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U.S. Sen. Russ Feingold, D-Wis., told area business and education leaders Wednesday about his plans to rejuvenate Wisconsin’s economy, especially the small business and innovation sectors.

Feingold’s proposal, called the E4 Initiative, focuses on the Wisconsin economy, employment, education and energy by aiming to boost small business innovation, support job growth, strengthen workforce development and build new education partnerships.

“The changing economy, flawed trade agreements, rising health care costs and rising energy prices have put communities and businesses across the state in a difficult position,” Feingold said.

One way to encourage small business innovation is through his Small Business Innovation Act of 2008, Feingold said, which will reauthorize and increase two current federal programs: Small Business Innovation Research Grants and Small Business Technology Transfer Program.

According to Feingold, small businesses generate about half of the nation’s payroll and 80 percent of the total employment in their urban locations. SBIR and STTR were established to promote these programs by allocating a small percentage of the federal research and development budget to small businesses.

“In 25 years, small businesses only get 4 percent of federal [Research and Development] budget but employ 32 percent of scientists and engineers,” said Tom Crabb, co-founder and CFO of ORBITEC, an aerospace research and product development company in Madison.

Feingold’s bill plans to reauthorize the SBIR and STTR for an additional 14 years, quadruple federal R&D funding for small businesses over three years, increase the amount of money awarded by grants and prioritize grants in key areas such as energy innovation, transportation and water quality.

“Wisconsin is a small-business-driven state,” said Tom Still, president of the Wisconsin Technology Council. “We have an advantage across world, showing this program has worked and will work better over time.”

Along with the bill, Feingold is looking to increase job opportunities, especially in areas such as Janesville, where recent automotive job loss has occurred.

“With retraining possibilities, there’s a shift underway to reach out to displaced workers and put them in programs that are tailored for rising industries,” Still said.

Feingold hopes to achieve this through partnerships with schools and businesses to retrain and certify workers in the technology industry, especially in the department of information technology, which is constantly expanding.

The bill also aims at teaching students skills they can use in the region’s emerging industries starting in high school and through college by motivating them to pursue science, math and engineering degrees.

“Small, high-tech businesses are an important pipeline from the classroom to the global economic market place,” Crabb said.

Overall, with the increased R&D, job opportunities and specific education training, Feingold is looking to push the already-present innovative streak in Wisconsin’s economy.

“We are on the cutting edge of innovation,” Feingold said. “Madison is leading the way nationally and internationally. We need to build momentum and support businesses that are driving that growth.”