Alaska universities engineer the economy: statewide entrepreneurship programs foster change.

• Author: Bohi, Heidi
• Position: SPECIAL SECTION: ENGINEERING

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As big oil saddles up and starts making its way into the sunset, leaving Alaska with memories of "back in the day," the state is learning a painful lesson on the importance of what happens when there is a lack of economic diversification.

The University of Alaska system is investing in developing a statewide entrepreneurship program, with hopes that it will become a critical contributor to part of the solution. Efforts ranging from business plan competitions to adding curriculum that teaches an entrepreneurial way of thinking are being promoted so the public and private sectors can start to see how they can cooperatively develop opportunities in business ventures that may lead to the development of new industries, marketplaces and sectors.

About two years ago, an informal group of faculty from all three major campuses began meeting to talk about how the university could better apply its resources to foster economic and business development in Alaska. Last spring, it became an official statewide economic development work force that started by inventorying the university's activities in economics and business development.

50-YEAR PLAN

Elisha R "Bear" Baker, dean of the College of Business and Public Policy at the University of Alaska Anchorage (UAA) said, "First, even within the university system, we had to get people talking to each other. In many cases, people don't know what others are doing." Efforts such as the business plan competition and the Arctic-innovation competition were a way to link the various campuses.

But economic development takes time, especially in a state that is relatively young, geographically isolated, has no manufacturing, a small population base, and has been dependent on mostly the petroleum industry and federal government for most of its existence. While university faculty and staff remain optimistic about the long-term possibilities, the reality is that measurable results will take decades to realize.

"It is a problem of generations," says Jim Collins, University of Alaska Fairbanks director of entrepreneurship. "It's not something that will be solved in 10 years and it will not happen by waving a governmental wand. It will happen by creating a context in which private individuals invest on their own." He estimates it could take 25 to 50 years to develop an alternate economic base equal in scale to the oil industry.

In the meantime, he adds, if in the next decade the university can point to a handful of firms the university's efforts helped start or grow, then that will be a measure of success.

Some progress has been made to make the business community aware...