In This Week's Issue
SSTI News and Analysis
Legislative Wrap-Up: Georgia and Kansas
Lawmakers in Georgia and Kansas recently approved scaled-back
funding for their states' respective tech-based
economic development (TBED) programs in the coming fiscal year.
Although many states are struggling to fill large deficits in the
aftermath of a national economic downturn, funding for TBED
initiatives, even at reduced levels, continues to be a priority for
most states as a means to grow and diversify the economy.
Georgia
Lawmakers recently approved a $17.9 billion budget for FY11, an
increase of $800,000 over the amended FY10 budget. Tackling a
budget deficit of more than $1 billion at the start of the session,
lawmakers cut funding across several state agencies, including
those focused on economic development. Many of the reductions to
university-based research initiatives were in line with Gov. Sonny
Perdue's recommendations (see the Jan. 20,
2010 issue of the Digest). The Georgia Research
Alliance, a public-private partnership that acts as Georgia's lead
science and technology initiative, is slated to receive $18.25 in
FY11, down from $23.9 million in FY10.
The approved budget allocates $21.1 million in total funding for
the Advanced Technology Development Center/Economic Development
Institute, which includes $8.1 million from state general funds.
This is down from $11.8 million in state funds approved last year.
Funding for the seed capital fund is eliminated ($2.5 million) in
the approved budget.
Partial funding was restored for two Science, Technology,
Engineering and Mathematics programs within the Department of
Education. Georgia Youth Science and Technology is slated to
receive $150,000 down $100,000 from FY10 and the National Science
Center and Foundation will receive $200,000, down $300,000 from
last year.
A bill
to create a Legislative Economic Development Council was passed
earlier in the session. The council is charged with evaluating the
state's overall economic development
strategy.
HB
1069, passed by the legislature, would provide a tax credit of
up to $50,000 for individuals who invest in innovative startup
companies. The bill awaits action by the governor.
The conference committee substitute to HB 948 (the FY11
appropriations bill) is available at:
http://www.legis.state.ga.us/legis/2009_10/house/budget/reports/FY_2011_Bill_Final_Conf_Cmte.pdf.
Kansas
Kansas legislators approved a revenue enhancement package that
includes raising the state's sales tax by
one cent to 6.3 percent beginning July 1. Earlier this year, Gov.
Mark Parkinson warned of deep cuts across several state agencies in
absence of a revenue package (see the Jan. 20,
2010 issue of the Digest). The measure is expected to
generate an additional $303.6 million in state revenue to help fill
the budget shortfall.
The FY11 budget approved by lawmakers includes $6 million for
the Kansas Technology Enterprise Corporation (KTEC) from the
Economic Development Initiatives Fund (EDIF), down from an
estimated $7.75 million last year. The KTEC Board of Directors will
set program allocations in alignment with
current strategy at its June meeting.
Kansas, Inc., which conducts economic development planning,
policy research and program evaluation, is slated to receive
$346,904, a slight increase from last year. Additionally, $10
million is approved for Wichita State University Aviation Research
and Aviation Classroom and Training Equipment through the EDIF.
The transfer to the Kansas Bioscience Authority (KBA) is $35
million in the approved budget. KBA recently announced plans for
$36.9 million in new financing commitments for bioscience
researchers and businesses during FY11, reports Kansas City
Business Journal.
SB 572 is available at: http://www.kslegislature.org/bills/2010/572.pdf.
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Advanced Manufacturing Initiative Unveiled in MA
Enlisting support from industry, policymakers and academics,
Gov. Deval Patrick unveiled an initiative to help the
state's manufacturers evolve with changing
technology, adopt new innovations, and grow their operations
through a new multi-tiered loan program. The Advanced Manufacturing
Initiative is a public-private collaboration designed to maximize
job creation within the manufacturing sector, which added more than
19,000 jobs last month, according to the
governor's office. A new loan program from
MassDevelopment will offer up to $50,000 for planning loans and up
to $500,000 for growth initiative loans to reduce interest rates on
real estate and equipment lending to manufacturers allowing
companies to pursue expansion opportunities.
Read the press release ...
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HHS Releases $1 Billion Biotech Research
Tax Credit Guidelines
The Department of Health and Human Services, with the Department of
Treasury, has released detailed guidelines for biotechnology
companies interested in applying for the research tax credit
introduced in the Health Care bill earlier this year. The
Qualifying Therapeutic Discovery Project Credit provides a 50
percent income tax credit for investments in certified research
projects made in 2009 and 2010. A total of $1 billion in credits
will be available. Applications for certification must be submitted
to the Internal Revenue Service (IRS) by July 21 for the primary
allocation round. If any portion of the $1 billion remains
available, there may be additional application rounds.
The IRS will certify up to $10 million in investments made by
individual companies in 2009 and 2010. Companies may seek
certification for more than one project, but a single company can
receive only $5 million in tax credits. In order to qualify,
research projects must meet the topic qualifications set out in the
Patient Protection and Affordable Care Act of 2010 (see
the May 5,
2010 issue). The IRS will certify projects that have the
greatest potential to create and sustain high-quality, high-paying
jobs and to advance U.S. competitiveness in life, biological and
medical sciences.
Certain expenses are not eligible for certification through the
program. Employee salaries, interest payments, facility maintenance
expenses and service costs are excluded. The IRS also has the discretion
to exclude any other expenses from consideration, and to
certify only a portion of any application.
Preliminary reviews of applications submitted before July 21
will be completed by September 30. Applications from the first
round will be approved or denied by October 29. If requested, the
IRS may issue grants instead of tax credits for the amount
certified.
The guidelines are available on the IRS website at: http://www.irs.gov/pub/irs-drop/n-10-45.pdf.
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Comments Sought on Proposed NIH Conflict
of Interest Policies
The Department of Health and Human Services (HHS) and the National
Institutes of Health (NIH) are seeking input on proposed changes to
its conflict of interest policy. As multidisciplinary,
public-private research teams have become more common, HHS
standards to ensure objectivity have become more complex. The
department is asking for recommendations that would increase
transparency and streamline regulations. Comments are due by July
20. Read the announcement ...
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Kansas Anticipates 30,000 Green Jobs by 2012
Kansas is home to more than 20,000 green jobs and expects that
number to reach 30,000 by 2012, according to a recent survey by the
state Department of Labor. The survey of 6,000 Kansas employers
reveals that job growth in renewable energy, energy efficiency will
drive green job numbers over the next two-to-three years. The
biggest employment gains are expected in the renewable energy sector, which is expected to grow by 121 percent. Read
the report ...
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Recession Spurred Entrepreneurship Says Kauffman Foundation
Entrepreneurship in the U.S. reached a 14-year high in 2009,
according to a new study. The Kauffman Index of Entrepreneurial
Activity, which tracks national and state entrepreneurship rates,
found that 340 new businesses were created for every 100,000 adult
residents each month during 2009. Oklahoma and Montana led the
nation with 470 new businesses per 100,000 adults.
Read the report ...
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Washington Technology Center Unveils Best Practices in SSTI
Interview
The
Research & Technology Development (RTD) Program, a flagship
program of the Washington Technology Center has helped fill a
critical role in enhancing Washington state's efforts in
commercializing research by bringing companies and university
researchers together. In SSTI's exclusive
interview, Chris Coleman shares valuable insight on how the program
continues to produce impressive returns after nearly two decades.
Download the
interview ...
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Useful Stats
Federal Obligations for R&D to
Industry by State FY2001-07
The State of Washington led the country in 2007 in federal
funding for industrial research and development (R&D),
receiving $3.27 billion, according to the latest numbers from the
National Science Foundation (NSF). While 42.3 percent of total
federal R&D funding supported industrial R&D, 69.5 percent
of federal funding in Washington went to private companies.
Arizona, Maine, Connecticut, Nevada and Texas all received more
than 65 percent of their federal R&D dollars in industrial
support. Trends over the past six years indicate that industrial
R&D is becoming a more important target for federal R&D
investment.
The NSF's Federal Funds for Research and
Development series illustrates trends in the federal
government's funding obligations for science and
engineering R&D. The series tracks federal support to
government agencies, academic institutions, research centers, state
and local governments, nonprofit organizations, as well as private
companies. It includes detailed information on funding agencies and
research performers by state.
SSTI has prepared a table showing industrial R&D funding by
state for each year from 2002 to 2007. It includes data from 2007
on the proportion of industrial R&D within total federal
R&D funding by state, and data on state increases in industrial
R&D funding between 2002 and 2007. The table is available at:
http://www.ssti.org/Digest/Tables/052610t.htm.
Between 2002 and 2007, overall federal industrial
R&D funding increased by 60.08 percent, from $29.45 billion to
$47.14 billion. Industrial R&D also has become a larger part of
the federal government's overall R&D spending overall. In 2002,
35.06 percent of federal R&D funding went to industry. By 2007,
that figure rose to 42.3 percent.
In most states, both industrial R&D dollars and
the percentage of federal R&D going to industry have increased,
with some exceptions. California leads in industrial R&D
dollars ($12.2 billion in 2007) and increased its funding by 82.2
percent between 2002 and 2007. In addition to its rank as the
state with the highest percentage of industrial R&D, Washington
increased its industrial R&D dollars by 402.2 percent, from
$652.7 million in 2002 to $3.27 billion in 2007. Iowa also
quadrupled its industrial R&D funding during that period, from
$45.43 million to $299 million. Other states that increase their
industrial funding more than three times over between 2002 and 2007
include Arkansas, Montana and Tennessee.
Several states experienced decline during this
six-year period, including Alabama, Georgia, Indiana, Maryland,
Mississippi, Missouri, Nevada, Ohio, South Dakota, Vermont and West
Virginia. In most cases, however, these declines did not represent
a consistent downward trend.
Federal Funds for Research and Development:
Fiscal Years 2007-09 is available at: http://www.nsf.gov/statistics/nsf10305/pdf/nsf10305.pdf.
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TBED People and Job Opportunities
Job Corner
JumpStart Inc.
invites applications for the position of president, JumpStart
Advisors. This is an exciting opportunity for a business leader
who has significant experience in providing direct consulting
services, as well as managing multiple consulting project teams,
and would like to lead a nationally significant effort that has the
promise to transform the way regions think about their innovation
and entrepreneurial ecosystems.
Read more about this
job posting and others ...
Read more job postings
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TBED People and Organizations
Patrick Draper has been appointed as president and CEO of
the Toronto Region
Research Alliance.
Arlene Garrison has been appointed as vice president of
University
Partnerships at Oak Ridge Associated Universities.
Innovate Texas Foundation joined the Texas Tech University
System and The Wind Alliance to announce the formation of the
National Institute for Renewable
Energy, an independent public-private collaboration that will
work to solve key scientific and technology challenges facing the
wind power industry.
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Staff Picks
Advisory Group Wants to Restructure Defense Basic
Research
JASON, a scientific advisory group for DoD, says that basic
research at Defense needs to be restructured. Recommendations
include increasing the visibility of the basic research program,
improving the quality and connectivity of the DoD Lab and academic
communities, and developing a high-quality S&T workforce.
Read more ...
Colleges Planning Double Digit Tuition Hikes
With the exception of a few, such as community colleges in
Maine, most public institutions of higher education are planning
tuition hikes for the coming school year — some
in the double digits. This
article from USA Today provides a sampling of increases
from across the nation.
Higher Education and Workforce Disconnect
At the same time many college grads are finding it difficult to
land good jobs, industry leaders are concerned there
aren't enough qualified grads to fill their
openings. In Washington state, the aerospace
industry's demand for engineers consistently
exceeds the state's production at a two-to-one ratio.
Read more ...
Top Patent Winners in '09 include Seven
U.S. Universities
The University of California (UC) System led the pack of seven
U.S. universities with the most U.S. patents in 2009, according to
Intellectual Property Owners Association. Of 300 organizations, UC
System ranked 83rd.
Read more ...
Students to Spur Tech Startups in Canada
The governments of Canada and British of Columbia recently
launched a student entrepreneurship initiative to strengthen tech
commercialization. Student teams will receive hands-on training and
mentoring to develop products with strong market potential into
jointly-owned companies. The project is expected to yield six new
startup companies.
Read more ...
Clean Tech May Be the Place to Put Your Money in 2010
A signal of what may be a hot area for investment in 2010, the
clean tech sector, which crosses many traditional industries, saw
an 87 percent increase in funding dollars over the fourth quarter
of 2009, reaching $773 million.
Read more ...
Investors Taking Note of Russia's
Commitment to Technology
Venture capitalists are investing in Russia's
high-tech projects, encouraged in part by President Dmitri
Medevdev's commitment to transforming
Russia's economy away from oil to one more
technology-focused.
Read more ...
China Leads the World in High-Speed Rail
By 2012, just four years after it began its first high-speed
passenger service, China will have more high-speed train tracks
than the rest of the world combined.
Read more ...
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