As oil topped-out at $70 a barrel, the importance of creating a bio-economy in Iowa has become increasingly important, leaving Iowa State in a unique position.

Gov. Tom Vilsack on Monday emphasized the role of higher education in stimulating Iowa’s biotechnology industry and economy at the Biobased Industry Outlook Conference 2005 being held on campus.

Vilsack said the United States has become a debtor nation, with a large trade deficit and more than 50 percent of debt held by foreign countries, in his speech before a crowd of several hundred workers in the renewable energy and biobased product business.

He said the solution to this is “innovative and creative” economic solutions, including biotechnological development.

Vilsack said Iowa has three qualities that put it at the forefront of reshaping the American economy: productive farmers, productive soil and a great university system.

“That combination puts Iowa in the middle of creating this new bio-economy,” he said.

ISU President Gregory Geoffroy spoke at the conference about the Regent university system’s importance to developing the bio-economy.

“This is a very, very important topic for our country, certainly for Iowa and for Iowa State,” he said.

With oil futures surging and the threat to domestic oil production posed by Hurricane Katrina, discussion of alternative energy sources has never been so significant, said Jill Euken, conference chairwoman and field specialist for cooperative extension.

Vilsack said advances in biotechnology, such as improved food capacity and medicine, are particularly relevant.

“We live in a different world than we did prior to 9/11,” he said, adding that a military response to terrorism is not enough.

He said the bio-economy could allow the United States to respond “also with a great humanitarian effort.”

Vilsack said biotechnology can allow the United States to meet its energy needs “without the possibility of conflict.”

He emphasized the need for increased state and federal support of ethanol and bodiless use, calling research stating ethanol is a net-energy user “faulty science.”

He said roadblocks to investment in the bio-economy include a lack of funding for buildings and equipment, which could be corrected by an infrastructure bill to develop these areas and a lack of integration between industry and the universities.

Vilsack said the Grow Iowa Values Fund should be changed to support state matching funds for businesses giving grants to university researchers.

In his speech, Geoffroy also called for private sector support of higher education.

Although Vilsack called biotechnology research “the most important work that’s taking place in the state of Iowa – and maybe the nation – today,” and said the development of “next generation fuels” is best done at state universities, he said state support for universities has been lacking in recent years.

“We’re beginning to do more to support our universities,” he said. “We’re beginning to lay the foundation, what’s important is it continues.”