In the January 14, 2009 Issue:

Copyright State Science & Technology Institute 2009. Redistribution to all others interested in tech-based economic development is strongly encouraged. Please cite the State Science & Technology Institute whenever portions are reproduced or redirected.

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S&T Figures Prominently In Federal Recovery Plans
Several years of virtually flat and occasionally declining federal funds for the nation’s research and economic development communities could end abruptly with passage of an economic recovery plan resembling either proposal released by President-elect Obama or Congressional Democrats. Both call for unprecedented public investments to stimulate the economy out of its worst recession since the Great Depression, while at the same time moving the country dramatically toward a national innovation strategy mirroring the priorities of most state and regional technology-based economic development programs across the country.

Democrats control both chambers of Congress and the White House, however, opposition to the size and the nature of some components crosses both sides of the political aisle and as a result changes in the package are likely before passage.

Below are several highlights of the incoming Administration’s plan, as outlined on its website: http://www.change.gov, and the American Recovery and Reinvestment Act released this morning by House Appropriations Committee Chair David Obey. (The broadband elements of the Act are discussed in a separate article).

President-elect Obama's plan:
  • Double federal funding for basic research to foster home-grown innovation, help ensure the competitiveness of U.S. technology-based businesses, and ensure that 21st century jobs can and will grow in America.
House Response:  $10 billion for science facilities, research, and instrumentation, including:
  • National Science Foundation: $3 billion, including $2 billion for expanding employment opportunities in fundamental science and engineering to meet environmental challenges and to improve global economic competitiveness, $400 million to build major research facilities that perform cutting edge science, $300 million for major research equipment shared by institutions of higher education and other scientists, $200 million to repair and modernize science and engineering research facilities at the nation’s institutions of higher education and other science labs, and $100 million also is included to improve instruction in science, math and engineering.
  • National Institutes of Health Biomedical Research: $2 billion, including $1.5 billion for expanding good jobs in biomedical research to study diseases such as Alzheimer’s, Parkinson’s, cancer, and heart disease - NIH currently is able to fund less than 20% of approved applications – and $500 million to implement the repair and improvement strategic plan developed by the NIH for its campuses.
  • University Research Facilities: $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants. The National Science Foundation estimates a maintenance backlog of $3.9 billion in biological science research space. Funds are awarded competitively.
  • Centers for Disease Control and Prevention: $462 million to enable CDC to complete its Buildings and Facilities Master Plan, as well as renovations and construction needs of the National Institute for Occupational Safety and Health.
  • Department of Energy: $1.9 billion for basic research into the physical sciences including high-energy physics, nuclear physics, and fusion energy sciences and improvements to DOE laboratories and scientific facilities. $400 million would be for the Advanced Research Project Agency – Energy to support high-risk, high-payoff research into energy sources and energy efficiency.
  • NASA: $600 million, including $400 million to put more scientists to work doing climate change research, including Earth science research recommended by the National Academies, satellite sensors that measure solar radiation critical to understanding climate change, and a thermal infrared sensor to the Landsat Continuing Mapper necessary for water management, particularly in the western states; $150 million for research, development, and demonstration to improve aviation safety and Next Generation air traffic control (NextGen); and $50 million to repair NASA centers damaged by hurricanes and floods last year.
  • Biomedical Advanced Research and Development, Pandemic Flu, and Cyber Security: $900 million to prepare for a pandemic influenza, support advanced development of medical countermeasures for chemical, biological, radiological, and nuclear threats, and for cyber security protections at HHS.
  • National Oceanic and Atmospheric Administration Satellites and Sensors: $600 million for satellite development and acquisitions, including climate sensors and climate modeling.
  • National Institute of Standards and Technology: $300 million for competitive construction grants for research science buildings at colleges, universities, and other research organizations and $100 million to coordinate research efforts of laboratories and national research facilities by setting interoperability standards for manufacturing.
  • Agricultural Research Service: $209 million for agricultural research facilities across the country. ARS has a list of deferred maintenance work at facilities of roughly $315 million.
  • U.S. Geological Survey: $200 million to repair and modernize USGS science facilities and equipment, including improvements to laboratories, earthquake monitoring systems, and computing capacity.
  • Technology Innovation Program: $70 million to accelerate research in potentially revolutionary technologies with high job growth potential.
  • Healthcare Effectiveness Research: $1.1 billion for Healthcare Research and Quality programs to compare the effectiveness of different medical treatments funded by Medicare, Medicaid, and SCHIP. Finding out what works best and educating patients and doctors will improve treatment and save taxpayers money.
President-elect Obama:
  • Invest $150 billion in clean energy over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial scale renewable energy, invest in low emissions coal plants, and begin transition to a new digital electricity grid. The plan also would invest in America's highly-skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the first wave of green technologies that will be in high demand throughout the world.
House Response:
  • $11 billion for research and development, pilot projects, and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid making it more efficient, secure, and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation.
  • $8 billion in Renewable Energy Loan Guarantees for renewable energy power generation and transmission projects.
  • $2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities to foster energy independence, reduce carbon emissions, and cut utility bills. Funds are awarded on a competitive basis to universities, companies, and national laboratories.
  • $2 billion for the Advanced Battery Loan Guarantee and Grants Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America should lead the world in transforming the way automobiles are powered.
  • $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.
  • $200 million for a new grant program to encourage electric vehicle technologies.
  • $2.4 billion for carbon capture and sequestration technology demonstration projects. This funding would provide information necessary to reduce the amount of carbon dioxide emitted into the atmosphere from industrial facilities and fossil fuel power plants.
  • $350 million for research into using renewable energy to power weapons systems and military bases.
  • $500 million for energy efficient manufacturing demonstration projects.
President-elect Obama:
  • Double funding for the Manufacturing Extension Partnership (MEP), which works with manufacturers across the country to improve efficiency, implement new technology and strengthen company growth. The new Administration would double funding for NIST MEP so its  centers can continue to bolster the competitiveness of U.S. manufacturers.
House Response:
  • $30 million for the Manufacturing Extension Partnerships to help small and mid-size manufacturers compete globally by providing them with access to technology.
President-elect Obama:
  • Create a national network of public-private business incubators to support entrepreneurship and spur job growth. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. The administration proposes to invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.
House Response:  Not immediately discernible from the summary materials.

President-elect Obama:
  • Create an Advanced Manufacturing Fund to identify and invest in the most compelling advanced manufacturing strategies. The Fund would have a peer-review selection and award process based on the Michigan 21st Century Jobs Fund, a state-level initiative that has awarded over $125 million to Michigan businesses with the most innovative proposals to create new products and new jobs in the state.   
House Response:  Not immediately discernible from the summary materials.

President-elect Obama:
  • Make the R&D Tax Credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multi-year timeframes.
House Response:  Not immediately discernible from the summary materials.

Other House Proposals Supporting State & Local TBED Goals 
Economic Development Administration: $250 million to address long-term economic distress in urban industrial cores and rural areas distributed based on need and ability to create jobs and attract private investment.

Brownfields: $100 million for competitive grants for evaluation and cleanup of former industrial and commercial sites - turning them from problem properties to productive community use. Last year EPA was only able to fund 37% of Brownfields applications.
In addition to the Economic Recovery plan, the incoming Administration has two more opportunities pending to see some or all of these proposals addressed. Congress has yet to approve a final budget for the current fiscal year, which is now 4.5 months old and existing on a Continuing Resolution which expires in March. The Obama Administration will be in a position to influence the FY09 budget at the same time it is preparing to submit its first full budget request for FY10. 

More info on the House Appropriations Committee version of the America Recovery and Reinvestment Act is available at: http://appropriations.house.gov/.


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ITIF Provides Insight Into Stimulus' Potential Impact on High-Tech Employment
The House Appropriations Committee version of the American Recovery & Reinvestment Act released this morning includes support for improvement to the U.S. digital infrastructure. The proposal calls for significant spending to boost the economy through science and technology. That figure, along with additional spending on energy, small business, and healthcare improvements, includes significant investment in the country's information technology and networking assets.

The American Recovery & Reinvestment Act includes $6 billion in spending to upgrade the country's broadband and wireless services, $20 billion for health information technology and $32 billion to improve the nation's power grid. Though the figures may not make it into the final draft, they do indicate that legislators recognize the importance of digital infrastructure spending.

A recent report from the Information Technology and Innovation Foundation suggests that these investments could have a major impact on job creation. In The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America, the group estimates that a $30 billion stimulus in a single year for broadband networks, digital health technologies, and a smart power grid could create nearly one million new jobs. With the federal government actively considering investments in these areas, the ITIF guide provides an early-look at the kind of impact the stimulus may have on the U.S. high-tech economy and workforce.

ITIF proposes three categories of investment to create short-term jobs, develop supporting industries and improve American productivity.

The first such recommendation calls for a $10 billion investment in U.S. broadband connectivity. ITIF contends that the federal government should invest in providing access to high-speed internet in underserved regions, increasing speeds in served areas and spurring increased adoption of broadband in U.S. households. Part of this investment could take the form of tax credits and grants for the build-out of wired or wireless networks in underserved regions. ITIF also recommends new incremental tax credits for networks that support faster speeds. Adoption rates could be increased by making household computer and broadband purchases eligible for the Federal Communication Commission's Lifeline and Linkup programs. The group estimates that a $10 billion broadband stimulus package of this type could create almost half-a-million new jobs.

ITIF also recommends a $10 billion investment in a health information technology stimulus package that would help build a national interoperable health IT network to improve the quality of U.S. healthcare and reduce costs. The report estimates that such an investment could create more than 212,000 new jobs. This investment would provide financial support for the development of an electronic health record (EHR) network for all inpatient and ambulatory care providers. Also, a tax credit would be available to help support the transition to EHRs. Other grants and loans would be available to support transition efforts at nonprofit and public health facilities.

A third stimulus investment would support modernizing the nation's power grid to increase reliability and improve the adoption of new production and distribution solutions. ITIF posits job creation estimates for both a $50 billion and $100 billion stimulus over the next five years. The $50 billion option would create nearly 240,000 jobs within that period. Specific investments include residential smart meters, regional demonstration projects, and reimbursements for utilities.

The full ITIF report breaks down the job creation estimates for each of these proposals by total number and number of jobs within small businesses.

Access The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America at: http://www.itif.org/files/roadtorecovery.pdf.

More info on the House Appropriations Committee version of the America Recovery and Reinvestment Act is available at: http://appropriations.house.gov/.

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Tech Talkin' Govs, Part II
The second installment of the Tech Talkin’ Govs series includes highlights from state of the state, budget and inaugural addresses delivered by the governors of Arizona, Colorado, Georgia, Idaho, Kansas, Mississippi, New Hampshire, Oregon and Vermont. 

Arizona 

Gov. Janet Napolitano, State of the State Address, Jan. 9, 2009

“Arizona must stay on the path toward a greener future.…We also must work to limit our greenhouse gas emissions through the Western Climate Initiative, and move forward in building a strong renewable energy sector, particularly with respect to solar energy. The entire nation is going in this direction – and Arizona has much to gain by being a leader.”

Colorado 

Gov. Bill Ritter, State of the State Address, Jan. 8, 2009 

“By reviving the Colorado Credit Reserve Program, we can give thousands of small businesses vital access to credit and capital. ….

“… By enacting House Bill 1001, the job-creation tax credit I announced last month, we can level the playing field with other states when it comes to attracting new companies and new jobs. ...

“… I’m equally excited about … the Renewable Energy Financing Act, which will facilitate financing for residential and business clean-energy projects. “While investments in the New Energy Economy and transportation are essential, the best economic strategy is an education strategy. … So this session we will bring you a statewide concurrent-enrollment plan that will give high school students an opportunity to earn college credits while finishing high school. …

“… We are proposing a comprehensive, statewide approach that will guide high school students who are taking college courses. This is an efficient student-centered concept that will give kids a reason to stay in school and accelerate their progress toward degrees and workforce-readiness.”

Georgia

Gov. Sonny Perdue, State of the State Address, Jan. 14, 2009

“We are also proposing differentiated pay for math and science teachers. … We must introduce a market dynamic into the salary schedule to address these critical needs areas."

Idaho

Gov. Butch Otter, State of the State/State Budget Message, Jan. 12, 2009

“My plan for growing Idaho’s economy and creating good jobs for years to come [Project 60] already is under way – and showing results. … One of its goals is nurturing a new generation of entrepreneurial giants. …

“The initiative is driving our retooled Innovation Council, which is going to take the lead in technology transfer and commercialization. The Innovation Council’s marching orders are to provide a practical and business-oriented approach to turning ideas into jobs and economic activity. That means working more closely with the Idaho National Laboratory as it enters its seventh successful decade in Idaho. It means coordinating the efforts of our colleges and universities and other research partners – public and private – to quickly and efficiently determine what works and how it can be applied in the marketplace.”

Kansas

Gov. Kathleen Sebelius, State of the State Address, Jan. 12, 2009

“I ask the Kansas Legislature to work with me on a green energy proposal which has already been endorsed by two of our major utilities and includes net metering, new building codes, and statutory goals for renewable energy in Kansas. This legislation will send a clear signal to private investors and renewable manufacturers that Kansas is embracing a clean energy future, and will help to spur investment and innovation.

“Finally, I am pleased that Len Rodman, CEO of Black and Veatch, a Kansas company that provides strategic advice throughout the world on green energy initiatives, has agreed to Chair my newly created GreenWorks Advisory Council, to expand our opportunities to add more renewable energy jobs in Kansas.”

Mississippi

Gov. Haley Barbour, State of the State Address, Jan. 13, 2009

“Education is the number one economic development and quality of life issue in our state and every state. When I say education, I include not only K-12 but also workforce development at our community colleges, commercially viable research at our universities. …

“We’ve got to help more of our workers upgrade their skills. We owe it to them, and it is key to our economic growth.

"Now, here’s the problem: More than $20 million a year of our job training budget comes from a diversion of one-third of the unemployment insurance tax paid by Mississippi …. But, if the balance in our unemployment insurance trust fund falls below a certain level, we will lose that diversion … I urge you to replace these funds with state funds if it becomes necessary.

“As you prepare the FY 2010 budget I ask you to fund higher education at levels that allow it to play the critical roles it has in generating economic growth. This is essential to job creation, especially during a challenging economy like this recession.”

New Hampshire

Gov. Jim Lynch, Inaugural Address, Jan. 8, 2009

“ (T)oday I am proposing a new Green Jobs Initiative, funded from part of the proceeds of the Regional Greenhouse Gas Initiative and the Renewable Energy Fund. …

 “… (W)e should provide training so our citizens can learn the new skills needed for this new and growing industry.”

Oregon

Gov. Ted Kulongoski, State of the State Address, Jan. 12, 2009

“We’re also going to have to innovate, educate, and invest. That means more research and development into energy efficiency and conservation. Creating a larger science infrastructure that will attract and train scientists and engineers.”

Vermont

Gov. Jim Douglas, Inaugural Address, Jan. 8, 2009

“(F)ew things are more important to establishing a strong and growing economy than the education and training of our workforce. That’s why, despite budget challenges, I propose a 20% increase in early and higher education as a first step to address spending disparities and prepare Vermonters, young and old, for future success. ...

“… As part of last year’s Economic Growth Initiative, we provided a higher level VEGI incentive to green industries. By expanding this successful program to technology-based employers, such as software developers, we can encourage growth in this fast moving sector of our economy.”

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Governor’s Budget Eliminates Indiana’s $20M Life Sciences Fund
During his presentation of the fiscal year 2009-11 budget last week, Gov. Mitch Daniels said the state’s weakening economy will require the suspension of funds for some initiatives supported by his administration. For the TBED community, the governor’s proposal delays funds for research aimed at building the state’s life sciences portfolio, including elimination of a $20 million Life Sciences Fund at the Indiana School of Medicine and Purdue University and $3 million for the High Growth Business Incentive Fund to encourage high-wage companies to locate or expand in the state.

Less than two years ago, Indiana’s General Assembly passed a biennial budget that invested more than $100 million in TBED-related programs, capturing national attention for its commitment to programs grounded in science and technology (see the May 7, 2007 issue of the Digest). Today, Indiana’s fiscal condition appears quite robust compared with most other states – officials project a $1.3 billion surplus for the current fiscal year. However, the state’s budget analysts say anticipated revenue fell more than $33 million below December’s forecast and expect sales and individual income tax to continue declining, reports the Indianapolis Star.

Funding for the 21st Century Research and Technology Fund, a legislatively charged fund that supports technology development and commercialization, is increased by $4.3 million over the biennium for a total of $34.9 million each fiscal year. The governor’s proposed budget provides $13.4 million for the Indiana Economic Development Corporation in the next biennium – slightly down from the FY07-09 approved budget. Additionally, the governor’s budget recommends $3.8 million over the next two years – down from $4.2 million approved last biennium — for the Technology Development Grant Program, which supports development of Indiana’s high technology parks. View Gov. Daniels FY 2009-11 executive budget at: http://www.in.gov/sba/files/as_2009_whole.pdf.

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A Matter of Scale: Florida Governor Outlines “Small” Business Stimulus Package
Facing a $2.3 billion deficit in FY 2010, Florida Gov. Charlie Crist has proposed a new financing program to promote small business growth through the current financial crisis. Calling it an Economic Stimulus Plan, the governors.’s proposal will target small Florida-based companies with high-growth potential through direct loans and other support services. By focusing on small businesses, the state can target companies with good prospects for growth with a modest investment of taxpayer dollars, according to the press release accompanying the announcement. The price tag? Only $10 million.

An $8.5 million pilot program would provide loans of up to $250,000 per business to cover the cost of capital purchases, employee training and salaries for new jobs. Only Florida-based small businesses with between 10 and 99 employees would be eligible for the loans. Thirty-four of Florida’s 67,400* active companies in that size range would receive loans if the modest loan maximum were reached for each project.

The loans would carry a two percent interest rate over a period of five years. Gov. Crist believes that the program will help address the lack of capital available to small businesses as bank rein in their willingness to extend credit.

The remaining $1.5 million will be used to provide technical assistance to smaller firms.

The governor’s plan is an outgrowth of work done last year by the Florida Office of Tourism, Trade and Economic Development’ s Project Green Jeans. That initiative worked with regional economic development organizations to craft a unifying “economic gardening” strategy for the state, alongside the governor’s small business taskforce. Despite the governor’s announcement, other state-funded programs to help companies are being cut. Last week, legislators agreed to reduce funding for the state’s Quick Action Closing Fund by $24 million, according to the Miami Herald. Many other programs, including a variety of business incentives, also face cuts as the state attempts to address the looming deficit.

For more information on the governor’s plan, visit: http://www.flgov.com/otted_econstimplan.

Note: * Active firms in 2005 (latest year available) from Census Bureau’s Business Dynamics Statistics

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SSTI Brought 1,400+ Funding Opportunities to Subscribers in 2008
Since the SSTI Funding Supplement became a members-only publication in 2006 more than 4,250 funding opportunities have been distributed. In 2008 only, there were more than 1,400 different opportunities for your client companies and university research faculties to secure funding -- if you were an SSTI member. Competition for federal research funding is growing, particularly as program budgets have been relatively flat or declining in recent federal budget cycles. But your tech companies and faculty researchers are at the greatest disadvantage if they aren't even aware of all the opportunities available to them! Don't remain in the dark for 2009. Sign up your organization as one of SSTI's members today to begin your subscription to the Funding Supplement.

A few of the more than 100 opportunities provided in December include:

  • The Department of Energy released its 2009 Nuclear Energy University R&D Program solicitation. Eligibility is restricted to U.S. institutions of higher education. Research must fall under the following program areas: 1) Advanced Fuel Cycle Initiative; 2) Generation IV Nuclear Energy Systems Initiative (Next Generation Nuclear Plant); 3) Nuclear Hydrogen Initiative; 4) Light Water Reactor Sustainability program; and 5) Plutonium 238 (Pu238) Development program. Investigator-initiated, mission-specific applied R&D and basic nuclear science and engineering research and development pre-applications are also requested. Awards will range between $13 million and $50 million. Pre-applications are due Jan. 19. More information regarding 08-56 is available at: http://www.caesenergy.org
  • The James S. McDonnell Foundation invites proposals for its 21st Century Science Initiative, which supports research in three areas: Studying Complex Systems, particularly projects attempting to apply complex systems approaches to meaningful problems; Brain Cancer Research, particularly novel research that will generate new knowledge leading to increased rates of survival and improve functional recovery for individuals with brain cancer; and Understanding Human Cognition, a new research thrust for the foundation. Three grant mechanisms are established. Proposals for research awards, which may provide up to $450,000 per year for up to 6 years, are due by Mar. 17. Proposals for collaborative activity awards are accepted on a rolling basis. Scholar award information is not yet available for 2009. For more information, see: http://www.jsmf.org/apply/index.htm
  • The National Institute of Justice invites research proposals into electronic crime and digital evidence recovery. The institute will provide funding to research, develop, and demonstrate emerging electronic investigative/forensic and digital evidence recovery technology solutions for law enforcement agencies. Specific areas of interest include cell phone forensic tools; digital evidence forensic examination tools; and computer crime investigative tools. Eligibility is limited domestically; registration is required prior to application. Proposals are due Jan 26. More information is available at: http://www.ncjrs.gov/pdffiles1/nij/sl000858.pdf .

If you aren't a subscriber, your client companies, academic researchers, and state and local TBED efforts are at a significant disadvantage. Finding alternate sources of cash to support the research and commercialization goals of your client companies and academic researchers is a valuable service provided by the most successful state and regional TBED programs – those programs subscribing to the Funding Supplement.

Membership has additional benefits as well, including discounts on SSTI events. More information is available at http://www.ssti.org/benefits.htm.

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SSTI Job Corner
Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.

The National Renewable Energy Laboratory, (NREL) the nation's primary laboratory for renewable energy and energy efficiency research and development, is looking for an NREL Licensing Executive. Primary responsibilities include evaluating early stage energy inventions for commercial potential, seeking promising markets for NREL technologies, directing the NREL commercialization strategy. The Licensing Executive will take charge of all licensing for NREL. Requirements include a master's degree in science and/or engineering, or equivalent relevant education/experience and at least five years of relevant experience. This position posted by the Vortechs Group.

Pennsylvania State University, College of Engineering, invites applications for the Director of the Engineering Entrepreneurship Minor, a highly visible position within the School of Engineering Design, Technology, and Professional Programs at University Park. The Director’s responsibilities will include teaching, advising, research, and providing leadership on key goals including expansion of the program to the graduate level. Candidates should have significant entrepreneurship experience and an advanced degree in a relevant field.