IU PROGRAM HELPS INDIANA, CITIES
WITH ECONOMIC DEVELOPMENT NEEDS

BLOOMINGTON, Ind. -- As president of an economic development organization, Larry Muffett has worked with consultants who have "given you back what you already know, with some of their boiler plate."

After working on two studies this year with faculty and students from Indiana University, Muffett said his community now has a 10-year strategic plan that makes it "very well positioned to leap ahead of some of our neighboring counties, in terms of economic development."

Muffett's Logansport-Cass County Economic Development Foundation received help in the form of a target industries study done by the Center for Entrepreneurship and Innovation in the IU School of Business, and an analysis of local labor conditions done by the Institute for Development Strategies in the IU School of Public and Environmental Affairs.

The studies were funded through IU's Cooperative Grants for Economic Development program, which has so far awarded funds for seven projects. These included developing a training curriculum for coal industry personnel on how to locate new sources of the fuel in Indiana, and a study of alternatives to the state's current corporate tax policies.

"The purpose of the program is to match university faculty who have expertise in certain areas with organizations and communities throughout the state that have specific economic development needs," said W. Sidney Johnson, director of the Industrial Research Liaison Program, which administers the grant program. "The university provides matching grants for these projects, to help communities develop their own solutions."

Grant awards vary, but they generally do not exceed $5,000. The cooperating organization is expected to provide matching cash or in-kind contributions. There must be a direct link to the educational mission of the university.

Five to seven project grants are to be awarded annually through the program, which is a result of IU's Strategic Directions Initiative. The IRLP has received nearly 50 formal inquiries about the Cooperative Grants program since its inception earlier this year, and expects strong interest as a Feb. 15 deadline for new projects approaches. Linda Williamson, executive director of the Bloomington Economic Development Corp., said the IU program provides "an excellent way for the city to partner with the university." While IU faculty and staff frequently have volunteered for community projects in the past, "the grant program leveraged additional funds that we could use for research that was necessary."

Through the grants program, the Indiana Center for International Business at IU prepared a study that will be used in Monroe County's efforts to develop an international strategy.

The most recent project to receive funding is an analysis of research and development activities done by companies in Indiana, particularly those in a key sector -- electronics. Graham S. Toft, director of the Indiana Economic Development Council and one of the reviewers of grant proposals, stressed the need for such a project.

"Indiana has been a 'maker and grower' state," Toft said. "Our strength lies in goods production, leaving trade/commerce, distribution, innovation and product development largely to other states. As we move to an advanced industrial economy of the 21st century, closer ties will be necessary between research, development and innovation, and production."

Johnson said the R&D study is a good example of the kind of projects he expects will be funded through the Cooperative Grants Program. It is important to learn what has worked for Hoosier companies and what obstacles remain. His office now works with about 125 Indiana companies who conduct or are interested in research that leads to developing and commercializing new products. By comparison, he said, his counterpart in Ohio works with more than 2,000 firms.

This is the kind of information that is needed in short order, given the competitive pressures that exist today. An added benefit of the grants program is that it can enable communities and economic development organizations to gather information and reach conclusions within a relatively short period of time. Most projects have been completed within six months, Johnson said.

"In addition to having established deadlines, a committee will review projects between those deadlines also," Johnson said.

"One of the items that we like to see in a proposal and we ask for in the guidelines is whether the project can be replicated," he added. "Obviously, each community has unique assets, resources and liabilities, so the results from a Bloomington or Richmond study may not be applicable to Fort Wayne. But the methodology and the processes that the faculty member and the community go through generally will be the same.

"Another important aspect of this program is to encourage local economic development organizations to create new relationships between those organizations and resources and faculty members at the university, so that when a new need or an additional need is identified, the organization will know where the expertise is to help them solve that problem."

Communities and organizations wanting more information about the Cooperative Grants program may contact Johnson at the Office Industrial Research Liaison Program, IU Research Park, 501 N. Morton St., Suite 109, Bloomington, IN, 47405, phone 812-855-6294 or 800 624-8315.

For more information, contact George Vlahakis, 812-855-0846 or 812-855-3911, gvlahaki@indiana.edu