HI Growth Initiative deserves continued support

The recently revised economic forecast put out by the Council on Revenues has led the state House to delete funding for the HI Growth Initiative, the state’s leading initiative to develop new engines of economic growth.

Conservative budgeting principles must still include ways to grow our economy if we are to increase tax revenues in the future. The Senate has a chance to reinsert this important program into the state budget.

We can, and must, do more to promote high-growth industries that create high-wage job oppor- tunities for Hawaii citizens.

With the successful launch of the HI Growth Initiative last year, which the Star-Advertiser recognized as one of the few pro-business and pro-growth policies to come out of the Legislature last session, the state is poised to help high-growth businesses establish and grow in our state.

A recent report by the University of Hawaii’s Economic Research Organization observed that "Hawaii’s economy is dominated by sectors that contribute only modest productivity growth and cannot be sources of long-term improvements in the quality of life for Hawaii residents."

The report concluded: "If Hawaii is to improve the quality of life and increase living standards for its citizens, we must rely on industries that can both contribute to and benefit from technical change."

With technology spurring rapid change, the categories of innovation industries are expanding. It is no longer just information technology, but now also businesses in the fashion, food, digital media, life sciences and hospitality sectors. The common denom- inator is their creative use of technology to compete in global markets.

To date, Hawaii’s first accelerator, Blue Startups, has been established and has launched 15 companies. The first cohort of eight companies has so far raised more than $3 million in follow-on funding. New accelerators in the digital media and fashion industries are being organized.

The UPSIDE Fund has invested in two companies successfully commercializing technology developed at the University of Hawaii.

Two new investment funds have been capitalized, attracting more than $15 million in private investment capital.

These efforts have all been fueled by the HI Growth Initiative. This is just the beginning. The HI Growth Initiative is energizing a new generation of entrepreneurs and businesses that are the future of Hawaii’s economy.

Startup Weekend events, pitch events, co-working spaces and other efforts to increase entrepreneurial capacity in the innovation ecosystem, have sprung up around the state and have led to the community’s adoption of "Startup Paradise" to brand Hawaii as an innovation hub.

We all want to see a sustainable economy that improves our quality of life, provides high-wage options for our residents and attracts our kamaaina back home.

The HI Growth Initiative is transforming our economy and deserves continued support.