Governor's $30.5M New Economy Initiative Funded in Delaware

July has been a tech-friendly month for Delaware Gov. Ruth Ann Minner. On July 14, the Biotechnology Industry Organization (BIO) named her "BIO Governor of the Year," recognizing her contributions toward growing the state's biotechnology industry, one of the strongest concentrations in the country. Further attesting to her grasp of biotech issues, Gov. Minner also serves as a co-chair of the National Governors Association Biotechnology Partnership.

More importantly though, the state legislature passed a capital budget in the early morning hours of July 1 that included all of the key components of the governor's New Economy Initiative. Gov. Minner signed the legislation later that same day.

First outlined by the governor in February (see the Feb. 27 issue of the SSTI Weekly Digest), the $30.5 million initiative consists of several different elements to complement and expand the state's existing tech-based economic development portfolio. New appropriations and programs administered through the Delaware Economic Development Office and the Delaware Economic Development Authority include:

• $12.5 million for the Delaware Competitiveness Fund to induce Delaware manufacturers to make capital investments to preserve and expand productivity, competitiveness, and jobs at existing Delaware plant sites facing decline from national and global competition;
• $3 million for a Venture Capital Investment Fund, which will make equity investments in up to three VC funds with portfolios that include Delaware business opportunities;
• $1.5 million for a Technology-based Seed Fund to foster high-wage, fast-growing small businesses in technology fields such as biotechnology, advanced materials, clean energy, information technology and new chemical applications;
• $1.5 million for the state's matching contribution toward a $3 million grant from the National Science Foundation Experimental Program to Stimulate Competitive Research (EPSCoR);
• $1 million for establishment of an Emerging Technology Center to identify and cultivate entrepreneurs whose existing business concepts capitalize on emerging technologies, and link them to an existing network of business expertise, services and investors;
• $800,000 for Clean Energy and Performance Grants to stimulate the manufacture of products that utilize clean energy technologies; and,
• $200,000 in matching fuds for the Clean Energy Partnership with the University of Delaware to build nationally recognized science, engineering, and policy expertise in the research and development of clean energy technologies.

The budget also includes $10 million to recapitalize the state's strategic fund, which is used by the Delaware Economic Development Authority for business recruitment, retention and expansion activities.

The bond bill can be viewed in its entirety through the Delaware State Legislature at: http://www.legis.state.de.us/Legislature.nsf/?Opendatabase