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W W W. M A I N E B I Z . B I Z 27 A P R I L 1 8 , 2 0 1 6 National Science Foundation data showed that R&D spending at the University of Maine rose to $101.2 mil- lion in 2014 from $77.6 million in 2013. e report states that "Investment in R&D supports innovation, which has been shown to generate approximately 80% of all economic growth. Maine's spending on R&D also yields a high return on investment. It is important that we fi nd an appropriate mechanism to provide suffi cient funds for research and development, and equally impor- tant that our R&D activities generate meaningful economic activity for the state. Concentrating on Maine business and industry and the growth and expan- sion of R&D and innovation-oriented private sector companies is imperative." How to grow Both houses of the Legislature also recently passed a bill to establish a $50 million capital fund to fi ll a hole in larger funding amounts. e fund would be available only to companies that create or retain 250 jobs that pay about $20 per hour, which is about 125% of the state's current median wage. It also would operate like a mutual fund into which investors, such as large companies, would put money that in turn would be lent to qualify- ing customers. ere also would be no taxpayer obligations if a development or business fails. e fund also helps in gaps with banks, which can only lend up to 20% of their capital to a proj- ect. In all, the aim is to fi nance larger developments and innovations. While the plan may look good on paper, Martin questions its benefi t for funders: " e example they use is Kestrel . . . e idea that you're going to drop a large employer into the state is the same sort of fantasy that exists in towns that think somebody's going to fi ll up the millions of square feet of mill space." Martin says a couple things are happening in the investment world at large now that are going to drive change, and Maine has the oppor- tunity to participate in those. First is the big shift going on, particularly in venture capital and institutional investing, into an arena that's known as ESG, or environmental, social and governance investments. ese inves- tors are seeking businesses and enter- prises that solve a social need and whose governance issues are such that they want to pay attention to how much the CEO makes, how the board exercises its fi duciary responsibilities, what the values of the fi rm are and its Strong relationships are always good for business. Member FDIC At NBT Bank, we're all about helping you get the most out of your partnership with us. Our dedicated relationship managers will get to know your business and connect you with the products and services you need to meet your goals. It's the personal side of commercial banking—and for businesses big and small, it counts. Kimberly Twitchell Maine Regional President 207.808.4487 Daryl Wentworth, SVP Regional Commercial Banking Manager 207.808.4490 Joe Delano, VP Senior Commercial Banking Relationship Manager 207.808.4486 For 38 years, we've been providing 'em. Six Locations in Maine / 207.989.4824 / ces-maine.com / Engineers w Environmental Scientists w Surveyors Sensible Solutions C O N T I N U E D O N F O L L OW I N G PA G E »

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