If Massachusetts is the New England innovation economy’s Goliath (and we’d argue that it is), Rhode Island is David. And the state has a new weapon in hand as it goes up against its much larger neighbor: a targeted tax credit of up to $100,000. Rhode Island hopes the credit will encourage investment in its up-and-coming high-tech and life sciences companies and help counter any temptations for them to head across the border to what’s often viewed as more startup friendly Massachusetts (or anywhere else for that matter).

Will it work? Some answers might be coming soon. The six companies preliminarily approved for the Innovation Tax Credit Program last November will have their first opportunity to show proof of fulfilling the requirements later this month. Rhode Island will issue the first set of tax break certificates promptly after this review is complete, according to Melissa Withers, director of communications and market development at the Rhode Island Economic Development Corporation (RIEDC), whose organization oversees the program...

...At least four, and possibly more, of the six companies pre-approved in November will be going before the board this month to try and win the certification. One might be Bionica, a four-person life sciences startup that launched last year to develop a state-of-the-art hearing aid. Co-founder Ralph Beckman said the funds raised under the auspices of the credit incentive should help cover the cost of developing various prototypes of the device, which is known as the Clio. He actively sought out the incentive when it was first publicized last summer, and said the state was smart to pass the program. “It raises the profile of young startups like ours,” Beckman said. “It’s good to know that the state is behind you and helps sell your project.”...

...“It’s a great start,” is the early take from Kathie Shields, director of the Tech Collective in Providence, an industry association whose membership includes 180 companies in the high technology and biotechnology spaces. Shields cautions, though, that more enticements are needed soon to enable Rhode Island to more rapidly grow its own reputation as an innovation leader. “We need incentives in place not only through tax incentives, but also through areas of training dollars and support programming and workforce development,” she says.