SSTI Digest

A massive state budget deficit, partisan squabbles, and a longstanding need to restructure the state's tax code almost derailed Indiana's largest commitment toward building a technology-based economy. An eleventh-hour compromise in the Indiana General Assembly saved the 21st Century Research and Technology Fund from being eliminated, doubled the state's research and development tax credit to 10 percent, repealed an unpopular apportionment formula in the R&D tax credit, and added a venture capital investment tax credit to the state's portfolio as well. All is not rosy, however. The 21st Century Fund, which supports large-scale research projects at universities and private industry, did take a deep 40 percent cut and will receive only $15 million each year over the biennium. The program also had $50 million in unspent funding rescinded last fiscal year to help balance the state's $1.3 billion budget deficit.

Few private foundations across the country have made a comparable commitment in size or duration toward improving a single state's ability to participate in a knowledge-based economy as the Lilly Foundation has for Indiana. The latest round, reported in this week's online Chronicle of Higher Education, promises a total of $138 million to match donations received by Indiana's accredited colleges and universities. The pledge of $3.5 million to each institution is open to 38 two-year and four-year schools. The Chronicle reports that to be eligible for the matching donation from the Lilly Foundation, schools must commit to using the raised funds only to strengthen academic programs. Thirty schools were signed on at press time and each had received $150,000 grants from Lilly to seed their fund raising efforts. The matching grant challenge is just the most recent effort of the Lilly Foundation to bolster the state's academic and research communities. SSTI's Weekly Digest has reported on several other significant and somewhat unique contributions to Indiana from Lilly: see Digest issues for…

Joseph Hornett has been selected to serve as senior vice president and treasurer of the nonprofit Purdue Research Foundation (PRF). Hornett currently is COO for Sport Service, Inc. in Indianapolis. PRF holds more than 130 properties and 10,000 acres of Indiana farmland near Purdue University, including the Purdue Research Park.

The Indiana Technology Partnership named Jim Wheeler as its new president. A former partner with Andersen LLP, Wheeler takes the position vacated by Tom Miller last fall.

Leaders of Central Indiana's top research, academic and economic development organizations announced on Wednesday an effort to develop the region as a world-class center for the life sciences industry. The Central Indiana Life Sciences Initiative — led by the Central Indiana Corporate Partnership (CICP), the City of Indianapolis, Indiana University, Purdue University and the Indiana Health Industry Forum — will seek to increase the number of jobs, businesses, and research opportunities in the life sciences industry in Central Indiana through four goals: Leverage sufficient investment capital for life sciences projects. Retain and attract a critically skilled life sciences workforce. Strategically market the region as a world-class health and life sciences hub. Develop successful collaborations, including a downtown research community. CICP will head the Initiative with staff support provided by the Mayor's Office and IHIF. Initial funding of nearly $1 million comes from CICP and the City of Indianapolis. The city's contribution of $750,000 was negotiated…

Indiana  The Indiana legislature approved a $50 million appropriation over the next biennium for Indiana's 21st Century Research and Technology Fund. The program supports the development and commercialization of advanced technology. Created in 1999 (see related 9/10/99 Digest story), the fund received $50 million in the 2000-2001 biennium.  Maryland  To help grow new technology and biotech firms, the Maryland Department of Business & Economic Development five years ago modified the rules of a now 30-year old economic development tool originally intended for manufacturers’ equipment acquisition. The program now permits the state to guarantee lease payments for selected tech companies that landlords consider too risky. Six companies have been backed so far and the state is considering more, according to a June 17 Associated Press wire story. The story reports the state is experiencing its first payout under the new rules — a maximum of $1 million over the next year — when an Internet connection provider declared bankruptcy and…

Companies seeking venture capital investments through the Great Midwest Venture Capital Conference have until August 25 to apply for consideration. The conference, this year taking place October 30-31 in Knoxville, Tennessee, annually draws around 200 investors and other financial professionals. The tenth annual event is organized by the Indiana Business Modernization and Technology Corporation and Technology 2020, located in Oak Ridge, Tennessee.  Additional information on the event can be found at: http://www.gmvcc.com 

Purdue University plans to seek $15 million in matching funds from the state to establish and support five technology business incubators or regional technology centers around Indiana. The state also will be asked to provide $6.25 million in funding for administrative support over the first four years of the centers’ operations. The focus for each center would depend on the region of the state and the potential that exists within that region. Purdue's plan calls for each regional technology center to create an advisory committee to establish criteria for use of its services and to evaluate each company's potential for growth and success. Each center would be expected to work in partnership with Purdue during the developmental years of the program. No bill has been introduced yet (the second regular session of the state legislature has adjourned) but a similar recommendation was advanced by the General Assembly's Interim Study Committee on Economic Development Issues. The committee report calls for the state to create and provide start-up costs for five regional technology centers each…

The Indianapolis-based Lilly Foundation is providing nearly $60 million in two grants to help make Indiana more competitive for technology research and education and high-tech business development. The grants were made to Indiana University and the Rose-Hulman Institute of Technology. During the press announcement for the grants, Clay Robbins, Lilly Endowment President, cited the state's low ranking in educational achievement as a motivation for the Foundation’s awards. Indiana ranks 48th in the percentage of adults with a college degree and 50th in the percentage of the work force in professional positions or specialty occupations. The two grants are: A five-year, $29.9 million grant to the Indiana University (IU) Foundation to fund development of the Indiana Pervasive Computing Research (IPCRES) Initiative. Six research laboratories will be created through the grant, three focusing on software technology and three on advanced communication. IU anticipates working with Purdue University on computer security technologies within one of the labs. A $29.7 million grant to the Rose-…

The SSTI Offices will be closed Wednesday, October 6 - Monday, October 11 due to the SSTI conference and in observance of the Columbus Day holiday. Due to SSTI’s 3rd Annual Conference next week, the SSTI Weekly Digest will not be  published on October 8.

Last week, Indiana Governor Frank O'Bannon named the Board of Directors to oversee the design and administration of the new 21st Century Research & Technology Fund. By law, the Lieutenant Governor serves as chairman for the board. Earlier this summer, the Indiana General Assembly approved a budget for the initiative of $50 million for the next two years for the initiative. This level of funding, coupled with the existing programs of the Indiana Business Modernization Technology Corp. (BMT), moves Indiana into the top tier of states investing in technology-based economic development. The 21st Century Research and Technology Fund is to provide grants and loans that support economic development by addressing one or more of the following goals: to increase the capacity of Indiana institutions of higher education, businesses, and nonprofit organizations to compete successfully for federal or private research and development funding; to stimulate the transfer of research and technology into marketable products;…

The State Science and Technology Institute’s (SSTI) third annual conference will focus on how to meet the challenge of the New Economy through science and technology programs. The conference will focus on some of the largest issues facing policy makers and practitioners, including: communicating the importance of science and technology in today’s economy, meeting the demand for a skilled workforce, encouraging the formation of early-stage capital for commercializing locally-developed new technologies in a globally aggressive economy, and understanding the implications and opportunities of e-commerce. The conference program includes the following sessions: Wednesday, October 6 Two optional, concurrent preconference workshops (seating is limited) Industry Clusters: Analysis, Implications and Beyond: The workshop will focus on conducting the analysis to determine a region’s industry clusters, the implications of that analysis, and examples of policy options available once the analysis is completed. S&T Primer: An Introduction…