SSTI Digest

Although the national venture capital investment continues to expand, many parts of the country still lack access to reliable sources of business capital. Even in states that rank in the top tier for venture investment, there are often insufficient capital resources to support businesses at every stage of development. In order to support entrepreneurs and to attract more attention from the industry, an increasing number of cities, regional organizations, community and technical colleges, and other groups are creating their own capital programs. These programs frequently focus on providing funding at the pre-seed and start-up stages of business development when it is difficult to attract funding.   Northeast Ohio

Coinciding with a plethora of state-of-the-state addresses delivered over the past week, several governors have released budget recommendations for the upcoming fiscal year. The following states’ budgets include crucial TBED investments and reductions in programs. California Upon declaring a fiscal emergency and calling a special legislative session to address the current-year budget deficit of $3.3 billion, Gov. Arnold Schwarzenegger unveiled his fiscal year 2008-09 budget recommendation to lawmakers alongside the proposed budget stabilization plan aimed at reducing the deficit. The proposal calls for 10 percent reductions to nearly all general fund departments and programs, boards, commissions and elected officials, with limited exceptions.

SSTI’s eighth annual Tech Talkin’ Govs series highlights new and expanded TBED proposals from governors’ state-of-the-state, budget and inaugural addresses. With mounting budget deficits spanning the nation, this year’s anticipated overarching theme is proposals aimed at mending states’ finances with less focus on the introduction of new initiatives. The first installment of the series includes excerpts from California and New York.   California Gov. Arnold Schwarzenegger, State-of-the-State Address, Jan. 8, 2007 “California leads the nation in biotechnology ... nanotechnology ... medical technology ... information technology. And we will soon be recognized as the leader in clean technology.   “Worldwide, clean-tech investments are up by 50 percent in the first nine months alone last year… so I have asked myself, what must we do in this chamber to help fulfill this future? ...  

Gov. Arnold Schwarzenegger has selected Brian McGowan to replace Yoland Benson as deputy secretary for economic development in California's Business, Transportation and Housing Agency. McGowan, San Bernardino County's economic development administrator, will start his new position in January. Gov. Schwarzenegger also has appointed Teresa Takai as the state's first Cabinet-level chief information officer.

Christopher Hansen will succeed William Archey as AeA's next president and CEO. Hansen will start on Nov. 15, overlapping with Archey until February 2008 to ensure a smooth transition.

Dr. Daryush Ila was chosen to serve as executive director of the Alabama EPSCoR Steering Committee. Ila heads the Alabama A&M University Research Institute.

Last year, nearly 17 million international passengers passed through Los Angeles International Airport (LAX). Many of those passengers were businesspeople who rely on convenient access to international flights to keep their companies in touch with partners, customers, divisions and markets all over the world. International flights out of LAX have played a key role in positioning the Los Angeles region as the largest manufacturing center in the U.S. and as a national high-tech leader. In fact, a recent report from the Los Angeles Economic Development Corporation (LAEDC) estimates that an average daily transoceanic flight out of LAX sustains 3,120 direct and indirect jobs, generates $156 million in wages, and adds $623 million to the region's economic output.  

California California lawmakers reached a budget agreement last week, preserving brief funding for an initiative aimed at supporting high-tech research and innovation. Gov. Arnold Schwarzenegger unveiled the $95 million Research and Innovation Initiative in January to provide funding to several university-based projects focused on clean energy, biotechnology and nanotechnology research and commercialization (see the Jan. 8, 2007 issue of the Digest).  

Richard Murphy was named interim president of the California Institute of Regenerative Medicine (CIRM). Arlene Chiu announced she will resign as interim chief scientific officer of CIRM, effective Oct. 31.

Victor Hwang, the immediate past president of Larta Institute, has co-founded T2 Venture Capital.

William Archey, CEO of AeA, announced he will retire in 2008.

J.D. Stack replaces Oleg Kaganovich as the new CEO of the Sacramento Area Regional Technology Alliance.