Mainebiz Special Editions

V O L . X X I I N O. X V 72 FA C T BO O K / D O I N G B U S I N E S S I N M A I N E C E O I N T E RV I E W Mainebiz: What are the advantages of doing business in Maine and, more specifi cally, central Maine? Brad Jackson: Spatially, economic development proceeds from one of two occurrences and central Maine is blessed with both. One, from the spread eff ects of the urban hierarchy, the 'nodes,' and, two, from the network eff ects of development corridors — the links between the nodes. Central Maine's economic geography is unique for New England. What this provides for fi rms seeking a business investment location is a competitive price point — rents, wages and so on — with an abundance of the factors of produc- tion, including land and labor. A recent assessment provide by Bridgewater, N.J.-based Wadley-Donovan-Gutshaw Consulting is that the cost diff erential in the Augusta-Waterville area is a 20% discount versus markets to the south. When you combine this with a multi-modal corridor — rail, road, air — that extends from Lewiston to Bangor, central Maine's Kennebec River Valley is wonderfully networked. MB: How much of your customer base is in Maine vs. the rest of the U.S. (or the world)? BJ: My mandate is to secure business at- traction from beyond the state of Maine. One of the curses I hear about the region that is limiting investment outcomes is that we are at the end of the road. I contend that this is a matter of perspec- tive. What may look like the backyard for Boston-based investment is the front door for Canadian-based investment. For the past two years we have been networking with fi rms and economic development organizations from Halifax to Toronto. I believe Canadian invest- ment is a solid play for central Maine. ere are two schools of thought in the literature of industry location theory: Cost minimization, like cheaper land and labor costs, versus profi t maximiza- tion, which depends on the proximity to customers and suppliers. I advocate as a matter of public policy that regions would be better served securing invest- ment from fi rms seeking the profi t maximization approach as it suggests a greater level of competitiveness. In addition to Canada, we are seeking investment attraction from Boston to Buff alo. Firms in the Mohawk Valley see a similar economic geography in central Maine. ey do not like the price points of a Burlington, Vt., or a Manchester, N.H. MB: What are the challenges of doing business in Maine? BJ: In Maine I fi nd the greatest chal- lenge is the culture. Town meeting may be our peculiar institution and cherished way of life but I believe it limits our ho- rizons. e state's public sector seems to isolate itself from new perspectives and new approaches. It is not a culture that is compatible with an innovation economy. When I hear others lament that Maine has a geographic problem or a demo- graphic problem, I disagree. I would like to suggest we have an institutional problem — we have not created eff ective institutions to accomplish what we need to do. e development discussion in Maine needs to shift from policy devel- opment to capacity development. From 'What should we do?' to 'How should we do it?' We know what we need to do. We lack the institutional capacity to carry it through. e recent resigna- tion of the director of the Maine Center for Entrepreneurial Development, Don Gooding, refl ects this problem. So too the absence of a state-wide economic development strategy. MB: Describe briefl y your journey to where you are in Maine. BJ: e military and development pro- fessions are my calling. My service in the U.S. Army Civil Aff airs branch allowed me to combine both of these interests simultaneously and to apply my craft in post-confl ict venues. e military was my fi rst calling and distilled in me a mili- tary mind, a commitment to service and a standard. ese military impressions infl uenced my approach to other endeav- ors — there was the right way, the wrong way and the Army way. I came into the economic development community via a land use planning background. Brad Jackson Title: Executive director Organization: Kennebec Regional Development Authority Headquarters: Oakland What the organization does: It is responsible for economic development and operates FirstPark, a 285-acre business campus in Oakland, which is directly off of I-95 in central Maine, in close proximity to Waterville and Augusta. The office park's anchor tenant is T-Mobile, which has a call center staffed by 800 employees. Spotlight on economic growth Brad Jackson, executive director of the Kennebec Regional Development Authority, came to Maine as an economist with experience as a U.S. Army development officer and regional economic development leader. In Franklin County, N.Y., he directed an industrial development agency that generated $500 million in energy-related infrastructure projects and sparked $700 million in private investment. B y p e t e r v a n a l l e n P H O T O / P E T E R VA N A L L E N FA C T BO O K / D O I N G B U S I N E S S I N M A I N E Brad Jackson is a former U.S. Army offi cer who has led a variety of economic development efforts. He is pictured at the T-Mobile call center in the FirstPark business center in Oakland.

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