The goal is a compelling one: Hawai'i needs to grow its fledgling science and technology industry as a promising part of a more diversified tax base.

The fact that the tax credits provided by Act 221 have been curtailed should not spell the end of that effort. The reduction in credits was passed first by lawmakers aiming to fatten state tax coffers during the legislative session and then enacted when the governor decided against a veto earlier this week.

Still, that verdict should not close off all means of powering a developing economic engine.

Leaders of the tech sector, represented primarily by the Hawaii Science and Technology Council, plan to meet with state officials in the coming months to plan alternative strategies. That's a good start, one that needs to involve key lawmakers as well.

And already some ideas are emerging that could help improve the business climate generally. For example, new companies are stymied by a maze of permitting requirements that discourages all but the most steely entrepreneurs. Attempts have been made to streamline the process for renewable energy developers, initiatives that should be revisited, evaluated and possibly expanded. At a time of economic malaise, the state needs to do what it can to spur new businesses and job creation.

Some in the tech industry rightly propose that the one-size-fits-all approach of the Act 221 incentive be supplanted by a broader range of incentives. A portfolio of options is needed to draw in venture capital at the earliest research and development phase and then other financing support once the company shifts to marketing and manufacture.

Another strategy would be for companies to seek out stimulus funds available to a limited range of companies and solicit federal grants the Obama administration is allotting, particularly in green-energy innovation but in other science areas as well.

Finally, other states have shown success in attracting venture capital and deserve study. For example, the Utah Fund of Funds, created about five years ago by state lawmakers, was designed to lure investors who will back Utah entrepreneurs. It's designed to be self-sustaining, with fund profits paying back financiers.

The jury is out on whether that can work for Hawai'i. But one thing is clear. The state wisely made a commitment to diversify its economy. That's a commitment and investment in our future that should be fulfilled, even in these challenging economic times.