SSTI Digest

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, research capacity, capital & tax credits, workforce & STEM and manufacturing & clusters. State legislators in many parts of the country took action this year to fund the construction of research infrastructure and provide financial support for commercialization. In Kansas, New York, Georgia, Maine and Wyoming, legislators funded the construction of laboratories and other innovative spaces at public universities to boost the high-tech economy. In Colorado, Maryland and a number of universities, new initiatives were rolled out to support public-private research collaborations and the commercialization of cutting-edge technology. Building the infrastructure for researchKansas’ Wichita State University received $2 million in funding for the Innovation Campus at Wichita State earlier this year. The launch of the campus is the first step in the university’s long-term plan to construct a five-building campus dedicated to the commercialization of university…

This is part two of a two-part series on the effects of policy dynamics on university innovation and focuses on state polices in three Southern U.S. states; part one focused on national policies from OECD nations. Starting in the 1970s, U.S states have independently pursued initiatives in research and development (R&D) and science and technology (S&T) polices with the intent of supporting innovation and economic development. These polices are intended to allow U.S. states compete in the increasingly global, knowledge-based market. Similar to many of the early national strategies covered in part one, the early state policies focused on the science-push-model. In many cases, these policies fostered zero-sum games between states that might not necessarily benefit national economic growth and competitiveness. In comparison, the European Union recently announced initiatives that support research collaborations between research institutions located in different member nations. However in the 1990s, state policies started to shift toward targeting publically funded researcher universities as the drivers of state innovation and economic growth. To achieve this,…

State leaders often cite publicly supported innovation infrastructure as investments in jobs of the future. When targeted and executed smartly, such investments can spur job growth over the long-term and help advance technology commercialization. Lawmakers in Georgia and Kansas recently passed budgets that include funding to support high-tech research facilities and similar measures are pending in several other states. The University of Georgia (UGA) is slated to receive nearly $45 million for a Science Learning Center and, in Kansas, the legislature approved $2 million for creation of a new Innovation Campus aimed at attracting technology jobs. UGA’s Science Learning Center is a 122,500-square-foot facility that will replace current science buildings and increase lab space for students. Construction is expected to start this summer and be completed by 2016. Another $5 million will help equip a new cancer research building at Georgia Regents University in Augusta. Georgia’s FY15 budget also increased funding for scholarship programs to train students for in-demand fields (see related Digest article). The Innovation Campus at Wichita State is…

Aligning industry needs with workforce training has gained renewed focus in states and emerged as a national priority. This week, President Obama announced two grant programs totaling $600 million in existing funds that challenge academic institutions and businesses to design job training for the globalized economy and set industry-recognized standards. The grant programs fall into two categories. The first challenge is part of the Trade Adjustment Assistance and Community College and Career Training competitive grant program that supports community colleges in preparing dislocated workers. Under the new initiative, the Department of Labor invites applications for training programs that respond to employer demand and create pathways from entry-level positions to more advanced positions. Funding for the $500 million competition is prioritized toward partnerships that include industry associations that help in designing the program and implementing industry-recognized credentials. The second competition provides $100 million in existing H-1B funds to expand apprenticeship opportunities across the country. The new program, to be launched this fall, will focus on…

Investments and policy to support innovation-focused agendas have flourished with the close of the 2014 legislative sessions in several states. Crowdfunding legislation, incentives for attracting talent, higher education affordability, punishing patent trolls, and encouraging greater accountability are some of the areas where lawmakers focused their efforts. States Support Crowdfunding LawsTwo states passed legislation to amend state securities laws in order to allow entrepreneurs to raise capital through crowdfunding platforms. Maine passed LD 1512 last month (see related Digest article) and more recently, a measure (HB 2023) was passed in Washington that enables businesses to raise up to $1 million through crowdfunding websites. The law stipulates that contributions must come from residents and businesses in the state. At least five other states have passed similar laws, and a related bill is making its way through the Alabama legislature. Enhancing Incentives for Job CreationNebraska lawmakers passed LB 1114, a measure that extends for another five years the Business Innovation Act, a program that offers technical assistance and R&D grants to…

The National Institute for Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) program recently awarded $2.5 million for five pilot projects to improve small U.S. manufacturers' supply chain competitiveness and foster their readiness to adopt advanced technologies. The projects will be led by MEP centers and bring together teams of experts in specific technology areas. MEP centers in California, Georgia, Oregon, Texas and Wisconsin each will receive approximately $500,000 for the pilot efforts, which, in most cases, involve partners in other states. Read the announcement…

Having world-class facilities to train workers or support research in fields most likely to benefit the state is a draw for many reasons. Attracting outside investment, retaining talent and generating buzz are just a few of the benefits. Last year, Connecticut lawmakers dedicated more than $2 billion to expand science and technology education on the campuses of the University of Connecticut, including construction of new STEM facilities and for build research and teaching labs. Michigan Gov. Rick Snyder is the latest state leader to announce funding proposals aimed at either building new facilities or making capital improvements for training students in high-wage, high-demand fields. Following years of cuts to higher education during the recession, many states are poised to dedicate significant funds for scholarship programs, tuition freezes and for training more students in STEM fields – a common theme during the State of the State addresses. Supporting the notion that a college degree is worth the cost, a recent analysis from the Pew Research Center found the widest earnings gap for college graduates in 48 years. The report, The Rising Cost of Not Going to…

Robbie Melton has been named the executive director and CEO of the High Technology Development Corporation. Gov. Bobby Jindal has appointed Louisiana Tech University president Les Guice to chair the Louisiana Innovation Council. Brian Cummings, formerly Ohio State University’s vice president of technology commercialization, has joined Alta Ventures as the Midwest representative. KP Reddy, community catalyst at ATDC, has been named interim general manager. Previously, Michael Hersh held the position of general manager. The Michigan State University Foundation has named David Washburn, president and CEO of the University of Tennessee Research Foundation, as its executive director. Gov. Rick Snyder created the Michigan Office for New Americans and named Bing Goei as its director. The office is tasked with attracting and retaining highly skilled immigrants. In New Hampshire NH-ICC and the abi Innovation Hub have merged and will be known as the abi HUB. The new entity will promote innovation, commercialization and acceleration.

Several common themes surrounding higher education have emerged as governors across the country unveil investment priorities for the upcoming fiscal year or biennium. In many states, governors have proposed more funding to increase affordability by freezing tuition or creating new scholarship funds. Support for expanding research capacity, technology-related infrastructure and job training in high-demand industries are some of the proposed measures aimed at competitiveness.   College Affordability Governors in several states are requesting additional funds for higher education in exchange for holding tuition steady. The FY15 budget outlined by Georgia Gov. Nathan Deal proposes new funding streams to encourage more students to attend technical schools. For example, $5 million in new lottery funds would provide additional financial assistance above what is covered by the state’s HOPE scholarship for students pursuing in-demand certificates or training programs. A new Zell Miller grant also would be established to provide full tuition for students in technical schools who maintain a 3.5 grade point average, and the state’s traditional HOPE…

The second installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Alabama, Arizona, Georgia, Iowa, Kansas, Rhode Island, South Dakota, Vermont and Virginia. The first installment is available here. Alabama Gov. Robert Bentley, State of the State Address, Jan. 14, 2014 “We must create greater opportunity for Alabamians to acquire the skills needed for higher-paying jobs. Companies are looking for and jobs are waiting for skilled workers. ... “... We will present legislation creating a Statewide Workforce Council of business and industry leaders who will advise educators and colleges on the workforce needs on the types of jobs needed in each region. “We will expand the number of Career Coaches. We will expand Dual Enrollment Programs, so that students may attend high school and a 2-year college at the same time. ... Once implemented, this program will improve high school graduation rates and increase the number of higher-skilled workers.” Arizona Gov. Jan Brewer, State of the State Address, Jan. 13, 2014 "This year I am calling on the legislature…

Crowdfunding was poised to make a major splash on startup financing in 2013, aided by the passage of the 2012 JOBS Act, a projected explosion in the number of crowdfunding portals and the adoption of state crowdfunding exemptions. However, the crowdfunding industry did not have the anticipated gamechanging impact on startup financing, mostly due to the Securities and Exchange Commission’s (SEC) cautious approach to the adoption of the crowdfunding rules mandated by the JOBS ACT. The SEC eased into the crowdfunding era by allowing for the general solicitation by businesses to raise equity from accredited investors via secure web-based portals. Finally, late in 2013 the SEC released proposed rules that would allow for equity crowdfunding from unaccredited investors sometime in 2014. States Push Ahead with Intrastate Crowdfunding ExemptionsWhile the SEC carefully developed its rules and regulations, states developed their own intrastate crowdfunding exemptions focused specifically on increasing the availability of  and retaining startup capital in their communities. On December 31, Michigan Gov. Rick Snyder signed into law Public Act 264 that will allow…

Georgia Tech has launched a crowdfunding resource for university-based students and faculty. Originally announced in the spring, Georgia Tech joins several other universities that are using crowdfunding to finance commercialization and the development of startups based on university research. The field has become common and relevant enough that an online community has started tracking this growth. Georgia Tech’s new crowdfunding site, Georgia Tech Starter, launched last week will allow science and engineering researchers an alternative source of funding in a time of restricted government grants. Unlike other crowdfunding services, online investors in the research will not receive any tangible rewards, although they may receive a tax deduction. In addition, the university will provide project review, administration and facility upkeep, which makes the fee paid to Georgia Tech significantly higher at 35 percent than other crowdfunding sites. Currently, only members of the Georgia Tech community can utilize Georgia Tech Starter, although this may expand in the future. Georgia Tech is not the first university to embark on an experiment in hosting and utilizing a…