Crain's Detroit Business - Mackinac Section - June 7, 2010 - (Page 16)

Page M16 CRAIN’S DETROIT BUSINESS June 7, 2010 2010 Mackinac Policy Conference A time for action N Website NEW ns ervatio s -line Re EW On Turnover in Lansing hurts progress in life sciences n April, Crain’s Detroit Business and Honigman Miller Schwartz and Cohn L.L.P. ventured to Kalamazoo to connect with life science and business support groups in the southwest part of the state, many of which have connections to metro Detroit and have similar concerns. This portion of the roundtable focuses on public policy and the life sciences. A portion on financing was published May 24. The discussion was moderated by Publisher Mary Kramer. Also participating from Crain’s was reporter Tom Henderson. Participants were: Joseph Reid III, chairman and CEO, Access BIDCO L.L.C., Lansing. ou trie Have y t? I d it ye Roundtable BIDCOs, or business and industry development companies, make loans that are riskier than traditional bank loans but less risky than equity investments. John McIntyre, CEO, Vestaron Corp., Kalamazoo. Venture capitalbacked Vestaron is developing environmentally benign insecticides derived from peptides produced by spiders. John Balbach, technology consultant, Small Business and Technology Development Center, Kalamazoo. The group works with small technology companies to try to bridge the gap between the devel- opment and commercialization of technology. Jack Luderer, executive director, Biosciences Research and Commercialization Center, Western Michigan University, which dedicates resources and expertise to promising discoveries in life sciences. Phillip Torrence, managing partner, Kalamazoo office, Honigman Miller Schwartz and Cohn L.L.P. Rob DeWit, president and CEO, Southwest Michigan Innovation Center, a Kalamazoo business incubator/accelerator. Chris Tracy, partner in Honigman’s Kalamazoo office. Jonathan O’Brien, chairman of Honigman’s intellectual property practice group. Metro Cars will handle all your transportation needs From 1 to 56 passengers vehicles available Serving Detroit’s Business Community for over 25 years Metro Cars is the official and exclusive provider of sedan service for the Detroit Metro Airport Make your reservations on line by visiting our new website at www.metrocars.com Just point, click and go! Metro Cars Powered by Propane 800-456-1701 Mary Kramer: Most of the people around this table are in the business of either growing a specific company or creating the opportunity for companies to grow. Michigan has lost about a million jobs over the past decade; our recession started long before the rest of the country’s. Does the state have a clear focus on how to create the environment for companies to grow? Is there opportunity in crisis? What should the message be to the candidates running for governor? What single thing in public policy would you change? Rob DeWit: I think the first step would be to have an honest conversation about where Michigan is today, and an honest conversation about leadership, about where we would like to be tomorrow. I think we’re in a situation right DeWit now that everyone does not seem to understand exactly where we are or where we should be going. Having been through “rightsizing” 24 of my 25 years in the pharmaceutical industry, you deal with your reality. So when I was in Big Pharma, if I was told that I had a 25 percent budget cut, I didn’t go and ask for a 50 percent increase. … The way you’re going to get somewhere good in 10 years is by admitting where you are, making your expenses match your income. It’s pretty simple stuff. John McIntyre: What is this state wanting to do? I would figure that out and put a focus on it. I would think that focus could help clear capital. And I think we also have to have a policy that wel- comes additional capital from outside of the state to come in and to focus on early-stage companies and up through mezzanine level, at least. McIntyre Chris Tracy: I guess I would focus on the people side rather than the policy a little bit. Whoever becomes governor, I’d like to see us get back to where some of the top businesses in Tracy our state loan people to Lansing to help drive some of this policy forward. I think there has been a little bit of that lacking in terms of business initiatives. And it’s not just the current administration. Jonathan O’Brien: If I could change one thing from a public policy perspective, I would approach the whole discussion of “where are we now and where are we going to go in the future” by helping to O’Brien bridge the educational gap in understanding technology and high technology. I think that’s something that Michigan is lacking in terms of leadership (and) legislation: People just understanding the basic technology and being able to make those decisions when the second round of capital does come in. Be- ing educated enough to discern what’s a good investment and what is not a good investment. Phil Torrence: I’m going to give two things I’d like to see. One, I don’t think you can even begin to have accountability with our Legislature while we still have term limits in place. Agendas change, and there is really no accountability. Torrence Two, it has been absolutely devastating to see the amount of Michigan-based bank equity that has eroded over the past five years. And the amount of assets that have been secured, lent against in this state, that are now controlled by out-ofstate banks continues to really concern me. So I would like to see some way — whether it’s through federal initiatives, TARP, or whatever TARP 2 or 3 is — see our Legislature get very serious about helping our community banks, our locally based banks, to be able to get out there and get out from under some of these regulatory orders that they’re currently subject to. Otherwise, I don’t think we’re going to be able to really legitimately look in the mirror and say we can grow businesses here in the state. John Balbach: I would like to see the very strategic programs already in place continue. John mentioned that Vestaron has received funding from the Southwest Michigan Life Science Fund. That’s one of, I think, only a handful of double-bottom-line venture capital funds in the entire country. And that’s located right here in Kalamazoo and is a very creative and, I See Page M17 http://www.metrocars.com http://www.metrocars.com http://www.metrocars.com

Table of Contents for the Digital Edition of Crain's Detroit Business - Mackinac Section - June 7, 2010

Crain's Detroit Business - Mackinac Section - June 7, 2010
In this Issue
Economic Makeover
Lesson Plan for Education Reform
Teaming Up for Action
Time for a Cultural Revolution
Defense Mechanism
Slowing the State's Brain Drain
Intern, Employers of the Year

Crain's Detroit Business - Mackinac Section - June 7, 2010

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