BUSINESS CLIMATE

Innovation key for Texas to compete for business

Governor's competitiveness council focuses on energy, education, infrastructure

Innovation, education and efficiency are the keys for Texas to compete in the global marketplace, Gov. Rick Perry said in a speech Wednesday.

Texas' economic growth and job creation have outpaced those of other states, Perry told the Governor's Competitiveness Council Summit in Austin.

But the state must do more to compete for jobs and investment with emerging international powers such as China, he said.

"As good as we are, as many gains as we've made ... we are not where we need to be yet," Perry said.

Perry said he would review every piece of legislation that crosses his desk next year for its effect on the state's global competitiveness. And he expects legislators and state agencies to do the same as they prepare for the 2009 legislative session.

Railroad Commission Chairman Michael Williams led the competitiveness council, which comprises state and business leaders brought together by Perry last year.

The council offered the following recommendations in its report, released Wednesday:

Develop a well-prepared work force by providing quality education, particularly in math and science.

Foster technological innovation, including the creation of prizes for developing wind energy storage and clean coal technology.

Improve the state's energy and transportation infrastructure.

Encourage a variety of energy sources — wind, solar and nuclear — and develop in-state natural gas and crude oil resources.

Maintain a legal and tax environment conducive to business.

The council also released a state energy plan that addressed proposals to ensure a reliable and competitively priced supply of energy as demand grows. Among the recommendations was encouraging energy efficiency while discouraging federal legislation intended to curb carbon emissions.

State Rep. Donna Howard, D-Austin, said she welcomed the council's recommendations on education and renewable energy.

The council's findings lay bare the tension between maintaining the state's low-tax business climate and finding the resources to invest in the infrastructure to support business, such as a quality education system and good roads, said Howard, who attended the daylong summit.

She hoped the council's prominent participants would turn to finding the money to make the necessary investments in education and more.

The findings of the Governor's Competitive Council can be found at www.governor.state.tx.us/gcc

kalexander@statesman.com; 445-3618