Speaking for Nevada - November 2001

Nevada is the Place

For Entrepreneurial Opportunity and Success

by Lorraine T. Hunt

The changing nature of our economy has always afforded opportunities for the entrepreneur. In fact, the impact of the entrepreneur is demonstrated throughout the national and local economy. With passion and creativity, entrepreneurs eliminate the barriers of status-quo thinking. This philosophy challenges Nevada to be more imaginative in our economic diversification approach.

In the past year, the Nevada Commission on Economic Development has strengthened the state’s ability to compete in economic diversification with three major efforts: bolstering Nevada’s already-friendly business policies; emphasizing entrepreneurship in education curriculum; and creating a public/private partnership to oversee the initiative.

The economy is rapidly changing. And along with the new economy comes another major consideration – how to deal with the ever-increasing growth and protection of the intellectual services sector. Working with a group of business leaders in Las Vegas, Senator Ann O’Connell and I drafted a bill for the 71st session of the Nevada Legislature to address the protection of the intellectual services sector. The legislation, which ultimately passed, is designed to provide incentives to high-tech businesses, venture capitalists, inventors, entrepreneurs and university faculty. The passage of this legislation will strengthen protection of patents and trademarks and ultimately provide an incentive to businesses to establish or relocate their research and development operations to Nevada.

The legislation is based upon the premise that the inventors of intellectual property will move their operations to Nevada if we are able to provide significantly improved protection for their intellectual properties. The value of a high-tech company and its ability to acquire financing is in large part determined by the value of the company’s intellectual property, and most particularly its patents.

By approving this legislation, the Nevada state Legislature has taken a giant step toward distinguishing Nevada from other states, especially from California – the genesis of the wildly successful high-tech industry. It will also greatly improve our ability to market Nevada as a safe haven for the research and development of new technologies.

The Nevada Entrepreneurship Team was formed last summer by Governor Kenny Guinn, following a successful bid to participate in a program designed to enhance the entrepreneurial climate at the state level. As chair of the Nevada Commission on Economic Development, I serve as team leader for this effort. During our most recent meeting, the team selected a portion of the Technology Strategy for Nevada as a priority for the team to undertake. This study was commissioned by the state of Nevada to create a plan for future economic development efforts.

The specific strategy on which we have decided to focus is intended to accelerate the growth of the technology economy. Work is planned to immediately begin in the following areas:

Evaluate and enhance entrepreneurial education and training in grades K-16.

Develop a statewide Entrepreneurship Awards Program.

Access new federal funds through the Workforce Investment Act and the Unemployment Insurance Fund to train Nevada’s workforce in the "Art of Entrepreneurship."

Encourage investment of public funds in qualified Nevada companies.

Create an entrepreneur-friendly system of statute and constitutional laws including a review of all regulations by executive order.

We believe this initial work can be accomplished with existing funds by simply redirecting current resources. Additional funds may be available through the Kauffman Foundation for Entrepreneurial Leadership for specific aspects of the program. Once these additional steps are completed, the Nevada Entrepreneurship Team plans to concentrate on other tasks identified in the Technology Strategy for Nevada.

Finally, the Nevada Technology Partnership was formed in June 2000 as a statewide coalition that focuses the efforts of three key groups that shape our economy – the Nevada Commission on Economic Development, the University and Community College System of Nevada, and the private sector. With their combined strengths, these groups have the ability to influence Nevada’s economic prosperity into the 21st century.

For many years, organizations have been working independently to sustain Nevada’s economy. Much of this activity centered on how to broaden our economy while maintaining tourism as our primary industry. A few years ago it became clear that unless the public and private sectors begin to work together and unite efforts, Nevada would continue to fall short of accomplishing its goals.

So much of the entrepreneur and enterprise philosophies complement the history and culture of Nevada. Our great nation and state were built by pioneers who were not afraid to take personal risks. It is that mindset that continues in our economy today and we believe it will continue to make Nevada successful in the 21st century.