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Centers of Excellence Having a Substantial Economic Impact on Our State (Department of Commerce)

by By Shane Goettle, Commissioner, North Dakota Department of Commerce

Posted on 10/1/2009

Shane Goettle
Shane Goettle, Commissioner
I appreciate this opportunity to respond to a recent article reporting on the state auditor's performance audit of the North Dakota Commerce Department, and specifically, of the Centers of Excellence program.

Centers of Excellence are a partnership between North Dakota's campuses and the private sector. Through research, development and the commercialization of new products, they are helping to create high paying careers for North Dakota citizens and new opportunities for our entrepreneurs. They have attracted projects dealing with energy development, aerospace technology, advanced electronics, workforce training, and advanced manufacturing in a range of fields.

Bismarck State College's National Energy Center of Excellence; Dickinson State University's Strom Center for Entrepreneurship and Rural Revitalization; UND's Unmanned Aerial Systems Center; and NDSU's Center for Agbiotechnology are only a few of the worthy projects across North Dakota creating good jobs, fresh opportunities and quality educational and entrepreneurial experiences for our young people.

The performance audit largely consists of recommendations for policies and procedures, which the Centers of Excellence Commission and Commerce Department are already addressing. The Centers of Excellence program has had a beneficial impact on our economy, and the data exists to show it. The numbers tell the story.

According to a 2007 economic impact study of the program by Dr. Larry Leistritz, a highly respected professor of economics at North Dakota State University, Centers of Excellence have already created more than 1200 jobs and helped to establish 16 new or expanded businesses. A total of 107 private-sector companies were participating in the Centers of Excellence program, leveraging $25 million in state funding into $125 million in total funding with private sector and federal match.

Dr. Leistritz, who has done economic analyses of the Red River Valley Research Corridor, North Dakota's oil industry, and other notable components of the state's economy, reported last year that: "With a direct economic impact of $59 million and a total impact of $169 million in 2007, the program's contribution to the North Dakota economy is already substantial." He concluded that "as the Centers become fully established and partner facilities are developed, the program's economic contribution can be expected to increase considerably."

The report for 2008 has not yet been completed, but when it is, it will show considerably more economic impact.

North Dakota has been doing new things in new ways, and Centers of Excellence are helping to drive economic growth in our state. Although we are not immune to the national recession, as recent layoffs demonstrate, it is clear that now more than ever we should be squarely focused on aggressive economic development efforts and creating the jobs of the future with programs like Centers of Excellence.



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