In This Week's Issue
SSTI News and Analysis
Tech Talkin' Govs: Part I
SSTI's Tech Talkin' Govs series has returned for
its 12th annual edition. The series highlights new and
expanded TBED proposals from governors' State of the State, Budget
and Inaugural addresses across the nation. The first installment
includes excerpts from speeches delivered in Georgia, Iowa, New
York, Kentucky, South Dakota, Vermont, and Virginia.
Georgia
Gov. Nathan Deal,
State of the State Address, Jan. 10, 2012
"... I want to announce two ambitious goals.
Georgians deserve a world-class, public medical university, and it
will be a priority of this administration to have a medical college
among the top 50 nationally. ...
"... Also within this push, the Georgia Health
Sciences University will seek to become the
state's second National Cancer Institute
designated Cancer Center ... This designation would mean greater
access to research dollars and enhance our ability to recruit top
cancer specialists.
"... To support this goal of a second
Georgia-based Cancer Center, my budget proposal includes an
investment of $5 million. ...
"... Businesses require a talented workforce
and strong infrastructure, but they also require a business
environment that allows them to compete in
today's global marketplace.
"With that in mind, the Georgia
Competitiveness Initiative pulled together business leaders and
more than 4,000 Georgians across the state to develop a strategy
that would improve our business case. ...
"... First, I am proposing the
elimination of the sales tax on energy used in manufacturing, a
move that will align us with many of our top competitors. This will
have a dramatic impact on manufacturers' overall
cost structure and vastly improve the competitive position of our
producers. ...
"... A third piece, we are proposing to
restructure Georgia's Job Tax Credits and
Quality Jobs Tax Credit programs. ... We will modernize
our job tax credits to better incentivize small business growth and
to help every Georgia community compete with their regional
peers."
Iowa
Gov. Terry Branstad,
Condition of the State Address, Jan. 10, 2012
"... I am today proposing a four point plan of
action — a focused initiative designed to help
create the jobs we need today and the careers we need tomorrow.
...
"... Last year the legislature
directed us to create a replacement for the Grow Iowa Values Fund
and we are proposing a new $25 million annual investment in our
existing High Quality Jobs Program. ...
"In addition, my proposal will be structured
so state investments in the program will decline over time so the
program will be self-funding within 10 years as a direct result of
the jobs it brings to Iowa.
"The third component of my jobs and careers
action plan will encourage those small businesses that supply key
components to our strong manufacturing sector to grow their
facilities and create new jobs in Iowa. ... I will offer
legislation that removes the barriers that discourage suppliers
from bringing their businesses close to their best Iowa
customers."
Kentucky
Gov. Steve Beshear, State of the
Commonweatlh Address, Jan. 4, 2012
"We need a way to encourage a type of private investment called
'angel investing,' in which
individuals help fund new companies. Mid-level entrepreneurs are in
particular need of funding, because many are too small to attract
big venture capital and too large for other forms of start-up
assistance.
"Rep. Arnold Simpson has come forward again with a bill to
create tax credits for individual angel investors similar to those
already offered for investment funds. What this means is that
Kentuckians who invest in Kentucky start-ups to create Kentucky
jobs would receive a credit on their Kentucky income taxes.
"At least 22 states offer a similar credit, and it is time for
Kentucky to add this job-creation program to its toolbox."
New York
Gov. Andrew Cuomo,
State of the State Address, Jan. 4, 2012
"We know from experience that large
investments in growth industries can pay substantial dividends.
Twenty-five years ago, the state began investing in the Albany
area's high-tech industry. ...
We can do it again. We did it in Albany, and we can do it in
Buffalo. ...
"... So, today, I say to national and global
industries: Come to Buffalo. The State of New York is ready to
invest $1 billion in a multi-year package of economic development
incentives. ...
"... Let's
empower the Buffalo Regional Council to develop a viable plan to
create thousands of jobs and to spur at least $5 billion in new
investment and economic activity."
South Dakota
Gov. Dennis Daugaard,
State of the State Address, Jan. 10, 2012
"Today I am proposing an effort
we're calling 'South Dakota
WINS,' short for 'South Dakota
Workforce Initiatives.' South Dakota WINS is a
twenty-point plan, in four categories, to get more South Dakotans
trained and ready to work in a rapidly growing and changing South
Dakota economy.
"The first component of South Dakota WINS
emphasizes math and science education by rewarding math and science
teachers for teaching in this high-demand field.
...
" ... The fourth category of our workforce
initiative involves recruiting workers to South Dakota. South
Dakota WINS when our working population grows by welcoming new
skilled workers and encouraging the return of those who have left.
...
"... Today I am announcing an innovative and
first-of-its-kind relationship to attract a new generation of
skilled pioneers to our state. The 'New South
Dakotans' initiative will partner state
government with South Dakota businesses and with Manpower, the
world's largest workforce recruiter. Together we
will work to identify and place 1,000 professional and skilled
workers from outside of our state into jobs here in South Dakota.
... The program will focus on high-demand jobs in
industries without enough in-state professionals to meet demand.
...
"... I mentioned earlier the importance of
math and science education to our future workforce needs ...
Beginning in the 2013-14 school year, the state will pay every
middle school and high school math or science teacher a bonus of
$3500."
Vermont
Gov. Peter Shumlin, State
of the State Address, Jan. 5, 2012
"In my budget address next week
... I will propose significant state investments in
higher education and dual enrollment, all aimed at making Vermont
students even more competitive and creating opportunities for
employers to recruit the employees they are now seeking.
...
"... This session, I will propose requiring an
affordable and achievable Renewable Energy Portfolio standard that
sets a goal to obtain 75 percent renewable electricity in 20
years."
Virginia
Gov. Bob McDonnell,
State of the Commonwealth Address, Jan. 11, 2012
"This session, I am asking you to put $38
million more into targeted programs that spur job creation.
"I have proposed state incentives and
initiatives for ... technology, modeling and
simulation, cyber security, international marketing, workforce
development, advanced manufacturing, and life sciences.
...
"... I am also proposing a new
investor tax credit to provide working capital to small businesses
which create 70 percent of the new jobs in America, and
the extension of time during which the major business
facility job tax credit may be taken. ...
"... I am asking you to invest over $200
million in new funding for our colleges and universities.
"Additionally, I am proposing a dynamic new
funding model for higher education that ties new general funds to
achieving our statutory goals. Institutions will be rewarded for
increasing the number of degrees, especially in STEM-H fields;
improving graduation rates, and expanding practical research.
...
"... We will also continue to pursue the
development of alternative sources of energy like solar, wind and
biomass, as long as they are cost-competitive for consumers. ...
That is why I have included $500,000 in the FY13 budget for
research and development to accelerate and assist private
development of the Virginia Wind Energy Area."
return to the top of the page
America COMPETES Report Emphasizes Innovative Research,
Education, Infrastructure
U.S. Secretary of Commerce John Bryson recently presented the
key findings of a year-long study into the challenges and
opportunities facing the national innovation economy (full video of
the event is available at the
Center for American Progress
site). Over the past decade, a number of warning signs, such as
declining job creation, poor student preparedness in science and
math and aging infrastructure, have indicated that the U.S. is en
route to a less dominant position in the global economy. The
Department of Commerce (DOC) report focuses on the need for the federal
government to collaborate with the private sector to increase
research spending, improve STEM education and revitalize
manufacturing.
One year ago, Congress reauthorized the America COMPETES Act,
which required DOC to prepare a report on U.S. economic
competitiveness and innovation. A 15-member Innovation Advisory
Board, with representatives from federal agencies, regional groups,
foundations and the private sector, worked throughout 2010 on the
report. COMPETES-related events were held around the country to
solicit input on how the federal government could best support
entrepreneurs and innovative industries.
The resulting report depicts a U.S. economy that has struggled
to compete because its has under-supported the basic necessities
that allow new discoveries to make it to market and that encourage
people to take on the risks of entrepreneurship. Three fundamental
and interconnected elements create the right environment for
innovation, according to the report. Strong federal support for
research and development, a forward-looking education system and a
21st century infrastructure would provide the optimal conditional
for growth.
In addition, federal support to revitalize the manufacturing
sector, along with regional partnerships and collaborations with
the private sector could help build a robust, decentralized
innovation economy. The manufacturing sector has been a key driver
of American innovation, but has experienced a long period of
decline that has hurt U.S. economic competitiveness. By focusing on
the three elements above and continuing existing initiatives, such
as the White House Office of Manufacturing Policy and the Materials
Genome Initiative, the federal government can help restore this key
industry. Also, expanding federal support for regional initiatives
and startups businesses, such as the Startup America Partnership,
could help provide the environment and early assistance needed to
generate competitive new businesses in many parts of the country.
The report provides a number of specific recommendations to
guide federal efforts. Recommendations include:
- Continuing federal support of basic research;
- Enhancing and extending the federal R&D tax credit;
- Accelerating the transition from basic research to commercial
application with initiatives such as proof of concept centers,
competitions similar to the i6 Green Challenges and the Advanced
Manufacturing Partnership;
- Creating new programs to strengthen STEM education and train
STEM teachers;
- Increasing the spectrum for wireless communication;
- Expanding access to valuable datasets;
- Coordinating federal support for manufacturing;
- Supporting efforts to foster regional clusters and
entrepreneurship;
- Promoting U.S. exports; and,
- Reforming the corporate tax and intellectual property
systems.
Read The Competitiveness and Innovative Capacity of the
United States at: http://www.commerce.gov/americacompetes.
return to the top of the page
VA Gov McDonnell Unveils Opportunity to
Learn Education Agenda for 2012
Virginia Gov. Bob McDonnell unveiled his 2012 legislative
and budget actions that support his administration's ongoing
Opportunity to Learn K-12 education agenda. The governor's
proposed budget also includes $438 million in new K-12
funding over the next biennium.
The 2012 Opportunity to Learn agenda includes proposals in
several areas:
- Streamlined diploma requirements — to
consolidate the number of high school diplomas from seven to three
more rigorous and meaningful requirements;
- A more rigorous standard diploma — to
require career and technical education credentials and/or a state
licensure examination, national occupational competency assessment
or the Virginia workplace readiness skills assessment ($308,655 in
funding);
- A dual enrollment agreement — to establish
pathways for students to complete an associate's degree or a
one-year certificate of general studies from the Virginia Community
College system concurrent with a high school diploma; and,
- An Innovative Options Technical Advisory Committee
— to provide guidance to potential applicants
during the planning process for charter schools, college
partnership laboratory schools and virtual school programs
($201,624 in funding).
It also includes funding proposals that will focus on science,
technology, engineering and mathematics (STEM) initiatives:
- Provide $80,000 in funding for the Health Sciences academies to
provide planning and first year startup funding in FY13;
- Fund a request for proposals to develop an elementary education
preK-6 approved program with a major in mathematics, sciences or
integrated sciences and mathematics;
- Fund a request for proposals to develop middle/secondary
approved programs focusing on the preparation of mathematics and
science teachers; and,
- Provide $600,000 in funding for incentive awards for teachers
in STEM areas. Eligible new teacher in a STEM subject area is
eligible to receive a $5,000 incentive award after the completion
of the first year of teaching with a satisfactory performance
evaluation. An additional $1,000 incentive award may be granted for
each year the eligible teacher receives a satisfactory evaluation
(maximum incentive award is $8,000).
Read the press release...
return to the top of the page
ID Gov Announces $5M Industry-University Research Partnership
Gov. Butch Otter unveiled plans for a targeted partnership among
industry, higher education and government that invests in R&D
to produce new technologies — and ultimately
— jobs. The governor is asking lawmakers to
approve $5 million for startup costs in the FY13 budget.
Legislation to be introduced later this session will provide a plan
for reorganizing the Idaho Innovation Council and implementing the
initiative — called IGEM for Idaho Global
Entrepreneurship Mission.
IGEM seeks to increase the state's
knowledge-based economy by investing in strategic areas of research
and developing a world-class talent pool. The program is modeled on
similar initiatives in Utah and Virginia. As part of the IGEM
initiative, the governor recommends $2 million for competitive
state university research funds awarded through the Idaho Higher
Education Research Council. This is envisioned as seed funding for
investing in the development of expertise, products and services
that can be commercialized. Another $2 million (up from $1.6
million in FY12) is included for the Center for Advanced Studies,
which would serve as a partner in the IGEM initiative.
The governor also recommends $950,000 in the Department of
Commerce budget for grant dollars to bridge the funding gap between
technology development and commercialization as part of the new
initiative. Details outlining the structure of the program are
anticipated in the coming weeks. However, the budget proposal
includes $50,000 in operating expenditures and recommends using an
existing position at the Department of Commerce to coordinate IGEM.
FY13 Executive Budget documents are available at: http://dfm.idaho.gov/cdfy2013/publications/eb/eb_index2013.htm.
return to the top of the page
Massachusetts Plan Identifies Action Steps for Economic
Growth
An economic development policy and strategic plan presented to
lawmakers last month identifies several steps for investing in the
innovation community to improve the state's
competitiveness. To create a robust and supportive environment for
new company formation and tech commercialization, the report
recommends increasing by 20 percent annually over the next five
years state funding for capital and incubator and accelerator
programs.
The plan, put forth by Economic Development Planning Council
under Gov. Deval Patrick, is the latest competitiveness report to
promote investments in research, entrepreneurship and science,
technology, engineering and mathematics (STEM) education for
economic growth (see the Oct.
26, 2011 issue of the Digest).
The report identifies five steps with corresponding action items
outlined for each. Steps include advancing education and workforce
development for middle-skill jobs; supporting innovation and
entrepreneurship; supporting regional development through
infrastructure investments; increasing the ease of doing business;
and addressing competitiveness. Action steps to strengthen and
support the innovation community include:
- Establish a consistent pattern of state support for
collaborative R&D among universities and businesses;
- Under the leadership of the Massachusetts Technology
Collaborative, identify three to five emerging areas of global
innovation excellence in the Commonwealth and support
public-private collaborations to accelerate the growth of such
areas; and,
- Increase by 20 percent annually over the next five years state
funding of capital, mentoring and advice, including incubator or
accelerator programs for early stage businesses.
Calling on the state to expand the culture of innovation, the
council recommends identifying locally based accelerators in five
of the state's Gateway Cities (a group of former
industrial Massachusetts mill cities) over the next two years. The
accelerators should be supported through a competitive process.
The council also recognizes that many innovation companies start
in Massachusetts but leave the state as they grow.
Measures to support growth to scale include:
- Increasing by 20 percent annually over the next five years
state funding of capital, mentoring and advice, including shared
facilities for the making and testing of product prototypes, to
support the growth of small and mid-sized businesses; and,
- Raising the profile of advanced manufacturing as an integral
part of the innovation economy by encouraging young people to enter
the sector and by facilitating the adopting of local innovation
into small and mid-sized manufacturing businesses.
The report, Choosing to Compete in the 21st
Century: An Economic Development Policy and Strategic Plan for the
Commonwealth of Massachusetts, is available at: http://www.mass.gov/hed/docs/eohed/economicdevpolicystrategy.pdf.
return to the top of the page
Connecticut Innovations Matches State Funds, Creates New
Programs
Connecticut Innovations (CI), a quasi-public agency supporting
high-tech industries, will match state funds to expand access to
capital programs and launch new initiatives supporting tech
transfer efforts. CI's board this week announced
the deployment of $250 million over five years for activities
including SBIR assistance, establishing three technology
accelerator hubs and recruiting emerging tech companies nationally
and internationally.
Read the press announcement...
return to the top of the page
State Clean Energy Initiatives Need Economic Development
Component, Brookings Reports
In order to build thriving clean energy industries, state clean
energy funds should devote a significant portion of their funding
to economic development, according to a new report from the
Brookings Institute. While most funds focus on clean energy project
installation, additional state funding for R&D, early stage
capital, entrepreneurial support and other activities are important
elements in an effective cleantech strategy. Read the report...
return to the top of the page
RIAN Webinar Series
The Strategic Role of Accelerators in Regional
Innovation
Join SSTI Jan 17 at 2:00 PM EST for the second of the free RIAN
webinar series. This session will examine one of the hottest trends
in tech entrepreneur support: the short-term, rapid-start
accelerator model. Hot trends risk becoming fads though, and
there is a "me-too" phenomenon leading to the creation and launch
of dozens of private and nonprofit accelerators around the country
without perhaps as much market analysis and design as could be
considered appropriate. So should you help create an accelerator in
your region? How can communities best benefit from the private
accelerators already being launched?
The majority of accelerators are private initiatives, yet one of
the oldest and most successful is the nonprofit AlphaLabs. In
continuous operation since 2007, AlphaLabs has become an integral,
award-winning element of the Innovation Works strategy to support
venture development in Pittsburgh and Southwestern
Pennsylvania. We are fortunate for the webinar to be joined by
two of the minds behind AlphaLabs sustained success to help ensure
other areas also get it right from the start:
- Rich Lunak, CEO of Innovation Works,
- Jim Jen, Director of AlphaLabs.
We'll use this hour-long session to explore the strategic value
of accelerators in a regional innovation strategy before getting
into some of the structural issues and requirements. We'll also
discuss how TBED initiatives can build effective partnerships with
private accelerators in their communities. Ample time will provided
for questions from the participants.
Registration space for this unique opportunity will be limited.
To sign up for the session and the following Jan 24 webinar
addressing the potential role of the EB-5 program in regional
innovation strategies, please see the Events page on the RIAN website at regionalinnovation.org.
return to the top of the page
TBED People and Job Opportunities
TBED People and Orgs
Renee Winsky has resigned as the CEO of the Tech Council of Maryland.
Winsky has headed the technology trade group since September 2009.
Larry Letow, chairman of the council, will serve as CEO on
an interim basis.
Tom Ballard has retired as director of partnerships at
Oak Ridge National Laboratory and accepted the position of director
of Innovation and Entrepreneurial Initiatives at
Pershing Yoakley and Associates.
Mark Lytle has been selected to become the division
director of the Georgia
Centers of Innovation. Most recently, Lytle was director of the
Georgia Department of Economic Development's
foreign direct investment team. He succeeds Sidney Elliott,
who served as interim director of COI before retiring at the end of
last year.
Gov. Phil Bryant has tapped businessman and philanthropist
Jim Barksdale as interim director of the Mississippi Development
Authority. The governor said he expects the interim term to last 90
to 120 days.
Gov. Jay Nixon has named Jason Hall as the new director
of the Missouri Department of Economic
Development. Hall is currently the executive director of the
Missouri Technology Corporation. He succeeds David Kerr.
Nebraska Gov. Dave Heineman has appointed Catherine Lang
to serve as director of the Department of Economic Development. She
will continue to serve as the Commissioner of the Department of
Labor.
Carl Schramm, the president and CEO of the Kauffman Foundation, is stepping
down from the organization. Kauffman trustee Benno Schmidt
has been appointed the interim president.
return to the top of the page
Job Corner
South Dakota State University is searching
for new leadership in technology transfer to further advance
research, innovation, and expanding collaborations. The
director of technology
transfer will report to the vice president for research. The
university is classified as a Carnegie RU/H: Research University
(high research activity) and is the home of the
state's only academic research park, the SDSU
Innovation Campus.
Read more job postings
return to the top of the page
Staff Picks
CAP: Fed R&D Tax Credit Should Be Expanded and Made
Permanent
A new report from the Center for American Progress examines the
history and impact of the federal R&D tax credit and makes
recommendations for its future.
Read more...
NCSL Names Top Legislative Issues of 2012
Not surprisingly, federal deficit reduction and the effect on
state budgets, jobs and state economies, and education funding and
compliance will top states' agendas.
Read more...
S&P Predicts Austerity for State Budgets
Even as many economic indicators are pointing to recovery,
austerity and continued reforms in state finances are here to stay,
according to a Standard & Poor's report.
Read more...
Nominations Sought for Tibbetts Awards and SBIR Hall of
Fame
Small businesses and individuals can apply for the awards
representing the best in the SBIR/STTR programs by Jan. 31.
Read more...
Emerging Biotech Clusters Challenging Established
Regions
An article from GEN highlights how six emerging biotech clusters
are working to attract life sciences talent from the more
established regions.
Read more...
Nearly Half of High School Students Aren't
Prepared for a Job
With an estimated 40 percent of high school students having not
completed college prep or career track programs, the ideal high
school curriculum would incorporate the best of both tracks:
academic rigor and cutting-edge career preparation.
Read more...
return to the top of the page
