its technology sector and public universities over the next 10 years.

Maine must remain steadfast in its R&D investments in order to compete for new businesses, create quality jobs and strengthen support for state companies and entrepreneurs. Investing in R&D will help the state maintain the progress it has made over the past decade and work toward its goal of investing $1 billion a year into R&D by 2010.

Expanding the state’s innovative economy will help Maine compete in the global market and create opportunities for local businesses and residents. Many businesses depend on R&D support to develop new products or help a traditional industry evolve into the 21st century with the addition of technology and streamlined services.

Seaway Boats in Oxford is one local company that is benefiting from R&D funding. Seaway is a boat building company that depends on the development of new composites and uses in order to compete with boat builders in the U.S., China and Turkey. Seaway is using funding from a Maine Technology Institute (MTI) grant to work with the University of Maine Advanced Engineered Wood Composites Center to develop and test new composites that will optimize and improve the company’s line of composite boats.

Having R&D funding available for Maine businesses is a critical component to helping them compete in an international market. By supporting local businesses and entrepreneurs with R&D funding, we are helping them gain solid financial footing and create quality jobs for Maine residents. The end result is a stronger economy for the state. A 2006 evaluation of the state’s R&D industry revealed that jobs in the technology sector pay an average wage of $38,800, higher than the state average, and those jobs grew at a faster rate of almost 7 percent, compared to the state average of less than 1 percent.

Investing in R&D will positively impact all Mainers by keeping Maine competitive in the global market, strengthening our economy and creating well-paying jobs that allow us to pursue the quality of life we cherish.

Maine, like Lewiston-Auburn, has made significant economic progress over the years. Strengthening the state’s research and development sector will keep our economic momentum moving forward.

Catherine S. Renault is the director of the Office of Innovation, part of the Maine Department of Economic and Community Development.