In This Week's Issue
SSTI News and Analysis
Tech Talkin' Govs, Part V
The fifth installment of SSTI's Tech Talkin' Govs series
includes excerpts from speeches delivered in Maryland, Montana,
Oklahoma, Texas, and Utah. The first four installments are
available in the Jan. 5,
Jan.
12, Jan. 19 and
Jan.
26 issues of the Digest.
Maryland
Gov. Martin O'Malley, State of
the State Address, Feb. 3, 2011
"To create more jobs, we must leverage the
power of our diversity... we must leverage the
power of our geography... And we must harness the
potential of Maryland's Innovation Economy:
bio-tech, green-tech, clean-tech, cyber security, information
technology, aerospace, global trade, and next generation
manufacturing. ...
"... Through InvestMaryland, you and I have
the opportunity to unlock $100 million in venture capital. Why does
this matter? Because seed and early stage money have all but dried
up in the national recession. Passing this legislation can be the
difference between running ahead or running in place.
...
"... I need your support for the Maryland
Offshore Wind Energy Act, not only to create more renewable energy
in Maryland, not only to reduce greenhouse gas emissions from
Maryland, but to jumpstart the creation of thousands of green
manufacturing, assembly and servicing jobs on the shores and waters
of Maryland."
Montana
Gov. Brian Schweitzer, State of the
State Address, Jan. 26, 2011
"Montana must invest our income today from
coal, oil and gas and the energy technologies of the future.
... Montana can lead in breaking our addiction to
foreign oil, with our coal and oil and wind and gas and
hydroelectricity. Let's build an energy system
that's cleaner and greener,
that's designed in Montana, by Montana engineers
and built by Montana labor. Engineers and skilled labor that are
trained at Montana's universities and through
our apprenticeship programs.
"My proposed budget provides enough money to
cap tuition for every college student in Montana going to a Montana
college or university for the next two years.... Our university
system is the incubator of innovation. Innovators trained in
Montana will create the jobs of tomorrow in
Montana."
Oklahoma
Gov. Mary Fallin,
State of the State Address, Feb. 7, 2011
"And on the subject of tax credits, I know a
lot has been said. Representative Dank and Senator Mazzei are
conducting a study to investigate which credits are effective and
create jobs, and which do not. I'm looking
forward to the results of that study, and our course of action will
be simple: only tax credits that create jobs will stay. For
instance, my budget begins the process of restoring the Aerospace
Engineer Tax Credit, which brings good, high tech jobs to
Oklahoma."
Texas
Gov. Rick Perry, State of the State
Address, Feb. 8, 2011
"As the nation struggles to recover from the
ongoing economic crisis, and states go head-to-head for new jobs,
now is not the time for Texas to roll up our tents and go home.
Instead, it's time to keep attracting good Texas jobs by funding
our premiere economic development tools like the Enterprise Fund,
and the Emerging Technology Fund. ...
"... Let's expand our STEM
academies, those innovative schools that teach young Texans the
science, technology, engineering and math skills they need, to
compete for high tech jobs and college scholarships.
...
"... As families continue to
struggle with the cost of higher education, I am renewing my call
for a four-year tuition freeze, locking in tuition rates at or
below the freshman level for four years. ... Today,
I'm challenging our institutions of higher education to develop
bachelor's degrees that cost no more than $10,000, including
textbooks."
Utah
Gov. Gary Herbert,
State of the State Address, Jan. 26, 2011
"Last year at the State of the State, I
announced the creation of my Education Excellence Commission. ...
The vision of this plan is that by the year 2020, 66% of Utahns,
ages 20 to 64 will have a postsecondary degree or professional
certification. ...
"... This extraordinary goal of 66% by 2020 is
indeed ambitious - and it will not be accomplished overnight. But
we must be bold and we must begin now. ...
"... That is why this action
plan also includes eight specific proposals, the initial steps
recommended unanimously by the Commission members, proposals that I
ask you to address this session. These initiatives include ensuring
reading proficiency by the third grade, and matching classroom
instruction to real-world jobs-especially in the areas of science,
engineering and math. ...
"... To accelerate this job creation across
the state, we must focus on three key areas: First, we must
increase access to capital, for our small and start up
businesses. We must ensure that the Utah Fund of Funds,
created by the Legislature three years ago, is focused on assisting
Utah companies."
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White House Seeks Input on Innovation Strategy
Following last week's announcement of the Startup America
initiative, the National Economic Council, the Council of Economic
Advisors and the Office of Science and Technology Policy have
released the details of its innovation strategy. The strategy
emphasizes the private sector's essential role in building
next-generation companies, with the government serving as an
"innovation facilitator." It includes recommendations on how the
federal government can invest in the necessary building blocks for
research and entrepreneurship, promote market-based innovation and
catalyze strategic industries. SSTI will examine these
recommendations in greater detail in next week's federal budget
issue. The Department of Commerce (DOC) has released a request for
information (RFI) regarding the measures that could achieve its innovation goals. The announcement includes ten questions to help guide the
discussion. DOC also will accept electronic
versions of reports, articles and analysis. Comments must be
submitted by April 1, 2011.
Read
the strategy ...
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NY Governor Wants to Create Regional Councils, Consolidate
NYSTAR
Gov. Andrew Cuomo announced plans to direct $200 million in
existing funds to establish 10 regional economic development
councils to allocate funds and provide business assistance programs
across the state. At the same time, the governor would consolidate
programs supporting high-tech companies currently administered by
the New York State Foundation for Science, Technology and
Innovation (NYSTAR) with the Empire State Development Corporation
(ESDC) — a move he says will eliminate
duplicative functions and save the state $1.9 million in the coming
year.
A majority of the funds slated for the councils ($130.6 million)
would come from reprioritizing and redirecting existing economic
development funds for competitively determined project grants,
according to budget documents. The councils, made up of state
government, business, community, and academic leaders, would
compete for the funds based on economic development plans. Another
$70 million would be provided in tax credits through the enhanced
Excelsior Jobs Program.
The FY12 executive budget recommends $310.8 million for ESDC,
which includes funding for programs currently administered by
NYSTAR. The High Technology Program would receive $35.9 million for
its university-based matching grant programs, including the
state's six Centers of Excellence, and other
high technology and R&D programs. Level funding is recommended
for the Research Development Program ($343,000) and the Regional Technology Development Center ($3.8 million).
NYSTAR received $68.2 million in FY11, which included $29.5
million in additional funds for Innovation Economy Matching Grants
(see the June
30, 2010 issue of the Digest). Under the new economic
development plan, NYSTAR grants would be subject to
"review by the regional councils to ensure
consistency with regional plans," according to the
governor's briefing as reported in
Crain's New York Business. NYSTAR is one
of 11 state agencies slated for consolidation in the budget, which
also calls for agencies to reduce spending by 10 percent in order
to address a $10 billion deficit. Budget documents are available
at:
http://publications.budget.state.ny.us/eBudget1112/ExecutiveBudget.html.
The governor's proposal is on trend with a
handful of other states exploring regional approaches to economic
development, including Colorado and Michigan. Last month, Colorado
Gov. John Hickenlooper issued an
executive order implementing a statewide economic development
strategy to identify the needs, strengths, weaknesses, and
priorities of each county. The assessments will be incorporated
into 64 economic development plans tailored to each county, which
then will be combined into 14 regional plans. The
Governor's Office of Economic Development and
International Trade is tasked with organizing regional meetings and
presenting a plan to the governor.
In Michigan, plans to distribute
"significant" funding to the
state's 15 regional economic development groups,
called SmartZones, were announced by Michael Finney, CEO of the
Michigan Economic Development Corporation. SmartZones are located
throughout the state and incorporate technology business
accelerators that provide services to help facilitate technology
commercialization from university and private industry research.
Details on the funding distribution have yet to be announced.
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TX Governor's Budget Adds $15M for Tech Fund,
Retains Enterprise Fund
Citing the need to ensure a competitive edge in the weak
economic climate, Texas Gov. Rick Perry is asking lawmakers to
continue investing in the state's economic
development tools by providing an additional $15 million for the
Texas Emerging Technology Fund (ETF) and retaining funding for the
Texas Enterprise Fund in the coming biennium. The governor also is
proposing $50 million for science, technology, engineering and
mathematics (STEM) scholarships and $32 million to increase STEM
academies.
Gov. Perry is seeking $219.2 million for his priorities and
initiatives over the next two years, which includes the additional
funds for the ETF and STEM incentives as well as $20 million for
the Film and Video Game Incentive program and $11.3 million for
Economic Development & Tourism. House and Senate committee
budget recommendations unveiled last month would provide $21.3
million for the ETF in unexpended balances not obligated in the
current biennium, but add no new funding. The
governor's budget would add an additional $15
million to foster emerging technologies, enhance
university-industry collaboration, and promote technology
commercialization.
The estimated balance for the ETF in the current biennium is
$137.4 million in all funds. Budget documents note the proposed
decrease in funding to $21.3 million reflects the elimination of general revenue
appropriations transferred to the fund and elimination of one-time
federal fund reimbursements. A recent article in the Austin
American-Statesman reported that the technology fund would
"burn through" through its $21
million balance in a matter of weeks without additional money.
The governor supports the House recommendation for the Texas
Enterprise Fund, which retains about $151 million in unexpended
balances for deal-closing incentives. The Senate version would
divert $50 million out of the fund with most of the money slated
for workforce initiatives.
To help attract and retain graduates in STEM fields, the
governor proposes $50 million in surplus funds from Texas
Guaranteed for the T-STEM Challenge Scholarship program. The
scholarships provide competitive awards to regional partnerships
between higher education institutions, school districts and local
employers. Texas Guaranteed is a public, nonprofit corporation
created by the legislature to administer loan applications and
provide resources for higher education access. Private industry
would be required to match the $50 million appropriation. The
budget includes another $32 million to increase the number of
T-STEM academies by 2014.
During his State of the State address, Gov. Perry challenged
colleges and universities to offer bachelor degrees for a total
cost of $10,000, including books and proposed a four-year college
tuition freeze, essentially locking in the price a student pays
during freshman year.
Texas is facing a budget shortfall ranging from $15 billion to
$27 billion, according to media reports. To address the shortfall,
the governor proposes cutting nearly $5 billion in general revenue
funding from public and higher education and $2 billion from health
and human services, reports the Associated Press.
Gov. Perry's 2012-13 budget recommendations
are available at: http://governor.state.tx.us/files/press-office/Governor-Budget-2012-13.pdf.
The House and Senate recommendations are available at: http://www.lbb.state.tx.us/.
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Vermont Governor Unveils Plan to Boost High-Tech Jobs
Vermont Gov. Pete Shumlin has released a jobs package that
includes a number of initiatives that could enhance the state's
innovation economy. The jobs bill calls for a new creative economy
office that would focus on technology efforts, a mentoring program
for entrepreneurs, a statewide internship program, and a tax credit
for companies that hire STEM graduates. Gov. Shumlin also has
renewed his predecessor's pledge to extend full wireless voice and
data coverage across the state.
The governor, announcing the jobs bill last week, said that the
legislation is intended to help stimulate every sector of Vermont's
economy. Accordingly, most of the bill's provisions benefit the
state's agriculture and food industries. Several initiatives,
however, specifically target manufacturing, high-tech businesses
and entrepreneurship.
The bill includes a tax credit for companies that employ recent
graduates in science, technology, engineering and math fields.
Vermont employers of qualified grads would be able to claim 50
percent of expenditures (up to $5,000 per year per new hire) toward
relieving the student's debt. The graduate would be eligible to
receive a $5,000 income tax credit each year for five years.
A new R&D tax credit would provide a credit
equal to 30 percent of the federal tax credit allowed in the
taxable year.
The package would leverage federal programs to increase the
availability of capital for small businesses. The Vermont Sustainable Jobs Fund, which
provides grants, technical assistance and loans to promote
sustainably-produced goods and services, would apply for Community
Development Fund Institution (CDFI) designation, making it eligible
for $2 million from the U.S. Treasury program. This funding would
be used to capitalize the Flexible
Capital Fund, a program that provides technical assistance and
mezzanine debt to early and growth-stage businesses. The governor
hopes to educate the state's regional development corporations
about the federal New Market Tax Credit programs and attract
private investment in underserved areas. The bill also calls for
the expansion of the state's EB5 Visa program to attract foreign
capital in exchange for permanent residency.
Other provisions include a new Creative Economy Office, which
would focus on technology and other portions of the creative
economy, a new corps of mentors to advise younger entrepreneurs and
an internship program that connects high school and college
students to Vermont employers.
Read the
governor's announcement ...
Gov. Shumlin also recently rekindled former Gov. Jim Douglas'
effort to provide border-to-border wireless data and voice
services. Initially, Gov. Douglas set the goal of full service
by the end of 2010. Gov. Shumlin revised that timeline to the end
of 2013, pledging to spend $13 million on the necessary
infrastructure. The state would also leverage funds from the
federal stimulus and state revenue bonds.
Read more at:
http://www.vermontbiz.com/news/january/shumlin-announces-karen-marshall-lead-connect-vt-effort.
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FCC Plans to Use Fees to Expand Broadband Access
A revamped version of the $8 billion Universal Service Fund
(USF) could be used to expand broadband access in underserved
areas. On Tuesday, the Federal Communications Commission (FCC)
proposed a plan to redirect the portion of the USF that provides
incentives to extend phone service to high-cost areas to instead
support high-speed data networks. A new program, the Connect
America Fund, would consolidate several USF programs, eliminate
some of the programs' inefficiencies and increase the availability
of affordable broadband service. The proposal is the latest step in
a series of changes planned by the FCC to implement its National
Broadband Plan.
FCC Chairman Julius Genachowski quoted House leaders from both
parties who have characterized the USF as "broken" and
"unsustainable." Though once necessary to connect rural residents
to essential communications services, the USF has become wasteful
and inefficient, even as contribution rates have increased. The
USF's contribution factor has more than doubled since 2003, from
7.3 percent to 15.5 percent, according to the New York
Times. In some cases, telephone service has been subsidized
in areas where several providers were already competing or where
federal costs totaled more than $20,000 per year.
Under the new plan, the FCC will begin consolidating programs
within the USF that provide rural telephone access and close
loopholes in Intercarrier Compensation rules. Savings from those
cuts would be shifted to the Connect America Fund, which would
support the rollout of broadband services and competition in
underserved areas. "At the end of this transition," said Mr.
Genachowski, "we would no longer subsidize telephone networks;
instead we would support broadband."
Restructuring the USF is part of the FCC's ongoing effort to
implement the National Broadband Plan introduced last year. The
plan calls using the USF to expand the availability of high-speed
data access and improving the fee collections process. The
commission also has proposed a
Mobility Fund that would increase access to 3G wireless access
in rural areas.
Read the announcement at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-304522A1.pdf.
FCC officials also have begun seeking comments on how to reform
its data collection on broadband and telephone services. A new
Notice of Proposed Rulemaking (NPRM) has been issued to find out
what changes are needed to ensure that the commission's methods
keep pace with market changes and to streamline data collection.
Under the current regulations, broadband providers are required to
report the number of subscribers in each census tract they serve,
while local and mobile telephone providers provide details at the
state level. The
National Broadband Plan calls for more detailed data on
subscribership, actual availability, penetration, performance,
prices, churn, and bundles, as well as a publicly-available map of
service levels. This data is used by the commission to determine
eligibility for programs, including those associated with the
USF.
Read more at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-304518A1.pdf.
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New SBA Program Will Increase Availability of Small Loans for Small
Businesses
Starting in the spring, a new Small Business Association (SBA)
loan program — the Community Advantage loan
program— will increase the availability of loans
(up to $250,000) to: 1) small businesses, 2) firms that are less than
two-years old or 3) those owned by veterans. The program specifically will
target businesses in low- to moderate-income
communities. Currently, small businesses face difficulty receiving
loans of this size due to perceived risk involved
(historically high default rates). Nonprofit institutions and banks that participate in the
SBA's Preferred Lender Program will be the
providers of these SBA guaranteed loans. To incentivize lenders,
loans will guarantee up to 85 percent. SBA will accept applications
from interested lending institutions starting March 15. Read about
the program ...
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New Report Outlines Strategy to "Expand the
Pool of Potential High-Tech Immigrant
Entrepreneurs"
Sixteen percent of all high-impact, high-tech companies
include at least one immigrant, according to a new
report by the Center for Technology Innovation at Brookings. They
survey and consequent case studies found significant trends among
immigrant entrepreneurs in the high-tech field. Respondents were
found to be heavily rooted in the U.S. — 77
percent of them have become American citizens and almost 75 percent
have lived in the U.S. for more than 15 years. In comparison to their
domestic peers, immigrant entrepreneurs have much higher
educational achievement (almost twice as likely to hold a doctoral
degree). These individuals have a similar amount of work experience
to their successful domestic counterparts (roughly 10 years). Finally, the number of immigrant entrepreneurs is
roughly equal to the total immigrant population (13
percent). However, since 1990 the number of immigrants
with a bachelors degree or above in a STEM related field has
increased significantly.
The authors contend that their findings point towards the
necessity to "expand the pool of potential
high-impact, high-tech immigrant entrepreneur."
Immigrant entrepreneurs, they contend, will not
"crowd out" native-born
entrepreneurs. In contrast, case studies indicated that
foreign-born entrepreneurs were more likely "to
team up with outsiders" (e.g., female and U.S.
minorities). If correct, the increase of immigrant entrepreneurs
should create a positive effect on long-term on
America's economic prosperity. The three policy
precriptions include:
- Clear the employment-based green card backlog: This
could include raising the global total of employment-based green
cards or developing a criteria based upon country of origin and the
potential for high-impact entrepreneurship and other high-growth
economic activities.
- Ease the pathway from student visa to work visa to green
card: Upon completion of their degree, immigrants on student
visas would have a limited time to find employment in the country.
Those that achieve employment would be placed on a
"fast track" to receive their green
card.
- Create a "point system" for a
limited number of unsponsored green card applications: This
policy would develop a point system that uses three selection
factors (educational attainment, employment experience and language
proficiency) and two social variables (knowledge of civics and
family relationships) to grant unsponsored green cards to
individuals that have the potential to become high-impact
entrepreneurs.
Read the
report ...
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TBED People and Job Opportunities
Job Corner
With support from the Greater Cleveland Partnership,
NorTech (the Northeast Ohio Technology Coalition) is
accepting applications for the two positions below:
- The Energy Enterprise
Senior Consultant, reporting to the vice president and
director, Energy Enterprise, is a key member of the NorTech Energy
Enterprise team. NorTech Energy Enterprise is leading a
collaborative regional effort to drive growth across all sectors in
advanced energy and develop a thriving advanced energy industry
cluster in which public, private and academic partners create and
grow new technologies.
- The FlexMatters
Senior Consultant is a key member of the NorTech FlexMatters
team. NorTech FlexMatters is the regional innovation cluster
emerging around the flexible electronics industry in Northeast
Ohio. Flexible electronics is a new science and manufacturing
opportunity for printing electronic devices on flexible plastic
materials.
Read more job postings
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Staff Picks
New York Times: Energy Firms Aided by U.S. Find
Backers
Energy firms receiving initial investment by the U.S. government
are attracting private sector follow-on funding, reports the New
York Times. An endorsement of sorts, especially as the Obama
administration presses for more investment in clean energy
technologies.
Read more ...
Science Funding Declines as Federal Government Calls for
"Sputnik Moments"
In this article, Steven Cohen discusses how the decline in U.S.
funding for science and research is a threat to our long-term
economic growth. He points to nations like China and Korea, which
are increasing investments by about 10 percent a year. Meanwhile, U.S. science funding declined in FY11 by 1.4 percent in
constant dollars from FY10.
Read more ...
WIPO: International Patent Filings Recover in 2010
International patent filings under WIPO's Patent Cooperation
Treaty increased in 2010, with strong growth from China, the
Republic of Korea, and Japan, offsetting a mixed performance in
European countries and a continued decline in the United States.
Read more ...
Migration of Young Adults Shifted During Economic
Downturn
This
article examines a recent study by Brookings demographer
William Frey and finds that before the economic crisis, most young
college grads were migrating to places like Phoenix, Las Vegas, and
California's Inland Empire. Now, the migration trend is moving
toward larger cities, college towns, creative economy metros, and
even some older Rustbelt metros.
Wages for Technology Workers Remains Flat
Perhaps one reason young adults aren't
flocking to traditional high-tech regions in large numbers is
stifled pay. While demand for tech jobs remains high, salaries
aren't increasing, according to a recent survey.
U.S. technology workers saw their wages rise by only1 percent in
2010, about the same increase reported the year before.
Read more ...
Tech Sector Credited for Thriving Metro Area Growth
Locally based technology firms and entrepreneurs are just one of
the reasons the Washington Tri-Cities metro area has continued to
prosper during the recession. A study documents the significant
impact technology companies and workers are having on the local
economy.
Read more ...
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