In This Week's Issue
SSTI News and Analysis
National Advisory Council on Innovation and Entrepreneurship Members Named
Twenty-six members, spanning university presidents, investors,
serial entrepreneurs, and nonprofit leaders, were appointed to the
National Advisory Council on Innovation and Entrepreneurship
announced yesterday by U.S. Commerce Secretary Gary Locke. The
group will support President Obama's innovation
strategy by helping develop policies that foster entrepreneurship
and identifying new ways to take ideas from the lab to the
marketplace to drive economic growth and create jobs. Among the
TBED practitioners appointed to the Council are Ray Leach, CEO,
JumpStart and RoseAnn Rosenthal, CEO, Ben Franklin Technology
Partners of Southeastern Pennsylvania. Read the
press announcement.
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Legislative Wrap-Up: Louisiana, Massachusetts, Pennsylvania and Tennessee Pass Budgets
Several states recently enacted spending plans for the upcoming
fiscal year, which started July 1 for most states. In Louisiana,
Gov. Bobby Jindal signed into law the LA GRAD Act, granting
universities more flexibility to raise tuition in return for
meeting certain performance goals. Lawmakers in Massachusetts
allocated $10 million to continue the state's
investment in life sciences, Pennsylvania Gov. Ed Rendell signed a
jobs bill providing $8 million for green economy projects, and in
Tennessee, an $80 million expansion of TNInvestco, a program that
allocates tax credits to create pools of venture capital, was
approved.
Louisiana
Starting with the 2011fiscal year, Louisiana universities can
begin raising tuition and fees in exchange for achieving specific,
measurable performance objectives to improve graduation rates,
better meet the state's current and future
workforce and economic development needs, and increase research
productivity. The Louisiana Granting Resources and Autonomy for
Diplomas (LA GRAD) Act allows the universities to increase tuition
and fees by up to ten percent annually, without legislative
approval, until they reach the average cost of their regional
peers.
The median tuition and fees for an undergraduate at a four-year
college in Louisiana was $3,595 in 2007-08, compared to a Southern
regional average of $4,980, reports NOLA.com.
Under the new
law, all public postsecondary institutions are given the option
to enter into a six-year performance agreement with the Board of
Regents. Increasing research productivity in key economic
development industries and designating Centers of Excellence are
among the performance objectives included in the enacted bill.
Massachusetts
The $27.6 billion FY11 spending plan signed into law last month
by Gov. Deval Patrick includes funding to support the $1 billion
Life Sciences Initiative, a 10-year commitment to position the
state as a global leader in life sciences established two years ago
by the governor (see the issue of June 18,
2008 issue of the Digest). The Massachusetts Life
Sciences Center, a quasi-public agency charged with implementing
the initiative, will receive $10 million in FY11, the same as last
year. The appropriation is contingent upon a consolidated net
surplus for FY10. The Center has so far committed $188 million in
state funds, leveraged more than $700 million in additional outside
investment, and created a projected 6,500 jobs, according to a
press release. The full budget can be viewed at http://www.mass.gov/bb/gaa/fy2011.
Pennsylvania
Gov. Ed Rendell last week signed a jobs bill that authorized
projects for funding through the Redevelopment Assistance Capital
Program, including up to $8 million for Pittsburgh Green
Innovators, a group of local stakeholders working to provide space
to research, develop and showcase renewable energy and energy
efficiency technologies. When complete, the $16.5 million project
also will provide a teaching environment for college students and
workers seeking to enter the green economy. A small business
incubator is expected to launch up to five companies per year.
The FY11 enacted budget includes $16.9 million for the Ben
Franklin Technology Development Authority Fund, down from $20
million last year. Funding is distributed evenly among four
regional centers. Industrial Resource Centers are slated to
receive $6.9 million, down from $7.65 million in FY10. These seven
centers were established to help small- and medium-sized
manufacturing enterprises respond to changing markets and new
technologies in the global economy.
Budget documents are available at:
http://www.portal.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566.
Tennessee
Gov. Phil Bredesen recently signed SB 3049,
providing an $80 million expansion of the year-old TNInvestco
program, which allocated $120 million dollars in tax credits to six
venture capital firms last November. With the additional funds,
four more firms will be awarded $20 million in tax credits each,
reports the Nashville Business Journal. The program seeks to
develop the entrepreneurial infrastructure across the state,
attract new capital, and create jobs through the development of
innovation clusters.
The $29 billion FY11 budget signed into law by Gov. Phil
Bredesen last month includes $6.2 million over three years to
establish a graduate energy sciences and engineering program
expected to create 200 faculty appointments for Oak Ridge National
Laboratory researchers at the University of Tennessee at Knoxville
(see the Feb. 17,
2010 issue of the Digest).
The University of Tennessee (UT) System budget allocates $10.9
million (down from $11.2 million) for UT Research Initiatives,
which includes operational funds for the UT Biofuels Initiative.
Another $8.3 million is allocated for the UT Space Institute, the
same as last year. The Centers of Excellence program is slated to
receive $18.2 million, down from $19.6 million last year.
Appropriations within the Department of Economic and Community
Development include $9.3 million for the Tennessee Job Skills
Program, a workforce incentive grant program focused on enhancing
employment opportunities and meeting the needs of new and existing
industry, and $340,500 for FastTrack Infrastructure and Job
Training Assistance, the same as last year.
The appropriations act, Public Chapter No. 1108, is available
at: http://state.tn.us/sos/acts/106/pub/pc1108.pdf.
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Gov. Brewer Utilizes Executive Order to Establish Arizona Commerce Authority
Via Executive Order, Arizona Gov. Jan Brewer established the
Arizona Commerce Authority, a quasi-public authority, that eventually will replace the Arizona Department of Commerce. A
34-member board comprised mostly of C-level executives, chaired by
the governor, will lead the transition from the old department to
the new authority. Gov. Brewer earmarked $10 million in federal
stimulus dollars to establish the authority.
Gov. Brewer utilized an Executive Order to create the authority
after her plan was unable to obtain approval in the recent
legislative session. Even with strong legislative support, the
legislature adjourned in mid-May without bringing the bill to a
vote. Some details, including the dissolution of the Arizona
Department of Commerce, will need legislative approval when the
legislature reconvenes in January. However, due to
Arizona's poor economic climate, Gov. Brewer
believed it was imperative to establish the authority before
January.
The authority will narrow Arizona's economic
development efforts to a handful of key industries and coordinate
the efforts of key partners. The industries include science,
technology, aerospace and defense. Solar energy also will become
one of the state's main economic development
priorities under the authority. Key partners like Science Foundation
Arizona, universities, regional economic development groups and the
member communities of Arizona's Councils of
Governments also will be coordinated and integrated by the
authority to strengthen the state's economic
development efforts.
Several responsibilities of the Arizona Department of Commerce will
be transferred to the authority. However, many responsibilities of
the Department of Commerce (e.g. affordable housing programs,
energy rebates, and calculating the state's unemployment rate) will
transfer over to other state agencies. This will allow the
authority to focus on business attraction and retention. To
increase the state's domestic and global
competitiveness, the authority also will advise the state
legislature on changing and developing legislation that is
business friendly.
Jerry Colangelo,
vice chairman of the authority, is already calling for a revamping
of Arizona's tax code.
Read the Governor's Press Release Here:
http://www.azgovernor.gov/dms/upload/PR_062910_BrewerEstablishesNewAZCommerceAuthority.pdf
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NJ Session Produces Economic Development Shake-Up, Incentives for Wind Energy
A new state agency to promote innovation and job creation in New
Jersey was established by Gov. Chris Christie earlier this year.
Envisioned as a hub for all economic development activity, the New
Jersey Partnership for Action consists of three interconnected
organizations to promote the state's incentives
and resources, develop pro-growth policies, and assist businesses
in navigating government programs. The
governor's promise of a more effective strategy
for economic development activity comes at the same time of severe
reductions to the state's technology-based
initiatives, however. High-tech business tax credits are reduced by
half in the upcoming year, and with no funding allocated for the
New Jersey Commission on Science and Technology, the 25-year-old
agency will close its doors this month.
Established in 1985, the commission administered grant programs
focused on commercializing new technologies, developing early-stage
growth companies and business incubators, and enhancing New
Jersey's stem cell research capability. The enacted budget also
reduces by half ($30 million) funds for high-tech business tax
credits, a program that allows technology and biotechnology
companies that have promise but currently are notrealizing a
profit to turn net operating losses and R&D tax credits into
capital.
As part of the economic development re-organization within the
state, Gov. Christie also discontinued the InvestNJ program within
the New Jersey Economic Development Authority (EDA) earlier this
year, transferring $33 million of the $33.2 million FY10
appropriation into the general fund. The program provided grants to
New Jersey businesses for new job creation and for qualifying
capital investments.
The newly-created New Jersey Partnership for Action will be
administered by EDA in partnership with Choose New Jersey, a
privately funded nonprofit organization, and Government Process
Solutions, a team of business liaison representatives. The
Partnership will serve as a one-stop-shop to walk new companies
through the regulatory process and assist with tax incentives, Gov.
Christie said in an
interview with The Metropolitan Corporate Counsel. EDA
will continue its role as the financing component for New Jersey
job growth.
The $29.4 billion FY11 budget signed into law by Gov. Christie
closes an $11 billion deficit, according to the
governor's office, and is available at: http://www.njleg.state.nj.us/2010/BILLS/S3000/3000_I1.pdf.
Lawmakers also passed the Offshore Wind Economic Development Act
(S2036/A2873) during the session, providing $100 million in tax
credits for companies to develop offshore wind power. The measure
also sets a target of 1,100 megawatts of wind generation off the
New Jersey Coast, reports The Star Ledger. The bill awaits
action by Gov. Christie.
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White House Seeks Input on National Nanotech Plan
The White House Office of Science and Technology Policy (OSTP)
recently issued a request for information (RFI) to gain
insight from stakeholders in developing the National Nanotechnology
Initiative's (NNI) 2010 strategic plan. OSTP is
seeking input about the initiative's goals and
objectives, research priorities, investments, coordination and
partnerships, evaluation, and policies. The NNI will use these
responses to develop a federal common vision for the future use of
nanotechnology and to advance the goals outlined in the 2007 under
the original NNI strategic plan.
The NNI includes 25 federal agencies working together to
discover, develop and deploy nanotechnology towards agency missions
and broader national interests. Of the 25 agencies, 15 will have
budgets for nanotechnology R&D in 2011. This R&D program is
managed within the framework of the National Science and Technology
Council (NSTC). The Nanoscale Science, Engineering, and Technology
(NSET) Subcommittee coordinates the planning, budgeting, program
implementation, and review of the program.
The 2010 strategic plan will build upon and advance the goals
identified in the 2007 strategic plan (http://www.nano.gov/NNI_Strategic_Plan_2007.pdf).
These goals include:
- Advance a world-class nanotechnology research and development
program;
- Foster the transfer of new technologies into products for
commercial and public benefit;
- Develop and sustain educational resources, a skilled workforce,
and the support infrastructure necessary to advance nanotechnology;
and,
- Support responsible development of nanotechnology.
OSTP also will stage several online, public events to gain
specific input on the strategic plan. Four of these events will be
held between July 13 and August 15. To find out more about the
events visit the website (http://www.whitehouse.gov/administration/eop/ostp/NNIStrategy/).
Responses must be submitted by August 15, 2010. The new
strategic plan will be released in December 2010.
Read the RFI at: http://edocket.access.gpo.gov/2010/2010-16273.htm.
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NGA Launches College Completion
Initiative
West Virginia Governor Joe Manchin became chair
of the National Governors Association (NGA)
this week and announced a year-long NGA initiative to increase the
number of U.S. students who receive college degrees. The initiative
was launched with a report on college completion metrics. NGA plans
to release another report in the coming weeks that will provide
states with a guide to policies that increase graduation
rates.
Read the announcement ...
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What Makes an Effective Regional Economic Development
Leader?
In a study released by the Council on Competiveness, the
researchers try to answer the complicated question: Why are some
regions more successful than others in global competition?
The
traditional paradigm of regional development focuses the endowment
of innovation assets (i.e. people institutions, capital and
infrastructure). Regions abundant in these assets were built to
succeed in the global knowledge economy. In contrast, less
successful regions fail due to a lack of innovation assets. This
study, however, argues that the ability to think, plan and act
regionally is the real driving force behind developing a successful
region.
To act regionally, there are many obstacles that must be
overcome. The council study specifically focuses on one particular
barrier: the fact that economic regions and
political jurisdictions are not coterminous.
There are
no governance structures, boundaries or lines of authority that
create order within the region. Cities, counties, towns and even
states have competing interests, different identities and cultural
traditions that make collaborating extremely difficult. Many
regions, the researchers argue, still fall under the traditional
paradigm that our next door
neighbors
are the competition and recruiting firms
from outside is the mission. In essence, these actors have no
reason to connect unless brought together by cause (e.g.
overarching environmental issues or similar economic hardship) or
regional leadership.
The study found that the first step to rectify this issue is
relying on existing regional organizations that can set agendas,
call meetings, recruit new leaders, etc. These organizations
provide the basis of developing a regional collaboration structure
that will allow the new regional leadership to fuel
conversation, create connections and utilize
regional capacity. Leaders, however, must effectively
harness those three
Cs
to develop regional
collaboration.
Using five case studies, the researchers developed the
three Cs
to explain
the existence of successful regional collaboration citing several
drastically different cases ranging from Silicon Valley to the Dan
River Region in Virginia. They found that successful leaders were
able to create conversations among key regional stakeholders that
enriched and intensified regional awareness. Planned or unplanned,
these conversations forged ties and built trust. The second C is
connection. An integral aspect collaboration is linking together
the region. The development of face-to-face or virtual networks can
perpetuate of collaboration and fuel innovation. Finally, the
leveraging of regional assets to build regional capacity was found
by the researchers to be a common theme among successful
collaborations.
The paper argues that collaborations and the
three Cs
can
be achieved only through effective regional leadership. They cite
several examples that technology and regional innovation assets
alone cannot create a regional brand or regional prosperity. Even
Silicon Valley had to strengthen its regional leadership in the
1990s to achieve success. A region without successful leaders still will
act fragmented and fall back in the traditional paradigms of
economic development.
In developing the seven habits
of highly effective regional leadership, the council took into
account the personal qualities of individual leadership and nature
of regional leadership. They analyzed leadership traits and
situations that occurred in the five case studies and previous
research to develop this list:
- Be proactive:
anticipate needs
and create strategies to address them
;
- Begin with the end in mind:
regions need a
vision for where they are heading, and it must be supported by
consensus
;
- Seek first to understand, then to be understood: Leaders must
understand their region before creating their vision and
strategy;
- Put first things first:
Leaders, when leading
action, need to be guardians of the big picture
;
- Think win-win, be inclusive:
always seek
opportunities to make a case for regionalism and promote
inclusion
;
- Synergize: regions are a fertile field in which to grow
synergies because they are at the cross where institutions
intersect; and,
- Sharpen the saw:
This habit involves two
kinds of activities, developing metrics and developing future
leadership
The report provides three pieces of advice for practitioners.
First, regional leadership is not a one size
fits all proposition.
Due to the diversity of each
region, leadership must develop a strategy that creates
collaboration among stakeholders. Second, it admonishes leaders to
do something, anything!
Regional
leadership must work at creating regionalism. Finally, regional
leadership requires organizations that keep regionalism alive.
Temporary organizations can help advance causes, but it is
necessary to have an ongoing intermediary organization to
perpetuate collaboration.
Read the entire report at: http://www.compete.org/publications/detail/1384/leading-regional-innovation-clusters/.
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TBED People and Job Opportunities
Job Corner
The NY-BEST Board of Directors
released a solicitation to acquire an Executive Director for
NY-BEST and an organization to provide operational support.
The Executive Director is expected to work full-time on NY-BEST
activities to: accelerate the commercial introduction of energy
storage technology in New York, build the human capital and
expertise to sustain a vibrant commercial energy storage industry
in New York, and leverage seed resources of approximately $25
million to create a sustainable organization that provides value to
its members and to New York State. Individuals may apply directly
for this position or as part of a broader application with an
organization to provide operational support.
Read more job postings
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TBED People
Andre Pettigrew, the director of the Denver Office of
Economic Development, will become the first executive director of
Climate
Prosperity Inc., a Washington, D.C., climate-change think tank.
LaCharles Keesee, the city's deputy chief
financial officer, will assume an interim role as head of the
city's economic development department until a
final replacement is named.
The Ohio Development of Department has named Karen Shauri
director of the Small
Business Development Centers of Ohio.
Terri Shelton, director of the University of North
Carolina Greensboro Center for Youth, Family, and Community
Partnerships has been named the vice chancellor for research and economic
development.
Leslie Wisner-Lynch has been named interim president and
CEO of the Tennessee
Technology Development Corp. The appointment, which is for a
one-year period, follows the recent resignation of former TTDC
president and CEO Eric Cromwell.
Steve Zimmer has been appointed executive director of the
United States
Council for Automotive Research LLC. He succeeds retiring USCAR
executive director Don Walkowicz.
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Staff Picks
National Academies Looking at Research Universities
At the request of Congress, the National Academies have formed
an ad hoc committee to author a report to answer the question:
What are the top ten actions that Congress, the
federal government, state governments, research universities, and
others could take to assure the ability of the American research
university to maintain the excellence in research and doctoral
education needed to help the United States compete, prosper, and
achieve national goals for health, energy, the environment, and
security in the global community of the 21st
century?
Read more
Foreign Student Enrollment in U.S. Rises
The enrollment of foreign students at American colleges climbed
in the most recent academic year, according to new visa data,
confounding expectations that international-student numbers would
drop because of the worldwide financial crisis, according to the
Chronicle on Higher Education.
Read more
States Begin Long Climb to Recovery
Stateline.org has an excellent piece looking at the
impacts of the state budget crisis and changes to the kinds of
services states can no longer afford. Read
more
Examination of State Spending on Higher Education
The National Conference of State Legislatures has put together a
chart showing the percentage change in spending on higher education
for FY2009 and FY2010 as part of an overall look at state spending
on higher education. Read
more
Finland Makes Broadband a Legal Right
Since July 1, every Finn has the right to access to a 1Mbps
(megabit per second) broadband connection. Finland has vowed to
connect everyone a 100Mbps connection by 2015. Read more
High Speed for the Sparsely Wired
Meanwhile, the New York Times has a look at the progress
of the broadband stimulus efforts here in the U.S., particularly in
rural areas.
Read more
Foundations Have Good ROI in 2009
Some good news: foundations and operating charities reported
average investment returns of 21 percent in fiscal year 2009, up
sharply from a 26 percent decline in 2008, two studies from the
Connecticut-based Commonfund Institute find. Read
more
China and Germany Winners in Great Recession
At least, that's what Harold Meyerson writes
in a Washington Post op-ed.
Read more
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