Known as "the greatest spectacle in racing," the Indianapolis 500 is one of the world's most popular sporting events. But nearly 400,000 spectators might be surprised to know the track was originally a research and development facility.

Shortly after Henry Ford introduced the Model T, four Indianapolis businessmen built Indianapolis Motor Speedway so rival automobile manufacturers could test their cars and equipment against each other.

In addition to becoming an extremely popular event, the 2.5-mile course proved to be a great outdoor laboratory. Ideas tested during the high-speed races often were incorporated into future models sold to the public.

Since Ray Harroun won the first 500-mile race at the track in 1911 with an average speed of 74 mph, the automobile industry's impact on Indiana has grown substantially.

Toyota expands in Princeton

Toyota Motor Manufacturing, Indiana, is making one of the largest current investments in the state with an $800 million expansion to its assembly plant in Princeton, near Evansville, the second expansion since opening in 1998.

The project will add 2,000 jobs and double TMMI's production to 300,000 vehicles per year, including the new Sienna minivan, when construction is completed in January 2003.

"We looked at other states when considering this expansion," said Michael Goss, public affairs manager for Toyota. "The primary reasons why our existing site won out was quality products already coming from this site, an incentive package offered by the state and Gibson County, and a quality work force."

The Toyota investment is also effecting suppliers. For example, Vuteq will build several sub-assemblies on the property that will add 175 jobs. Other suppliers announcing expansions within one mile of the plant are Total Interior Systems of America, Toyota Tsusho, Tire & Wheel Assembly and Toyota Logistics Services.

In Mishawaka, in northern Indiana, General Motors acquired the Hummer brand name from AM General, and proceeded to construct a 630,000 square foot facility. Total employment at the new facility could approach 1,500 when it opens this spring.

"The state of Indiana and St. Joseph County are providing significant assistance," said Jim Armour, president and CEO of AM General. "It is critical to our expansion and H2 production plants."

About 40,000 Hummers are expected to roll off the assembly line each year.

Lilly to build $100 million research facility

Before the first automobile came to Indiana, a young pharmacist made a lasting impression on the health care industry. Frustrated by poorly prepared and often ineffective medicines in the late 19th century, Civil War veteran Col. Eli Lilly decided to develop and distribute only the highest-quality medicines.

More than 125 years later, the company employs 35,000 people worldwide and markets its medicines in 159 countries. What hasn't changed in that time is Lilly's vision for the company or its commitment to Indiana.

Headquartered in Indianapolis, Eli Lilly and Co. is two years into a 10-year plan to invest $1 billion and create 7,500 new jobs at its corporate headquarters. Already, Eli Lilly has financially committed nearly $920 million to new projects and added 2,000 jobs.

The latest venture is a $100 million research facility to provide laboratories for 370 scientists and support personnel engaged in drug discovery and research activities. The 275,000 square foot building will be completed in 2003.

"We looked at several other sites, but when we looked at all the economics involved - our existing facilities in Indianapolis and our existing presence here - it only made sense," Eli Lilly Spokesman Ed Sagebiel said. "We have an exciting expansion going on here. We're expanding our facilities and creating new jobs. Our 10-year commitment is equivalent to bringing in several Fortune 500 companies each year, along with the new jobs."

Companies expanding or relocating in Indiana can take advantage of sameday access to a large percentage of the nation's population, a skilled work force with a strong work ethic and enticing state and local incentives.

"For us, Indiana's central location, excellent work force, and commitment to economic development are outstanding assets," said Joan Fowler, with Puritan Bennett Corp., a division of Tyco Healthcare.

Puritan Bennett, which manufactures medical products designed to sustain breathing for respiratory and critical care patients, will invest approximately $9.9 million and create 180 jobs by 2004. According to Fowler, the company looked at a number of sites, including existing facilities in Missouri and Minnesota, before deciding to relocate to 140,000 square feet of existing space in Plainfield.

"We needed to be in operation by the spring of this year; we had to have the ability to attract and retain skilled employees; and we needed a cost-effective business climate that was stable and conducive to growth," said Fowler. "Plus, we were impressed with the Plainfield and Indiana incentive packages and the speed with which the officials delivers on their commitments."

The state offered more than $2 million in assistance, including EDGE tax credits and training grants. Plainfield offered 10-year tax abatements worth nearly $1 million.

"Those incentives, which very positively impact the project's start-up and operating costs, were very carefully analyzed and were extremely important in our decision," said Fowler.

Kokomo explores

high-tech options

In Kokomo, in north central Indiana, the city is exploring the possibility of opening a high-tech incubator. In September 2001, Kokomo received a $25,000 grant from SBC Ameritech to conduct a feasibility study.

The study will be done by the Pittsburgh Gateways Corp., the same group that developed the Gateways Program at Purdue University.

Howard County, which includes Kokomo, is certainly poised for high-tech growth. According to the Indiana Department of Workforce Development, Howard County had the largest share of high-tech employment in the state, with 37 percent of the work force in the county employed by a high-tech job or by a company in the high-tech industry.

In Muncie, a metal production company relocated its home canning metal closure production facility to its existing operations in Indiana. Bernardin Ltd., a subsidiary of Allrista Corp., makes home food preservations products under the Ball, Kerr and Bernardin brands.

"Because field sales and marketing support will still be administered by the Toronto-based staff. Canadian retailers and consumers will continue to find the same high quality products and services," said Thomas Clark, president and CEO of Allrista Corp.

Dan Perk