We've been told on talk radio for years that Wisconsin is a terrible place to do business. You know the drill. Wisconsin is a tax hell hole. Wisconsin does nothing to encourage entrepreneurship or development of new businesses.
We often accept these notions as fact, shrug our shoulders, grumble a little bit and try to get about our jobs as best we can. And we wonder why we stay here.
Every now and then, however, we get a wakeup call from across state lines that lets us know that hey, maybe we aren't so bad off after all. In the latest case of sunshine, the call comes from across the national border.
The headline on a news story in a recent edition of the New Brunswick Business Journal proclaims, "Culture of investment thrives in Wisconsin."
What's this? How can that be? What in the world are these Canadians talking about?
The subhead on the news story gets even more jiggy: "Capital markets New Brunswick Securities Commission turns to U.S. state as a prime example of fostering investment growth."
What's this? How can that be?
The lead of the story entices further: "New Brunswick has found a model for promoting entrepreneurship in a U.S. state whose economy has traditionally relied on farming, mining and forestry. Wisconsin's love affair with startups and investors - which has transcended the business community and made its way to the state legislature - has had the New Brunswick Securities Commission and other interested parties playing copycat."
You don't say.
The story says Rick Hancox, executive director of the New Brunswick Securities Commission, recently returned from a trip to Wisconsin, his second in three years, to learn how Wisconsin's economy "has benefited from new investor and entrepreneur networks, research and development commercialization programs, aggressive tax reform and a governor's business plan competition."
Wisconsin? Really?
The story says, "Hancox got turned onto Wisconsin years ago when commission employees had begun scouring the globe for examples of jurisdictions fostering investment growth. After months of eyeing examples out of the United Kingdom and Australia, staff was continually pointed by experts to Wisconsin - a place where declining traditional sectors could not continue to be relied upon heavily to backstop the economy."
The story notes how State Sen. Ted Kanavas (R-Brookfield) drafted Act 255 to provide generous tax credits to investors pumping money into high-tech companies in pre-commercialization mode.
"Meanwhile the business community was lining up to take part and arms-length agencies were being formed to push Gov. Jim Doyle's 'Grow Wisconsin' initiative beyond government," the story sates.
Do tell. To read the entire story, visit http://nbbusinessjournal.canadaeast.com/journal/article/714051.
The New Brunswick story comes on the heels of the news that VitalMedix, a Minneapolis biotech startup company, is moving to Wisconsin within 90 days. VitalMedix lead investor Charlie Goff said Wisconsin's investment tax credits "had everything to do with" the move. The company is negotiating leases in Hudson and New Richmond.
VitalMedix is developing a drug that has the potential to allow humans to endure severe blood loss and deter organ damage during resuscitation. The drug could be tested on humans as early as next year.
According to The Associated Press account of the story, "Despite a huge budget deficit, Wisconsin this year doubled the cap on the amount of credits to $8 million, raised the cap on eligible angel investments to $4 million and tripled the total credits available each year to $37 million."
Who knew?
Steve Jagler is executive editor of BizTimes Milwaukee.
5 Comments
I am not sure from your article if agree with the Canadians or not. If you do not agree with the Canadians, please explain why you do not agree. If you agree, Why is it that we not have not heard much about this from the press.
Dorothy Krupa
New Berlin
Retired
Steve, spin takes many forms and this is no different than the lip service Wisconsin Businesses have been getting for years. First of all, Canada is a predominantly socialist country: I would be careful of gifts from unknown sources. According to Wisconsin Job Watch, our state has lost 137,500 jobs from 12-07 through 4-09; adding 80 with tax incentives holds very little water. A Federal Reserve Bank of Cleveland study from 2007, put Wisconsin in last place for Job creation and for job destruction...http://www.clevelandfed.org/research/Commentary/2007/091507.cfm...I presume these number have changed for the worse with the loss of more Briggs and Stratton jobs to southern states as well as other companies moving to more friendly business climates.
In a down economy, the politicians of this state have kicked us while were down. Both citizens' and businesses woke up this summer to higher cost of living with more regulations that take our freedoms away.
Steve, do your readers a favor and tell the whole story, one company with 80 subsidized jobs does not balance out the tens of thousands of jobs moving out of Wisconsin for "business reasons"
"It does not take a majority to prevail...but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men."
-- Samuel Adams
First, thanks for picking up on this story and I must say you left a lot of great people out of it including Lorrie Keating-Heineman, Joe Kremer, Tom Stills and all those creatives at UW-Madison.
Second, perhaps this story highlights the concept of the grass always being greener on the other side. WI has done some great work but as you live there you are not likely seeing it. The cultural change that is developing in your state has been progressing over the past 9 years. A pace you cannot see but to us "drop-ins" we can see it and feel it.
Keep up the great work and I hope that one day we will catch up to you and perhaps you will start to visit us ;)
Michael Arbow
Capital Markets Specialist
New Brunswick Securities Commission
CANADA
It's nice that Canada thinks we are a paradise, they should try living here! "Show me the Money" as they say. You may get investment growth in one hand and taxed until you bleed out in the other hand. Canada is socialist; we just might look like a kissing cousin to them! Really, so exactly how many employees are moving to our taxing paradise from Minnesota, four you say, Wow hold me down I need to catch my breath. I need a pair of your rose colored classes since all I see is out of control spending and absolutely no accountability by our elected elite.
As I have seen it put, "Canada is like US, but without all the immaturity.