On the other side of Lake Michigan, another state is pursuing a technology initiative aimed at turning itself into a haven for high-tech companies. Earlier this year, Michigan Gov. John Engler signed an executive order unifying all information technology management functions in a new department and creating incentives for knowledge-based firms.

Central Indiana Connects to Global Economy       INDIANAPOLIS, Ind. -- The Midwest may be the crossroads of America, but one emerging metropolitan market in that region is billing itself as the "fiber optic crossroads of the United States."       That market is Indianapolis, and the facts bolster its case. Consider the following: Five years ago, there were only 375 software and information technology companies in Central Indiana. Today there are more than 1,500. Internet2, as well as its network called Abilene, is headquartered in Indianapolis. Abilene is being used by some 150 universities and companies such as Cisco Systems, Qwest, Nortel and IBM. Cognetics Inc., the Boston-based research firm, recently ranked Indianapolis as the fifth best market in the country for producing fast-growth, entrepreneurial firms. First Internet Bank, the country's first full-service online bank, is based in Indianapolis. More than US$200 million in venture capital has been invested into technology companies in Central Indiana since 1999. Lilly Endowment recently an-nounced a $60 million endowment fund for two local universities. The fund will be used to attract high-tech workers to Central Indiana. Indiana is 14th per capita in the nation for graduating students from four-year institutions.       It's numbers like those above that give economic developers in Central Indiana cause for optimism. Their goal? Nurture a developing high-tech economy -- called the Central Indiana High-Tech Corridor -- and stop the flow of high-tech graduates from Indiana to other states.       A key player in this new initiative is Purdue University, whose engineering school ranks among the best in the country. Purdue Research Park houses more than 80 start-up companies and serves as the starting point for the High-Tech Corridor. The corridor runs from West Lafayette through Intech Park in Indianapolis to Indiana University in Bloomington. The 250-acre (100-hectare) technology business park, Intech, is the largest in the Midwest.       There is some evidence that the new initiative may be working. Already, Central Indiana has secured such corporations as Wavetek, Focus Surgery, RealMed, Diversified Systems, Telestreet and Interactive Intelligence.       Another boost is expected to come from the Indiana state government, whose 21st Century Growth Fund is supporting expansion in the high-tech sector. The $50 million fund is aimed at funding research and market commercialization of technology. -- by Ron Starner

      The order, which took effect on Oct. 14, created the Department of Information Technology. Other key components of Gov. Engler's technology strategy include:

• e-Michigan, which led to the launch of the state's new Web portal.
• Cybercourt, a plan to provide high-tech businesses with an online court system to settle disputes.
• The Life Sciences Corridor, a $1 billion state investment in basic research and commercial applications of biotechnology.
• Smartzones, 10 communities where increases in property taxes will be re-invested to stimulate the growth of technology-based businesses and jobs and create clusters of new and emerging companies.
• LinkMichigan, a plan to provide broadband access to the Internet to more state residents and businesses.

      Even before that order took effect, there already was some evidence that Michigan's new approach to economic development was working. On July 17, Housey Pharmaceuticals announced that it will expand in Southfield rather than in North Carolina's Research Triangle.
      Housey, a creator of pharmaceutical technology, will expand its office and research laboratory space for drug research. The company will invest more than $4.1 million in the project, including lease, building improvements and equipment costs. The announcement means more than 88 new jobs for Michigan workers.
      "The fact that Housey Pharmaceuticals chose to grow in Michigan rather than a biotechnology hub like the Research Triangle is a terrific example of how far our state has come," Gov. Engler said at the press conference. "This company's expansion is another welcome addition to Michigan's burgeoning life sciences industry."
      Southfield City Administrator Don Gross said that Housey's decision to expand locally was influenced by the presence of some 400 I.T. companies in the local area. "Southfield is home to many high-tech companies working on cutting-edge technology and research and development," said Gross, adding that "the local presence of Providence Hospital and nearby William Beaumont will provide Housey with numerous collaborative opportunities."
      A key component of the deal was the offer of a high-tech Single Business Tax Credit worth an estimated $1.1 million over the next 12 years. The incentives package from the Michigan Economic Development Corp. also includes an abatement of the 6-mill State Education Tax valued at $17,300 over the next three years.
      The project is expected to generate more than $63.1 million in personal income and more than $5 million in state revenues over the life of the incentives agreement, according to the MEDC.
      Michigan is also investing in its infrastructure to support such industry. On July 27, Gov. Engler presided over the opening of a major facility upgrade to the National Superconducting Cyclotron Laboratory (NSCL) at Michigan State University. The 5-year project included the creation of the Coupled Cyclotron Rare Isotope Research Facility, which is now being hailed as the premier facility of its kind in the country.
      Using this technology, the NSCL already has constructed a medical K100 cyclotron for use in treating cancer at the Gershenson Radiation Oncology Center at Harper Hospital in Detroit. The Harper facility is the most active neutron therapy center in the world.
      The largest infrastructure project in Michigan can also be found in Detroit -- at Detroit Metropolitan Airport. A $2 billion project knows as the Midfield Terminal -- the new hub for Northwest Airlines in Wayne County -- is on track for opening in December. At 2 million sq. ft. (186,000-sq.-m.), the new terminal will be 2.5 times larger than the three existing terminals, will offer 97 gates and will cover more than a mile in length.
      Some 28 million passengers are expected to use the terminal in its first year of operation. The project also includes a new runway, 10-story parking garage and a shopping mall with 80 stores and restaurants.