SSTI Digest

In the midst of a national economic recession contributing to a record number of job losses in traditional industries, forward thinking states are exploring ideas and committing funds to help grow and diversify their economies and strengthen their renewable energy portfolios.

Over the past several months, governors, legislators and economic development groups have announced new initiatives aimed at job growth and energy independence in the new economy. The following overview provides a sampling of green energy initiatives and investments from numerous proposals and announcements across the nation.

One of the biggest challenges for green technologies and products is breaking into the market. Achieving the critical mass that allows production volume to drive down prices is difficult, particularly when the commodity being sold is, at least initially, more expensive to make because more of the actual cost of production is captured in the green company's business model.

Successful state, university and local TBED strategies to grow green(er) companies help fund product demonstrations and early adoption strategies to help with market penetration.  In Toronto, a broad group of CEOs took matters into their own hands. 

Legislators in New York rejected Gov. David Paterson's proposal to consolidate the state's primary organization for supporting and enhancing technology-based economic development into the state's traditional economic development organization (see the Dec. 17, 2008 issue of the Digest). Leaving NYSTAR as a stand-alone entity, the lead TBED agency for New York will continue to administer successful investment, business assistance, and research programs that have helped to create high-wage jobs for nearly a decade.

Gov. Paterson signed the FY10 Transportation, Economic Development and Environmental Conservation Budget last week, providing $42.2 million of new appropriations for the New York Foundation for Science, Technology and Innovation (NYSTAR). This is a $6.2 million decrease from FY09. The figure does not include reappropriation carryovers from previous years.

As companies across the nation continue to announce massive layoffs during the economic recession, states, localities and private foundations are encouraging entrepreneurial training and providing support services to help create new jobs and assist struggling businesses.

Last month, the Kauffman Foundation announced an intensive effort to quickly train entrepreneurs and bolster the nation's economy. The $1 million FastTrac LaunchPad program is a combination of two existing initiatives - the FastTrac NewVenture and FastTrac GrowthVenture - offered in shorter lengths than the normal ten-week courses. The Kauffman Foundation points to U.S. Census Bureau Business Dynamic Statistics data, which indicates that while business startups decline slightly in most of the cyclical downturns, startups remain robust even in the most severe recession over the sample period (in the early 1980s).

Pennsylvania Gov.

SSTI's ninth annual Tech Talkin' Govs series highlights new and expanded TBED proposals from governors' state of the state, budget and inaugural addresses. The first installment of the series includes excerpts from New York and North Dakota.

New York
Gov. David Paterson, State-of-the-State Address, Jan. 7, 2009
"We should also understand that our current Empire Zone program does not work and we need to reform it. ....  That's why we set an aggressive target to have Empire Zone participants produce 20 dollars of benefits for every dollar of state money. With the savings generated by reforming Empire Zones, we will make strategic investments in the job-creating industries of tomorrow, such as biotechnology and manufacturing, and we will offer R&D tax credits to foster innovation. .