By MARV BALOUSEK, www.madison.com/wsj, Dec. 11, 2007

Gov. Jim Doyle will outline initiatives today in the next phase of his Grow Wisconsin plan, which was first launched in 2003 to improve the state’s economy.

In a Milwaukee speech to the Competitive Wisconsin board of directors, Doyle is expected to suggest boosting state resources for agricultural industries, manufacturers and renewable-energy businesses.

Competitive Wisconsin is an organization of business leaders formed in 1981 and committed to improving the state’s business climate.

An official of Wisconsin Manufacturers and Commerce, which represents small manufacturers, service companies, local chambers of commerce and specialized trade associations, said the governor is heading in the right direction but that bolder changes may be needed.

Doyle plans to provide the details of Grow Wisconsin’s next phase at his annual State of the State address next month. But the plan will include the following initiatives:

Next Generation Agriculture Plan: Announced last month, this plan includes more than $200 million of public and private investment so agricultural industries can “modernize and innovate, capture new markets and seize new opportunities,” Doyle said.

Next Generation Manufacturing Plan: This plan will help manufacturers adopt lean principles, which strive to achieve the shortest possible production cycle while eliminating waste.

More tax credits: Earlier tax credits helped the state leverage $260 million in private investment, Doyle said, and he will propose new credits and exemptions to encourage investment in research and development.

Tax-structure reform: Although he provided no specifics, the governor said he will propose changing the tax structure to support reinvestment, job creation and new ventures.

Renewable-energy businesses: Doyle said the state will invest $150 million over the next decade on renewable-energy production and business promotion. He said the cornerstone of developing the state’s renewable energy industry will be the Great Lakes Bioenergy Research Center at UW-Madison.

“We really want to build on Wisconsin’s very strong research and development sector that we have in the state,” Doyle said in a telephone interview. “We really want to help foster that same kind of research development on the private side.”

James Buchen, vice president of governmental relations at WMC, praised the governor’s efforts but said more may be needed.

“We certainly applaud the sentiment and look forward to seeing the details,” he said. “We do really need to be getting serious about what probably needs to be dramatic changes in the business climate.”

He said Wisconsin has been way down the list in several recent national rankings of business climate.

Doyle said Wisconsin has a strong opportunity to capitalize on the emerging renewable-energy industry. Like Wisconsin, other Midwestern states have plunged into corn ethanol production. But the governor said the state is in a unique position to develop ethanol production from cellulose and forest products.

“We’ll also promote the research component of it,” the governor said. “I don’t think there’s another state in the Midwest that’s doing it on all three fronts as we are in Wisconsin.”