Economic growth will require risk

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South Carolina taxpayers have invested $12 million in seed and infrastructure money to build a biotechnology presence here. To date, the state has yet to secure any company of note and has only a handful of marketing jobs to show for it.

Some are calling this effort a failure, and it's easy to understand why.

A recent report in The (Columbia) State newspaper outlined how two years after its opening, the $6 million S.C. Biotechnology Incubation Facility in Greenwood stands empty. Yet this year the state will spend another $600,000 on the biotechnology incubator.

Opinions differ widely on the wisdom of investing in such emerging industries. This much, however, is certain: Economic development in this state has changed, defined now by considerable risk and reward.

In order for South Carolina to grow its economy, some risk is necessary. This doesn't mean the state should abandon its pursuit of well-established corporations and traditional manufacturers.

It does, however, mean the state must not be afraid of making speculative investments in emerging industries such as biotechnology. In order to attract and grow companies that can provide the jobs of the future, South Carolina must put itself in the game.

Indeed, the risk is uncomfortable in a state that is accustomed to spending its economic development dollars on infrastructure improvements. But the facts argue for a new approach.

South Carolina's once strong manufacturing base is shrinking. The state is quickly losing its competitive edge in recruiting traditional manufacturing. No longer can South Carolina sell the absence of unions and an abundance of cheap land to companies interested in relocating here. Those companies get a better deal in Mexico, Latin America and Asia.

This state's future lies in having a healthy mix of companies whose greatest potential lies ahead.

Still, the state must be careful in how it spends limited tax dollars. In developing a so-called knowledge-based economy, South Carolina's economic development team — led by Gov. Mark Sanford and Secretary of Commerce Bob Faith — has called for prudence.

Sanford and Faith are committed to solidifying the state's traditional manufacturing base. But both are open to speculative projects, too, as evident in their support for a proposed automotive research park in Greenville.

If jobs — which remain the ultimate measure of economic development — don't soon materialize with our investment in the biotechnology industry, this venture should be counted as a categorical failure.

Clearly, the experience so far has underscored how developing a knowledge-based economy depends heavily on state leaders making the right investment choices with our limited tax dollars.