With his fingerprints on more than 70 start-ups in Alaska, incoming Anchorage Rep. Ky Holland boasts many years of developing and promoting new businesses in the 49th state.
With Alaska confronting some 10 years of outmigration and bleak forecasts of continued population declines and middling economic growth, the last thing Holland wants is his fellow Alaskans sitting back and merely managing the decline instead of investing in a vibrant economic future.
The independent filed two bills released in last week’s pre-file release, one that would create the Office of Entrepreneurship and another that would establish the Alaska Innovation Council. He says the bills would bring together state officials, people in the business community, investors, researchers and people looking to start businesses.
“One of the primary platforms for running was bringing voice and focus to developing our future economy,” he said in an interview following the release of the legislation. “We’ve been managing our decline for the last few years as we worry about how to cut state government and which schools we’re going to close. I want us to start building our future.”
A member of the tri-partisan coalition that will govern a razor-thin majority in the Alaska House, the independent Holland represents House District 9, which extends from Glen Alps on the Anchorage Hillside down the Seward Highway to Girdwood and Whittier. The district flipped to Independent in November after 75-year-old Republican Laddie Shaw retired. Holland’s pro-business, pro-education election over Gov. Mike Dunleavy-supported Republican Lucy Bauer helped pave the way for the narrow House coalition majority.
Alaska has been reeling from the decade-old fallout of oil prices that undercut the resource industry and erased a big chunk of state revenue. Lawmakers have struggled to balance the state budget, contributing to perennial talks about pinched budgets and closed schools. As legislators look for answers, Holland says they should focus on policies that help new and small businesses meet the challenges and opportunities of Alaska.
While existing resources, such as the Small Business Development Center at the University of Alaska Anchorage, definitely nurture Alaska entrepreneurs, Holland said, organizations such as those in his twin bills focus on “the big picture” and so might better identify the pitfalls and opportunities that new Alaska businesses trying to get a foothold face. His legislation also establishes more ways to commercialize the wealth of existing and future research within the state’s public university system, he said.
“We need folks at that high level and coming together to see those bigger strategies,” he said. “We’re doing great work, but it needs to be more connected.”
The proposed Innovation Council would be a 19-member body of state officials, entrepreneurs, and investors from urban and rural communities who advise the state on potential policy changes to help with economic development and the commercialization of research. The Office of Entrepreneurship would focus on helping start and grow new businesses.
He pointed to areas such as climate change, energy, and housing as key areas of opportunity in Alaska, noting that many of the solutions to Alaska’s problems could also be helpful in markets outside the state, bringing more money back to the state. The Alaska-based electronics manufacturer beadedstream for example, creates specialized sensors for Alaska’s extreme conditions, innovations that already have been exported to worldwide markets.
In the big picture, Holland said economic growth relies not just on having the infrastructure for the businesses but also on making the state an appealing place to live. Many of those priorities, such as affordable and available child care, recreation opportunities and quality neighborhood schools, are key goals of the incoming House and Senate bipartisan coalitions. He said making progress on quality-of-life issues will broadly help the state’s economy by attracting and keeping the talent and know-how needed to drive new business growth.
A top-down approach to economic growth where state officials and legislators pick and choose the winners, Holland said, doesn’t work nearly as well as when innovation emanates from the ground up.
“It is an old-school view to think that we can have this perfect knowledge to pick some bright, shiny direction and create a plan for the next big thing,” he said. “What we’ve learned from economic development is … you have to have this iterative process that sees the opportunities and takes the next steps to move that direction.”
The Alaska Legislature is slated to gavel in on Jan. 21.
Matt Acuña Buxton is a long-time political reporter who has written for the Fairbanks Daily News-Miner and The Midnight Sun political blog. He also authors the daily politics newsletter, The Alaska Memo, and can frequently be found live-tweeting public meetings on Twitter.
