Mary Kay Ash, the founder of Mary Kay Cosmetics, once said, “Every silver lining has a cloud.” Not to be outmatched, P.T. Barnum once said, “Every crowd has a silver lining.” Which one of them captured the essence of the “silver lining” metaphor better? I believe they both do as they collectively speak to the issues of reality and hope which are inextricably linked. 

In Friday’s Providence Journal, I was struck by the interesting juxtaposition of two seemingly unrelated stories — R.I. jobless rate soars to 7.2%, the highest rate in 14 years AND R.I. makes top 10 in tech index. Which of these two headlines captures the essence of current state of our economy better? The answer is that they both do.

The fact is our state’s economy is at a transformational crossroads. Last year, Rhode Island was cited as one of the "Top Five Movers" in economic transformation in the 2007 State New Economy Index, a report published by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation (ITIF). The Kauffman Foundation/ITIF Index contained state-by-state analysis of how state economies are transitioning away from economic development strategies that focus on big company relocations toward strategies that focus on the creation and retention of high-wage jobs in growth industries. The silver lining in the jobless rate is that health, education and the info-tech & digital media (ITDM) sectors actually saw an increase in employment while other sectors shrunk. More and more ITDM companies are seeking talented staff, and good-paying positions currently available are left unfilled because we need even more talent in this growing sector.

As Rhode Island continues to move in the direction of establishing a stronger knowledge-based economy, we may go through some transformational pains, but in the end our workforce and talent retention will be stronger than ever. Rhode Island’s silver lining lies in our aligned approach to create the best entrepreneurial ecosystem possible. There are numerous endeavors looking to progress this vision and no one entity or person can get us there, but one fact is undeniable…the Ocean State is home to incredible assets, talent and opportunity and we need to be actively engaged in those efforts which will retain our talent, bring new talent here and foster new company creation.

If you're interested in learning more about these efforts, feel free to contact me - I'd love to hear from you.

Did you know that approximately 23,000 Rhode Islanders, or about 5% of our state's total workforce, are employed by U.S. subsidiaries of foreign-owned corporations? Those figures put Lil' Rhody a strong 11th in the country for the share of workforce supported by U.S. subsidiaries.

This is a good thing. Foreign direct investment provides many economic benefits.

• U.S. affiliates of foreign companies tend to pay higher wages than other U.S. companies. On average, U.S. subsidiaries of foreign firms pay 25 percent higher wages and salaries than that of all U.S. establishments.
• Affiliates of foreign companies (majority-owned) spent nearly $32 billion on research and development in 2005 and $121 billion on plants and equipment.
• U.S. companies use multinationals' distribution networks and knowledge about foreign tastes to export into new markets. Approximately 19 percent of all U.S. exports ($169.2 billion) come from U.S. subsidiaries of foreign companies.

So fittingly, last week was a time to celebrate not only our mothers, but also foreign direct investment. The U.S. Department of Commerce's Invest in America Week featured a series of site visits to foreign investor-owned facilities across the United States.

In Rhode Island, the site visit was to the West Kingston headquarters of APC, a subsidiary of French electrical giant, Schneider Electric. Governor Donald L. Carcieri, Laurent Vernerey, APC's President and Chief Executive Officer, Saul Kaplan, Executive Director of the RIEDC, and approximately 40 members of APC's senior management team, were joined by William "Woody" Sutton CAE, U.S. Navy (Ret.), the U.S. Commerce Department Assistant Secretary for Manufacturing and Services.

At the event, CEO Vernerey announced not only APC's decision to stay in Rhode Island, but also their plans to renovate their South Kingston facility at an estimated cost of between $3-4 million. A reflection of our changing economy, the former manufacturing facility today houses over 1,100 employees, many of whom work in software engineering and research and development.

Other notable foreign-owned info-tech companies in Rhode Island include:

• Providence-based GTECH - owned by Italy's Lottomatica
• North Kingston-based Hexagon Metrology - owned by Sweden's Hexagon AB
• Providence-based Simulia, - owned by France's Dassault Systemes

The U.S. Department of Commerce launched Invest in America, the first federal-level U.S. investment promotion effort in a generation, last year. Invest in America coordinates across U.S. Government agencies to promote inward investment and address federal issues that may impede investment. Through Invest in America, the Department of Commerce promotes the United States as the best place in the world to do business and reinforces our nation's unequivocal and long-standing commitment to open investment policies.

Andy Cutler is a founding partner of Cutler & Company, a Providence-based public relations firm.

Exciting news that could significantly and positively impact the state's info-tech and digital media sector came out of the RI Economic Development Corporation (RIEDC) yesterday. First, with an eye towards increasing growth capital available to companies poised for expansion, the agency announced two major developments:

1. A new strategic alliance with the Business Development Company of Rhode Island (BDCRI) and the Business Development Company of New England (BDCNE). RIEDC joins with the BDCs in a partnership to bring the financing tools of two of the most recognized business development organizations in the United States to an expanded number of Rhode Island businesses with more that $200 million in growth capital products available to invest.
2. The RIEDC announced that they are working with legislative leaders to propose legislation that will establish a $20 million Growth Capital Guarantee Program to create new high-wage job opportunities for Rhode Islanders.

Additionally, the RIEDC announced the launch of an attraction campaign, Opportunity: Rhode Island, aimed at identifying expansion and relocation opportunities initially focused in the Financial Services, Information Technology and Digital Media, and Health and Life Sciences sectors. They are teaming up with the RI Commodores, a group of leading RI business people/organizations.

"Our Economic Growth Plan centers on job growth in target industry sectors that pay higher wages and provide workers with good opportunities to move from lower paying entry-level positions to higher-wage positions," says RIEDC Executive Director Saul Kaplan. "Rhode Island has significant strength and momentum in six target high-wage industry sectors: Financial Services, Information Technology and Digital Media, Health and Life Sciences, Marine and Defense Technology, Advanced Manufacturing and Industrial Products, and Consumer Products and Design. Building on this foundation through a regional attraction effort will enable us to strategically invest limited resources in areas where opportunities for success are highest."

For those interested in learning more about the strategies/tactics being deployed to grow our economy and increase the number of high-wage jobs here, check out the following links:

• Background on Economic Growth Plan 2008
• Economic Growth Plan 2008 (PDF)

I attended this event last year and it quite incredible to see these high school students work so collaboratively and revel in their love for science/robotics. Below please find some information on this year's upcoming event on March 2 at New England Tech's Automotive Center (located off of I-95). Thanks in advance for anyone who can help out on that day. You will NOT be disappointed. See http://www.riedc.com/files/Apr...

Thanks.

Andy

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The FIRST Technical Challenge (FTC) in Rhode Island is looking for technical professionals, educators, parents and all others interested in supporting robotics and students to help with the FTC Challenge on March 2, 2008. The event will be held from 7:30 a.m. until 5:00 p.m. and will be held at the Automotive Technology Center at England Institute of Technology in Warwick. We are in need of volunteers to serve in a variety of roles to make the day run smoothly.

The day of the FIRST FTC Challenge, 40 RI high school teams totaling 400 students, will put their robots to the test. The teams compete in a timed technical challenge against each other. The day is full of team energy, cheering for the robots and the excitement of coming down to the wire to determine the winner.

We need you! We need you to work with these RI students for the day. If you are interested in helping out please complete the attached form to Erin Flynn.

RI FIRST needs volunteers in the areas of:

Judges Referees Scoring Pit Managers

Crowd Control Registration Announcers Time Keepers

Judges Assistants Field Manager Runners Team Queuers

Practice Field Coord. Queuing Assistants Floaters Information

Greeters Robot Inspectors

For more information on FIRST and the FTC Challenge go to www.usfirst.org. If you have any general questions please contact Erin Flynn, RI FIRST Affiliate Partner at New England Institute of Technology, 800-736-7744 ext. 3462 or by e-mail at eflynn@neit.edu.

Has anyone noted that this year's theme to the Davos Conference is collaborative innovation? See http://www.theglobeandmail.com...

What I find most amazing about it is that it has been the theme of the past three Business Innovation Factory Summit's (see http://businessinnovationfacto...)....right here in Providence.

Little Rhode Island's collaborative innovation posse (and you know who you are) should hang there heads high knowing that the world's leading figures will be discussing an approach that many Rhode Islanders now actively engage in--creating a more collaborative environment in our state. New social networks, like this, are growing each day creating further dialogue, discussion and collaboration between different parties. Ideas are coming off-screen and being put into action. As Rhode Islanders representing government, academia, public and private sectors form new collaborations, we are closing that one degree of separation (or connectedness) that is the only thing that stands between us and new (and cool) opportunities.

Collaborating is tough. It takes time, effort, stamina and energy. On average it can take up a fair amount of one's week. It can involve sharing ideas and sharing resources. There are tons of examples of people collaborating here and I think that is what makes Rhode Island an increasingly special place.

This year's theme at Davos is not really unlike the philosophy of "random acts of kindness." If each of us engaged in random acts of kindness, the world would be a better place. So too with respect to collaborating across institutions (and party lines).

According to the piece in the Globe and Mail, "Davos organizers also invited citizens around the world to respond via YouTube to The Davos Question. "What one thing do you think countries, companies or individuals should do to make the world a better place in 2008?" The most popular responses will be played at Davos, and leaders around the world will record their reactions to the suggestions." Once available, I look forward to checking out those videos!!!!

Tattoos and Suits....

I went to today's forum on Next Generation spaces hosted by the Rhode Island Economic Development Corporation (RIEDC) and RI Nexus. It was really refreshing being in a room of people as diverse as this; once again showcasing Rhode Island's talent and interest in this subject matter.

I especially enjoyed observing folks with tattoos sitting next people with suits and ties sitting next to IT and digital media entrepreneurs sitting next to developers sitting next to architects sitting next to artists. Quite refreshing and again highlighting the hip factor we sometimes take for granted here. Over 100 people registered for this event!!!!

As an owner of a PR/communications business working with academic/government/technology and design ventures and co-located with an industrial design firm, a green design company and a graphic design shop, it was helpful to learn about the next generation of spaces/projects coming online in this marketplace and what is happening in other places like Phillie, Boston, and Portland (ME).

Thanks to Adam from BatchBlue for starting this very important discussion on RI Nexus, which led to today's forum! Great example of taking discussions off of this site and creating a live and in-person discussion (creating further networking opportunities).

Great job moderating this discussion Jack!