Gov. Jim Doyle drew a warm response from Wisconsin's business community on Tuesday as he reiterated his economic goals for the state in a speech at the annual Business Day in Madison, organized by Wisconsin Manufacturers and Commerce.

Even with a projected state budget deficit of $652 million and growing concerns about a nationwide recession, Doyle stuck to his plan, called "Grow Wisconsin - The Next Steps, "which calls for incentives for research and development, for renewable energy and for angel investors.

"This is the time for us to make major investments, smart investments," Doyle said. "As the economy slows, we cannot hide under a rock."

The governor said in order to encourage companies to put more money into research, he is proposing that the state provide a dollar-for-dollar tax credit for corporate research and development expenses that are 25 percent or more above a company's three-year average.

Doyle also repeated plans to raise the cap on tax credits offered to wealthy individuals, called angel investors, who help finance young businesses, and touted the state's $150 million Wisconsin Energy Independence Fund, aimed at developing renewable energy technologies.

"This commitment continues our heritage in Wisconsin," the governor said.

"We can compete with anyone in the world," Doyle said. "Our future as a state depends on our ability to compete."

James Buchen, WMC's vice president of government relations, said the lobbying organization, which represents some of the state's largest businesses, is "fully in support" of Doyle's economic initiatives.

"He really gets it about the importance of a strong economy," Buchen said.

Doyle also wants to use tax credits to modernize meat processing, upgrade dairy production and develop new markets for Wisconsin cheese. His plan calls for increased support for lean manufacturing processes, as well.

The governor pointed to Ireland's rise from one of the world's poorest nations to one of the richest, over a 15-year period. Ireland accomplished that because its top priority was a commitment to education.

"I want to make sure we have, in Wisconsin, that same shared vision," he said.

About 800 people attended WMC's daylong event at Monona Terrace.