In the February 19, 2007 Issue:

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Tech Talkin’ Govs, Part IV
This is the fourth installment of SSTI’s look at the Inaugural, Budget and State of the State Addresses delivered in the past week. Earlier installments, published Jan. 29, Jan. 15 and Jan. 8, are available through: http://www.ssti.org/Digest/2007/headlines07.htm
 
Selected excerpts of the most recent batch of speeches are provided below:
 
Connecticut
Gov. Jodi Rell, Budget Address, Feb. 7, 2007
“I am also bringing vitality to our state’s job picture and economy throughout my budget ... in expanding the state’s job creation tax credit to entice more new development, in increasing support for small business innovation research, in assisting the CT Center for Advanced Technology with subsidies to develop a fuel cell cluster.”
 
Iowa
Gov. Chet Culver, Budget Address, Jan. 30, 2007
“It's time for Iowa to become the Silicon Valley of the Midwest. ... To meet the energy challenge I am proposing the creation of a $100 million Iowa Power Fund, with a down payment of $25 million this year. This priority is of such critical importance, I am asking you to authorize a supplemental appropriation immediately. This will help us rapidly develop the next-generation energy economy in Iowa.
 
“This new investment will incent the growth of Iowa-based businesses in this exciting new industry, create jobs, and attract millions of dollars in public research and development funds. It will also result in hundreds of millions of dollars in private investment in renewable energy in Iowa.
 
"In addition, the Power Fund money will be used to help conduct the important research and development necessary for all forms of renewable energy and alternative fuel. It doesn’t matter whether it's related to wind or solar power, geothermal or biomass cellulosic ethanol, biodeisel, or E-85. Iowa needs to lead the way. The Power Fund will allow us to do this. We need to create the essential public-private partnerships required to further develop these alternative energy opportunities and commercialize them.

" However, we are not the only state working towards energy independence. In order to maintain the leadership we have worked so hard to develop, we must compete and do so aggressively.
 
“... Today, I am asking you to lift the ban on stem-cell research. The health care budget I have outlined will allow us to create the Center for Regenerative Medicine at the University of Iowa, with a commitment of $12.5 million. ... Let Iowa be known as a center for science research and technology, not only in energy but in the health sciences too.
 
Kentucky
Gov. Ernie Fletcher, State of the State Address, Feb. 6, 2007
“I recommend tonight that we invest an additional $7 million in our Math Achievement Fund to make this program available to more than 100 schools across the state. ...
 
“... To help our nation achieve energy independence, I propose that we enact legislation that does four things:

“... We have become the buzz of the high tech industry with the incentives you passed last session. With those tools, Commissioner Clayton has worked to add 101 high tech companies to our growing knowledge based economy in last year alone.
 
“We have more interest than we expected and let me ask that you allocate $2 million for this fiscal year and $5 million for 08 for the purpose of attracting more of these companies that are finding Kentucky a new bio-tech player.”
 
Maryland
Gov. Martin O’Malley, State of the State Address, Jan. 31, 2007
“I also ask for your support of several other initiatives in this year's proposed budget: A 66 percent increase over last year's appropriation for a total, this year, of $25 million for Stem Cell healing research.
 
“... Additionally, I ask for your support to create a Life Science Advisory Board – a potential precursor to a true Life Sciences Authority – so that we can more effectively grow an industry that currently, that already, employs 57,000 people around such places as Johns Hopkins, NIH, University of Maryland and the Food and Drug Administration, to name just a few. ...
 
“... We are also going to be revamping the Maryland Energy Administration to spearhead our state's efforts to advance the development of clean and renewable energy, including the next generation of biofuels – like cellulosic ethanol – which our academic institutions and private companies are already pursuing – out there in front of us.
 
Michigan
Gov. Jennifer Granholm, State of the State Address, Feb. 6, 2007
“I'm going to turn up the burners in our pursuit of new international investment in Michigan. This year I will venture again to bring jobs back to Michigan. I will focus on the companies and the countries that can create high-wage jobs in automotive research and development, advanced manufacturing, and alternative energy. ...
 
“... We will continue to do everything we can to nurture the growth of small businesses and entrepreneurs across our state. And we're stepping on the gas. We are making more capital and start-up funds available to Michigan's small businesses than ever before – low-interest loans, venture capital, incubator space, a small business ombudsman, and technical assistance. We're making entrepreneurship part of the curriculum in 262 schools, 19 community colleges, and 6 universities. ...
 
“... Tonight I am announcing that we will begin an aggressive, three-year effort to attract even more alternative energy companies to Michigan through more than $100 million in combined public-private investments. This will include the green technology companies that will make Michigan a leader in building the products that reduce the emissions that cause global warming.
 
“Next, I will ask this Legislature to set ambitious goals for our state, so that within eight years, a minimum of 10 percent of our energy will come from renewable sources. And we will double that goal in the decade after that.
 
“I will also ask you to expand alternative energy renaissance zones to attract new solar and wind energy companies.
 
“... This fall, we will open the first of a series of revolutionary new high schools. They will allow students to earn in five years both a high school diploma and a community college degree that will prepare them to fill job vacancies in our health care industry. ... Five such schools will be opening across Michigan this fall and will be followed by five more schools a year later. ...
 
“... Because the fastest job-creating states are the states that have the most educated workforces, our overriding education goal must be to double the number of college graduates in Michigan. That's why we created the Michigan Promise scholarship – $4,000 for every single child to give every student in Michigan the ability to earn a two-year college degree. ...
 
“... We are also going to open the doors of opportunity to adults who are struggling in this new economy.  We are about to make it much easier for the tens of thousands of displaced workers to get the training they need for a new career. For the next three years, a one-time offer: We will provide free community college tuition to unemployed workers who want to learn the skills needed to fill high-demand jobs. ...
 
“... We can improve the quality of health care in Michigan and give our economy a boost by removing the barriers to embryonic stem cell research, which could help thousands of people afflicted with life threatening and debilitating diseases. It will also energize our emerging life sciences industry in Michigan.
 
“Today, Michigan is at the back of the pack when it comes to allowing this important research. It's time to act on the issue. I can assure you, if the Legislature does not allow this research, the people will be taking it to the ballot.”
 
Oklahoma
Gov. Brad Henry, State of the State Address, Feb. 5, 2007
“Oklahoma has made good headway toward eliminating the backlog of endowed chairs. Let's clean up that backlog this session with a $75 million bond issue that will leverage another $75 million in private donations. ...
 
“... Oklahoma is meeting that challenge with dynamic initiatives like the EDGE Endowment and the Opportunity Fund, programs that nurture the best jobs of today and tomorrow. ... Let's build on that progress this session with significant deposits to EDGE and the Opportunity Fund from surplus revenues. In addition, let's provide bonding authority of up to $200 million for the Opportunity Fund to help secure the best jobs of the future.
 
“... I ask for your support in the creation of the Oklahoma Bioenergy Center. This world-class facility will bring together the top scientific talent in Oklahoma to undertake research in, and development of, biofuels.
 
"The possibilities are limitless. Not only will the Bioenergy Center be a tremendous investment in a diversified economy, it will mean a cleaner environment, thousands of high-paying jobs and a significant revitalization of rural Oklahoma. Our state has a once-in-a-generation opportunity to establish itself as a global leader in this fuel of the future – but we must act now.”
 
Pennsylvania
Gov. Edward Rendell, Executive Budget Address, Feb. 6, 2007
“The Energy Independence Strategy calls for expanding our commitment to the development of a 'clean energy' industry right here at home, helping local companies create and bring to market a whole range of energy products and technologies, creating thousands of jobs for Pennsylvanians in the process. ... The centerpiece of this strategy is the creation of an $850 million Energy Independence Fund, which will fuel this expanding market through strategic investments that provide access to critically-needed seed money or venture capital, working capital, loans and limited grants.
 
“We propose to support the Energy Independence Fund without any impact on the state budget. The Fund will be financed through the issuance of state bonds, and the interest on the bonds will be paid through a small 'clean energy' assessment on the electric utility bills of all residential, commercial and industrial customers.
 
“... This budget also proposes additional strategic investments to continue the momentum generated by Pennsylvania’s growing economic recovery, including the enactment of the Jonas Salk Legacy fund, a $500 million initiative to fund capital investments in bioscience research under the auspices of the Pennsylvania Biosciences Institute. ... The Fund would be established without any impact on the operating budget by securitizing only a small portion of the Tobacco Settlement proceeds. In short, we can leverage the power of the Tobacco Fund proceeds to create the chance for Pennsylvania to become a world leader in the field of scientific research.”
 
Rhode Island
Gov. Donald Carcieri, State of the State Address, Jan. 30, 2007
“To ensure that Rhode Island consumers are the primary beneficiaries of the renewable energy we produce, I am proposing the formation of a new Rhode Island Power Authority. As we develop wind and hydro power, especially on state-owned land, we will use the Authority to manage this power for the state’s benefit. The Authority will also be able to sell low-cost energy for economic development and low-income assistance.”
 
Texas
Gov. Rick Perry, State of the State Address, Feb. 6, 2007
“I don't know when the day will come that we find a cure for cancer, but I do know it is my dream to accelerate its arrival with a multi-billion dollar cancer research initiative that can save lives and provide millions renewed hope. ... The proposal I offer is large enough in scale that it will attract world-renowned researchers to Texas to find the cure for cancer. It is also large enough that it will bring our university scientists together in a tremendous collaborative effort to find a cure. And aggressively pursuing this kind of research does not require the use of embryonic stem cells.
 
“I am also proposing a source of funding that does not dry up with time or cost the state general revenue, unlike a bond proposal.
 
“Conservative estimates tell us that the state lottery could be sold to the private sector for $14 billion. Using these resources, we could create a $2.7 billion endowment for the uninsured that generates close to a quarter-billion dollars in interest payments every year. We could also create a $3 billion cancer research trust fund that would annually generate more than a quarter-billion dollars each year to the fight against cancer. And the rest of the money - more than $8 billion - could be dedicated to a public education endowment that would provide about $800 million a year for public education. ...
 
“... I am also advocating that we set aside $40 million for a new Texas Technology Grant program. Texas produces 5,500 graduates a year in electrical engineering, engineering technology and computer science while our economy produces 11,000 annual job openings in those fields. ... Let's invest in technology scholarships so that Texans are on the forefront of technology innovation, whether it is here at home, or in outer space.”
 
Wisconsin
Gov. Jim Doyle, State of the State Address, Jan. 30, 2007
“To make sure our kids are prepared to compete in the world … I urge you to pass my proposal to make a third year of math and a third year of science mandatory for high school graduation. ...
 
“... In the next decade, Wisconsin will need more welders and nurses. We’ll need more engineers, machinists, and skilled manufacturing workers. That’s why we need to invest in job training – increasing our efforts from $2 million to $8 million in the next budget – to help Wisconsin’s technical colleges train an additional 36,000 workers.
 
“We’ll also build new, unique partnerships between businesses and high schools to get our kids ready for the world of work. To do that, I ask the Legislature to double funding for the highly successful Youth Apprenticeship Program.
 
“Wisconsin has thousands of researchers and entrepreneurs with good ideas for new businesses, but they need venture capital to get these companies off the ground. Tonight, I propose a new Wisconsin Venture Center to give our entrepreneurs an edge. This center will be focused on helping Wisconsin’s innovators connect with investors from around the country. ...
 
“... We’ll fund an innovative partnership between Eau Claire, Stout, and the Chippewa Valley Technical College to produce more graduates in advanced disciplines like nanotechnology, biotechnology, and polymer engineering.
 
“Early next year, we’ll break ground on the Institutes for Discovery – without any ideological strings attached. Together, we’ll launch a new and exciting era in which the University of Wisconsin-Madison will not only help create thousands of new jobs, but will help unlock cures to deadly diseases through biotechnology and stem cell research.
 
“And at the University of Wisconsin-Milwaukee, we’ll make a major new investment in research. We’ll recruit top experts from around the country, and build partnerships with the Medical College and leading health care corporations that will strengthen the regional economy. ...
 
“... With new technology, and a commitment to renewable fuels, we can not only reduce the carbon emissions that cause global warming, we can and will help this nation kick its addiction to foreign oil. In my budget, I’ll propose the next major step forward in our effort to become America’s leader in energy independence – a $40 million investment in renewable energy like solar, wind, hydrogen, biodiesel and ethanol.
 
“We’ll provide incentives to dramatically increase the availability of E-85. We’ll move four university campuses off the power grid in the next five years. And next year, we’ll more than double our commitment to energy conservation.
 
“Tonight, I am announcing a Governor’s Task Force on Global Warming, comprised of business, industry, labor, environmental, government and community leaders to develop a comprehensive plan of action that we can all get behind.”

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Texas Governor Wants $300M Boost for Emerging Technology Fund
Texas Gov. Rick Perry unveiled his budget proposal for fiscal year 2008-09 with an additional $300 million to recapitalize the state’s Emerging Technology Fund (ETF). The program provides loans and grants to commercialization projects with ties to state universities, and to create research centers in key technology areas. The funding would represent a significant expansion of the program, which received $200 million when it was established in 2005 and no new funding in 2006.
 
Another program, the Texas Enterprise Fund, would receive $182 million to continue its activities. The Enterprise Fund was the predecessor of the ETF and was created in 2003 to attract larger employers to the state. High-tech employers, such as SEMATECH, Samsung, and Texas Instruments have been a particular focus of the program. The program was initially viewed as the state’s leading initiative to create new high-tech jobs. However, the perception may be changing. In 2003 and 2005, the fund received $300 million, the amount proposed for the ETF this year. The increase in funds for ETF, which focuses on smaller, early-stage deals, may represent a shift in priorities for the state.
 
The proposed budget calls for $21.6 billion for business and economic development, an 11.4 percent increase over FY 2006-07 levels. Additionally, the governor has proposed to sell the state lottery, a move that could generate an estimated $14 billion to invest in secure trust funds. Gov. Perry has suggested that the interest from one of those funds could provide $300 million annually for the state’s new Texas Cancer Research Initiative. The initiative, which would receive $130 million under the governor’s FY 2008-09 budget, provides funds to attract cancer researchers and pay for research projects and facilities.
 
For more information on Gov. Perry’s FY 2008-09 budget, visit: http://www.governor.state.tx.us/divisions/bpp/budget/files/budgetsummary2008-09.pdf

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Recent Research
Study Questions the Success of Bayh-Dole Approach to University Patenting
Over the past 27 years, the Bayh-Dole Act has been frequently cited as critical for university tech transfer in the U.S. The Act allows universities to assume ownership over the intellectual property (IP) produced on campuses, whenever that property derives from research funded in whole or in part by the federal government. The possibility of financial returns from licensing agreements or on the sale of IP gives institutions an important incentive to engage in applied research and move their discoveries to market.
 
This approach is now gaining favor across Europe, where university ownership of patents has been much less common. Instead, patents are more often owned in whole or in part by the individual researchers and collaborators who develop the technology. Many academic and government studies have found that European universities trail their U.S counterparts both in the patenting of research and in the successful commercialization of that research. Conventional wisdom holds that without a Bayh-Dole-like incentive to produce technologies for the market, European universities persistently underachieve in technology transfer and in their impact on regional economic development.
 
Bart Verspagen of the Eindhoven University of Technology, and Gustavo Crespi and Aldo Geuna of the University of Sussex disagree. In University IPRs and Knowledge Transfer: Is the IPR Ownership Model More Efficient? the authors argue that the patenting and commercialization activities of European universities has been seriously underreported due to an inappropriately narrow definition of university technology transfer. Many studies of university patenting, including data published by the National Science Foundation, limit their focus to university-owned patents, instead of including all patents that derive from university research. This creates a bias towards U.S. schools, which, because of the Bayh-Dole Act, more frequently maintain ownership over the IP that results from their research. Only one-fifth of patents resulting from research at European universities are held by the institution itself, while U.S. schools own two-thirds of their patents, the paper notes. After accounting for all university patenting activity, the authors find that European universities only lag their U.S. counterparts by 15 percent.
 
The authors then examine the efficiency of both the U.S. and the European model in commercializing these patents. In the past, defenders of Bayh-Dole have argued that university ownership of patents creates a significant incentive to bring their research to the market. They maintain the act has prevented the U.S. from falling victim to the ‘European paradox’. European universities, which often allow their faculty to take ownership of their patented research, seem to perform well in scientific research and publishing, but are less successful at patenting, licensing and commercialization. Crespi, Geuna, and Verspagen, however, find no significant difference between the commercial use of university-owned and university-invented patents. They conclude there is no great need for Bayh-Dole-like legislation in Europe to improve patenting performance.
 
The findings suggest U.S. researchers need to re-evaluate their ideas about what constitutes successful university patenting and commercialization, but the paper also implies that American universities can be more flexible in their intellectual property arrangements. When the university is unable to find a suitable route to commercialization, granting IP rights to the individual researcher or industry collaborator may be a suitable alternative, which could still benefit the regional economy.
 
Read University IPRs and Knowledge Transfer: Is the IPR Ownership Model More Efficient? at: http://www.sussex.ac.uk/spru/documents/sewp154.pdf
 
Links to this report and more than 4,500 additional TBED-related research reports, strategic plans and other papers can be found at the Tech-based Economic Development (TBED) Resource Center, jointly developed by the Technology Administration and SSTI, at http://www.tbedresourcecenter.org/.

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$65M Available for Labor's WIRED Initiative
The U.S. Department of Labor (DOL) recently announced it will provide $65 million in new grants under the Workforce Innovation in Regional Economic Development (WIRED) Initiative.

Launched in February 2006, the WIRED initiative focuses on the role of talent development in driving regional economic competitiveness, job growth and new opportunities. The goal of WIRED, as described by DOL's Employment and Training Administration, is to expand employment and advancement opportunities for U.S. workers and catalyze the creation of high-skill and high-wage opportunities in regional economies. Regions across the country are provided with ongoing technical assistance, in addition to grant funding, to help achieve these goals.

Grants will be funded at $5 million over three years. Only governors may apply on behalf of regions within their states or across state lines. Governors must submit applications on behalf of a specific, defined multi-county region and a regional team of public and private partners. Applications are due April 13, 2007. For more information, visit the Grants.gov listing for WIRED at http://www.grants.gov/search/search.do?mode=VIEW&oppId=12568.

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SSTI Calendar of Events: Something for Everyone
Looking for that perfect professional development opportunity for you or your staff. If so, the SSTI Web calendar of events should prove useful in your search.

By visiting www.ssti.org/calendar.htm, you can view more than 170 technology-based economic development events.

Events include:

If you have an upcoming tech-based economic development event of interest to a statewide, regional or national audience, please let us know by contacting Robin Brunotts at 614.901.1690.

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