Sun Coverage
State economic experts and government leaders today got their first look at a report they hope will put Nevada on the path to economic diversification.
Gov. Brian Sandoval and Lt. Gov. Brian Krolicki led a meeting teleconference in Las Vegas and Carson City at which participants received preliminary findings on a report being developed by research groups SRI International and the Brookings Institution.
After the meeting, Sandoval said he expects the final report, due in October, will provide the framework for the state’s plans to overhaul its Economic Development Commission.
The preliminary findings didn’t reveal many surprises because the state in March received diversification research two reports, one from the Nevada Institute for Renewable Energy Commercialization and Regionnovate LLC, the other from the New Nevada Taskforce.
“There are many cars moving on separate tracks,” Sandoval said after the two-hour session.
SRI and Brookings are expected to meet with the state’s development authorities and universities to complete their report, and Sandoval said the findings would help him choose appointees to the new Economic Development Commission as well as its executive director.
The Nevada Legislature approved a comprehensive economic development overhaul that will replace the existing commission with a board that will be guided by the governor, lieutenant governor, secretary of state and top legislative leaders. It also provides a $10 million “catalyst fund” to spur diversification.
The existing Economic Development Commission will continue to operate through June, considering tax abatements and deferrals for companies relocating to or expanding in Nevada.
Once SRI and Brookings complete their report, which is expected to recommend industry clusters compatible to the state’s business environment, Sandoval will be able to choose commission representatives who are knowledgeable about the types of industries the state hopes to attract.
Sandoval said the biggest challenge for the state is planning for 20 to 40 years from now, while also finding quick fixes to boost the economy immediately. Because the state has been well served by tourism, gaming, construction, real estate and retail during prosperous times, Sandoval said it didn’t pay attention to the need to diversify the economy to endure poor economic times.
“Nevada’s reliance on its core consumption-based industries has meant that its innovation-intensive industries have not always received adequate attention and support, as borne out by the state’s relatively weak position in a number of innovations activities,” the preliminary report says. “Nevada significantly lags the national average for every indicator of innovation and (research and development) used in this study. The innovation activities that are taking place in the state are heavily concentrated in the Reno metro area.”
The report applauded UNLV’s strong research competencies in environmental sciences, geosciences and water, but it added that UNLV is weak on technology commercialization activities.
The report listed the Las Vegas metropolitan area’s industry strengths as information technology services, aerospace and defense, medicine and life sciences, and financial and business services sectors. Energy and environment, and transportation and logistics also have strong potential.
Sandoval asked researchers also to explore how changes in K-12 education philosophies could benefit the state’s economy. He said the reinvention of traditional vocational education to become more customized could develop skilled workers to fill jobs that would be part of Nevada’s future economy.