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he Hawkeye State has long been considered America's breadbasket -- the home of America's corn, soybean and wheat fields. Iowa officials and business leaders hope to take that agricultural expertise into the future by providing high-tech opportunities for growth and jobs that derive their momentum from the state's life sciences base.
Governor Tom Vilsack's administration has pushed funding for economic development initiatives, but with record budget shortfalls, it has been an uphill battle. However, in February he signed two new bills, the Angel Investor Bill and the Iowa Fund of Funds, to promote funding for new Iowa investments, giving new meaning to "seed funding."
"These funds will help to create the next biotech business, converting our corn and beans into cures for illnesses," said Vilsack. "We are sending a clear sign that Iowa is open for business."
Vilsack's Angel Investor bill creates a tax credit for up to 20 percent of the amount of an investment made in the form of cash to purchase a qualified business or community-based capital seed fund.
The Iowa Fund of Funds creates the Iowa Investment Board, which hopes to cultivate venture capital for Iowa firms. The bill also creates the Iowa Capital Investment Corporation, which will solicit investment plan proposals from venture capital investment fund managers. The focus of this fund will be business ventures that are already located within Iowa, or those firms which have committed to maintaining a presence within the state.
State officials have also committed funds for research and development to enhance agricultural industries. In February, The Iowa Dept. of Economic Development awarded a $1 million forgivable loan for a multi-tenant biologics pilot facility in Ames. The loan is contingent upon a group known as the Iowa Consortium procuring other commitments for the project. An additional $50 million in pledges is needed within the next six months.
The Consortium plans to build and equip a 100,000-sq.-ft. (9,290-sq.-m.) facility to process drugs for humans as well as foods from transgenic plants. Members of the group include the Iowa State University Research Park, the Iowa Cooperative and the Ames Economic Development Commission.
"The Iowa Biologics Pilot Manufacturing Facility is a unique opportunity to establish an Iowa presence in a rapidly developing industry," notes Steve Carter, interim president of the Iowa State University Research Park. "The facility will process revolutionary substances from plants and would hopefully spur the development of a new agricultural specialty in the state."
Incubators in Iowa have scored some major successes. Integrated DNA Technologies, a graduate of the University of Iowa's business incubator program, has announced a $52-million expansion at the firm's Coraville headquarters. The company produces synthetic materials used for drug therapies for people with AIDS, cancer and Alzheimer's. The major expansion is a result of the firm's record growth, and the company anticipates further growth worldwide. "Our products will contribute to medicine over the next several decades," notes Aaron Warner, vice president of IDT.
State and academic leaders continue to launch new programs to promote high-tech growth within Iowa. The Dept. of Economic Development has partnered with Iowa State to create the Technology Commercialization Acceleration Program (TCAD), which will create 15 technology-based companies over a three-year period and will focus on R&D at the university level to market options for start-up firms.
"This program is especially critical to Iowa's new economy," notes Mark Laurenzo, associate director for the Center for Advanced Technology Development, one of the beneficiaries of TCAD. "We'll be greatly increasing a start-up company's chance of success."
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Governor Tom Vilsack's administration has pushed funding for economic development initiatives, but with record budget shortfalls, it has been an uphill battle. However, in February he signed two new bills, the Angel Investor Bill and the Iowa Fund of Funds, to promote funding for new Iowa investments, giving new meaning to "seed funding."
"These funds will help to create the next biotech business, converting our corn and beans into cures for illnesses," said Vilsack. "We are sending a clear sign that Iowa is open for business."
Vilsack's Angel Investor bill creates a tax credit for up to 20 percent of the amount of an investment made in the form of cash to purchase a qualified business or community-based capital seed fund.
The Iowa Fund of Funds creates the Iowa Investment Board, which hopes to cultivate venture capital for Iowa firms. The bill also creates the Iowa Capital Investment Corporation, which will solicit investment plan proposals from venture capital investment fund managers. The focus of this fund will be business ventures that are already located within Iowa, or those firms which have committed to maintaining a presence within the state.
State officials have also committed funds for research and development to enhance agricultural industries. In February, The Iowa Dept. of Economic Development awarded a $1 million forgivable loan for a multi-tenant biologics pilot facility in Ames. The loan is contingent upon a group known as the Iowa Consortium procuring other commitments for the project. An additional $50 million in pledges is needed within the next six months.
The Consortium plans to build and equip a 100,000-sq.-ft. (9,290-sq.-m.) facility to process drugs for humans as well as foods from transgenic plants. Members of the group include the Iowa State University Research Park, the Iowa Cooperative and the Ames Economic Development Commission.
"The Iowa Biologics Pilot Manufacturing Facility is a unique opportunity to establish an Iowa presence in a rapidly developing industry," notes Steve Carter, interim president of the Iowa State University Research Park. "The facility will process revolutionary substances from plants and would hopefully spur the development of a new agricultural specialty in the state."
Incubators in Iowa have scored some major successes. Integrated DNA Technologies, a graduate of the University of Iowa's business incubator program, has announced a $52-million expansion at the firm's Coraville headquarters. The company produces synthetic materials used for drug therapies for people with AIDS, cancer and Alzheimer's. The major expansion is a result of the firm's record growth, and the company anticipates further growth worldwide. "Our products will contribute to medicine over the next several decades," notes Aaron Warner, vice president of IDT.
State and academic leaders continue to launch new programs to promote high-tech growth within Iowa. The Dept. of Economic Development has partnered with Iowa State to create the Technology Commercialization Acceleration Program (TCAD), which will create 15 technology-based companies over a three-year period and will focus on R&D at the university level to market options for start-up firms.
"This program is especially critical to Iowa's new economy," notes Mark Laurenzo, associate director for the Center for Advanced Technology Development, one of the beneficiaries of TCAD. "We'll be greatly increasing a start-up company's chance of success."
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