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As the saying goes, the only constant in our world is change. There are hundreds of examples of businesses that did not adapt to a changing environment and, as a result, are seriously struggling or no longer in business. Blockbuster, BlackBerry, Pan Am, Nokia, JCPenney, Sears and Kodak all come to mind.
Gov. Mitch Daniels back in 2004 realized that Indiana needed a more business-like approach to economic development and created the quasi-governmental Indiana Economic Development Corp. to replace the Indiana Department of Commerce. The new organization, new approach and new tools rejuvenated Indiana’s economic development efforts.Nearly 20 years later, it is clear that Indiana’s economic development approach and toolbox must once again be reevaluated in light of today’s changed circumstances. Gov. Eric Holcomb’s appointment of businessman Brad Chambers as Indiana’s secretary of commerce in July signaled to the business community that Holcomb was serious about rethinking Indiana’s economic development efforts.
Holcomb’s and Chambers’ revamped approach to economic development came more clearly into focus earlier this month at IBJ’s Engage Indiana event, when Chambers outlined publicly for the first time where he and the IEDC would focus their energies. Secretary Chambers outlined what he referred to as the 5 E’s to build a more prosperous, innovative and inclusive economic future for Indiana: environment, economy of the future, entrepreneurship, energy and external engagement.
In terms of the environment, Chambers highlighted that Indiana has made a great deal of progress in our competitiveness on tax and regulatory environment, but now we must focus on place-making to attract remote workers of the future. That is where the $500 million READI grant program comes into play, providing funding for critical investments in communities across the state. The focus is creating the environment that will attract and retain talent and ultimately see Indiana’s population grow at a faster pace.
The economy of the future is focused on looking at the industries of the future and preparing for Indiana to be a leader in these areas. According to Chambers, “Indiana must go get the economy we want and not accept the economy we get.” Life sciences, artificial intelligence, robotics, advanced electronics and battery technology are areas of focus.
The third E is strengthening Indiana’s entrepreneurship ecosystem and becoming a nationally recognized landing pad for entrepreneurs. Increasing mentorship opportunities and capital formation will be a focus. The IEDC is conducting a study to help further refine its focus.
Indiana’s transition to clean energy is the fourth E. Some companies are demanding clean-energy alternatives as a condition of doing business in Indiana, according to Chambers. The IEDC will work on a road map and plan for energy transition.
Last, stronger external engagement is necessary to effectively tell Indiana’s story. Chambers added that two additional E’s—equity and education—will undergird the 5 E’s.
We have become accustomed to claiming the crown of best in the Midwest and besting our neighbors when it comes to economic development, GDP and population growth. While the best in the Midwest title might feel good, it is setting the bar too low if we want to retain the most talented graduates from our great universities.
Kudos to Holcomb and Chambers for acknowledging that Indiana must shoot higher and work to join the ranks of our country’s fastest-growing states, such as Texas, Florida, Georgia and North Carolina.•
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Feltman, a former Indiana commerce secretary, is publisher of IBJ and CEO of IBJ Media.
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