In This Week's Issue
SSTI News and Analysis
Senate Approves Patent Overhaul
This week, the U.S. Senate passed the Leahy-Smith America Invest
Act, representing a major overhaul of the U.S. patent system. The
legislation would make a number of changes to the current patent
regime, including the shift to a
"first-to-file" system. Under this
system, the right to a patent would be granted to the first party
to file a patent application for the protection of their invention.
In addition, the legislation would adjust the fee structure for the
evaluation process and create a new fee category for low-income
applicants. The House of Representatives passed the bill in June.
President Obama is expected to sign it on Friday, September 16.
The switch to a first-to-file system will bring the U.S. in line
with most national patent systems around the world. The current
first-to-invent system, allows a second patent applicant to begin
interference proceedings against the first patent applicant if they
believe that they can demonstrate that they conceived of the
invention first, and diligently worked to apply the invention in
practice. Supporters of the reform say that the first-to-file
regime will bring more clarity to the patent system and reduce the
burdensome expenses of patent challenges.
Opponents note that the first-to-file system could put smaller
businesses and inventors at a disadvantage. Completing and filing
patent applications is time-consuming and expensive. While
inventors at larger companies often have access to intellectual
property legal resources, the costs could hinder the development of
startups. A New York Times article also notes that the new
system could create a rush to file new patent applications, further
slowing the evaluation process.
In order to overcome any delays, the legislation allows the U.S.
patent office (USPTO) to create a reserve account for revenues
generated from application fees beyond the amount already
appropriated to USPTO in the U.S. budget. These reserves may be
used for new projects, though the office will need Congressional
approval to do so.
Most of the changes included in the legislation would take some
time before they go into effect. The first-to-file provisions would
go into effect 18 months after enactment. Several of the provisions
regarding fees, however, would be valid in the near future. Ten
days after enactment, patent applicants would begin paying a 15
percent surcharge on USPTO filing fees. Applicants also would be
able to pay an additional $4,800 for prioritized evaluation.
Immediately following enactment, some applicants with sufficiently
low income and fewer than four previous applications will be able
to file as "micro entities." The
applicants would be eligible for a 75 percent reduction in patent
fees. The current 50 percent fee reduction for
"small entities" would remain in
effect.
Read the legislation...
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Join us at COSI for the Opening Reception Celebrating
SSTI's 15th Annual Conference
This year's opening reception will be unlike
any other. COSI is designed to enlighten, entertain, and amaze you.
Attendees will experience science, technology and innovation at
work through more than 300 interactive exhibitions and more than
100,000 square feet of exhibit space, including the country's only
high-wire unicycle. One of the newest exhibits is the Labs in Life,
a state-of-the-art laboratory where researchers from The Ohio State
University conduct studies on physical activity, nutrition, and
body composition using cutting-edge equipment.
As if experiencing COSI's dynamic hands-on
science center isn't enough, this festive event
provides a wonderful pre-conference opportunity to reconnect with
colleagues and to network with conference attendees, speakers and
our local hosts overdrinks and Hors
d'oeuvres.
The reception is sponsored by TechColumbus and many local
sponsors who are supporting technology-based economic development in the state
and region.
The opening reception is Monday, Nov. 7 at 6:30
PM. Don't forget to register for
the conference—spaces are filling up fast. Register today at: http://www.ssticonference.org.
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White House and SBA Release Startup America
"Progress Reports"
The White House released a "progress
report" for Startup America—a
White House and interagency initiative
to "celebrate, inspire and accelerate high-growth
entrepreneurship throughout the nation." The report
looks at public and private sector commitments in several key areas
that will improve the environment for high-growth entrepreneurship.
The report also provides status updates for current and future
Startup America related initiatives.
According to the report, the Obama administration already has
made several commitments and intends to make several more in five
key areas:
- Expanding access to capital for entrepreneurs;
- Connecting mentors and entrepreneurs;
- Reducing barriers and making government work for
entrepreneurs;
- Accelerating innovation from lab to market; and,
- Unleashing Market Opportunities.
The report provides specific examples and status updates of
ongoing federals efforts (e.g., SBA's $1 billion
Impact Investment Funds, the National Science
Foundation's Innovation Corps, Economic
Development Administration's
"i6 Green" Challenge for Regional
Innovation) in each of the five areas. Future initiatives that are
intended for launch in 2012 highlighted include:
- SBA's $1 billion Early Stage Innovation
Funds;
- U.S. Patent & Trademark Office's
Enhanced Examination Timing Control Initiative;
- The Treasury Department's $5 billion in
Tax Credits for Private Investment in Lower-Income Communities;
and,
- Elimination of the Capital Gains Tax on Certain Small Business
Stock.
The report also highlights several private sector commitments
made by entrepreneurship and private sector leaders from across the
country intended to educate the next generation of entrepreneurs,
connect more entrepreneurs with mentors, foster more collaborations
between startups and large companies and accelerate research
breakthroughs from the lab to the marketplace. Similar to the
section on public sector efforts, the report provides descriptions
of private sector efforts in five key areas:
- Growing Entrepreneurial Ecosystems for the Long Run;
- Inspiring the Next Generation of Entrepreneurs;
- Connecting Mentors and Entrepreneurs;
- Connecting Corporations and Entrepreneurs; and,
- Accelerating Innovation.
Notable organizations and entrepreneurs involved in private
sector efforts include Jumpstart Inc., American Association of
Community Colleges, the Network for Teaching Entrepreneurship, the
TechStars Network, AOL, Intel, Marc Ecko, IBM and Facebook. Read
the report...
The Small Business Administration (SBA) also released a report
that summarizes ideas expressed by participants during the eight
"Startup America: Reducing Barriers"
roundtable events and from an online suggestion portal. After
hearing from "over 1,000 entrepreneurs,
investors, and other participants across the entrepreneurial
ecosystem in eight communities," five key theme areas
emerged:
- People—identifying, hiring, retaining and
developing a strong entrepreneurial workforce in America;
- Money—fostering an environment
in which promising U.S. startups and high-growth firms can access
the kinds of capital they need;
- Ideas—transforming more of
America's discoveries and breakthroughs into
commercial success ;
- Customers—ensuring that
America's small firms can compete for customers,
including U.S. Government contracts and export business; and,
- "Lean" Government
— making the U.S. Government itself
more customer-centric and nimble in serving our own entrepreneurs
and high-growth firm.
Under each category, the report provides frequently cited
barriers and potential solution ideas presented by participants. In
total, the report provides a subset of over 200 distinct ideas to
overcome barriers in the five theme areas. The SBA contends that
the findings of this report will help guide what the government
does to catalyze entrepreneurship and how the government carries
out the Startup America's programs.
Read the
report...
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Two Reports Identify Barriers to U.S. Competitiveness
Last week, the World Economic Forum released its annual
Global Competitiveness Report, and once again, the U.S. fell
in the rankings one more position to fifth place, representing a
four-year decline from fourth place in 2010-11, second place in
2009-2010 and first place in 2008-2009. Switzerland held the number
one spot for the second year in a row. The report indicates that
while many structural features continue to make the U.S. economy
extremely productive, a number of escalating weaknesses, such as
distrust of politicians, concerns regarding the federal debt, and a
lack of macroeconomic stability, have lowered the ranking.
This year's report points to a seemingly
growing trend in the global economy. Emerging markets in Asia experiencing relatively strong
growth and attracting capital are contrasted with decelerating
growth of advanced economies such as the U.S., Japan, and many
European countries.
For the purpose of the report, competitiveness is defined by an
index of 12 pillars measured by statistical data such as enrollment
rates, government debt, budget deficit, and life expectancy. This
year's top 10 countries are Switzerland (1), Singapore
(2), Sweden (3), Finland (4), United States (5), Germany (6),
the Netherlands (7), Denmark (8), Japan (9), and United Kingdom
(10).
Within the top 10, Singapore moved one place to second position,
maintaining the lead among Asian economies, pushing Sweden to third
place. Finland moved up three places, Denmark and The Netherlands
both moved up one position, and the United Kingdom moved up two
spots, placing in the top 10 for the first time since 2007.
Countries that fell from their previous positions other than the
U.S. include Germany and Japan. The Global Competitiveness Report
2011-2012 is available at: http://www3.weforum.org/docs/WEF_GCR_Report_2011-12.pdf.
At the same time, a report from the nonprofit institute Center
for Public Policy Innovation is the latest to unveil
findings on how the U.S. can improve its competiveness. Over the
past several years, economic development groups and think tanks
have promoted similar recommendations on the subject, typically
focused on the areas of developing a highly skilled workforce,
dedicating more federal funds to R&D, and encouraging
entrepreneurship. These themes resonate in
CPPI's report, Restoring U.S.
Competitiveness: Navigating a Path Forward through Innovation and
Entrepreneurship.
The report is divided among four main topics: Barriers to
Entrepreneurship, the Workforce of Tomorrow, Government-Funded
Research, and Corporate Tax Reform. Some of the highlights
include:
- Developing new models for technology transfer, such as moving
to a free agency model, where entrepreneurial professors would be
allowed to choose their own licensing agents from anywhere in the
world;
- Strengthening education in science, technology, engineering and
mathematics, especially at the K-12 level, and eliminating barriers
to skilled immigration;
- Instituting a stronger, permanent R&D tax credit; and,
- Allowing carried interest tax rates for venture capitalists to
remain at the current rate to ensure seed and early stage
investments remain available for innovative small businesses.
CPPI's report is available at:
http://www.cppionline.org/images/CPPI%20SPECIAL%20REPORT_09062011.pdf.
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Despite Economic Troubles, Public Remains Committed to
Manufacturing Sector
Most American (86 percent of survey respondents) believe
manufacturing is "either important"
or "very important" to our national
economy, according to a new survey from the Manufacturing Institute
and Deloitte. Topped only by the energy industry, manufacturing
finished as the second most important industry to the national
economy. Manufacturing also was the preferred industry for regional
job creation through the establishment of a new manufacturing
facility—ahead of energy production facilities,
technology development centers, retail centers, banks or other
financial institutions, and a host of other facility types.
The report also found that Americans believe the U.S manufacturing
sector has several competitive advantages upon which to build
including:
- The availability and use of technology;
- Domestic R&D capabilities;
- A skilled and productive workforce; and,
- Domestic natural resources and infrastructure.
Americans, however, do not show significant confidence in the
sector's long-term health.
Fifty-five percent of respondents believe that manufacturing will
weaken over the longer term. According to the report, the perceived
lack of three factors (i.e., a competitiveness strategy, business
policies and overall leadership) drag down the otherwise positive
views of and strong support for manufacturing in this country.
Respondents also believe that high healthcare costs, high energy
costs, and a domestic education system in need of reform are
challenges that must be addressed to create a more competitive
manufacturing sector.
To resolve the factors weakening the manufacturing industry,
Americans contend that policymakers must adopt stronger policies to
support domestic manufactures. However, they are divided on the
right approach. Many respondents believe that tax policy is an
important tool to enhance U.S. manufacturing
competitiveness with 69 percent of respondents
"agree" or
"strongly agree" that tax cuts for
businesses and individuals create jobs and 65 percent of
respondents "agree" or
"strongly agree" that tax
incentives for manufacturing in the U.S. enhances competitiveness.
The report was written using survey data from 1,000 people from
across the country. Read the report...
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Federal Initiative Will Expand Broadband
Collaboration
The Office of Science and Technology Policy (OSTP) and the
National Science Foundation (NSF) have announced a new initiative
to develop new technologies and applications for high-speed
broadband networks. The agencies have posted a request for white
papers for the initiative, dubbed US Ignite, to identify potential
companies, nonprofits, agencies and individuals that can provide
resources and infrastructure to facilitate collaboration.
Participating organizations will help develop next-generation
applications for high-speed networks that cannot yet run on
today's Internet infrastructure. Read the
announcement...
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TBED People and Job Opportunities
Job Corner
The five-campus University of Massachusetts System is
seeking a dynamic and entrepreneurial professional to become the
associate vice president
for economic development to help develop the
university's role in generating innovation and
talent to support the Innovation Economy of
Massachusetts. The position will report to the vice
president for economic development and be housed at the
president's office in Boston, MA.
Read more job postings
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TBED People
Jill Kline has been named the State director of the
Wyoming Small Business
Development Center.
Daniel Hasler has been named the Indiana Secretary of Commerce, effective
Sept. 16. He will replace Mitch Roob who is leaving the post
to accept a position in the private sector.
The National Governors Association named David
Moore as the director of its NGA Center for Best
Practices.
Phillip Halstead has been named executive director and
CEO of the
West Virginia Regional Technology
Park Corporation.
James Watson has been appointed as the president and CEO
of CMTC (California
Manufacturing Technology Consulting).
Steven Ceulemans is joining the Birmingham Business
Alliance as vice president of Innovation and
Technology.
Read more job postings
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Staff Picks
Resources for Manufacturing Firms Highlighted in NIST
Presentation
View a presentation
from NIST's Chief Manufacturing Officer for an
overview of the president's Advanced
Manufacturing Partnership with details on federal resources and
opportunities for public-private partnerships.
Manufacturers Pledge More Internships
Nearly 50 businesses nationwide have pledged to increase the
amount of internships available to train students in STEM fields.
Read more ...
U.S. Investors "Eager" to put
their Money in China
Innovation Works, a seed stage investment firm has closed $180
million from U.S. angels, executives and venture capital firms
— its latest fund focused exclusively on the
Chinese internet.
Read more ...
Advanced Technology Products Exported from U.S. Fared Better
in Recession
This NSF InfoBrief compares the 2008-09
recession and the 2001 recession using Census data to examine
changes in exports of advanced technology products. Findings
indicate these products declined less than other U.S. exports in
2009.
Read more ...
10 Solar Energy Tech Advancements to Look For
Nanotechnology powered dye sensitive solar cells, reflective
dishes and gravel batteries are on the
list.
Study Finds Downward Mobility among Middle Class
Aside from the current economic climate, education level,
marital status and race are factors in economic stability among
those growing up middle-class and now falling below that status.
Read more ...
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