In This Week's Issue
SSTI News and Analysis
America COMPETES Reauthorization Passes
House
After failing twice in the U.S. House of Representatives, the
reauthorization of the America COMPETES Act passed with a 262-150
vote . The final House version includes the full five-year
reauthorization and the increases in authorization levels for the
National Science Foundation, the National Institutes of Standards
and Technology, and the Department of Energy Office of Science over
the next three years that were removed in previous version of the
bill.The bill is expected to marked up in the Senate Commerce,
Science and Transportation Committee in the next few weeks, and to
come to the Senate floor before the July 4 recess. Read
the House committee press release ...
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$75M for Innovation Incentive Fund in Florida Budget
Florida's FY11 budget, signed into law last month by Gov. Charlie Crist, replenishes the Innovation Incentive Fund with $75 million. The recruitment fund was immediately tapped by lawmakers for $50 million toward enticing Maine's Jackson Laboratory to open a branch in Collier County, leaving $25 million for other major R&D projects and create high wage jobs throughout Florida. The state has promised the Jackson Lab project an additional $80 million over the next three years if developed.
The $75 million
FY11 appropriation for the Innovation Incentive Fund is contingent upon passage of increased federal
Medicaid funds to the states, however.
Established in 2006, the Fund is responsible for attracting some
of the most recognizable life sciences institutions, including the
Burnham Institute for Medical Research, SRI International, and the
Max Plank Society. The newest recruit, Maine-based Jackson Labs,
specializes in genetics research. A 14,000-square-foot research
institute that could break ground as early as fall is planned for
the Florida branch, reports Marco Eagle.
In addition to the Jobs Bill approved by the legislature earlier
in the session (see the May 5, 2010
issue of the Digest), the FY11 budget allocates the
following funds for tech-based economic development
initiatives:
- $31.2 million for space initiatives, including $3.9 million for
SpaceFlorida operations (up from $3.8 million approved last year),
$11 million for launch complexes and space transportation
facilities; $10 million for financing, business development and
infrastructure; $3.2 million for retraining workers; and $3 million for
business development and recruitment;
- $11.1 million in total funds ($6.2 million in general funds)
for Enterprise Florida, down slightly from $11.4 million approved
last year;
- $3 million for the Institute for Commercialization of Public
Research to provide funding to assist in the commercialization of
product development from the R&D activities of small businesses;
and,
- $2 million for the Economic Gardening Technical Assistance
Pilot Program to provide grants to local and regional organizations
seeking to implement or expand local economic gardening
projects.
A total $42.2 million from the Biomedical Research Trust Fund is
appropriated for two Florida Biomedical Research programs
administered by the Florida Department of Health. The James and
Esther King Biomedical Research Program will receive $22.2 million
and the Bankhead-Coley Cancer Research Program will receive $20
million. Both programs saw significant funding increases in last
year's budget (see the June 3,
2010 issue of the Digest).
The budget also includes $16.5 million for the Qualified Target
Industry Tax Refund program and the Qualified Defense Contractors
Tax Refund program. Both programs assist companies that create
high-tech jobs.
A conference committee report on HB 5001 is available at:
http://floridafiscalportal.state.fl.us/PDFDoc.aspx?ID=2888.
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Maryland Governor Proposes $100 Million for Startup
Companies
Maryland Governor Martin O'Malley recently announced
a new effort to direct $100 million to public and private venture
capital investors. The InvestMaryland program would offer insurance
companies tax credits to generate the funds, which would either be
invested directly in startup companies or in private venture firms. Governor O'Malley's current proposal would provide $50
million to the Maryland Venture Fund and the other $50 million to
venture capital firms. The state's Department of Business and
Economic Development plans to work with legislators, businesses and
universities to draft a bill for next year's legislative
session.
Maryland, like much of the country, has experienced a
significant decline in venture capital (VC) investment since the
beginning of the current recession. Venture firms across the
country invested $17.8 billion last year, 41.5 percent less than in
2007, according to the PricewaterhouseCoopers
Moneytree Survey. Maryland, experienced a larger relative
decline than the country as a whole, sliding from $602 million to
$284 million, a 52.8 percent decrease. In his announcement, Gov.
O'Malley noted that venture investment is particularly important in
the life sciences, in which research and commercialization can take
years, requiring reliable sources of sustained capital. The
InvestMaryland program would be of particular benefit to the life
sciences sector, which continues to struggle with capital
availability, according to the governor.
The Maryland Venture Fund was created in 1997 and has invested $51
million in more than 200 companies. Under the funds guidelines,
companies with no more than 25 employees and less than $1 million
in revenues may receive initial investments of up to $100,000.
Approximately 60 percent of the fund is invested in software,
communications, and IT security companies, and the other 40 percent
is invested in life sciences companies in the areas of
therapeutics, medical devices, and diagnostics. In recent years,
however, the fund has been depleted as the recession has hit both
the state budget and its portfolio companies. The $50 million boost
included for the program in the governor's proposal would help the
fund continue investing in seed- and early-stage high-tech
startups.
The remaining $50 million would be available in invest through
private venture capital firms. Though the details have not yet been
set, the governor said the funding would be invested in
Maryland-based VC firms to provide capital for Maryland-based tech
businesses.
The proposal would be introduced when the state legislature
meets in 2011. Governor O'Malley is currently running for
reelection against former governor Robert Ehrlich. Implementation
of InvestMaryland would likely depend on the governor's reelection
in November.
Read the press release at: http://www.governor.maryland.gov/pressreleases/100601.asp.
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Maine Voters Approve Energy and Economic Development Bond
Four bond issues totaling $108.3 million appear headed for
passage by voters following the primary election yesterday. Two of
those measures are aimed at job creation efforts through capital
investments, funding for R&D, and renewable energy measures.
The Associated Press has projected the
$23.75 million economic development bond as winning with a narrow lead of 51-49. The energy bond is passing
with 59 percent of the vote.
With the passage of Question 2,
voters will approve $4 million for the Small Enterprise Growth Fund
to provide Maine companies and entrepreneurs access to sources of
capital and $3 million to be matched with private funds for
R&D and commercialization activities administered by the Maine
Technology Institute. Small businesses, grants for food processing
for fishing, agricultural, dairy and lumbering businesses, and
redevelopment projects at the Brunswick Naval Air Station also are
funded through the bond.
The energy bond, which totals $26.5 million, includes $11
million for the University of Maine System to develop one or more
ocean wind energy demonstration sites. Funds are provided for
R&D, product innovation, and robotics equipment to accelerate
wind energy components manufacturing in the state.
Unofficial election results reported by the Associated
Press are available at:
http://hosted.ap.org/dynamic/files/elections/2010/by_county/ME_Question_0608.html?SITE=AP&SECTION=POLITICS.
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State Shortfall for 2010-2012: $127.4 Billion
After at least 40 states made mid-year budget cuts in FY 2010
totaling $22 billion, the prospect for rosier times is after 2012,
according to the latest biannual Fiscal Survey of the States
conducted jointly by the National Governors Association and the
National Association of State Budget Officers. The midterm cuts
meant states' spending was reduced from $687.3
billion in FY 2008 to $612.9 billion in FY 2010
— at the same time mandatory spending continued
to increase. The report indicates FY2011 will be
challenging for many states, in spite of modest revenue growth.
"Because states lag behind national recovery,
they expect 2011 to be as bad as 2010, and states will not begin
the path to recovery until 2012," said NGA Executive Director
Raymond C. Scheppach. NGA and NASBO expect states not to see 2008
revenue levels until 2013 at the soonest.
The Survey is available here: http://www.nga.org/Files/pdf/FSS1006.PDF.
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OCAST Remains A Stand Alone Entity
The Oklahoma Center for Advancement of Science and Technology
(OCAST) will remain a stand-alone entity after a proposal by Gov.
Brad Henry to consolidate the agency within the Department of
Commerce failed to win legislative approval. OCAST provides funding
and resources to help businesses develop and commercialize
technologies. The agency is slated to receive $19.15 million in
FY11, a 6 percent reduction from the previous year.
In a separate bill, the Oklahoma Seed Capital Fund, which
provides seed and start-up stage equity financing to small,
technology-based Oklahoma companies, would receive $4.3 million
from the OCAST appropriation. The fund is managed by i2E under
contract to OCAST.
The Oklahoma Space Industry Development Authority is slated to
receive $424,289 in FY11, down from $493,215 approved for the
authority last year.
A proposal floated by Gov. Henry to create a permanent funding
source for the Oklahoma Economic Development Generating Excellence
(EDGE) initiative was not included in legislation this session.
The FY11 budget approved by the legislature fills a $1.2 billion
shortfall through agency cuts, reserve and stimulus funds, and cost
recovery methods such as expedited tax collections and a moratorium
on tax credits, according to the governor's
office. Under the agreement, $6.7 billion in general revenue is
appropriated to state agencies and programs, a 7.6 percent
reduction from the FY10 budget. Gov. Henry is expected to take
action on the bills June 12.
Appropriation bills SB 1561 and SB 1425 are available at:
http://www.lsb.state.ok.us/.
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TBED People and Jobs
Job Corner
JDG Associates, Executive Search Consultants, has been retained
by the suburban Maryland-based National Institute of Standards
and Technology (NIST) to recruit two key leaders:
- The Director for
Innovation and Industry Services will focus on technology
transfer and commercialization along with the fostering of
public/private partnerships and joint ventures; and,
- The Director,
Laboratory Programs will be wearing two hats: 1)
leading the six NIST laboratories (2000 staff) and 2) serving as
the Principal Deputy to Pat Gallagher-- the NIST Director. The
ideal candidate for this position will have either managed a
complex, multi-disciplinary scientific laboratory comprised of a
minimum of several hundred staff OR be a world-renowned scientist
who is interested in leveraging his/her background and reputation
to further the NIST mission.
These are high-visibility c-suite positions within a
rapidly-growing federal organization.
Missouri University Extension and the College of
Engineering invites applications for the position of
Business Development
Program Director & Associate Dean for the College of
Engineering. The ideal candidate will be a dynamic and
innovative individual who will provide visionary leadership and
creativity to business and economic development programming
throughout Missouri. Master's degree
and five or more years of executive leadership experience required.
Read more job postings
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TBED People
Subra Suresh, dean of engineering at the Massachusetts
Institute of Technology, has been nominated by President Barack
Obama to be the next director of the National Science Foundation.
Eric Cromwell, president and CEO, and Dan
Schmisseur, vice president of operations and strategy, have
resigned from the Tennessee
Technology Development Corporation.
Rick Duke, a principal research associate with the
Enterprise Innovation/Economic Development Institute at Georgia
Institute of Technology has been selected as the new director of
the Trent Lott
National Center for Excellence in Economic Development and
Entrepreneurship at The University of Southern Mississippi.
The
Montana Clean Technology Alliance is being formed to foster a
community of interest to support companies that want to grow Clean
Technology jobs in Montana.
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Staff Picks
NTIA Accepting Updated Broadband Grant Applications
State governments and other existing awardees in the State
Broadband Data and Development Grant program may seek funding for
various initiatives to help communities compete in the digital
economy and up to three additional years of broadband mapping work.
Read more ...
Washington Post: Private-Equity Business Picking Up
The value of private-equity acquisitions climbed 75 percent in
the first five months of 2010 compared with the corresponding
period last year, according to the
article.
G.M. Forms $100M Tech Venture Firm
General Motors is looking for innovative business models to
support through its new subsidiary, General Motors Ventures, which
will invest in start-up companies working in a variety of fields.
Read more ...
Patent Law Blog: Patent Grants Remain at All Time
High
The latest posting reports the past seven-weeks rank as the
top-seven weeks of all time in terms of the number of utility
patents issued. Read the posting.
U.S. College Degree May No Longer Be Gold Standard
Challenged by increasing foreign competition, rising tuition
costs, government cutbacks, flagging graduation rates, and
questions about the very quality of the education being delivered,
U.S. dominance in academic and research power is now under threat.
Read more ...
Men's College Enrollment will Continue
Decline, Report Says
Women may soon dominate college campuses across the U.S. while
men's enrollment declines. By 2019, the U.S.
Education Department projects that women will account for 59
percent of total undergraduate enrollment and 61 percent of total
postbaccalaureate enrollment.
Read more ...
Are the New Entrepreneurs Actually the Newly
Unemployed?
This
Op-Ed in the New York Times connects a new wave of
entrepreneurs, including older adults and minorities, to the
recently unemployed.
Chinese Edge Closer to Supercomputing Record
China now has the second fastest supercomputer, trailing
slightly behind the world's fastest computer,
the Cray Jaguar, based at the Oak Ridge National Laboratory in
Tennessee. The Chinese supercomputer surpasses European and
Japanese systems.
Read more ...
China Continues to Face Challenges of Cheap Labor
A new generation of workers "more aware of
their rights" are demanding better wages,
hours, and working conditions, adding to China's
increased challenges with its reliance on cheap labor, according to
a Los Angeles Times
article.
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