1. Job Creation Proposal
prepared exclusively for
Lt. Governor Phil Scott

2. Investment Thesis
Mission
Execute a focused
strategy targeted to
incent third party
investment in the
State in industries
consistent with the
Vermont brand.
Vision
Create a robust
environment for
business
creation/incubation
by aligning the
operating goals of
existing public and
private enterprises.
Critical success factors:
• Work within the State’s existing financial framework to
incent private sector investment in new targeted
businesses
– No up-front tax incentives. Facilitate operating cash flow (accelerated
depreciation), reward success (capital gains ) in the future.
• Establish productive collaboration between public and
private agencies each with a vested interest in the
programs success.
– Establish the infrastructure needed to support the targeted industries
• Focus on the sustained, continual development of
available industry knowledge and resource
• Execute independently as a stand-alone organization with
clear, executable and measurable goals with the authority
to bring together the appropriate partners to succeed.

3. The Vermont Brand
from the O’Neal Strategy Group report dated May 21, 2003
3
Play to strengths:
• Environmental awareness
• New England work ethic
• Life balance
Address weaknesses:
• High technology capabilities
• Unfriendly business environment
• Lack of infrastructure
• Remoteness

4. Target industries
4
The best suited
targets will:
• Employ a highly
creative, possibly tele-
commuting workforce.
• Embrace at the
Corporate-level the
need for employee life
balance.
• Be an enterprise that
needs minimal
customer interface at
facility.
• A business that aligns
closely with the things
Vermonters value
highly.
Technology targets:
•High margin, low volume high tech manufacturing
businesses
•Fabless chip designers
•Software
•Renewable energy/Clean Tech businesses
•IBM (how to preserve grow MFG and R&D activities)
Other targets:
•Craft food manufacturing leveraging the VT dairy
industry (e.g. Artisan cheeses)
•Direct marketing ‘made in VT’ products
•Call centers

5. Geographic proximity
supports a tech-focus
5
Hudson Valley
Research
Center
IBM –Bromont
Dalsa, et.al.
Albany Center for
NanoTechnology
Rte 128
Curiously well situated to several tech
centers but not well recognized as such.
High tech hubs
Boston 3 hours
Albany 2 hours
Hudson Valley
Research Center 5 hours
Montreal 2 hours
Clean tech hub
Boston 2 hours
Financial Centers
New York 1 hour flight
Boston 3 hour drive

6. Current hindrances to
investment
6
• Perceived hostile business environment
• Lack of complimentary educational resources
• Perceived remoteness
• Lack of financing
• Lack of business infrastructure

7. Essential collaborators
7
Realign existing programs in support of mission
Program manager accountability
• Assign responsibility, authority and accountability to an
independent manager
• Establish, measure and report on executable goals
• Execute an image marketing campaign
Local university support
(including Dartmouth, RPI and SUNY Albany)
• Invest in supporting academic programs and graduating a
pool of skilled professionals
Public sector support
• Re-align state agencies missions to support effort.
• Legislative commitment for long-term support
Private industry support
• Engage trade ass’ns to market VT as a business center
• Forge partnerships with other industry tech centers.
• Serve as a source of strategic investment
Early stage investor support
• Incent VC’s and angels to sponsor VT-based business
Program
Manager
Local
University
support
Early
stage
investor
support
Private
Industry
support
Public
Sector
support

8. Role of the Program
Manager
8
• Accountable for overall program success
• Responsible for setting goals of the program
• Responsible for maintaining the coalition of collaborators
• Responsible for recruiting private industry participation and
sponsorship
• Responsible for marketing efforts

9. Role of University Partner
9
• Align academic program to focus on the target industry
• Conduct industry-related research presenting results at industry
conferences
• Participate in industry trade associations to present the VT academic
community
• Enhancement of services provided by VCET

10. Role of Public sector
10
• Align existing public agencies mission to support tech-hub success
 VEDA to aggressively pursue federal grant opportunities
 Formulation of a compelling business case for doing business in VT
 Development of inter-state cooperative agreements
• Re-assessment of perceived regulatory issue (Act 250, et. al.)
• Actively promoting the jobs creation strategy and its benefits to residents
• Expand presence at international trade shows, trade magazines, VC forums, etc.
• Provide seed funding to launch the tech-hub effort
• Establish prospective tax benefits…for example:
 Tax-free capital gains on early stage investment in VT.
 On institutional and personal investment
 On early stage equity (stock and options) issued to founding employees
 Accelerated depreciation on capital investment.

11. Role of Private sector
11
• Engage trade associations to understand and communicate the
benefits of VT as a business center
• Collaborate with other companies to expand availability to a network
of associated technology resource centers.
• Strategic funding partner working with the organization to define
program goals

12. Role of Private Investor
12
• Engage private sector to fully understand and communicate the
financial benefits of VT as a business center.
• Engage with state agencies to develop the finance packages needed
by developing companies

13. How it could work
assume the target is fabless MEMS design
13
• Define the basic program structure….investor and company benefits.
• Announce the program….to investors, to industry, to academic community.
• Leverage trade associations

14. Thank you.