JOBS PLAN Gina Raimondo for Governor

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JOBS PLAN Gina Raimondo for Governor
Gina Raimondo for Governor:
                              JOBS PLAN

                 A Comprehensive Blueprint for Ending Our
    Jobs Crisis and Putting Rhode Island Back to Work Now
                                    and Through the Future

                                 Paid for by Friends of Gina Raimondo
JOBS PLAN Gina Raimondo for Governor
A Note from Gina…

                  Dear friend,

                    I first decided to run for office when I saw an article about cuts to our state’s
                    public buses and libraries. I took the RIPTA bus to high school. My grandpa
                    learned English in the public libraries after coming here from Italy at the
                    age of 14. These critical services allowed me and my family to succeed,
  just like the countless other Rhode Islanders who, because of good public schools, reliable
  public transportation, and libraries that were open late at night, had the opportunity to
  build a better life. When I saw that other Rhode Islanders might not have access to the
  same opportunities that allowed my family to get ahead, I knew I had to take action.

  Since then, we have come together as a state to help put Rhode Island on more sound
  financial footing by enacting pension reform that saves the state $4 billion and allows us
  to make investments in our future. Now we have to bring this same sense of urgency to
  rebuilding our economy and getting people back to work.

  That’s why I decided to run for governor. We are in the midst of a crisis — and it threatens
  to undermine the future and well-being of our state. We have the highest unemployment
  in the country (and that number doesn’t even account for people who have simply given
  up looking for a job, or those who are working in part-time work). We have students failing
  to graduate from high school — and those who do graduate often aren’t equipped with the
  skills they need to find a job and succeed in the 21st century. We have roads and bridges
  that are crumbling, and cities and towns teetering on the edge of bankruptcy.

  The impact of this crisis on our communities is stark. We can see it in our cities, where
  giant office buildings sit vacant. We see it in our taxes, growing ever higher. We see it in
  communities like Central Falls, where retirees have seen their pensions slashed as a result
  of bankruptcy. And we see it in our children, who grow up here and are forced to leave
  their homes and families behind, because there are simply no opportunities for them here
  in Rhode Island.

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JOBS PLAN Gina Raimondo for Governor
We cannot afford to continue doing what we’ve been doing. The stakes are simply too high.
We cannot afford more of the same. And there is no single solution. Silver-bullet plans and
back-room deals are not going to get us out of this crisis. Instead, we need a comprehensive,
detailed approach that moves our state forward on multiple fronts, while focusing on areas
where we are already poised to succeed.

It’s a big job, to be sure; and many skeptics may think that it’s too big a job for any one
governor to tackle. But many of those skeptics said the same thing about pension reform. But
in my time as Treasurer, we brought our state together and addressed the issue head on. We
did it by being honest: we diagnosed the problem, looked at our options, brought people
together to formulate a plan, and took action.

That’s exactly what this jobs plan does, too. It takes into consideration global trends like the
re-shoring of advanced manufacturing in the United States, and lays out a strategy for getting
our fair share of those new jobs. It embraces Rhode Island’s competitive advantages, like
our budding food industry, and outlines ways we can capitalize on its growth to make Rhode
Island a destination for food tech and culinary innovation. And it focuses on industries that
have big ripple effects on our economy — the types that create and sustain thousands of jobs
throughout other industries — so that we can get the most bang for our buck when it comes to
investments in economic development.

The plan calls for a comprehensive approach to five strategic areas: advanced manufacturing,
workforce development, infrastructure, tourism, and small businesses/startups. These
industries together represent the vast majority of the Rhode Island economy, and they offer
the greatest opportunity to put Rhode Islanders back to work. All in all, this plan calls for the
targeted creation of new jobs in the next decade, each of which help to sustain thousands of
other jobs throughout the economy.

This plan is ambitious. It has to be: the enormity of this jobs crisis demands a bold, aggressive
approach. But as you read through this plan, I think you’ll find that we have much to be
hopeful about. Between our hardworking people, incredible natural and cultural resources,
and rich history of innovation and entrepreneurship, Rhode Island has all of the ingredients it
needs to develop a robust and thriving economy. This is my jobs blueprint for Rhode Island;
it is my strategic vision for growing this economy and ending our jobs crisis. I know we can do
it, and I look forward to working with you to make it happen.

Gina

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JOBS PLAN Gina Raimondo for Governor
Table of Contents
Executive Summary..................................................................................................... 4

Manufacturing (Made in Rhode Island).................................................................... 13

A Workforce On the Cutting Edge............................................................................ 23

Infrastructure (Rebuilding Rhode Island).................................................................. 30

Tourism in Rhode Island............................................................................................ 40

Supporting Rhode Island’s Startups and Small Businesses...................................... 46

Endnotes................................................................................................................... 54

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JOBS PLAN Gina Raimondo for Governor
Executive Summary
In order to revitalize our economy and put Rhode Islanders back to work, we will need
to change the way we approach economic development. For too long, we’ve focused on
attracting individual businesses by giving them special breaks if they relocate to Rhode Island,
and betting on expensive, risky ventures with the hope that they’ll be successful.

Instead, we should be helping existing businesses in Rhode Island grow, and creating an
environment that encourages new businesses to put down roots. But we must move quickly
and with a sense of urgency. We need to focus on areas that will both put people back to work
in the short term, and set Rhode Island up for economic prosperity for decades to come.

That’s exactly what this plan does. It is focused on particular areas and industries that will create
thousands of new jobs quickly and position Rhode Island to grow and create even more jobs
long into the future. The plan offers a strategy for five particular areas and industries:

   1. Advanced manufacturing: for the first time in years, manufacturing is returning to
      the United States. By making Rhode Island a destination for innovation in advanced
      manufacturing, we can ensure that we get our fair share of those jobs coming back from
      Asia. And at the same time, we can help our existing manufacturers grow and create
      jobs by providing them with the tools they need to expand.

   2. Workforce development: our existing educational and workforce development efforts
      are failing to close the skills gap in a meaningful way. By working more closely with
      businesses, our public colleges and career and technical education schools can create
      curricula that will equip students with the skills they need to get a job, and quickly.

   3. Infrastructure: rebuilding our roads, bridges, and schools creates jobs in two ways: it
      puts people in the building and construction trades to work immediately, and makes our
      state a more attractive place to do business and put down roots. This plan helps make
      our infrastructure investments more sustainable and less expensive for our cities and
      towns, while ensuring that our roads and bridges are among the best in the country.

   4. Tourism: Every Rhode Islander knows how beautiful and unique our state is, but we
      could do a much better job sharing that beauty with the rest of the country. Our tourism
      industry has big ripple effects throughout the rest of the economy, and can play an even
      bigger part in our state’s economic development.

   5. Small businesses and startups: our state’s regulations are too burdensome for
      our small businesses, which make up the bulk of our economy. This plan calls for
      streamlining our regulations and creating new tools that will help our small
      businesses thrive.

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JOBS PLAN Gina Raimondo for Governor
Advanced Manufacturing
Jobs in the manufacturing sector have a big impact on the economy: they pay higher wages
than jobs in other industries and provide good benefits. They also have a powerful ripple
effect across the economy: every new manufacturing job creates another 1.6 local service
jobs, and each dollar in manufacturing sales adds another $1.34 to the local economy.

Manufacturing jobs are coming back to the United States for the first time in years. Since 2010,
our country’s economy has added more than half a million new jobs in manufacturing,
gaining an average of more than 12,000 new jobs per month.

Rhode Island has a long legacy in manufacturing, but our leaders have failed to prepare
our state for the future. I have a vision of a Rhode Island that leads again in advanced
manufacturing. We will make that vision a reality for the people of Rhode Island by
implementing a three-part plan.

   1. First, we will foster innovation and make Rhode Island a destination for applied
      research by establishing the Rhode Island Innovation Institute – or RI II: a place
      where our world-class local colleges and universities can pair up with businesses and
      the private sector to generate amazing new ideas for innovative products and ways to
      manufacture them. When we double down on innovation, and create a central place
      for our colleges to come together with our private sector, we will not only help create
      new businesses based on new ideas and products, but we’ll attract manufacturers from
      around the world who want to be close to a hub of research and development.

      RI II will be composed of one, or maybe more than one campus, each focused on a
      particular industry. It will focus on industries in which Rhode Island is poised to excel,
      like food sciences, marine industries, and health sciences. RI II will create jobs in three
      phases. First, it’ll put people back to work constructing the campuses themselves. Then
      it’ll employ Rhode Islanders who operate the campuses, from administrative support
      staff to young college graduates with new ideas. Finally, thousands of Rhode Islanders
      will be employed in the manufacturing jobs that are created by the new products and
      processes conceived at RI II, and the manufacturers who relocate here to be close to a
      research hub.

   2. Second, we will prepare our workforce with 21st-century skills to close the skills
      gap. Advanced manufacturing jobs require advanced training, and our state is not
      doing enough to prepare our students and workforce in the skills they need for the
      21st century. Moreover, there are employers in our state with open positions now who
      cannot find qualified candidates to fill them. To close this skills gap and put people to
      work immediately and in the future, we must change the way we approach workforce
      development. As governor, I will bring together our public schools, our colleges and
      universities, and our state’s employers to reimagine the way we train our workforce.

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JOBS PLAN Gina Raimondo for Governor
I’ll also work to increase our students’ exposure to STEM fields at a young age, especially
       among elementary-school aged girls, and turn “STEM to STEAM” by partnering with our
       arts industry to expose more students to training in illustration and design, which will
       become increasingly important skills in the 21st century. We’ll make the Community
       College of Rhode Island an engine of workforce development by connecting it with
       businesses and manufacturers to tailor curricula and training programs for exactly the
       types of skills that they’ll need to put Rhode Islanders to work and create a pipeline of
       well-trained employees. Whether you’re 18 years old and right out of high school, or 50
       years old and recently unemployed, you’ll be able to turn to CCRI for training in a new,
       high-quality career. We’ll ensure that all of our students have access to higher education
       by improving our state scholarship fund. And we’ll create a loan-forgiveness program
       for students who work or start a business in Rhode Island, so that we stop losing talent
       to other states.

   3. Finally, we must do more to support Rhode Island’s manufacturers. We can do this
      by giving our businesses a “Manufacturers’ Toolkit” to help their businesses grow, and
      by helping our manufacturers increase exports to new markets with research, branding
      efforts, and promotions.

There is no reason why our children and our grandchildren should have to leave Rhode Island
to find opportunity. And there is no reason why our communities can’t take advantage of
manufacturing’s return to America. By investing in innovation, improving our approach to
workforce development, and supporting our manufacturers, we will position our state for
success and bring quality jobs back to Rhode Island.

When Rhode Island becomes a destination for research in applied sciences and
technologies, begins generating new ideas and innovations, and has the most talented
and equipped workforce in the country, manufacturing will thrive.

Workforce Development
Our public education system is an excellent vehicle for preparing our workforce. We can
and must structure it in a way that prepares Rhode Islanders for jobs of the future. Both our
high schools and our public colleges should work more closely with employers to develop
curricula, foster internship and apprentice opportunities, and create pathways for employment.
As governor, I will:

   Ÿ   Pair CCRI up with our local businesses to develop curricula and training programs
       in skills that our employers need.

   Ÿ   Expand internship and apprenticeship opportunities for CCRI students. Our
       students should spend part of their time on campus and part of their time in an
       internship or apprenticeship program, where they can simultaneously apply their skills,
       get real work experience, and put themselves on a path to a full-time career.

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JOBS PLAN Gina Raimondo for Governor
Ÿ   Create opportunities for our high school students who choose not to attend
       college. We must ensure that our career and technical education schools are
       working with employers to develop curricula, training programs, and internship and
       apprenticeship opportunities — and giving students opportunities to find lasting careers
       in high-growth industries.

   Ÿ   Improve Science, Technology, Engineering, Arts, and Mathematics education in
       both our K–12 and higher education schools.

Infrastructure
Unemployment among the building trades in Rhode Island is astonishingly high — more than
25 percent by some estimates.1 Yet we have a tremendous opportunity to put people back
to work in this industry while at the same time making our roads safer, saving our families
and municipalities money, and making our state a more attractive place to do business.
Despite the fact that state spending on infrastructure is so high, our roads and bridges
are among the worst in the country and our buildings and energy infrastructure are dirty,
inefficient, and outdated. Rhode Islanders deserve better.

Having a world-class infrastructure will require serious investment and strategic thinking about
how we use our resources. We need to be smarter about how we maintain our infrastructure,
and more creative when we look for ways to finance upgrades. In short, we need to develop
a plan to deal with our infrastructure, and we must execute that plan. And we need to ensure
that our investments in infrastructure are saving us money in the long term.

Our state’s infrastructure is a patchwork of state- and municipal-owned assets. Therefore, we
must improve our infrastructure efforts at both the state and city/town levels.

Much of the burden of maintaining roads and bridges falls on our municipalities, whose
property taxes are already far too high and budgets far too tight. That’s why, as governor, I
will create the Rhode Island Municipal Infrastructure Bank, to help our cities and towns get
the funding they need to finance critical infrastructure upgrades, save more money over time,
maintain their roads and bridges, and retrofit their communities to make them more energy
efficient.

The Rhode Island Municipal Infrastructure Bank will be a one-stop shop for municipalities
that want to upgrade their infrastructure. It will:

   1. Expand and manage the Municipal Road and Bridge Revolving Fund, so that our
      cities and towns have access to low-interest loans for immediate upgrades to their
      surface infrastructure;

   2. Establish a Road and Bridge Funding Formula to fund ongoing maintenance so that
      our local roads never again become as deteriorated and dilapidated as they are now;

   3. Create a Green Bank to help towns, businesses, and homeowners retrofit their
      buildings and facilities with green, energy-efficient technologies;

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JOBS PLAN Gina Raimondo for Governor
4. Create a School Building Authority to stimulate construction and capital
      improvements in schools while saving our school districts and local education
      authorities money; and

   5. House expertise on best practices, data collection, and new technologies so that
      municipalities are implementing the best possible infrastructure solutions.

The state itself must also be creative and strategic when it comes to its infrastructure assets.
As governor, I will ensure that the state is:

   Ÿ   Utilizing a road and bridge funding formula for state highways and bridges for
       ongoing maintenance to keep them in peak condition;

   Ÿ   Seeking opportunities for private capital to pay for desperately needed infrastructure
       projects without putting our state in debt; and

   Ÿ   Retrofitting state-owned buildings and facilities with energy-efficient, green
       technologies.

Every $10 million of spending on infrastructure projects supports approximately 150 jobs in
the construction and building trades.2 The Municipal Road and Bridge Revolving Fund, which
I created last year with the General Assembly, is lending nearly $20 million this year alone.
When combined with increases in spending on school construction, as well as the retrofitting
of public buildings and facilities with energy-efficient upgrades, this plan will generate
upwards of 4,000 new jobs over the next five years.

Infrastructure projects also have a powerful multiplier effect. Every 100 jobs created in the
building and construction trades support an additional 83 jobs in other industries.3

Most of this plan is paid for using the reallocation of already existing sources of funding. For
example, the Green Bank will be capitalized using money currently allocated to the Rhode
Island Commerce Corp’s Renewable Energy Fund.

The Road and Bridge Funding Formula would likely require $10–20 million per year in aid to
cities and towns to fund. Additionally, the Municipal Road and Bridge Revolving Fund will need
about $40 million over the course of the next 20 years, which will enable us to invest more than
$400 million in roads and bridges in that same period.

This strategy will also allow us to attract private capital to our infrastructure projects, particularly
for energy efficiency upgrades.

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JOBS PLAN Gina Raimondo for Governor
Tourism
Tourism is already one of our state’s most prosperous industries, supporting thousands of jobs
and bringing in millions in spending and tax revenue. And our individual tourism districts are
doing an outstanding job attracting visitors to their individual communities.

But our tourism industry has even more untapped potential. We need a coordinated,
statewide plan with strategic, collaborative, targeted marketing efforts to highlight our
strengths. An effective campaign can bring more visitors to our borders; fill our hotels, retail
stores, and restaurants; and have powerful ripple effects throughout our entire economy,
helping to create thousands of quality jobs and grow our state. Other states and cities around
the country offer instructive lessons that we can follow.

With our unbelievable cultural assets, prime location on the East Coast, and gorgeous
natural resources, there is absolutely no reason why we cannot take advantage of our state’s
attractiveness to grow our economy and create new jobs.

Any plan to invest in Rhode Island’s economic development must have a strategy for growing
tourism. As governor, I will take a four-pronged strategic approach to grow our tourism
industry and create more than 5,000 new jobs in the next five years. My plan will:

   1. Invest in highly targeted marketing and advertising with a cohesive statewide
      strategy to attract more visitors to Rhode Island. Other cities and states have found
      that small, smart investments in tourism marketing result in millions in visitor spending,
      support thousands of new jobs, and bring in much-needed tax revenue. We should do
      the same here in Rhode Island.

   2. Make Rhode Island a world-class culinary destination by highlighting our amazing
      restaurants, breweries, vineyards, and thriving food industry. We already have a rich
      culinary landscape, but we must create branding efforts to highlight this asset to bring
      more visitors to our borders.

   3. Foster workforce development efforts that focus on tourism and hospitality
      industries. We have a world-class hospitality college right here in Rhode Island. We
      should forge a tighter relationship between Johnson and Wales and our tourism
      industry to prepare a tourism workforce ready for growth.

   4. Improve our state’s tourism infrastructure. With an ideal location on I-95, we have
      the perfect opportunity to capture travelers traveling on the East Coast — if we invest in
      smart tourism infrastructure, like welcome centers, highway signage, and links to other
      regional destinations.

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Small Businesses and Startups
Small businesses are the backbone of our state. They represent over 95 percent of all
employers in Rhode Island and employ more than half of our state’s private sector workforce.
They run the gamut of industries, from manufacturing and construction to retail and
restaurants. And all of these small businesses had a beginning: at one point, they were all fresh
startups, carving out a name for themselves, putting people to work and adding new jobs to
our state’s economy.

If we want to encourage our small businesses to foster a culture of entrepreneurship, we
need a government that is supportive instead of antagonistic. We need a government that
helps instead of hinders. We need to end the perception among small business owners and
entrepreneurs that government is the adversary, and instead let them know that the state is in
their corner. As governor, I will:

   1. Focus on reducing the regulatory burden faced by our state’s small businesses, by
      taking the following steps:

          a. Undertake a complete review of the state’s regulations in my first year
             in office;

          b. Bring small business owners to the table at ORR so that the state knows
             exactly which regulations are the most burdensome to our small businesses, and
             targets processes that will do the most good;

          c. Simplify and unify the state’s regulations where there are duplicative efforts or
             inefficiencies caused by the siloing of government agencies;

          d. Create a single, online source for all state and municipal permitting;

          e. Improve transparency by setting deadlines for government decisions;

          f. Create incentives for cities and towns to modernize their permitting and
             regulatory processes; and

          g. In addition to taxes, our state government often “nickel and dimes” our small
             businesses, charging them for a variety of routine and necessary procedures. As
             governor, I will:

                 Ÿ Take on a full review of non-tax state fees that are being charged to
                   our state businesses, with an eye toward eliminating or consolidating
                   fees that make it tougher for businesses to comply with government
                   regulations.

   2. Make it easier to start and run a business, by:

          a. Increasing entrepreneurial training, education, and mentorship, starting in
             our high schools, and on through our public colleges and universities, to give our
             residents the support and training they need to start new businesses.

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b. Creating a “concierge service” for our businesses and startups. Sometimes
         all our startups need is a person to help them navigate the tricky waters of
         government regulations and find other resources in our state to get going. There
         should be someone in the state government who helps you every step of the way
         and guides our state’s businesses to success.

      c. Creating a “startup and small business toolkit,” so that entrepreneurs know
         exactly what they need to do to get their businesses started, and have access to
         resources that will allow them to hit the ground running.

3. Use collaboration and innovation to foster a culture of entrepreneurship:

      a. Highlighting and promoting our incubators and accelerators. Our state can
         do a better job of exposing potential entrepreneurs to these resources, and
         market them across the region to attract new startups to the state.

      b. Using the Rhode Island Innovation Institute to commercialize innovative
         new products and ideas. Our colleges and universities possess a wealth of great
         ideas. RI II will help turn these ideas into new businesses by providing end-to-
         end support (helping them find access to capital, hire a workforce, patent their
         products, etc.).

4. Improve access to capital, by:

      a. Welcoming immigrants and capital to Rhode Island with an expanded EB-5
         program. Immigrants are incredibly entrepreneurial, and federal programs are
         increasingly creating opportunity for foreign investment in local startups. We
         must embrace this program to grow small businesses in our state.

      b. Improving access to seed capital. As part of our small business concierge
         service and toolbox, the state will maintain relationships with all area sources of
         capital, including but not limited to venture capital firms, angel investors, and
         local credit unions and banks – and provide educational tools and coaching for
         entrepreneurs seeking private capital, so that people hoping to start a small
         business will know where they can turn to get the capital they need.

             Ÿ Ensuring that women- and minority-owned businesses have access
               to loans. We must work with our local banks and financial assistance
               organizations to help finance and guarantee loans and microloans
               targeted to minority- and women-owned businesses.

5. Give our small businesses the tools they need to grow, by:

      a. Strengthening connections between our businesses and local colleges and
         universities. URI has a Business Engagement Center that has resulted in fruitful
         relationships between the university and local businesses. We should have a
         statewide effort to do the same, so that innovations and ideas at our colleges are
         being shared with small businesses that can grow and create new jobs.

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Ÿ Workforce development. In particular, we need to bring our businesses
         of all sizes to the table with our public colleges and universities to help
         tailor curricula that will provide businesses with a workforce equipped with
         the skills they need.

b. Improving export initiatives. Many of our small businesses are making amazing
   products, but lack the resources to market them on a global scale. The state can
   help with a robust export initiative designed to show the world all that our state
   has to offer.

c. Improving gigabit Internet connectivity in Rhode Island. With so many
   of our businesses dependent on teleconferencing, online sales, and high-
   bandwidth applications, we must do a better job of ensuring high-quality Internet
   connectivity. Cities and states around the country are doubling down on gigabit
   Internet. We must do the same, not only for the sake of our small businesses, but
   for our families and schools as well.

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Manufacturing (Made in Rhode Island)
Restoring Rhode Island’s Legacy as a Global Leader in Manufacturing by
Investing in Innovation, Embracing Our Competitive Advantages, and Preparing
our Workforce to Succeed

Introduction

                It wasn’t long ago that Rhode Island was a manufacturing powerhouse.
                From textiles and jewelry to knives and watches, we were once a state
                 known for making things.

               It was who we were. Every Rhode Islander has a manufacturing story to
               tell: my own father worked at the Bulova Watch factory. Countless others
worked at the hundreds of mills and factories that still dot our cities and towns, now
dormant and abandoned, reminders of a time of prosperity. And with our economy firmly
anchored in manufacturing, middle-class families thrived.

But with global competition, Rhode Island began to lose its manufacturing advantage and
our local facilities started moving to other countries. I lived it; after 28 years of working
at the watch factory, my father and all of his co-workers had to find new jobs when the
business moved its manufacturing overseas. Yet, as thousands and thousands of good
manufacturing jobs left our state, far too many of our leaders sat by and did nothing. We
failed to adapt. We failed to position our state to take advantage of new opportunities
and new markets, resulting in slower growth and higher unemployment. And when the
Great Recession came, it was harder for us to recover than it was for the rest of the country,
because we were not adequately prepared for growth.

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I do not accept that it has to be this way. There is no reason why Rhode Island should continue
to struggle with the highest unemployment in the entire country. There is no reason why our
children and our grandchildren should have to leave our state to find opportunities and put
down roots. We have incredible resources, like our world-renowned research universities,
and untapped potential in promising new fields such as food sciences, marine technologies,
and health sciences — not to mention incredibly hardworking, industrious people. In short, we
have more assets with which to work than states many times our size.

While many of our leaders may have failed us, our fellow Rhode Islanders have not. Across the
state, we see their strength, resiliency, and character as they establish their own businesses
in creative new fields and start making things in Rhode Island. Yet too many of them find that
our Rhode Island is not able to provide them with the resources they need to succeed, forcing
them to them to leave for other states. We need to stop exporting our ideas and people
and start exporting our goods.

There are great opportunities ahead. The global manufacturing landscape is beginning to
change: for the first time in decades, manufacturing is coming back to the United States.
It’s not the textile and jewelry manufacturing of our past: it’s newer, high tech, advanced
manufacturing.4 But we can harness our strengths to position ourselves to capture this next
big wave of manufacturing — ensuring that we don’t miss out on economic opportunities the
way we have in the past.

The keys are innovation and skills. If we can make Rhode Island a cradle of innovation in
industries where we already have a competitive edge — industries where Rhode Islanders are
already doing amazing work — and if we can arm our workforce with 21st-century skills, then
we can position ourselves to be a leader in the manufacturing boom of the future.

Before I was Treasurer, I started a business dedicated to helping entrepreneurs take good
ideas and turn them into companies that created over a thousand jobs. I know what new
companies need to start making things and hiring people again. And as Treasurer, I have
demonstrated time and time again that great things can happen when we have a vision and
bring people together to achieve it. That’s what we’ll have to do to get our economy going.
We need an active government with a vision for bringing manufacturing back to Rhode
Island — and a governor who works every single day to make it happen. This is, after all, the
role of the governor: to set the tone at the top and position our state to succeed.

Innovation is in Rhode Island’s DNA. We were the birthplace of America’s Industrial
Revolution. From that little bit of innovation came an era of prosperity where manufacturing
provided the foundation for a thriving middle class. We can do it again. If we embrace
innovation, focus on areas where our state is already poised to excel, and prepare our
residents with 21st-century skills, then we can reinvigorate our manufacturing economy.

The following pages outline my ideas for doing exactly that. Throughout this campaign,
we will continue to have a conversation about Rhode Island’s manufacturing roots and its
manufacturing future. We’ll discuss how we can strengthen our economy again by leaning in
to innovation and skill development, so that there are opportunities for our children here in
Rhode Island. There’s absolutely no reason why we can’t lead in manufacturing again — and I
look forward to making it happen with your help.

Gina                                             14
The Next Wave of Manufacturing
Rhode Islanders already know the value of manufacturing jobs. They once drove our entire
economy. Jobs in manufacturing pay higher wages than jobs in other industries, have
better benefits, and spur education in STEM fields (science, technology, engineering, and
mathematics). They also have a major multiplier effect, giving a significant jolt to the local
economy: a single new manufacturing job creates another 1.6 local service jobs, and each
dollar in manufacturing sales adds another $1.34 to the local economy.5 But in today’s
global economy, we can no longer rely on the types of manufacturing jobs that once sustained
our state. Instead, we need to prepare ourselves for the next wave of advanced manufacturing
by making Rhode Island a cradle of innovation, and training our workforce in the skills they
need to fill these new jobs.

Manufacturing is coming back to the United States in a big way. Employment in manufacturing
peaked in 1979, and has been on the decline since then, with losses accelerating through
the Great Recession and bottoming out in 2010.6 But since then, the U.S. economy has added
more than half a million new jobs in manufacturing, gaining an average of more than
12,000 new jobs per month.7 Strong gains in productivity in the United States, coupled
with increased labor and energy costs across the world, are driving manufacturers back to
our shores. Companies like Caterpillar, GE, Ford, Lenovo, and BASF have announced plans to
return their manufacturing to the States.8 We cannot afford to miss out on this trend.

For too long, we’ve relied on silver-bullet deals, back-room promises, and attempts to make
our state appear economically competitive — approaches that have sold our state short and
failed to produce any meaningful growth. Instead, we need a vision. We need to make long-
term strategic decisions that lay the foundation for future growth, and we need a government
that hustles day in and day out to make it happen.

The Rhode Island Innovation Institutes – RI II – Innovating our way
to growth.
In order to position our state to be a leader in the manufacturing of the future, we must
plant the seeds of success now. That’s why, as governor, I’ll help establish the Rhode Island
Innovation Institute, or RI II. There are many worthy “think tanks” focused on economic
development and technological innovation. The Rhode Island Innovation Institute is conceived
as a proactive “do tank” dedicated to bringing together the government, our world-class
universities and research institutions, and the private sector to promote partnerships
in high-growth areas where Rhode Island is well positioned to excel — like advanced
manufacturing, health sciences, food sciences, renewable energies, and marine technologies.
RI II will be devoted to making Rhode Island industries more productive and competitive by
helping to pair the vast academic resources at our state’s outstanding colleges and universities
with our private sector’s business savvy and capital.

                                                 15
The Rhode Island Innovation Institute will provide top-to-bottom support for the
   commercialization of innovative ideas and products. By partnering our world-class colleges
   and universities with the private sector and philanthropic ventures, we can make our state a
   leader in the field of applied sciences: the type of research that focuses on technologies,
   products, and processes that help businesses grow.

Strategy: Expand our state’s existing businesses, create new ones, and help attract manufacturing to
Rhode Island by fostering innovation and ingenuity.

   If you’re a college or graduate student with a great idea for a new business, and you want
   to make it a reality, RI II will be there to help you every step of the way, from patenting and
   licensing to financing and staffing.

   Or if you’re a business that needs a new product or a new way to manufacture your goods, RI II
   will pair you with the brightest minds in the world to make it happen.

Fact: If you combined the sales of all active companies founded by MIT faculty and graduates, they
would equal the GDP of Brazil.

   The Institute itself will be comprised of a series of campuses, each dedicated to a particular
   industry, field, or expertise. For example, one division of RI II will be dedicated to advanced
   manufacturing. Another could work on innovative marine technologies. Others yet could be
   centers for research and development in food sciences, medical device manufacturing, and
   renewable energy technologies. Each campus will be a research hub dedicated to exploring
   applied sciences, as opposed to theoretical or academic sciences — the type of research that
   will result in products, businesses, and jobs. These campuses will spur job creation in the
   short term by putting Rhode Islanders to work constructing buildings and laboratories, and by
   employing thousands more in support staff to manage and operate them.

   And when Rhode Island becomes a home for innovative research, we will attract talent, capital,
   and businesses from all over the world. Companies will want to put down roots where they
   have access to quality research and talented employees.

The Research Triangle Park in North Carolina, composed of research partnerships between
businesses and universities like Duke, North Carolina State, and UNC Chapel Hill, has attracted more
than 170 businesses and 39,000 employees. Companies like GlaxoSmithKline, BASF, and United
Therapeutics have all set up shop in the RTP.

                                                       16
We can start with our assets. For example, design is an increasingly critical aspect of advanced
  manufacturing — and we have a world-class design school in the heart of our state. The
  health science industry is a hotbed of innovation — and we’ve got some of the greatest “meds
  and eds” in the country. We already have great resources at our disposal. The Rhode Island
  Innovation Institute will help us utilize those resources to create jobs.

  The Institutes will create jobs in three phases:

  First, they’ll put people back to work in the short-term planning and constructing the actual
  campuses.

  Second, the campuses will employ support staff, from administrative and custodial staff
  to research professionals and recent college graduates, who will work at the campuses
  themselves.

  Finally, thousands of Rhode Islanders will be employed by the new businesses conceived at RI
  II, and by the manufacturers who locate in Rhode Island to be close to a source of innovation
  and research.

  They’ll also help spur improvements in a variety of other areas. RI II can help us:

     Ÿ   Encourage training in STEM fields (science, technology, engineering, and mathematics)
         and industrial design

     Ÿ   Close the skills gap by creating a talented, skilled workforce

     Ÿ   Create partnerships across industries throughout all of Rhode Island, including but not
         limited to our public schools, our colleges and universities, our pre-existing businesses,
         and our cities and towns

     Ÿ   Focus on the development of applied technologies that will actually generate products
         and jobs

     Ÿ   Invite investment from all over the world

New York City recently broke ground on an academic campus with a partnership between Cornell
University and businesses like Google. They estimate it will generate over $33 billion in economic
activity, nearly 50,000 jobs, and 1,000 spinoff companies in the coming decades. The campus alone
will help create up to 20,000 construction jobs and up to 8,000 permanent jobs!

                                                     17
Here’s how we’ll get it done when I’m governor:

   First, we’ll identify parcels of attractive, government-owned land (the unoccupied I-195 parcels
   would be a great place to start). Then, we’ll challenge our state’s research institutions and
   companies from around the world to present their vision for how they’ll best use that land.
   These groups will have to demonstrate:

      Ÿ   A commitment to research and innovation

      Ÿ   Partnerships with local universities and businesses

      Ÿ   An ability to create good, high-paying jobs

      Ÿ   A commitment to producing skilled workers

   The state will do everything in its power to get these institutions up and running as quickly
   as possible: it will convene the parties, fast-track the regulatory process, help to get zoning
   approvals, make infrastructure improvements — anything and everything the RI II campuses will
   need to get going. In short, they’ll have the full weight of the government behind them.

   The state will serve as a matchmaker between private, educational, and philanthropic
   institutions that want to work with the Innovation Institute. Once it’s up and running, it’s not
   connected to the government.

Cost: The state will either give away government-owned land or sell it off at a small price. The vast
majority of the financing for the Institute will come from private sector partners and philanthropic
ventures interested in innovation and research in particular fields.

   As governor, I will put us on track to open the Rhode Island Innovation Institute in less than two
   years. Institutes like these are opening across the country in places like New York, Ohio, and
   North Carolina.

   President Obama recently announced an initiative to connect six universities in North Carolina
   with 18 companies in the area, to create a regional hub designed to bridge the gap between
   applied research and product development. They will bring together companies, universities,
   and other academic and training institutions to focus on the manufacturing of next-generation,
   energy-efficient electronic chips and superconductors.

   Ohio is creating the American Lightweight Materials Manufacturing Innovation Institute, which
   is expected to bring more than 10,000 jobs to the state. The President of the University of
   Michigan, Mary Sue Coleman, has said: “Through this initiative, our region will build on its core
   strengths to become the nation’s technology hub for lightweight materials and manufacturing.
   Companies from around the country will come here not only because of our technological
   capabilities, but also because we have the workforce they need in their efforts to revitalize and
   transform domestic manufacturing.”9

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Between our world-class universities, our legacy of manufacturing, our strategic location on the
East Coast, and our export-ready ports, there is absolutely no reason why we cannot do
the same.

Embracing Rhode Island’s Advantages and Emerging
Opportunities
The Rhode Island Innovation Institute will be particularly productive if we can structure it to
take advantage of the incredible resources and assets Rhode Island already has. Between our
colleges and universities, our access to the ocean, and our entrepreneurial spirit, our state is
full of opportunities to start making things in Rhode Island again. As governor, I will work to
embrace these opportunities and leverage our state’s unique advantages to generate new
products and new jobs and make our state a manufacturing powerhouse once again.

Food Sciences

Rhode Island’s food industry is poised to experience major growth. Recent years have seen
a boom in the growth of our small farms, food and beverage manufacturers, wineries,
distilleries, and breweries. As governor, I will do everything I can to foster this segment of our
economy, by:

   Ÿ   Dedicating a division of the Rhode Island Innovation Institute to researching innovations
       in food sciences, so that farmers, brewers, food manufacturers, and all food-related
       businesses have a place to go to develop new ideas and access valuable resources

   Ÿ   Encouraging local businesses and institutions to serve locally produced foods

   Ÿ   Supporting the growth of food science incubators and facilities

   Ÿ   Helping our food-industry businesses finance the upgrades they need to grow and
       expand

   Ÿ   Branding and marketing our state’s food and beverage production across the region
       and country

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Marine Industries

Rhode Island’s maritime trades already generate over $2.2 billion in sales for local businesses,
and $118 million in tax revenue for state and local governments. We are, after all, the
Ocean State. We can use our ocean access and beautiful bay to put people to work in an
environmentally responsible way. As governor, I will:

   Ÿ   Dedicate a division of RI II to exploring opportunities for innovation and research in the
       marine trades

   Ÿ   Ensure that our marine infrastructure – including piers, marinas, and ports – is world-class
       and ready for growth

          o We can finance improvements to our marine infrastructure using private-public
            partnerships, with a mix of private sector investment, federal funds, and public
            bonds.

   Ÿ   Work hand in hand with businesses in the marine trades, like Electric Boat and Hall Spar,
       to help them expand their capabilities and employ more Rhode Islanders

   Ÿ   Make Rhode Island the boat building and repair capital of New England, by
       encouraging and supporting boat manufacturers throughout the state

Health Sciences

We hear a lot about how Rhode Island’s current economy is built on “meds and eds”: our
healthcare providers, colleges, and universities. We already have outstanding research
institutions that are churning out new discoveries and technologies in health sciences — it’s
time we take advantage of them to stimulate manufacturing. In particular, we can become a
leader in producing medical devices and technology by:

   Ÿ   Dedicating a division of RI II to coordinate our already thriving culture of research in
       medical technologies to stimulate tech transfer and bring new products to market

   Ÿ   Establishing a manufacturing infrastructure specifically for medical devices, to make
       Rhode Island the go-to state for any company with a medical product it’s looking to
       manufacture on a large scale

Helping Existing Manufacturers Grow
In addition to stimulating the growth of new manufacturers, we must also do more to help
Rhode Island’s existing manufacturers to grow and create new jobs. As governor, I will:

   o Create a “Manufacturer’s Toolkit” for anyone making things in Rhode Island. Rhode
     Islander’s manufacturers shouldn’t have to waste time finding resources or navigating
     a tricky regulatory environment. They should have a state government that helps them
     focus on their business. That’s why we’ll create a centralized toolkit for all manufacturers,

                                                    20
to help them find talented employees, locate the resources they need to build their
   products, understand state and federal regulations, and develop more efficient practices
   and procedures. This toolkit will help give Rhode Island manufacturers an edge by
   providing them with the resources they need to thrive and expand.

o Leverage federal funding for investments in advanced manufacturing. Rhode
  Island recently won a first-round grant for “Investing in Manufacturing Community
  Partnership” (IMCP) from the U.S. Department of Commerce, which will help the Rhode
  Island Commerce Corporation to design an Advanced Manufacturing Center with
  its local manufacturing partners.10 This year, the 2014 “Challenge Competition” will
  select exemplary “Manufacturing Communities” throughout the U.S., to be eligible for
  grants and investments offered by 10 federal departments. As governor, one of my
  first priorities will be to ensure that Rhode Island earns a place among these select
  “Manufacturing Communities,” so that we can leverage further IMCP Challenge grants
  and investments.

o Use RI II to promote capital investment in the adoption of cutting-edge advances
  in productivity by in-state manufacturers, to increase our competitiveness and boost
  tech transfer in high-tech fields.

o Help small Rhode Island manufacturers to become more flexible. Many smaller
  companies just need a hand in transitioning from existing capabilities to new ones with
  greater growth opportunities. They need assistance figuring out how to apply their
  knowledge and expertise in component manufacturing, for example, to opportunities
  in renewable energy or health care manufacturing. Many diverse manufacturers require
  similar advanced manufacturing skills, but companies or facilities may need technical
  assistance in moving from one product to another. I will work to create a mentoring
  program pairing manufacturers that have made such transitions with those who seek to
  do so. In Ohio, for example, there are seven Edison Technology Centers that provide
  a variety of product and process innovation and commercialization services to both
  established and early-stage technology-based businesses, such as new product design;
  computer-aided design and computer-aided manufacturing (CAD/CAM); prototyping;
  materials selection and handling; plant layout and design; quality systems; information
  systems; machining; joining technology assistance; and biotechnology business
  consulting.

o Find new markets for Rhode Island products and increase exports. As governor,
  I will create a strategy to promote Rhode Island exports to new markets in the U.S.
  and abroad, and to help local businesses take advantage of export opportunities in
  neighboring states and around the world. Rhode Islanders are making some amazing
  things; we just need to make sure the rest of the world knows about them. After a
  period of decline, Rhode Island exports have been a bright spot on our economy in
  recent years. From 2009 to 2012, Rhode Island exports grew by 60 percent to a total
  of $2.4 billion in value.11 We need to invest in this source of growth to build upon this
  momentum. The greatest export growth has been in exports of chemicals, machinery,
  computer electronics, and textiles; exports of these products were up 10–14 percent in
  2012. The return on state investment in export promotion is dramatic; for every dollar

                                              21
invested in trade programs, $40 in new export revenue is generated.12 Export growth
directly drives job creation, with an estimated one job created for every $200,000 in
exports. International trade will become an increasingly important opportunity for
Rhode Island businesses — especially manufacturers — to grow and prosper. Rhode
Island already has special export advantages in the food industry, marine sector, and
innovative health care products and services — but many companies need technical
assistance to enter overseas markets, including Canada and Mexico as well as Europe,
Asia, and South America. All businesses will benefit from a strong program for
promoting Rhode Island products and industries to markets outside the state.

                                          22
A Workforce on the Cutting Edge

Introduction
With tens of thousands of Rhode Islanders looking for work, and even more working in part-
time or temporary positions, our state is in a crisis. The jobs plan I have been laying out over
the course of this campaign will put Rhode Island in a position to create thousands of new
jobs. But creating jobs is only part of the equation. We must also simultaneously equip our
students, and the thousands of Rhode Islanders currently looking for jobs, with the skills
they need to find employment. Since I’ve kicked off my campaign, I’ve met far too many
hardworking, frustrated Rhode Islanders who are ready to work, but lack the skills needed
of today’s workforce. Whether you are an 18-year-old student about to graduate from high
school, or a 50-year-old employee who just lost your job, our state should have resources in
place to help you find a quality career.

Today’s jobs require 21st-century skills and a new level of technical competency. Employers
are looking for critical thinking abilities; knowledge of science, engineering, and technology;
and computer proficiency. If we are going to position our state to succeed, our workforce
development efforts need to reflect this reality.

No one knows the needs of modern workforce better than our state’s employers. That’s
why as governor, I will bring our employers to the table to reimagine our state’s workforce
training efforts. There are examples of this kind of collaboration all over the country. In South
Carolina, BMW is working with the state’s community colleges to train students with the skills
they need to work in the automobile industry, while employing them at their plants. In Texas,
the aerospace industry has teamed up with local vocational schools to create curriculum
that puts students on a track to lasting careers building and maintaining the next generation
of airplanes. Just a few weeks ago, I delivered my plan for manufacturing on the floor of
Videology Imaging Solutions, a manufacturer in my hometown of Greenville, surrounded by
employees building advanced imaging sensors and camera technologies for a whole new
generation of devices. These employees were highly trained and technically skilled. We have
the opportunity to grow businesses like Videology, and put people back to work, if we work
together to change our approach to workforce development.

Producing a skilled workforce will also help to attract even more jobs to our state. In a recent
survey, 83 percent of American manufacturers reported a moderate or severe shortage
of high-skilled workers, with approximately 600,000 high-skilled manufacturing positions
going unfilled. In my own roundtable discussions with local manufacturers, I heard the
same thing. Businesses want to expand — in fact, they are expanding — but they cannot find
Rhode Islanders equipped with the necessary skills to fill the positions they have open. We
can simultaneously put Rhode Islanders back to work now at businesses looking for skilled
employees and make our state a destination for companies that need a skilled workforce by
preparing our state for in-demand trades.

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Our state must also take a more active role in helping the unemployed find jobs that
are available now. The Department of Labor and Training must do more than provide
unemployment benefits. It must actively work day in and day out to get people back
to work.

The role of the governor is to have a vision for the state. The following pages will outline
my vision for a workforce strategy that gives workers, both new and old, every opportunity to
upgrade their skills for the long term, while stepping up efforts to people get back to work
immediately in the jobs of today and tomorrow.

Reimagining Our Workforce Development Efforts
Our public education system is an excellent vehicle for preparing our workforce. We can and
must structure it in a way that prepares Rhode Islanders for jobs of the future. Both our high
schools and our public colleges should work more closely with employers to develop curricula,
foster internship and apprentice opportunities, and create pathways
for employment.

                                                              g rams
                                                                       Examples: Alamo
                                                  al    Pro                              Acad
                                                                                             emi
                                              ion                                                  cs,
                                        c   at                                                           P-T
                                                                                                            EC
                                     Vo                                                                          H
                       18-year-old                                     50-year-old
                       high school                                       recently
                        graduate                                       unemployed

                     HIGH
                                             Students                                      Skilled Employees

                                                                       CCRI                                          EMPLOYER
                    SCHOOL
                                                                                            Curriculum and
                                       College Courses                                     Training Programs

                                                                Skilled Employees

The graphic above describes how we can do exactly that. Employers who are looking for
skilled Rhode Islanders should work with both CCRI and our high schools to tailor curricula
and training programs, and provide internship opportunities. CCRI (and all of our public
colleges) can also work in turn with our public schools to give students college credit for

                                                                                24
certain courses, so that students can save money on tuition. Our high school graduates will
   have exposure to job opportunities at multiple levels. And Rhode Islanders who are currently
   unemployed will be able to utilize CCRI as a resource for learning new skills and making new
   connections with employers.

   Making CCRI an Engine of Workforce Development

   Whether they’re 18 years old and just graduating from high school, or 50 years old and
   recently unemployed, all Rhode Islanders should be able to turn to the Community College of
   Rhode Island to learn the skills needed for a new career. That’s why we must:

   Ÿ   Pair CCRI up with our local businesses to develop curriculum and training programs
       in skills that our employers need. As governor, I will ensure that CCRI is working hand in
       hand with our employers to tailor existing curriculum and create custom training programs,
       so that CCRI is producing students who are trained in high-growth, in-demand skills that
       employers need.

   Ÿ   Expand internship and apprenticeship opportunities for CCRI students. We need to
       give CCRI students the opportunity to work while they learn. Learning doesn’t just happen
       in the classroom; it also happens on the job. That’s why our CCRI students should spend
       part of their time on campus, and part of their time in an internship or apprenticeship
       program, where they can simultaneously apply their skills, get real-world experience, and
       put themselves on a path to a full-time career.

Example: The BMW Scholars Program in South Carolina

In South Carolina, automobile manufacturer BMW works with Tri-County Technical College, Spartanburg
Community College, and Greenville Technical College to train students in a specialized manufacturing
program. BMW provides tuition assistance for students enrolled in the program, while employing them
part-time in BMW’s manufacturing facilities. The program allows students to “further their education
while gaining valuable experience in a high-tech manufacturing environment and become potential
candidates for full-time positions at BMW.”13

   We must also do a better job of matching all of our public colleges with local businesses.
   URI has invested in a Business Engagement Center with the aim of partnering businesses and
   industries with the University to put students to work, tailor the school’s curriculum, and share
   research. Our entire state should have a similar coordinated effort to connect businesses with
   our institutions of higher learning.

   Using Our High Schools to Prepare Students with 21st-Century Skills

   Our public high schools are educating students for jobs that may not even exist yet.
   That’s why it’s critically important to expose our students to skills that will put them in a position
   to excel in the future. We must:

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