“I want to foster a spirit of enterprise in this state,” said Indiana Governor Mitch Daniels on November 15 as part of the Entrepreneurial Insights lecture series sponsored by the Mendoza College of Business. Daniels described the efforts he made during his administration to promote entrepreneurship and innovation in Indiana.
“We are building the best sandbox in America and making the conditions for enterprise as best as they can be so that it is more likely that whatever money you risk will come back to you if invested in Indiana rather than anywhere else,” Daniels said.
Daniels pointed to Indiana’s negative net worth when he took office in 2005, and claimed that because of his initiatives supporting business development, Indiana now has the third lowest debt in the country and its first AAA bond in the state’s history.
“How did we do that? We spent less money than we needed,” Daniels said. “The fundamental to our success was fiscal solvency. We believe by keeping taxes as low as can be, consistent with public responsibilities, we improve the margin for successful enterprise.”
Daniels went on to discuss the importance of promoting innovation in technology.
“We’re doing everything we know how both tangibly and in the culture of our state to encourage and celebrate those rare individuals that tend to make the most changes in this society,” Daniels said. “The passing of Steve Jobs brought attention to the incredible effect that one person can have on the lives of others. The greatest scientist impinges more on history that the greatest warlord. We need more of those innovative people here in Indiana.”
Through tax cuts and changes in bureaucratic regulations, Daniels said that he incentivized businesses to focus on innovation.
“Seven years ago, if you bought a lay or a drill press, you did not pay sales tax because these were understood to be tools of work,” he said. “But for buying a microscope or other high-tech tools, you did pay sales tax. We changed that. We want people to invest in research and development that could blossom into a good or service.”
Daniels also described the changes he made to patent procedures in the state. “In Indiana now, for the last two years, if you are granted a patent [the] state will forgive a percentage on income from that patent for the first several years,” Daniels said. “There is nobody we prize more than the people who innovate to see if anybody will part with a buck for [their innovation].”
Daniels argued that government could become more effective by learning from successful business models. “Government should never be in business, but it can be a lot more business like,” Daniels said. “We reward hard-working individuals on a pay for performance basis to build a culture of high performance. Indiana has 21 percent fewer state employees than 5 years ago, but its performance is much higher.”
Daniels concluded with an exhortation to the Notre Dame students in attendance.
“I hope that most of you will devote most of your career to creating hope and opportunity for others through hard work, inventiveness, and leadership,” he said. “I hope some of you benefit those in public life as well because the very same spirit is sorely lacking in public enterprise, which must be done well for private enterprises to flourish. I hope Indiana will be the place where you all will go forth and prosper.”
Derek is a man of mystery, but he does have an email address. Contact him at ddefenso@nd.edu.
