In the September 2, 2009 Issue:

• Mandatory Cost Sharing May Return for Some NSF Programs
• Training for Green Jobs Focus of New TBED Initiatives in California and Michigan
• Almost Sold Out - Only One Exhibiting Opportunity Remains at SSTI’s Annual Conference
• Montana Offers $2.5 Million to Enhance Bio-Medical Research Collaborations
• Aggressive R&D Tax Credits by Other Countries Put the U.S. Near Bottom of the Pack
• Colorado Jobs Plan Engages Employers to Improve Workforce Quality
• TBED People and Organizations
• SSTI Conference Brochure Available in PDF Format

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Mandatory Cost Sharing May Return for Some NSF Programs
Offering some good news for universities and companies looking for funding, the National Science Board (NSB) has recommended the elimination of any evidence of voluntary cost share from most grant proposals to the National Science Foundation (NSF). However, the board recommended mandatory cost matching should be reinstated in a handful of initiatives, including its Engineering Research Centers (ERC) program, its Industry/University Cooperative Research Centers (I/UCRC) program, and its EPSCoR program.

The return of mandatory matching funds may present a mixed bag for state and university TBED policies in an era of shrinking financial resources. States that have programs in place to match federal research grants are well positioned strategically to support those opportunities that may provide the fit with the state’s tech-based economic development goals. States without matching-grant mechanisms already established may need to expand their portfolio of programs if growing the research enterprise is one of their TBED priorities.

These recommendations and several others are included in the new NSB report, Investing in the Future: NSF Cost Sharing Policies for a Robust Federal Research Enterprise, released last month. Passed by Congress in 2007, the America COMPETES Act contained a charge to the NSB to examine the consequences of its 2004 decision to eliminate mandatory cost sharing requirements across all NSF programs.

There were several reasons for the removal of mandatory cost sharing, the report explains. Mandatory cost sharing was seen as a potential barrier that made institutions with fewer resources ineligible to apply for certain programs. In terms of merit review and the proposal process, it also was desired to eliminate any influence mandatory cost sharing had on the selection of NSF awardees. Additionally, removing mandatory cost sharing allowed for uniformity across NSF programs and reduced the need for institutions to undertake additional administrative functions such as tracking and reporting.

However, some NSF initiatives were reported to be negatively impacted by this change, especially those based on partnerships requiring both industry and university participation and those requiring continual funding for long-range and large-scale research and infrastructure projects.

While the NSB is recommending instances in which mandatory cost sharing should be revived, the board also continued to embrace issues of equity by encouraging the removal of all voluntary cost sharing, especially as institutions are able to insert their ability to pay additional funds if chosen.

While most of the report focuses on cost sharing issues, it also briefly examines the cap placed on institutions seeking to claim indirect costs. Since the 26 percent reimbursement limit was set in 1991, compliance and administrative costs have changed, as have various regulations and safety issues. The NSB recommended further research be performed to determine if the cap should be adjusted.

Investing in the Future: NSF Cost Sharing Policies for a Robust Federal Research Enterprise is available at: http://www.nsf.gov/pubs/2009/nsb0920/index.jsp.

Future of University TBED Involvement A Key Theme at SSTI’s Annual Conference
The role of universities in innovation and regional innovation is going through one of its most dramatic periods of change. As a result, SSTI is dedicating three sessions at our upcoming conference to explore the evolution of several fundamental aspects of university-based TBED: universities as drivers for growth, university leadership and engagement in regional economic development, and moving beyond traditional technology transfer and university commercialization efforts. In addition, we’ll hear examples of award-winning approaches to TBED involving universities and colleges. Learn more about the upcoming SSTI national conference at http://www.ssticonference.org/.

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Training for Green Jobs Focus of New TBED Initiatives in California and Michigan
Much emphasis has been placed on the importance of green jobs in the next economy as the nation continues to shed jobs in traditional industries. Creating these specialized jobs is a major priority for states across the nation that will compete for renewable energy industries. Two recent announcements in California and Michigan illustrate efforts underway to recruit and prepare a workforce capable of meeting critical industry needs.

California
Leveraging $20 million in American Recovery and Reinvestment Act funding with additional public and private funds, California is investing $75 million to establish the Clean Energy Workforce Training Program. The goal is to train more than 20,000 new or re-skilled clean energy workers specifically targeting unemployed, underemployed, and new workers, according to the governor’s office. Training through community colleges, workforce investment boards, and partnership academies in high schools will prepare workers for jobs as solar installers, sustainable landscapers and water systems designers, and green building designers.

Gov. Arnold Schwarzenegger said the program will help to develop a highly-trained workforce, enabling the state to expand its clean energy industries and drive a strong, green economy in the state.

Remaining funding will come from the California Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program, the Public Interest Energy Research Program, the California Employment Development Department Workforce Investment Act funds, and public-private partnership matching funds. The first round of solicitations for proposals was released last month and proposals are due Sept. 16. More information is available at: http://www.energy.ca.gov/greenjobs/.

Michigan
A group of 10 Michigan community colleges has joined forces to produce the next generation of skilled workers for the local wind turbine industry with the goal of meeting the needs of Michigan companies and attracting out-of-state renewable energy industries.

The group, known as the West Michigan Community College Collaboration, wants to establish a $16 million wind energy training and testing center, which would likely be located in or around northern Allegan County, according to an editorial by the Grand Rapids Press Editorial Board. A study by Michigan State University’s Land Policy Institute concluded that Allegan County, which has a unique proximity to urban areas, eventually could support up to 300 turbines as wind farm demand grows. The Traverse City and Thumb regions also are flagged as top on-shore wind-capturing locations, the editorial board notes.

Although each of the institutions has its own alternative energy instructional courses, a wind turbine site is needed for hands-on class work and community education, said Julie Parks, director of workforce development for Grand Rapids Community College in a Muskegon Chronicle article. The center would train skilled workers to service the turbines and wind farms. To launch the effort, the group is currently seeking state and federal grants, according to the article.

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Almost Sold Out - Only One Exhibiting Opportunity Remains at SSTI’s Annual Conference
SSTI believes conference sponsors deserve to stand out to attendees so exhibits are placed prominently in a highly-visible location. Only our exhibit and host partners are provided with the opportunity to exhibit.

Sponsorship increases your credibility and relevance. Today’s marketplace is about belonging and staying connected. No other event brings together the nation’s top players in the TBED community. As an SSTI Conference Sponsor, you have the chance to showcase your organization with the decision makers responsible for crafting and implementing local and state-level policies and programs that directly contribute to the nation’s competitiveness.

Last year’s conference included more than 350 representatives from 48 states and four countries.

As a conference sponsor you gain:

• Access. You have the opportunity to interact and engage with attendees during the conference. SSTI’s conference provides in-person networking that can’t be beat.
• Exposure. You become a part of the TBED community’s most powerful network.

Please contact Noelle Sheets to become an Exhibiting Sponsor or request a complete listing of the current sponsorship opportunities.

For more information regarding SSTI's 13th Annual Conference being held in Overland Park, KS on Oct. 21-23 visit http://www.ssticonference.org/.

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Montana Offers $2.5 Million to Enhance Bio-Medical Research Collaborations
The Montana Department of Commerce has announced that it will provide $2.5 million in grants to support bio-medical research. Montana-based, private nonprofit research institutions are eligible to apply for the funding, which may be used to expand, renovate and purchase equipment for biomedical research. The grants also may be used to expand infrastructure that will enhance scientific collaborations within the Montana University System. The program is part of a longer-term effort in Montana to improve its research infrastructure and promote the state as a recognized center for bio-medical research.

Funding for the grant program was set aside by the Montana legislature earlier this year through the state’s biennial appropriations. Similar awards have been offered in the past through the Department of Commerce, but the $2.5 million now available is a significant increase for the program. In 2007, the entire $2 million that was available was awarded to the McLaughlin Research Institute to expand its facility and research team, and to provide new educational opportunities for high school and college students.

The program requires applicants to obtain matching funds from other sources. Institutions must demonstrate that the funding will improve the health of Montana citizens or livestock, provide new educational or collaboration opportunities, or provide a long-term economic benefit to the state. Eligible researchers must apply by Oct. 16.

Read more about the program at: http://commerce.mt.gov/BioMedResearch.asp.

The state funding will complement the $17.5 million award from the National Institutes of Health (NIH) Institutional Development Award Program given to Montana INBRE, a statewide network of bio-medical researchers and institutions. The five-year award will help sustain the network, which was initially funded by a $17 million NIH award in 2004. INBRE used its first award to fund ten projects around the state intended to provide additional equipment and facilities for research and to create new opportunities for bio-medical students. INBRE officials say that the newest NIH award will allow the group to fund 27 additional projects over the next five years.

For more information about Montana INBRE, visit: http://www.brin.montana.edu/.

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Aggressive R&D Tax Credits by Other Countries Put the U.S. Near Bottom of the Pack
In 2008, the U.S. ranked 17th in R&D tax generosity out of the 21 OECD countries that offered some form of R&D tax credits to businesses, according to a recent brief put out by the Information Technology & Innovation Foundation (ITIF). In U.S. Continues to Tread Water in Global R&D Tax Incentives, authors Rob Atkinson and Scott Andes state even though the U.S. had the most generous R&D tax incentives in the world throughout the 1980s, its relative ranking has slid over the decades as other countries have strategically used tax policy as a tool to spur private sector R&D.

Their suggestion for improving the U.S. competitiveness regarding this topic: both expand and make permanent the existing R&D federal tax credit.

Taking the U.S. Alternative Simplified Credit (ASC) as an example, which provides a 14 percent credit on R&D expenditures exceeding 50 percent of base expenditures, the U.S. would need to increase the ASC to 20 percent to improve its position to 10th place among OECD countries. If the U.S. wanted to regain its prominence among OECD countries by being first in R&D tax generosity, the authors calculated the ASC should be increased to 47 percent.

Atkinson and Andes argue not only would this policy adjustment make R&D more advantageous for U.S. companies to engage in R&D at home, but it would make the U.S. more attractive to international R&D. They cite a review of academic studies that find for every tax dollar relinquished through R&D tax credits, between one and three dollars in private sector R&D investment is made.

The race for countries to incorporate R&D tax credits into their policy strategies has continued this year. The article reports Australia increased its credit in 2009 to refund 45 percent of all R&D expenditures, not just additional expenditures. Additionally, France has enacted a 50 percent credit for companies applying for their R&D tax credit for the first time, and now has the policy of a 60 percent tax credit on all R&D expenditures made in cooperation with a federal laboratory.

Changes to the federal R&D tax credit might have some impact on state revenues as most states offer their own R&D tax credits that are linked closely to the federal incentive.

U.S. Continues to Tread Water in Global R&D Tax Incentives in available at http://www.itif.org/index.php?id=275.

Hear Rob Atkinson at SSTI’s Annual Conference, Oct. 22-23.
ITIF president, Rob Atkinson, is one of the brightest and most entertaining visionaries for the future of national and regional innovation policy. We are extremely fortunate to have Dr. Atkinson joining SSTI president and CEO, Dan Berglund, for the opening plenary session of SSTI’s 13^th Annual Conference in October. In TBED for the Next Decade: Charting the Future for America’s Competitiveness, the two will lead an interactive conversation examining the realities of the impact of the economy’s downturn, and the solutions for stronger states and regions to emerge by seizing the moment. Learn more about the upcoming SSTI national conference at http://www.ssticonference.org/.

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Colorado Jobs Plan Engages Employers to Improve Workforce Quality
Outlining his Colorado Promise three years ago as a newly-elected governor, Gov. Bill Ritter envisioned an economy that supports high-wage jobs and offers an environment for businesses to expand and thrive. Educational programs would be synched with industry needs to produce a skilled workforce, workers would be trained in the high-demand fields relevant to each of the state’s diverse regions, and enough businesses would be operating to employ them.

Two years later, Gov. Ritter convened the Jobs Cabinet, bringing together the state’s economic development, education, and workforce communities to make recommendations for aligning jobs with industry needs. The cabinet presented to the governor last month a report and recommendations for achieving this goal in the report “Economic Competitiveness through Collaboration, Talent Development, and Innovation.”

Operating on the notion that in today’s global economy, competitiveness is less about providing infrastructure or tax incentives and more about providing innovation and talent, the cabinet makes several recommendations focused around five core areas: collaboration, engagement, marketing, information, and leadership. Some of the recommendations include:

• Conduct ongoing evaluation of local business training needs;
• Develop and promote credentials and certifications that are meaningful to employers;
• Prioritize funding for education programs in middle-skill workers. These jobs typically require some level of post-secondary training or certification;
• Seek grants and leverage resources to raise awareness of programs;
• Provide a web-based pathway to information about workforce assets and resources to be hosted on the Colorado Department of Labor and Employment web portal;
• Develop data sharing and updating processes for state-sponsored information on the website;
• Develop metrics and a strategic dashboard to measure success; and,
• Merge long-term Jobs Cabinet duties in the Colorado Workforce Development Council.

To continue the efforts set forth by the cabinet and ensure progress is made, the governor’s office should continue to actively guide and support this effort with special emphasis on developing a replicable model for local collaboration and a beta website, according to the report. The report also notes that both of these efforts would use existing resources in order to succeed in the current economic environment.

While funding is not specifically addressed in the report, several of the recommendations focus on aligning current programs to maximize limited resources. Colorado is one of several states to make recent cuts in their current fiscal year budget. Last month, Gov. Ritter announced a $320 million budget-balancing plan that went into effect Sept. 1.

The cabinet held eight listening sessions across the state during which time they met with local educators, workforce, government, economic development and business leaders.  Multiple meetings with regional coordinators also were convened to learn about the needs of local communities, industries and workforce.

The full report is available from the governor’s office at: http://www.colorado.gov/governor.

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TBED People and Organizations

The newly-created Clean Energy Leadership Council, convened by the Washington governor’s office and a state-wide public-private clean energy alliance, held its first meeting. The council will deliver a clean energy strategy and recommendations by December 1, 2010.

Vicki Gaddy has been appointed director of workforce development for BioNJ.

Kentucky Gov. Steve Beshear shuffled two top positions in his administration. Larry Hayes will be secretary of the state Economic Development Cabinet and budget director Mary Lassiter will replace Hayes as Executive Cabinet secretary. Hayes has been interim Economic Development Cabinet secretary since last September. Lassiter will keep her position as budget director.

Cecil Burge is retiring as the University of Southern Mississippi , vice president for research and economic development after leading the university's research enterprise for the past five-and-one-half years. His retirement is effective Dec. 31. A national search for a successor will begin later this fall.

The Burnham Institute for Medical Research and the University of California, Santa Barbara have named biomedical researcher Jamey Marth director of a new joint Center for Nanomedicine that will be established at UCSB.

Bryan Renk has accepted the position of Executive Director with BioForward, Wisconsin’s Biotechnology Association, effective Oct. 1.

The Kansas Bioscience Authority has hired David Vranicar as the first president of its Heartland BioVentures program.

Nanoscientist Paul Weiss has been named director of the California NanoSystems Institute at UCLA.

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