In This Week's Issue
SSTI News and Analysis
Tech Talkin' Govs, Part III
The third installment of SSTI’s Tech Talkin’
Govs’ series includes excerpts from speeches delivered in
Delaware, Maine, Missouri, New Hampshire, Ohio, Rhode
Island, South Dakota, Utah and Wisconsin. The first and second installments are
available in the Jan 13 Digest and
Jan. 20
Digest, respectively.
Delaware
Gov. Jack Markell, State
of the State Address, Jan. 21, 2010
“We have a proud legacy of technology innovation that we will
build on. Together, we will create a Delaware where
entrepreneurs and inventors imagine the new products and services
that make life better, more productive and more enjoyable for
millions, and workers make good livings delivering these wonders to
the world.
“That is why I am supporting in this year’s bond
bill plans to provide a center for high-tech laboratories, health
sciences, alternative energy research and development, and other
emerging industries at the old Chrysler site.”
Maine
Gov. John Baldacci,
State of the State Address, Jan. 21, 2010
“… In the coming weeks, I will submit legislation to
continue our aggressive pursuit of offshore wind energy. …We
will set a target of producing 5 Gigawatts of electricity from
offshore turbines by 2030. …
“…I want to introduce my proposed new structure for
the Department of Economic and Community Development. Our economic
development efforts are going to be more locally and regionally
based, growing from the ground up and not from Augusta down.
…
“… The challenges are greater, and they require a
focus on science, technology, engineering and math – or STEM
for short. … Later this month, we’ll hold our STEM
Summit, where Maine’s leading high-tech industries and
thinkers will come together. …
“… But come June, Maine voters will have a chance to
take control and make a real and lasting difference in our economy.
… I’m talking about an investment package and tax cut
that will appear on the ballot. Maine has an opportunity to invest
in economic development and innovation, green energy, clean
drinking water, higher education and the redevelopment of Brunswick
Naval Air Station. About $69 million dollars in bonds will go to
voters in June.”
Missouri
Gov. Jay Nixon,
State of the State Address, Jan.20, 2010
“I'll continue to push hard to recruit new businesses to
Missouri. … That brings me to the second part of my jobs
plan, the Missouri Science and Innovation Reinvestment Act: MOSIRA.
MOSIRA will reinvest a small part of the taxes paid by existing
bio-tech firms in Missouri, to recruit new ones. It will create a
stable pool of funds to increase access to capital. And it will
help turn scientific breakthroughs into commercial successes.
“We want our biotech companies to grow because that
creates more jobs. But just as important are the corollaries of
that growth: a culture of excellence and collaboration, a forum
where brilliant minds find kindred spirits, a hotbed of ideas that
spark innovation, and a nexus of risk and reward, where start-ups
thrive. …
"… Training for Tomorrow is a new initiative to train
more Missourians for jobs in growing fields, like lab techs,
nursing aides, surveyors and mechanics. It gives community colleges
the flexibility to enlarge training programs where there's high
demand, and ensures there are enough workers to meet that
demand.
“In addition, I've proposed a 20 percent increase in funding for
customized training programs tailored to the needs of specific
high-tech industries. By matching industry's needs with training
programs, more Missourians will be able to find work quickly.
”
New Hampshire
Gov. John Lynch, State
of the State Address, Jan. 21, 2010
“Clean energy holds great potential for bringing new jobs
to our state. … That is why today, in partnership with the
University of New Hampshire, I am announcing the creation of the
Green Launching Pad to help clean technology companies grow in New
Hampshire.
“With $750,000 in stimulus funds, the University of New
Hampshire will put its vast expertise and resources to work helping
promising and innovative companies succeed. These companies will be
connected to business, science and engineering faculty to develop
finance and marketing plans, and be connected with angel investors
and business mentors. They will get intensive support to launch or
expand their companies and to create new jobs.”
Ohio
Gov. Ted Strickland, State of
the State Address, Jan. 26, 2010
“I am pleased to announce today that Ohio is creating the
Energy Gateway Fund. We will make a unique and lasting
investment in fuel cells, solar, wind, energy storage and the like
with $30 million in federal job stimulus funds and $10 million from
our state job stimulus program.
“This $40 million commitment will offer access to capital
for new and expanding advanced energy companies. And we will at
least double the impact of our efforts by requiring those seeking
state funds to, at a minimum, match our investment dollar for
dollar with new private funds. Revenue generated from the fund's
investments will keep powering Ohio's economy because it will be
reinvested in additional energy companies. …
“We should give [wind and solar] companies every reason to
choose Ohio. That's why I am asking the legislature to erase Ohio's
tangible personal property tax on generation for wind and solar
facilities that break ground this year, create Ohio jobs, and begin
producing energy by 2012.
“… But when jobs disappear we owe Ohioans every
opportunity to prepare themselves for new employment. That's why
today I am announcing the creation of a Manufacturing Certificate.
Those who have worked in manufacturing will be able to obtain a
credential they can take to future employers that documents their
full range of job skills and experience. And, certificate holders
will be able to earn credit toward additional job training and
education. …
“… I would ask the legislature to consider
implementing our co-op internship program to give college students
an opportunity to get invaluable experience in their field and
encourage our young people to stay and thrive in Ohio. …
“My administration and Attorney General Rich Cordray are
overseeing talks toward reaching a standing agreement between the
entire University System of Ohio and consumer product powerhouse
P&G. With the contract in place, we will speed up and
strengthen research collaborations between our university faculty
and the company. P&G will get the benefit of our innovative
thinkers. Our universities will get the benefit of unprecedented
opportunities to collaborate with P&G on new products. And
Ohioans will get the benefit of new economic development.
“And we can use this agreement as a model for other
companies and industries that want to work with Ohio's innovative
institutions. Indeed, today I am calling on the Ohio Auto Industry
Support Council to build on this historic agreement and create a
network that will link Ohio's manufacturers to great research going
on in Ohio….
“… With the Third Frontier, Ohio made a commitment
to securing our place at the forefront of the research economy. And
that commitment has paid tremendous dividends. … This ten
year investment in revitalizing Ohio…is set to expire. I want
to thank the legislature for working toward the renewal of this
vital program and I am hopeful that we will meet next week's
deadline for placing the Third Frontier on the ballot for voters'
consideration in May.”
Rhode Island
Gov. Donald Carcieri, State of
the State Address, Jan. 26, 2010
“One of the more visible bridges we have been building to
the 21st century economy is the new I—Way…. The opening
of this site will accelerate the development of a new life-sciences
economy in R.I. It will link together and harness the research
capacity of our higher education institutions, with the
complementary research and clinical capacity at our major medical
centers.”
South Dakota
Gov. Mike Rounds,
State of the State Address, Jan. 13, 2010
“In total, the National Science Foundation already has
invested more than $70 million in design and planning for the DUSEL
and the initial experiments at the Sanford Laboratory. … In
2010, the LUX, or Large Underground Xenon, experiment will be
installed in the Davis Cavern at the 4,850-foot level. The Majorana
experiment also will be installed. We will begin dewatering the
deepest levels of Homestake, and making improvements throughout the
lab.
“Most important, the DUSEL Collaboration—a
nationwide team of scientists led by the University of California
at Berkeley and the South Dakota School of Mines &
Technology—will finish a document called the Preliminary
Design Report, which will be submitted to the National Science
Foundation in December. This document will be an extremely detailed
plan for the new national research facility here in South Dakota.
…
“… We are on track to become the home of the first
new major national research facility since the FermiLab was created
in 1967.”
Utah
Gov. Gary Herbert,
State of the State Address, Jan. 26, 2010
“Tonight, I am announcing what I hope will be one of the
most impactful economic initiatives ever undertaken in our state.
It is one that we in Utah are uniquely positioned to accomplish -
it is the Utah Energy Initiative.
“I am assembling the best minds in the state and charging
them with creating a 10-year strategic energy plan whose purpose is
threefold: to ensure Utah's continued access to our own clean and
low-cost energy resources; to be on the cutting edge of new energy
technologies; and to foster economic opportunities and create more
jobs.”
Wisconsin
Gov. Jim Doyle, State of the
State Address, Jan. 26, 2010
“Let's pass the Wisconsin CORE Jobs Act… This
proposal builds on my Accelerate Wisconsin plan by providing
millions more in tax credits for angel and venture capital
investments. It also strengthens successful programs for
manufacturing, research and development, and worker training.
…
“… Let's quickly pass the Clean Energy Jobs Act to
create new jobs in Wisconsin. This bill will strengthen our
renewable portfolio standards to generate 25 percent of our energy
from renewable sources by 2025. And we'll reduce our energy
consumption by 2 percent by 2015 by improving energy efficiency in
our businesses and homes. …
“… Tonight, I am announcing the establishment of the
Wisconsin Green to Gold Fund. By streamlining existing state
resources, we are creating a new $100 million revolving loan fund
for manufacturers to reduce their energy costs. We will also help
small and mid-sized manufacturers move into the clean energy
economy. We will invest $1.75 million through the Wisconsin
Manufacturing Extension Partnership … to help these smaller
manufacturers use sustainable practices to save money and gain a
competitive edge.”
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$101M NYSTAR Increase Among Gov’s Proposals
The New York State Foundation for Science, Technology and
Innovation (NYSTAR), the state’s lead tech-based economic
development agency, would see a significant boost in funding under
a proposal unveiled by Gov. David Paterson to distribute $100
million in new Innovation Economy Matching Grants. Announced during
his State
of the State Address, the grants would be divided among a new
Technology Seed Fund ($25 million), a Small Business Revolving Loan
Fund ($25 million) and funding for other economic development
initiatives ($45 million).
NYSTAR is slated to receive $142 million in FY11 general fund
appropriations, an increase of $101.3 million. Total funding for
the High Technology Program is $135.7 million, which includes $100
million for the matching grants and $6.9 million for the
state’s six centers of excellence. Additional NYSTAR
appropriations include $1.9 million for the Research Development
Program (down $4 million), and $1.5 million for state matching
funds for the manufacturing extension partnership program, the same
as last year.
Two of New York’s three economic development programs
would be merged to form a new agency for stimulating job growth
under another proposal outlined by Gov. Paterson. The new Job
Development Corporation would replace the Department of Economic
Development and the Empire State Development Corporation and focus
on growing jobs by enhancing industrial competitiveness,
revitalizing downtown areas, advancing high technology and
promoting tourism, according to a press release. NYSTAR would
continue its efforts as a stand-alone entity.
The governor’s plan to create new economy jobs and attract
capital investment also includes the creation of a new Excelsior
Jobs Program to replace the current Empire Zone Program. The amount
of tax credits available for the new program would be capped at
$250 million, or 55 percent less than what is currently available
under the Empire Zone Program, reports the Buffalo News. The
new program also would narrow the focus of the tax incentives and
mandate that jobs created must be retained for a period of time
before benefits are handed out, the article states.
Gov. Paterson also proposed a major overhaul to the
state’s system of public higher education. The Public Higher
Education Empowerment and Innovation Act would remove from the
state budgeting process tuition-rate setting for State University
of New York and City University of New York. This would allow the
institutions to receive and disburse revenues from tuition and
self-supporting program activities without an appropriation,
according to budget documents.
To close a projected $7.4 billion deficit, Gov. Paterson
recommends spending reductions across schools, health care, state
agencies and $1 billion in tax and fee increases. The 2010-11
executive budget is available at:
http://publications.budget.state.ny.us/eBudget1011/ExecutiveBudget.html.
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Maryland Budget Request Includes $43M for BIO 2020
Initiative
In his budget presentation to the legislature last week, Gov.
Martin O’Malley called for continued support of his 10-year,
$1 billion plan to build Maryland's reputation as a global leader
in biosciences. To this end, the governor recommends $43 million in
FY11 for stem cell research, tax credits for biotech companies, and
support for biotechnology commercialization and translational
research.
Gov. O’Malley’s budget includes $12.4 million for
stem cell research administered by the Maryland Technology
Development Corporation (TEDCO), about the same as last year.
Although lawmakers approved $15.4 million for the Stem Cell
Research Fund last year, budget documents indicate a FY10
appropriation of $12.35 million. TEDCO would receive a total $15.85
million in FY11 under the governor’s proposal, which is
$115,000 more than the FY10 appropriation. This includes $3.45
million for technology development, transfer and commercialization
activities through TEDCO’s University Development Transfer
Fund and the Maryland Technology Transfer and Commercialization
Fund. Additional recommendations in support of Bio 2020
include:
- $6 million (the same as last year) for the Biotechnology
Investment Tax Credit to spur investment in Maryland biotech
companies;
- $3.8 million ($900,000 less) for the Maryland Biotechnology
Center to support biotechnology commercialization and translational
research; and,
- $250,000 for the Incubator Support Program.
The governor’s capital budget also includes $16.1 million
to construct the new Germantown Bioscience Center at Montgomery
College and $5 million for the East Baltimore Biotechnology
Park.
Maryland’s four-year tuition freeze on public universities
will come to an end this year, reports The Washington Post.
Gov. O’Malley made the announcement prior to the opening of
the legislative session, adding that in-state students should
expect an increase of around 3 percent. The governor’s budget
includes $5.2 billion for higher education, 2.2 percent more than
last year.
Gov. O’Malley also introduced legislation to make funding
for the Higher Education Investment Fund (HEIF) permanent and to
establish a Tuition Stabilization Account in the HEIF to avoid
large spikes in tuition increases. Created as a dedicated revenue
stream for higher education in 2007, the HEIF dedicates a portion
of the increase in corporate tax revenues to the fund. It is
scheduled to sunset at the end of FY10.
The FY11 executive budget aims to close a $2 billion deficit
through more than $1 billion in budget reductions, according to the
governor’s office. The FY11 Budget Highlights is available
at:
http://dbm.maryland.gov/agencies/operbudget/Documents/2011/FY2011BudgetHighlights.pdf.
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Connecticut Innovations Doubling Return to State Coffers
Most impact models look at broad measures, sometimes including
multiplier estimates for indirect effects. Connecticut Innovations
(CI) takes a different approach, but one that might be expected
from the venerable equity investment program – the direct
capital return to its initial stakeholder, the state.
Bottom line: the program pays for itself, according to recent
impact study performed by Connecticut’s Department of
Economic and Community Development.. In fact, it has paid nearly $2
for every dollar invested between 1995 and 2008.
The pool of investment capital available to CI originated from
the sale of state-issued bonds worth $106 million. During the study
period, CI made investments in 84 portfolio companies, investments
that resulted in $209 million of net revenue to the state.
In sum, the results of the 14-year study period reveal $1.97 of
state revenue for every state dollar invested. Looking at the
impact on an annual basis, the study also calculated an average of
1,610 jobs and $256 million in GDP added to the economy each year.
The full study, which includes an overview of Connecticut
Innovation’s funding programs in addition to the
authors’ survey and model methodology, is available at:
http://www.ctinnovations.com/impact/.
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Vermont Jobs Plan Tags $8.7M of Federal Stimulus Funds
Earlier this month, Gov. Jim Douglas announced a plan to use
$8.7 million in federal stimulus funds for job creation programs,
including broadband infrastructure, low-interest loans and
workforce training. Many of the proposals mirror last year’s
SmartVermont plan, a proposal rejected by lawmakers that would have
leveraged federal funds to provide $17.2 million for statewide
economic development. (see the June 3,
2009 issue of the Digest).
Major components of the new jobs bill include $3.2 million to
the Vermont Telecommunications Authority (VTA) to help construct
“last mile” telecommunications infrastructure to rural
areas, $2 million for the Vermont Economic Development Authority to
lower the interest rate of the loans it makes to Vermont companies,
and $1 million to the Vermont Training Program for workforce
training. Missing from the new package are many of the tech-based
elements proposed last year, such as seed capital for entrepreneurs
and funding for incubation facilities and high-tech training (See
the April 1,
2009 issue of the Digest).
The governor’s capital budget provides further support for
the e-State Initiative, dedicating $5 million for VTA to leverage
already approved revenue bonding authority and private capital to
build “middle mile” fiber capability to schools,
hospitals, and government offices.
The executive budget would increase funding for higher education
by $5.5 million in FY11. Additionally, the governor is asking for
$1.5 million to restore funds to the Next Generation Scholarship
Fund, which was zeroed out in the FY10 budget. This program
provides funds to support college scholarships, workforce training
and technology-related internships.
The budget presented by Gov. Douglas aims to fill a projected
$153.7 million deficit in FY11 and is available at:
http://finance.vermont.gov/sites/finance/files/pdf/state%20budget/Executive%20Budget%20Recommendations.pdf.
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Minnesota S&T Leaders Blast State’s Long Hiatus from
TBED
“Minnesota faces a crisis of competitiveness.” It
didn’t take Minnesota’s leaders long to recognize the
state’s precipitous fall in the standings for many major
indicators over the past two decades paralleled the state’s
prolonged diinvestment from a proactive TBED strategy. The report
from the Minnesota S&T Economic Development Project Committee,
created by the state legislature just last fall and co-chaired by
the commissioner of the Minnesota Department of Employment and
Economic Development, holds little back in its condemnation of the
state’s nearly 20-year abandonment of any significant
investments or policies to promote science, technology and
innovation. More available at:
http://image.exct.net/lib/ff2c15797266/m/1/2010+Science+and+Technology+Initiative+Presentation.pdf.
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U.S. Venture Investment Falls to Lowest Level in a
Decade
Last year venture investment decreased to its lowest level since
1997, according to the latest Moneytree Report from
PricewaterhouseCoopers and the National Venture Capital Association
(NVCA). A weak environment for exits and increasing caution
on the part of investors contributed to a 37 percent decrease in
investment dollars and a 30 percent decline in venture deals from
2008 levels. This marks the second consecutive year of declining
venture dollars and deals. A report from Dow Jones VentureSource,
however, notes that investment activity rebounded in the fourth
quarter, and both outlets predict growth in 2010.
Venture firms invested a total of $17.7 billion in 2,795 deals
last year, down from the post-tech boom peak of $30.5 billion in
4,027 deals in 2007. Activity increased during the fourth quarter,
exceeding the amount of dollars and deals during the same quarter
in 2008, but not enough to salvage the overall low numbers for the
year.
Though investment in biotechnology declined in 2009, the sector
managed to surpass software as the leading target for venture
dollars for the first time. Venture capitalists invested $3.5
billion in 406 deals in biotech. Meanwhile, software companies
received $3.1 billion in 619 deals. Clean technology investment,
which had grown significantly in recent years, declined in 2009.
Total venture dollars in cleantech fell by 52 percent and deals
fell by 31 percent last year. Energy and utility investment overall
was similarly down.
Analysts are divided on what the latest news means for seed- and
early-stage investors. The Moneytree report celebrates the increase
in the number of seed-stage companies receiving investments in
relation to the percentage of deals going to expansion- and
later-stage companies. The Dow Jones report, on the other hand,
warns of a "startling retreat" for early-stage companies in 2009.
Despite a growing preference for smaller deals, portfolios shifted
in the direction of older companies, particularly those who have
previously received venture funding.
Both reports, however, find that the fourth quarter increase in
seed- and early-stage deals is an encouraging sign for startups and
entrepreneurs. The end-of-the-year bump in first-round and
early-stage deals may indicate that investors are again ready to
take risks on newer firms.
Read the PricewaterhouseCoopers and NVCA Moneytree release
at: https://www.pwcmoneytree.com/MTPublic/ns/moneytree/filesource/exhibits/09Q4MTRelease_FINAL.pdf.
Read the Dow Jones Venture source release at: http://www.prnewswire.com/news-releases/us-venture-capital-investment-finishes-year-strong-with-flurry-of-deals-in-4q-the-year-sees-investment-down-31-from-2008-82368447.html.
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TBED People and Job Opportunities
TBED People
Virginia Governor Bob McDonnell dropped his previous nomination,
Robert Sledd, as his secretary
for Commerce and Trade and instead nominated businessman
James Cheng. Cheng, whose nomination needs to be confirmed
by the Democratic-controlled Senate, was sworn in on January
17.
Pennsylvania Governor Ed Rendell said that the Department of
Community and Economic Development (DCED) Secretary George
Cornelius will step down on June 30 to become the president of
Bridgewater College in
Virginia.
Rick LeFaivre and Tom Clement are joining the
UW Center for
Commercialization as key deputies to vice provost Linden
Rhoads. LeFaive will split his time evenly between the university
and his other job as a managing director at OVP Venture Partners,
while Clement is expected to work full-time for about 18
months.
Kathay Rennels, three-term
Larimer County commissioner and longtime public workforce
development leader in Colorado, has been named director of economic
development at Colorado State
University.
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Job Corner
The National Science Foundation is seeking a Senior Analyst in
its Science & Engineering Indicators Program, Division of
Science Resources Statistics’ (SRS) Directorate for Social
and Behavioral Sciences, Arlington, VA. The appointment is under the
Intergovernmental Personnel Act (IPA) for a two-year renewable
period.
Read more job postings
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Staff Picks
Sens. Landrieu, Snow Urge SBA to Work Quickly on
FAST
The senators sent a letter to the Small Business
Administration encouraging the swift allocation of funds for the
Federal and State Technology (FAST) Partnership program that was
included in the FY2010 appropriations bill. FAST provides funding
for state SBIR programs.
Read more...
Milken Institute Report Looks at Job Creation Options
With funding from the National Association of Manufacturers, the
Milken Institute looks at a variety of policy options and the
impact they would have on national job creation. The report looks
at tax policy, including the R&D tax credit, and infrastructure
spending, including on broadband.
Read more...
Friedman Keeps Up the Call for Innovation
In a Jan 23
column, Thomas Friedman called for the Obama Administration to make
2010 the year of innovation, the year of “Start-up
America” and to make the centerpiece of his Administration
the creation of a million start-up companies.
Read more...
More Stimulus Funds Awarded
Department of Commerce announced four
projects totaling $63M for broadband expansion. The Department
of Energy released information on five projects worth
$20.5M for renewable energy deployment projects.
UK Launches Fund for Super Fast Broadband
The United
Kingdom announced recently the availability of one billion pounds
to encourage deployment of super fast broadband.
Read more...
VC May Increase in 2010 but Not for All Tech Sectors
Wall
Street Journal article indicates capital intensive companies such
as networking equipment, telecommunications, semiconductors and
alternative fuels may be left behind.
Read more...
A Look at “Start-Up Nation”
The Freakanomics blog has an interview with the authors of
“Start-Up Nation” that also serves as a good overview
of their examination of the Israeli economy.
Read more...
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