The definition of Gov. John Hoeven's Centers of Excellence initiative should remain flexible if the state is to be successful in technology-based economic development, according to an expert.

Dan Berglund, president and CEO of the Ohio-based Science and Technology Institute, told legislators Tuesday that several states have their own version of the economic development concept.

"What one state may call a center of excellence, another state has an entirely different definition of what a center of excellence is," Berglund said.

Berglund gave a presentation to a joint meeting of the House and Senate Industry, Business and Labor committees about technology on Tuesday.

Berglund said as the Centers of Excellence concept develops, there needs to be a measurement system and good communication between the executive and legislative branches of government.

Hoeven has proposed spending up to $50 million, matched 2 to 1 with private funding, to create Centers of Excellence at colleges and universities. The idea is that the funding will help private industry develop new products and services with the help of higher education that will ultimately create jobs.

Berglund cited several states that have similar concepts, including Ohio, which has set up a welding institute that is now a $30 million annual operation.

Sen. Duaine Espegard, R-Grand Forks, said the state already has done some good things toward increasing technology.

"I don't believe we are starting from ground zero," Espegard said.

The state has already established centers of excellence in Grand Forks and Fargo, and Hoeven wants Bismarck State College to be a center in power plant training and technology.

Espegard said the presentation was helpful in comparing what other states are doing.

"When you see what other states are doing, and we're following those patterns, it makes you feel good," Espegard said.

Sen. Tony Grindberg, R-Fargo, said that although Berglund didn't say what the state specifically needs to do, he gave legislators an idea of the best practices.

Many lawmakers are in favor of the concept, but funding it will be the challenge.

Grindberg would not speculate if Hoeven's request for $50 million would be scaled down by legislators.

"It won't go any higher," Grindberg said.

Not everyone was impressed by the presentation.

Curly Haugland, a Bismarck businessman, said he is offended that government takes public tax money and redistributes it to private companies.

Haugland has often voiced his opinion that giving companies money for economic development is against the North Dakota Constitution.

"We've defeated the constitutional provision by simply ignoring it," Haugland said.

Sen. Ray Holmberg, R-Grand Forks, thanked Haugland for his input, but didn't promise him anything.

"Sometimes we take your advice and sometimes we don't," Holmberg said.

(Reach reporter Tom Rafferty at 223-8482 or tom.rafferty@bismarcktribune.com.)