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SSTI Weekly Digest for the week of February 10, 2010
SSTI Weekly Digest
Wednesday February 10, 2010  |  Volume 15, Issue 6 > Web Version   > Archive   > Subscribe   > Unsubscribe

In This Week's Issue


SSTI News and Analysis

Tech Talkin' Govs, Part IV
The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Connecticut, Maryland, Michigan, Nevada, and Oklahoma. The first three installments are available in the Jan 13, Jan. 20 and Jan. 27 Digests.

Alaska
Gov. Sean Parnell, State of the State Address, Jan. 20, 2010
"We will create even more jobs by funding construction of two new statewide buildings, the Anchorage crime lab I mentioned earlier and we will construct the Life Sciences building at [the University of Alaska, Fairbanks]. …

"… Where energy is concerned, we will continue reducing dependency on diesel across Alaska. And we are putting $25 million toward more in-state renewable energy projects. …

"… With the Governor's Performance Scholarship proposal, all Alaskan high school students can earn tuition for an in-state university or job-training program. They must complete a more rigorous curriculum than what's now required to graduate from high school. Four years each of math, science, and English and three years of social studies. But for students who take this curriculum, better grades will mean greater tuition awards. …

"… To responsibly pay for these scholarships, I propose saving $400 million, setting it aside and using the interest and investment earnings from this savings account to pay for these yearly scholarships."

Connecticut
Gov. Jodi Rell, State of the State Address, Feb. 3, 2010
"I am calling for the creation of the new Connecticut Credit Consortium - a $500 million partnership between the state and Connecticut banks to substantially boost credit availability. I propose canceling $100 million in old bond authorizations and instead use the funds for the Consortium. Our $100 million dollars will leverage at least $400 million dollars from banks all across our state. …

"… I am proposing that we expand our sales tax exemption to include machines, equipment, tools, materials, supplies and fuels used in the renewable energy and green technology. …

"… And our companies will only succeed if they have the qualified, trained employees they need.  That is why I am proposing a new loan forgiveness program for students who stay and work in Connecticut after they graduate from college with a degree or certificate in green technology, renewable energy, life sciences or health information technology. They will receive a $2,500 annual forgiveness for each of four years if they have a baccalaureate or higher degree or $2,500 a year for two years with an associate degree."

Maryland
Gov. Martin O'Malley, State of the State Address, Feb. 2, 2010
"We need to leverage the enormous job-creating potential of more than 50 federal facilities in Maryland, which along with our businesses and institutions of science, discovery, and higher learning, are the backbone of Maryland's Innovation Economy: life sciences, bio-tech, high-tech, clean-tech, green tech, and cyber security. Our work is to leverage these innovation assets to create more jobs and more opportunities for more Maryland families."

Michigan
Gov. Jennifer Granholm, State of the State Address, Feb. 3, 2010
"Tonight, I am announcing that my budget for the year ahead will restore the Michigan Promise Scholarship, identify a creative way to pay for it, and give it a new focus - keeping our young people in Michigan where they earn their degrees. …

"… So this year, the Michigan Economic Development Corporation will make a nationally recognized training program available to 1,000 prospective entrepreneurs in 12 small business assistance centers across the state. …

"… Tonight, I will also ask you to create more opportunities for entrepreneurs by creating a new tax credit for investors who make venture capital available to the Michigan businesses that need it to expand and create new jobs. …

"… In the year ahead, we will also expand opportunities for high-quality job-training through our No Worker Left Behind initiative. We set a goal three years ago to enroll 100,000 displaced workers in training that would allow them to fill the in-demand jobs of the new economy."

Nevada
Gov. Jim Gibbons, State of the State Address, Feb. 8, 2010
"We are looking not only to expand our manufacturing base, but also to bring new green energy jobs to Nevada. In addition to building facilities to generate solar, wind and geothermal power, we also are working to establish research and development facilities for newer, better green technologies. This will not only help our environment, it will create new, long-term jobs in Nevada. …

Oklahoma
Gov. Brad Henry, State of the State Address, Feb. 1, 2010
"The EDGE Endowment is our greatest tool for diversifying our economy and creating jobs for our children and grandchildren. Turning our backs on EDGE would send exactly the wrong message at the wrong time. I challenge you to think beyond the present and find a permanent funding source for this critical job-creating economic development tool. …

"… We also began funding an endowed chairs program that doubles our money and attracts the best professors to Oklahoma. This session, we have an opportunity to endow more than 900 new professorships at 21 of our colleges and universities without any new appropriations. I urge you to enact this critical proposal quickly so our students can reap the benefits."

Pennsylvania
Gov. Ed Rendell, Budget Address, Feb. 9, 2010
"We have much more to do to bring jobs to Pennsylvania and create a more prosperous economic future for our state. One important area where we can achieve this goal is alternative energy, and once again I call on you to enact new legislation that will allow Pennsylvania to maintain its position as a national leader in the field of alternative energy."

Wyoming
Gov. Dave Freudenthal, State of the State Address, Feb. 8, 2010
"… There's $45 million in the University of Wyoming budget for carbon capture sequestration research. If it is out of [Abandoned Mine Land fund], I know there's been some discussion about whether or not we should divert that to other ends. Do not divert that. We have made a commitment that that will be matched by private money. …

"… We need to be on the forefront. We need to demonstrate through the School of Energy Resources carbon capture sequestration works. … Let the technologies developed at the University of Wyoming support this effort and make sure that we are the ones who are selling those technologies overseas instead of buying them."

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Florida Gov. Wants $100M for Innovation Incentive, $32.6M for Space Florida
Replenishing the Innovation Incentive Fund and investing in space industry, public research, and green energy technologies are among Gov. Charlie Crist's FY11 budget recommendations to grow the state's innovation economy and establish Florida as a pre-eminent global hub. The governor's budget includes $100 million for the Innovation Incentive Fund, which was established in 2006 to attract R&D companies and create high-wage jobs. The fund was depleted in 2008 (see the May 7, 2008 issue of the Digest).

Space Florida would receive a total $32.6 million, of which $20 million is slated for business recruitment activities in order to provide the necessary resources that align with a new national approach to space exploration, according to budget documents. To provide financing for new and expanding space businesses, the governor recommends $10 million. Another $3.8 million is set aside for general operations, $3.2 million for workforce development, and $3 million to fund targeted projects for business development and recruitment.

The remaining $12.6 million is slated for development and management of facilities for space industry businesses. This funding would be used for investment in Exploration Park, a 60-acre technology and commerce park, to refurbish Launch Complex 46, a multi-use commercial launch facility, and to provide for the renovation of facilities for use by entities fulfilling NASA and Air Force contracts.

The governor's budget also includes funding to support technology commercialization through Florida Biomedical Research Programs and the Florida Institute for Commercialization of Public Research. The budget recommendation includes $50 million total ($25 million apiece) in recurring budget authority in the Biomedical Research Trust Fund for the James and Esther King Biomedical Research Program and the William G. Bankhead and David Coley Cancer Research Program. Awards from these grant programs are based on scientific merit determined by open competitiveness peer review. This restores $50 million in budget authority that was appropriated in FY10 on a nonrecurring basis, according to budget documents.

The Florida Institute for Commercialization of Public Research would receive $15 million in FY11. Established in 2007, the institute serves as a one-stop-shop for investors, entrepreneurs, and corporate partners seeking to develop new ventures based on research performed in Florida. No funding for the institute is reflected in the current year budget.

Enterprise Florida, a public-private partnership serving as the state's primary organization devoted to statewide economic development, would receive $6.95 million in FY11, an increase of $450,000. Other economic development incentives include:

  • $25 million for the Quick Action Closing Fund ($11.5 million increase) to help the state attract new and expanded existing high-impact businesses; and,
  • $21.4 million, including $17.1 million in nonrecurring general revenue and $4.3 million from the Economic Development Trust Fund, to support the Qualified Target Industries Tax Refund Incentive, and the Qualified Defense Contractors Tax Refund Incentive. This is a cumulative decrease of $230,500 from last fiscal year.

To continue the Economic Gardening pilot program implemented in FY09, the governor recommends $3 million. The goal of the program is to identify companies with up to 50 employees and help them expand by offering services such as market information, leadership development, and assistance in digital media applications. FY11 funding would be directed to helping local communities create their own programs. The University of Central Florida would receive $250,000 for administration of the grant program and training for grant awardees.

Funding for the State University System would increase by $100 million in FY11 with the funds aimed at building research and education capacity in science, technology, engineering, mathematics and medicine. Dubbed the "New Florida Initiative," the goal is to increase the number of state university graduates and researchers in these fields to address critical workforce and economic development needs.

The governor's FY11 environmental budget dedicates a portion of federal funding received last fiscal year to developing green energy technologies. Specifically, $126 million is slated for the State Energy Program to deploy renewable energy and energy-efficient technologies. Another $36 million is slated for the Florida Energy Opportunity Fund and $10 million would be used for Florida Clean Energy Grants.

The FY11 executive budget is available at: http://www.ebudget.state.fl.us/.

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Oklahoma Governor's Budget Consolidates OCAST and Commerce
The Oklahoma Center for the Advancement of Science and Technology (OCAST) is among a list of 16 state agencies slated for consolidation in Gov. Brad Henry's budget proposal, which he says will result in cost savings of $5.3 million. Under the proposal, OCAST would be moved to the Department of Commerce, along with Aeronautics, Indian Affairs and the Oklahoma Space Industry Development Authority. Funding for OCAST would be reduced by 3 percent, for a total $19.8 million in FY11. OCAST provides funding and resources to help businesses develop and commercialize technologies.

The Oklahoma Space Industry Development Authority would receive $442,538 in FY11, also a 3 percent reduction. In partnership with the private sector, the Authority establishes new aerospace industries and enhances existing aerospace industries to retain high-tech jobs.

In his State of the State Address last week, Gov. Henry urged lawmakers to provide a permanent funding source for the Economic Development Generating Excellence (EDGE) initiative, a proposal that has failed to garner legislative support the past two years (see the Aug. 12, 2009 issue of the Digest). Established in 2003, the endowment was envisioned as a $1 billion fund to support research and commercialization activities in the state. On Feb. 2, a bill (HB 3036) was introduced to eliminate the EDGE fund, directing its $150 million endowment toward solving the state's budget issues. The bill has been referred to the Appropriations Committee.

The 2011 Executive Budget is available at: http://www.ok.gov/OSF/documents/bud11.pdf.

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Connecticut Gov. Proposes Economic Recovery Initiatives, Cuts TBED
Gov. Jodi Rell last week unveiled her FY11 midterm budget adjustments, eliminating or reducing funding for several TBED initiatives in the second year of the biennium. At the same time, the governor proposed an economic recovery package that includes a lending program for small businesses, a student loan forgiveness program to retain green collar workers, and a sales tax exemption for green energy industries.

The governor's proposal includes the following eliminations and reductions in the second year of the biennium within the Department of Economic and Community Development (DCED):

  • Eliminate FY11 funding for CCAT Manufacturing Supply Chain ($400,000).
  • Eliminate FY11 funding for Hydrogen/Fuel Cell Economy ($237,500).
  • Eliminate FY11 funding for Entrepreneurial Centers ($135,375).
  • Eliminate FY11 funding for CCAT Energy Application Research ($100,000).
  • Reduce FY11 funding for CONNSTEP ($40,000 decrease).

In total, the adjustments decrease funding for DECD by $4.1 million in the coming year.

Within the Office of Workforce Competitiveness, the governor recommends a $60,000 reduction for the Nanotechnology Study and a $37,500 reduction for SBIR matching grants.

The governor's budget proposal also outlines an economic recovery package that targets renewable and clean energy industries for job growth and provides access to capital for businesses.

To open access to credit for small businesses, the governor is proposing a $500 million public-private loan pool, which would be established using $100 million in bond funds. Two funds would be created: one for businesses with 250 or fewer employees and the other for businesses with 100 or fewer employees.

The $6 million student loan forgiveness program proposed by Gov. Rell would apply to recent college graduates in renewable energy, manufacturing, R&D, life sciences, and information technology fields who spend at least five years working in the state. Individuals receiving a Bachelor's degree would be eligible for up to $10,000 and those earning an Associate's degree could receive up to $5,000. The program would be operated by the Department of Higher Education.

Finally, to encourage research and production of equipment used in the renewable energy and clean technology industries, the governor proposed a sales tax exemption that would apply specifically to technologies to produce, improve or develop solar power, passive or active solar water or space heating systems, geothermal systems, and wind power.

Gov. Rell issued five rounds of rescissions and proposed four separate deficit mitigation packages during FY09. The General Assembly adopted four mitigation packages totaling $481.7 million, leaving a FY09 deficit in the General Fund of $948 million. The governor's proposed modifications to the adopted 2009-11 biennial budget would result in an all funds budget for FY11 of $18.9 billion, a decrease of $27.7 million.

The FY11 Midterm Budget Adjustments are available at: http://www.ct.gov/opm/lib/opm/budget/2010_2011_midterm_budget/budgetdocuments/201011govmidtermadjustmentsentirebook.pdf.

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Still #1, U.S. Patenting Falls 11.4% in 2009; China Jumps to #5 With 29.7% Growth
International patent filings fell by 4.5 percent in 2009 with sharper than average declines experienced by some industrialized countries and growth in a number of East Asian countries, according to the World Intellectual Property Organization. With 45,790 applications, the U.S. filing rate dropped 11.4 percent in 2009, but maintained its top ranking by filing just under a third of all international applications.

Rounding out the top 10 nations are: Japan (+3.6%, 29,827 applications), Germany (-11.2% or 16,736 applications), Republic of Korea (+2.1%, 8,066 applications), China (29.7%, 7,946 applications), France (+1.6%, 7,166 applications), United Kingdom (-3.5% or 5,320 applications), the Netherlands (+3.0% or 4,471 applications), Switzerland (-1.6% or 3,688 applications) and Sweden (-11.3% or 3,667 applications).

Declines also were experienced in the Australia (-7.5%), Canada (-11.7%), Finland (-2.2%), Israel (-17.2%), Italy (-5.8%). More: http://www.wipo.int/pressroom/en/articles/2010/article_0003.html.

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NSF: U.S. R&D Spending Continued to Grow in 2008
Despite the depth of the economic recession, preliminary estimates by the National Science Foundation indicate that U.S. R&D expenditures totaled $397.6 billion in 2008, up from $372.5 billion in 2007. This increase in overall national R&D performance represented growth in 2008 of 6.7 percent over the 2007 level. It also substantially exceeded the pace of growth in U.S. gross domestic product over the same year, which was 3.3 percent. Read more at: http://www.nsf.gov/statistics/infbrief/nsf10312/?WT.mc_id=USNSF_179.

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Obama Administration Announces Plan for Biofuel and Clean Coal
On the heels of his State of the Union announcement that the administration would push aggressively to drive clean energy innovation, President Barack Obama unveiled a three-part action plan to accelerate the development of biofuels and clean coal technology. The plan includes new rules concerning the national renewable fuel standard, incentives for biomass production and the creation of an interagency group to devise a federal strategy on carbon capture and storage. Clean coal and corn-based ethanol are at the center of the president's strategy, which is intended to create new jobs, diversify the country's energy portfolio and reduce dependence on foreign oil.

Among the more contentious of the action items is the Environments Protection Agency's (EPA) final set of rules for the national renewable fuel standard (RFS). The RFS provisions within the 2007 energy bill set a target for 36 billion gallons of renewable fuel to be consumed by 2022, including 21 billion gallons from advanced biofuels. Under the regulations set by the EPA in 2008, however, neither corn-based ethanol nor soy-based biodiesel met the carbon emission limits to qualify as renewable fuels. In fact, the original study found that greenhouse gas emission from ethanol production was equivalent or higher than petroleum production.

After a year of debate, the EPA revised its analysis, reducing the amount of emissions that could be attributed to biofuel production through indirect land use. The EPA now concedes that corn ethanol produced through energy-efficient processes can produce 20 percent less emissions than gasoline, though this would be calculated on a case-by-case basis under the new rules. Pro-ethanol groups continue to object to the use of indirect land use in calculations of emission levels, but the changes have found support within the industry.

The president also announced that USDA's Biomass Crop Assistance program, which began on an interim basis last summer, would become permanent. The program provides financial assistance to producers or entities that deliver eligible biomass material to designated biomass conversion facilities. Though the cost of the program was originally estimated at $70 million over five years, new administration estimates put the cost at $269 million this year and $479 million in FY11.

Finally, a presidential memorandum was issued to establish an Interagency Task Force on Carbon Capture and Storage. This group will have 180 days to release a comprehensive and coordinated federal strategy to speed the development and deployment of clean coal technologies. The plan is intended to help overcome the barriers to clean coal technology adoption within ten years and to bring five to ten commercial demonstration projects online by 2016.

An accompanying report, Growing America's Fuel: An Innovative Approach to Achieving the President's Biofuels Target, provides guidelines for federal agencies that can further support biofuel business and technology. Recommendations include coordinating efforts through the federal Biomass Board, expanding government use of biofuels, assigning lead agencies to oversee the development of industry segments, and targeted support of high-potential biofuel supply chain technologies.

Read the report at: http://www.whitehouse.gov/sites/default/files/rss_viewer/growing_americas_fuels.PDF.

Read President Obama's announcement at: http://www.whitehouse.gov/blog/2010/02/03/moving-america-s-clean-energy-economy-forward-boost-biofuels-clean-coal.

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NSF Director Leaving for Purdue Position

Arden Bement, head of the National Science Foundation since his appointment as acting director in early 2004 and permanent director in November of that year, will become director of the new Global Policy Research Institute at Purdue University, effective June 1. Bement served as director of the National Institute of Standards and Technology from 2001 to 2004.

NSF directorships are Presidential appointments with six-year terms. Bement's term would have expired in November, 2010. The White House has yet to name Bement's successor.

Bement returns to Purdue where he was a nuclear engineering professor and department head and retained tenure at Purdue during his stints in senior science policy posts in Washington, D.C. While at Purdue, Bement was the David A. Ross Distinguished Professor of Nuclear Engineering and former head of Purdue's School of Nuclear Engineering. He also held appointments in the School of Materials Engineering and the School of Electrical and Computer Engineering. He joined the Purdue faculty in 1992 after a 39-year career in industry, government and academia.

Read the announcement at: http://nsf.gov/news/news_summ.jsp?cntn_id=116338&org=OLPA&from=news.

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TBED People and Job Opportunities

Job Corner
The National Institute of Standards and Technology is seeking qualified applicants for the director of the Technology Innovation Program (TIP). The director will serve as the executive responsible for managing and leading this critical program for NIST. The TIP was established as part of the America COMPETES Act (P.L. 110-69) to assist United States businesses and institutions of higher education or other organizations, such as national laboratories and nonprofit research institutions, to support, promote, and accelerate innovation in the United States through high-risk, high-reward research in areas of critical national need. This position is perfect for you if you are ready for a challenge and are committed to making significant improvements in the operations of one of the world's premier research and science organizations.

The University of Dayton Research Institute is seeking an Aerospace Hub of Innovation director who is a motivated person with strong communications skills and development experience. The state of Ohio has recently designated Dayton the first Ohio Hub of Innovation and Opportunity in recognition of the area's strong economic development efforts around aerospace technology companies. The successful candidate will possess the ability to develop or grasp a big picture vision of what is to be accomplished and organize and prioritize activities necessary to achieve the vision.

Read more job postings

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TBED People
Sandy Baruah has been selected to become the president and CEO of the Detroit Regional Chamber, effective March 15.

John Collar, the chief executive officer and president of the Colorado BioScience Association, resigned this week to pursue other business opportunities. Denise Brown has been selected serve as the organization's interim executive director while a search is conducted for Collar's replacement.

Ruth Cox has been named the executive director of the U.S. Fuel Cell Council.

Josh Lerner has been selected as the 2010 recipient of the Global Award for Entrepreneurship Research.

Marc Stanley is retiring as acting deputy director of National Institute of Standards and Technology. Stanley has served as director of the Technology Innovation Program (TIP) at the National Institute of Standards and Technology since December 31, 2007.

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Staff Picks

Google's Eric Schmidt Weighs In on Innovation
With an op-ed in the Washington Post, Google Chairman and CEO Eric Schmidt calls for five things the federal government should do to encourage innovation.  Read more...

USC Vice Provost Pushes for IMPACT
Krisztina Holly, meanwhile, recommended in a CNN Opinion piece that the federal government fund 10 pilot programs at $2 million each to encourage commercialization of university research.  Read more...

Addressing the Dearth of Female Entrepreneurs
Vivek Wadhwa has an interesting piece in Business Week that says there are too few women running high-tech companies, and that's too bad because evidence shows female-led businesses outperform those run by men.  Read more...

China Leading Global Race to Make Clean Energy
The New York Times reports on China jumping last year to become the world's largest maker of wind turbines and is also now the largest manufacturer of solar panels.  Read more...

Clean Energy Jobs Have a Way to Go
Meanwhile, the Los Angeles Times reported on the pace of green job creation in the U.S., indicating stimulus funding saved jobs but questions about federal energy policy are blocking growth.  Read more...

International Partnership Focusing on Photonics for Cleantech
Berlin, Ottawa and Tucson announced last week a multi-city partnership to focus collective photonics research and commercialization resources at opportunities in cleantech, including solar photovoltaics and LED lighting applications.  Read more...

Tracking the Economy
CNN has a cool interactive map of the U.S. where state-by-state differences are shown for unemployment, jobs by industry, foreclosures, and stimulus funds.  Read more...

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