In This Week's Issue
SSTI News and Analysis
Ohio Voters Approve $700 Million Bond for Third Frontier
Program
On Tuesday, voters approved a four-year, $700 million bond to
extend funding for the Ohio Third
Frontier initiative through 2016. Established in 2002, the
initiative offers programs for emerging and established high-tech
companies, including grants for pre-seed funding, research
initiatives, product development and commercialization.
Read more about the program ...
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$12M Available for Tech Commercialization Challenge
A competition aimed at helping move innovative ideas from the
lab into the marketplace was announced this week by the U.S.
Department of Commerce's Office of Innovation
and Entrepreneurship and Economic Development Administration (EDA).
In partnership with the National Institutes of Health and the
National Science Foundation, EDA will award $1 million each to six
teams across the nation with the most innovative ideas to drive
technology commercialization and entrepreneurship. NSF will award
$6 million to SBIR grantees associated with the winning teams.
Aiming to drive regional economic growth, the "i6
Challenge" is designed to highlight successes and
accelerate technology commercialization. Entrepreneurs, investors,
universities, foundations and nonprofits are eligible to apply. A
conference call for potential applicants will be held May 17;
applications are due July 15. More information is available at:
http://www.eda.gov/i6.
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Health Care Bill Includes 50 Percent Credit for Biotech
Research
During the debates over the Patient Protection and Affordable
Care Act, also known as the Health Care Reform Bill, there
was much discussion of whether or not reform would hinder
innovation in pharmaceuticals and medicine. As a result, the final
legislation included some measures to support research and
commercialization in the life science. One such measure, the
Therapeutic Discovery Project Credit, offers a 50 percent tax
credit or cash grant for qualifying research projects and small-
and medium-sized companies. Although many details remain unclear,
the credit will, at least, apply to projects undertaken during the
2009 and 2010 tax years.
The 50 percent credit is intended to limit tax liability for
biotech companies and their investors. A cash grant is available
for companies with no tax liability, or whose liability is less
than the amount of the credit.
The legislation authorizes $1 billion in tax credits and grants
for the two years of the program. Only companies with 250 employees
or fewer may apply. Three types of research projects may qualify
for the credit. These include:
- Projects to treat or prevent diseases or conditions
by conducting pre-clinical activities, clinical trials and clinical
studies, or carrying out research protocols, for the purpose of
securing approval by the Food and Drug Administration (FDA);
- Projects to diagnose diseases or conditions or to
determine molecular factors related to diseases or conditions by
developing molecular diagnostics to guide therapeutic decisions;
and,
- Projects to develop a product, process or technology
to further the delivery of administration of therapeutics.
Companies claiming the credit or grant must demonstrate that
their projects would result in new therapies that would:
- Treat areas of unmet medical need;
- Prevent, detect or treat chronic or acute diseases
and conditions;
- Reduce long-term health care costs in the U.S.;
or,
- Significantly advance the goal of curing cancer
within the next 30 years.
The Department of Treasury, which will administer the program,
also will take into consideration the ability of the project to
create and sustain high-quality, high-paying jobs in the U.S. and
to advance U.S. competitiveness in life, biological and medical
sciences.
Treasury and the Department of Health and Human Services have
until May 21 officially to establish the program and issue
additional guidance on eligibility and how to apply. Once the
program is established, the departments will begin considering and
awarding certifications for the credit.
Read the text of the Patient Protection and Affordable Care Act
bill (Sec. 9023 addresses the Qualifying Therapeudic
Discovery Project Credit) at: http://thomas.loc.gov/cgi-bin/cpquery/?&sid=cp111mY39a&refer=&r_n=sr089.111&db_id=111&item=&sel=TOC_1214046&.
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FL Legislature Passes Jobs Bill
Florida lawmakers last week approved
SB 1752, a package of economic development incentives for
industry sectors, including aerospace and small business, to
promote immediate job creation and long-term economic growth.
Funding for research commercialization matching grants and space
industry business development are among the new incentives. The
bill carries a $200 million price tag spread over the next three
years, reports the Associated Press.
Funding and incentives are spread across the
state's economic development programs, small
business and space industry sectors, rural communities and
unemployment, and the film and entertainment industry. Tech-based
economic development components are focused mainly within the small
business assistance and space industry development priority areas.
The bill provides $11.9 million in assistance to small businesses,
including:
- $3 million for Research Commercialization Matching
grants administered by the Institute for the Commercialization
of Public Research to assist small businesses seeking federal
R&D funding;
- $2 million for State University Research Commercialization
Assistance grants to increase commercialization of products and
technologies emerging from research at Florida's
universities; and,
- $2 million to expand the Governor's
Economic Gardening Pilot Program, which identifies companies
with fewer than 50 employees and helps them expand by offering
services such as market information and leadership
development.
The bill also provides $19.8 million to Space Florida to help
diversify and expand commercial aerospace, including:
- $10 million for space industry business development,
infrastructure and business financing;
- $3.6 million for space infrastructure assistance to
address infrastructure projects to assist in development of
Florida's aerospace industry and management of
state-of-the-art facilities for space businesses;
- $3.2 million for workforce development assistance
through a partnership among state and local agencies, academic
institutions and space businesses, and by providing access to
aerospace facilities and technologies;
- $3 million for expanded growth and recruitment of new
space-based enterprises; and
- A new tax credit incentive program to encourage capital
investment and job creation in manufacturing and spaceport
activities.
Another $22 million will support the state's
current economic development funds aimed at attracting and
retaining businesses. This includes $15 million for the Quick
Action Closing Fund, $4 million for Defense Infrastructure Grants,
and $3 million for local government matching grants.
The bill, which is supported by Gov. Charlie Crist, awaits his
anticipated signature. A press release outlining the Jobs Bill is
available at: http://www.flgov.com/release/11557.
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New Initiative to Help MA CEOs and Entrepreneurs Launch New
Companies
A group of Massachusetts CEOs, venture capitalists (VC) and
entrepreneurs recently launched a new initiative to create new,
successful companies. The 12x12 Initiative will allow successful
CEOs to collaborate with entrepreneurs to develop their ideas into
new businesses. The resulting "team" also would include an
experienced VC and would help the companies connect to mentoring
services, capital and other opportunities.
Read the press release ...
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Psssst... Have You Heard What
They're Saying?
CEOs and directors of some of the
nation's most successful TBED organizations
agree... SSTI's Excellence in
TBED Award is great way to distinguish your initiative as a
best practice and inform key stakeholders of your success. In
today's economic climate, we know the importance
of effectively communicating the value of your program, and having
national recognition to back it up can give you a competitive edge.
SSTI now is accepting applications for the 2010 Excellence in TBED
Awards, and we want to hear your story. Deadline to apply is
June 1. For more information, visit: www.ssti.org/Awards. Read what
they're saying:
"Innovation Works has won two SSTI
best practice awards. Having a respected third-party
organization like SSTI recognize our programs as industry
best-practices has been an invaluable tool in helping Innovation
Works demonstrate the quality of our initiatives to key
stakeholders. It has also proved helpful in our efforts to
raise funds for our organization. I encourage other
technology-based economic development organizations to consider
applying to SSTI for a best practice award."
- Rich Lunak, President & CEO, Innovation Works
— Winner of Improving Competitiveness of
Existing Industries (2009) and Increasing Access to Capital
Categories (2008)
"Each year our state legislature
is tasked with creating a balanced budget. In the
current economic climate tough choices have to be made. While
we all hope our good work and worth are noticed, the reality
is that equally laudable programs compete in a high
stakes, zero sum game. Preparing an application for the
Excellence in TBED awards helped us to focus our thinking on
the value of the James and Esther King Biomedical
Research Program to Florida's expanding research
infrastructure. Being singled out by SSTI for recognition has
helped us to effectively and credibly inform our state
legislature at a juncture where it has never been more
critical to articulate our scientific and economic
worth."
- Chuck Wells, Assistant Director, Florida Department of
Health — Winner of Expanding the Research
Capacity Category (2009)
"Technology-based economic development is our
core mission at SC Launch. The start-up companies in which we
invest view SC Launch's funding as a
"seal of approval" that further spurs
their growth. SSTI provides the same benefit to SC Launch by
providing even greater credibility to our program. Since our SSTI
recognition, our results have continued to grow: as of mid-2010, we
have now provided support and funding to more than 149
knowledge-based start-ups in South Carolina since our inception in
2006. There are more than 260 total entities in the SC Launch
program, which has attracted over $100 million in add-on, private
equity investment in these companies."
-Dave McNamara, SCRA Sr. Vice President and Executive
Director of SC Launch — Winner of the Building
Entrepreneurial Capacity Category (2008)
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Research Parks
Research Parks RoundUp
Having the tools and resources to develop innovative concepts
and products and move discoveries from the lab to the marketplace
is an essential component for building tech-based economies.
Research parks, a place where innovative ideas are borne,
partnerships between university and industry are created, and
companies grow and create new jobs, provide a foundation for the
kind of economic growth necessary to compete in a global economy.
Over the past few months, development plans and groundbreaking
announcements from research parks across the nation have been
made.
Construction on the first building of Innovation
Park, a Missouri University of Science & Technology
Research Park, began in March on what used to be a 60-acre golf
course. When completed, the building will provide 18,500 sq. ft. of
office suites and shared office space for tenants. The concept for
a research park on the Missouri S&T campus has been a topic of
discussion for more than 10 years, according to the university.
Innovation Park is slated to open in October 2010.
Plans for a recently announced $20 million venture-backed
commercialization hub at the University of Minnesota would include
a 60,000-square-foot Center for Life Science Technology
Commercialization to help move ideas and technology from university
biomedical researchers into viable startups, reports Med City
News. The center is the first step in establishing the
Minnesota Science Park, a $750 million project that includes
several facilities located near the Biomedical Discovery
District.
Planning for a science and technology park in the town of
Alabama, New York is underway with hopes of leveraging the
state's high-tech investment in a similar manner
as in the eastern part of the state. The
Science and Technology Advanced Manufacturing Park (STAMP)
would be the site of an advanced manufacturer of solar panels,
computer chips and flat TV panel displays modeled after a similar
park in Saratoga County, reports Buffalo News.
Earlier this year, West Virginia Gov. Joe Manchin
announced the state's commitment to
revitalizing the South Charleston Technology
Park and requested the West Virginia Higher Education Policy
Commission to move forward on a property transfer agreement with
The Dow Chemical Company. Plans for a new West Virginia Education,
Research and Technology Park will focus on translating investments
in higher education and research into business and economic
opportunities, according to the governor's
office. In November 2009, the Economic Development Administration
awarded a $250,000 planning grant to support the
park's redevelopment.
The University of Arizona broke ground late last year on a
54-acre bioscience park. Bio
Park boasts 2.4 million sq. ft. in laboratory and office space,
a science and technical high school affiliated with Tucson United
School District, hotel and conference center, and university
housing. Phase one development is funded by a $4.7 million grant
from the Economic Development Administration as part of the
American Recovery and Reinvestment Act.
Conceptual drawings for Innovation
Square, an 11-acre site linking the University of Florida (UF)
campus to downtown Gainesville, were unveiled in March. Florida
Innovation Hub at UF would be the anchor of the corridor, which
will house UF startup technology companies and related businesses.
Construction is expected to be completed by fall 2011. Funding
comes from an $8.2 million Economic Development Administration
grant and $5 million from the university.
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TBED People and Job Opportunities
TBED People
Jeff Blodgett, Vice President of Research, at the
Connecticut Economic Resource
Center, Inc. is retiring.
The
University of Virginia has named W. Mark Crowell, vice
president for business development at The Scripps Research
Institute, to the newly created position of executive director and
associate vice president for innovation partnerships and
commercialization.
Maryland Gov. Martin O'Malley will
receive the BIO Governor of the Year Award this week at the
2010 BIO International
Convention.
Guido Silvestri will serve as chief of the Division of
Microbiology and Immunology at Emory
University's Yerkes National Primate Research
Center as a Georgia
Research Alliance Eminent Scholar.
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Staff Picks
Higher Ed Building and Borrowing Practices Under
Scrutiny
With influence over federal tax policy, Sen. Chuck Grassley, R-IA may now be setting his sights on a longstanding cornerstone
of colleges' financial practice: paying for new and renovated
buildings by borrowing money with tax-exempt bonds, the
Chronicle of Higher Education reports.
Read more ...
More States Looking to Online Sales as Revenue
Generator
About a dozen states have considered legislation that would
force online retailers to collect sales tax, though only a handful
of bills have passed. A University of Tennessee study estimates
states are losing out on $9 billion each year under the current
system, the Washington Post reports.
Read more ...
JumpStart's Economic Impact Totals
$90M
Northeast Ohio's JumpStart Inc. and the 47
companies it helped had a $90 million impact last year, up 20
percent from 2008, according to the Center for Economic Development
at Cleveland State University.
Read more ...
Federal Lab Efforts "Trending
Upward"
Licenses, income bearing licenses, income from licenses, and
earned royalty income resulting from federal laboratory technology
transfer efforts generally trended upward in fiscal year 2008
compared to previous years according to NIST's
Summary Report on Federal Laboratory Technology Transfer
FY2008
More Jobs at Top and Bottom, Fewer at Middle Level
Job opportunities in the U.S. are becoming increasingly
concentrated at the upper and lower levels of the workforce,
cutting down on the jobs that led to the rise of the American
middle class, a Massachusetts Institute of Technology economist
says.
Read more ...
UPENN Launches UPSTART
The University of Pennsylvania's Center for
Technology Transfer (CTT) has introduced UPSTART, a program aimed
at developing UPenn IP by helping faculty form companies based on
their inventions and technological innovations, according to
Technology Transfer Tactics.
Read more ...
$114M in Broadband Grants Announced
The awards are designed to increase broadband access and
adoption in more than a dozen states.
Read more ...
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