Report: Industry R&D investment needed
Maine should do more to fund R&D for private industry and help startups grow, according to a new report from the Maine Department of Economic and Community Development's Office of Innovation.
The report -- prepared by PolicyOne Research Inc. in Portland, EntreWorks Consulting in Virginia and Scruggs & Associates in North Carolina -- found that Maine has increased its university R&D over the past decade from 35% of the U.S. average to more than 70%. However, industry receives less state R&D funding and is performing well below U.S. averages, and Maine ranks among the bottom 10 states for the number of patents generated by private industry. "This relatively weak performance is a potential concern as industry R&D is generally considered to have higher direct economic impact (jobs) and commercialization potential," according to the report.
New venture capital investment is improving in Maine, and 2009 was a strong year, with Maine-based firms receiving $8.1 million in new venture capital, a 98% jump over 2008. However, Maine's venture capital market still remains very small.
Maine ranks 21st in the nation for new business formation, but 40th for fast-growing firms, making it important that the state do more to help businesses grow, according to the report's authors. State international trade programs should receive more funding in order to better reach businesses and help them increase exports and expand their markets. The report also recommends pairing startups and early-stage companies with mentoring and advisory services.
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