Last week I attended the Texas Governor's Competitiveness Council Summit, where a group of public and private sector leaders delivered recommendations on ways to improve the state's position in the global economy. The word of the day, of course, was innovation. Overall, I think we are on the right track. I was especially glad to hear about the proposed changes to the Emerging Technology Fund and Regional Centers of Innovation and Commercialization. I was also pleased to hear about the statewide angel capital initiative. I have questions about the effectiveness of state government involvement in angel capital groups, but I was glad to see the issue highlighted at a statewide gathering of economic and workforce development professionals.

The chair of the Emerging Technology Fund Advisory Committee, Bill Morrow, said something in his presentation that caught my attention. He mentioned that identifying investment opportunities outside of traditional markets in Austin, Dallas, Houston, and San Antonio will be a top priority for the ETF group in the upcoming year. Top research universities are a huge advantage for regions interested in pursuing an innovation-based economic development strategy. But I don't agree with people who suggest that they are a prerequisite. And I certainly don't agree with people who exclude rural areas from this conversation. See, for example, this map of registered patents in 2007. And click here to get a close-up of Texas. It's no surprise that the vast majority of patent activity is concentrated in the major metro areas. However, it's a mistake to overlook what's going on in other areas. Opportunities for leveraging innovation assets can be found in large cities, rural communities, and virtually everywhere in-between.

Bill and the rest of the ETF folks will have their work cut out for them because the environment for turning an idea into a commercialized product or service is so much stronger in urban areas where resources are concentrated and support networks are in place. Yet, given this state's unique blend of agriculture, energy, and a strong tradition of rural entrepreneurship, this strategy is worth pursuing in all corners of Texas.

Kudos to Bill and the ETF team for making it a priority.