NC State University Institute for Emerging Issues: Collaboration Platform

Yes absolutely and please make it accessible to everyday people. We need support not just to add new incentives or every changing ones but sustaining them as well. My local arts council supports me as an artist and teacher. Through grants and affordable studios as well as giving advice. We need to expand our vision and ideas to the unknown.

There are two aspects of providing financial incentives. First, the question relative to the role of government in providing the financing. I believe the data shows overwhelming that money provided to establish start-ups, support cultural organizations, provide mentors and teachers for existing businesses/organizations and improve our "creative" aspects of the educational system, return significantly more to the treasury AND to the community than the original investment. Based on recent history, I am not sure that this can be said for the large million dollar incentives for large corporate relocations. So the real question is then, how do you manage and distribute the incentives? I believe there are a significant number of existing organizations across North Carolina that have a proven "track record" in providing the type of support necessary for such a project. An example I am familiar with is Mountain BizWorks in Western NC. I am sure there are similar success stories in all parts of the state. The same is true regarding educational institutions and organizations, and cultural organizations. Since it is a "given" that the government should invest in this activity... I would suggest that we address how we identify these exising agencies and organizaitons. This would afford a "fast track" as well as utilizing existing, proven successes and not grow an existing or build a new government bueraucracy.

What is a budget? Budget or bougette is a French word meaning purse. In short a budget is a general list of expected expenses and revenues. Basically it’s what we use our money for. If we want to be happy we spend money at the movies to see a film that will give us an indescribable euphoria of happiness. Basically, as hard as it may seem, we humans pay for what we feel is important, and what we want. If we vote for some politician, it’s because there is something about them that we support. If its some radio station, we listen because it’s something that we like. We humans do things unconsciously and consciously because of an expected or unexpected outcome.

In order for us to finance creativity, we must be willing to give up something. Whatever that something is its going to have to be meaningful. At first we will hate that we lost it but if financing creativity is our intent and goal we will be happy with our decision.

http://www.youtube.com/watch?v=rrix8Ec0O4Y

Arnold

It’s just like the Governator said, “If we are going to do this, we need to do it right."

The source of innovation resides neither in the language of tax breaks and subsidizations, nor the walls of a small business incubator or even the loan check for a creative enterprise. These strategies can encourage the launch of a business and help bring creative ideas to life, but the development process relies primarily on the ability of an individual to first begin to imagine an innovative solution. In the 18th century, the British Parliament’s Board of Longitude directly supported individuals engaged in research to develop a reliable technique to calculate longitude at sea, the results of which ultimately secured the British preeminence as a naval power. In more recent years, the Howard Hughes Medical Institute’s Investigator Program has adopted a similar strategy: investment in “people, not projects." By recognizing exceptional potential and providing long-term funding, conditional on progress rather than product, this research model has produced some of the greatest and most-referenced biomedical breakthroughs of the last two decades. The terms of such a program involve higher risk on behalf of the supporting institution, but the potential for reward is much higher as well. If North Carolina wants to demonstrate its commitment to becoming a leader in the burgeoning industries of twenty-first century, the launch of the North Carolina Innovative Research Fellows program would create unparalleled opportunities for brilliant minds to engage in long-term ground-breaking research and development. The state already boasts some of the greatest universities and high-tech research parks in the world: with resources already available, the state could continue to attract highly innovative individuals by tying the Fellowship to obtaining residency for the duration of support. The state can—and should—explore opportunities to encourage homegrown entrepreneurship and support start-ups. The greatest and most innovative advances will ultimately, however, stem from people, not firms.

Though the economy is weak as Phillip has stated there are ways around it. Currently there are many programs that are funding many home grown businesses. There are programs that are funded by not only state and local government but the federal government as well. Personally as an individual’s hoping to start his dream business/company thankfully there are ways to finance such creative ideas. As Dylan stated an idea like this is very risky. But I think and know North Carolina can pull it off. In due time there will be a plethora of benefits, many more jobs will be created. It would also be hard to specifically say who gets what. At the end of the day it’s all business unfortunately. There are thousands of great ideas out there and more being thought of as I type this. But the problem is what ideas will sell. Unfortunately, in our society money talks, money has more power than an impressive idea, piece of art work, or creative activities. If North Carolina did pass or approve of something there would be some problems as to what will fit into what categories, classification and in the end work and benefit.

There erupts a problem in financing “creative projects" because of the lack of definition in “creativity". Launching a venture is a risky subject that venture capitalists take very seriously. These investors are usually looking for a return on investment of about 25-30%. As Meg has stated it IS important for the government to step into venture capitalists’ environment and promote growth in future launches. However while they look for how creative and new a product is, they are mostly concerned about its marketability and feasibility in a given market. For example while a experimental performance art show might be very different and creative, there is not a definite measure of how successful it will be and therefore it will be very risky investment. Another way of financing would be tax benefits towards struggling companies. Currently the highest taxed businesses are ones that take in between $100,000-335,000 at 39%, while corporations that make 18,333,333 or higher are only taxed 35%.

Corporate Income Tax Rates--2010, 2009, 2008, 2007, 2006, 2005

   Taxable income over     Not over      Tax rate

      $         0        $    50,000        15%
           50,000             75,000        25%
           75,000            100,000        34%
          100,000            335,000        39%
          335,000         10,000,000        34%
       10,000,000         15,000,000        35%
       15,000,000         18,333,333        38%
       18,333,333         ..........        35%

Source: http://www.smbiz.com/sbrl001.html These businesses are already faced with substantial overheads to compete with already existing corporations. They obviously have succeeded up to this point because their service, or product, is creative and different enough from the current to be successful. While patents and copyrights allow them to succeed in the short run, time will destroy them unless they have the finances to grow and evolve with the competition. Changes need to be made to ensure that these small businesses are able to flourish in the harsh capitalistic societies that our world has created.

I think that with the weakening economy and lack of job security that is a reality nowadays, financially supporting small business owners is a great idea, providing that they can prove that they offer services/goods and products that can help to STIMULATE the economy, as opposed to just stimulating their own pocketbooks. Of course, this will more than likely involve raising taxes AGAIN...(groan!) When will Uncle Sam loosen his noose? I fear that the answer to that question is---NEVER!!

I think its a good idea to start home-grown business. This is a perfect example of America's great creativity.

Personally I feel that there is always someone out there that can help with finance. If the financing for creativity is needed it can be found. I mean hey Bill Gates gives money to states that support business and marketing. I'm positive there is someone out there that supports creativity. We just haven’t tapped the right resource yet. Networking will help find financing creativity.

Creating incentives and tax code encouraging venture capitalists from the creative sector would be a great way for North Carolina to improve its economy. While there are always risks associated with supporting a small-business, the positive results that North Carolina could see from financially supporting creative venture capitalists could be great. People would be more inclined to take risks, so there would be a greater chance for success. By nurturing creative endeavors, NC could see an improvement in the aesthetics of its towns, a growth in its tourism, and an overall increase in intelligence in schools and communities, all leading to an improved economy. NPR talk show host, Ira Glass recently said that the gap between ability and taste drives creative people to achieve great things. To me, this can apply to NC by suggesting that if the state shows support and encouragement for creative ventures, more people would be inclined to participate and work hard and eventually great things will happen. In a left-brained society, encouraging the use of the right brain can only lead to a little more balance!