SSTI Digest

As the state budgeting process comes to a close, SSTI will report over the coming weeks on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Indiana, which includes new funding for an institute focused on health and life-sciences research and commercialization, and Maryland, which includes funding for the Maryland Technology Development Corporation. Indiana Appropriations bills approved by the Indiana legislature and signed by Gov. Eric Holcomb include funding for technology-based economic development initiatives:  The Indiana Biosciences Research Institute, a new public-private partnership focused on health and life-sciences research and commercialization, will receive $20 million in new funding in FY 2018; The Indiana 21st Century Research and Technology Fund, which provides funding to support R&D and technology commercialization, will receive $30 million in both FY 2017 and FY 2018, a 2.0 percent increase from FY 2016 levels. The Indiana Economic Development Corporation will receive $15 million in…

Traditional economic development efforts at the state level are undergoing increasing scrutiny as budgets are being constrained. Two new studies show a shift in focus away from traditional approaches of tax incentives and reliance on major employers, to broader strategies relying more on the private sector and human capital. A report released by the Delaware Economic Development Working Group recommends shifting many of the core responsibilities of the Delaware Economic Development Office (DEDO) to a new nonprofit. And a report focused on Indiana details the decline in footloose jobs in the state despite local government investments in business attraction, indicating a reevaluation of public policy is needed, the authors contend. Delaware Gov. John Carney created a 14-member working group as his first official act in office in January. The final report from the group, Rethinking Economic Development in Delaware, argues that the state can no longer count on past economic engines like heavy manufacturing to produce jobs. Instead, economic development efforts require a “reset” and should capitalize on new growth sectors like financial technology, health care and…

The Midwest and the Greater Philadelphia region have found pathways to build strong life sciences industries and create environments that provide the necessary risk capital for healthcare startups. These life sciences clusters are driven by leading healthcare companies, high quality health systems, and top notch research institutions as well as strong entrepreneurial support ecosystems. The region’s startup ecosystem saw 375 life startups attract over $1.7 billion in investments in 2016, according to the Midwest Healthcare Growth Capital Report from BioEnterprise, a Cleveland-based biomedical accelerator.  Indiana – home to several global healthcare corporations – has benefited greatly from its more than $63 billion life sciences industry. In 2016, the state’s life sciences cluster employed more than 56,000 people at 1,687 companies, according to the most recent data provided to BioCrossroads by the Indiana Business Research Center at Indiana University. The average wage for the life sciences sector was $98,934 per worker – up from $ 96,803 in 2014 (2.2 percent increase). The state’s life sciences industry…

SSTI’s latest Tech Talkin’ Govs installment excerpts TBED highlights from governors’ speeches in Alaska, Indiana, Michigan, New Mexico, Nevada and Rhode Island. Education and workforce are focal points in this latest round of the state of the state addresses, as they have been in the two previous posts. Varying issues are factored into the speeches, from the $3 billion fiscal gap in Alaska to the proposed free college tuition in Rhode Island. Alaska Gov. Bill Walker, facing a $3 billion fiscal gap, delivered his third state of the state address to the State Legislature on Jan. 18 in Juneau: “Here is the hard truth. Denial doesn't make the problem go away. Hope doesn't pay the bills. We need to pass a plan to stabilize our fiscal future. And we need it now. “We must do a better job of preparing our youth for the challenges of the future. To meet this challenge, we need to rethink our entire system of public education. Alaskans must be at the heart of this effort. “We have already begun. Through an active public outreach process, the State Board of Education has identified five priorities for Alaska…

SSTI has analyzed more recently released state budgets for TBED-related initiatives, and this week we present findings from our review of AZ, GA, IA, IN, UT and VA.    Arizona Arizona Gov. Doug Ducey’s proposed $9.8 billion FY 2018 budget would support R&D infrastructure at the state’s three public universities (University of Arizona, Arizona State University, and Northern Arizona University) through the newly-announced University Capital Investment Program. This program would enable universities to use the transaction privilege tax revenues that they generate for as much as $1 billion in bonding for new research and development infrastructure, including deferred maintenance projects. Education is a major emphasis of the governor’s proposed budget, and while the majority of funds go toward teachers and schools more broadly, Ducey also proposes $5 million in new investments to help connect rural schools to high-speed internet, as well as $200,000 to support a new statewide computer science and coding initiative. The Arizona Commerce Authority (ACA), the state’s main economic development arm, would receive $54,969,…

SSTI again presents its latest round of Tech Talkin’ Govs, where governors’ comments about TBED issues are excerpted from their state of the state and inaugural addresses. Today’s roundup includes STEM spending and workforce development in Idaho, education in Arizona, manufacturing in Connecticut and a nod to technological change in North Dakota, inaugural addresses from new governors in Vermont and Indiana, and more reports from governors who gave their addresses on the 10th. Next week the Digest will continue with Part II of Tech Talkin’ Govs featuring news from the next round of addresses. Vermont During the first week of January Gov. Phil Scott gave his inaugural address focusing on the state’s shrinking workforce and its implications to a joint session of the Vermont legislature. “From 2000 to 2010 the number of 25-45 year olds in Vermont decreased by 30,000… This is compounded by our shrinking workforce. Since 2010, we’ve lost 16,000 workers… and that downward trend continues. … But we literally cannot afford to ignore this issue anymore. We must have a laser-focus on attracting…

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18. As of this publication, there are seven new governors taking office: ·         Democratic Congressman John Carney won the seat in Delaware. ·         Republican Lt. Gov. Eric Holcomb won in Indiana. ·         Republican and former Navy Seal Eric Greitens won in Missouri. ·         Republican Chris Sununu won in New Hampshire. ·         Republican…

Over the last few weeks, Indiana and Michigan have announced the launch of manufacturing-focused innovation centers to help transform manufacturing sectors that are long-standing drivers of economic prosperity in their respective state into 21st century global hubs for manufacturing innovation. In partnership with key local industry partners, these centers are intended to help spur job creation while reimaging the role of manufacturing in their state through innovation. Purdue University in Indiana and its public/private-sector partners want to capitalize on the strength of the state’s composites manufacturing sector by launching a new manufacturing innovation institute focused on the advanced manufacturing of composite materials. In Michigan, automakers have partnered with the state and other groups to support the future of transportation through two automotive-focused innovation centers. Located at the Purdue Research Park of West Lafayette, Purdue University opened the 62,000-square-foot, $50 million Indiana Manufacturing Institute on July 27, which will house several manufacturing-focused labs to support Purdue researchers and graduate students as they…

Indiana Gov. Mike Pence announced plans to invest $1 billion over the next 10 years to advance innovation and entrepreneurship in the state, and to ensure the Hoosier State plays a leading role in solving 21st century challenges, while supporting Indiana’s long-term economic growth, job creation and talent attraction. The 10-year proposal centers on and seeks to enhance the collaborative partnerships between government, education and research institutions, as well as communities in the private sector, while focusing on further advancing Indiana’s current economic momentum and innovation activities. The proposal includes: requesting the Indiana Public Retirement System invest $500 million in in early stage and mid-market Indiana companies; $300 million for 21Fund, which directs investments and grants into early stage, mid-market and high-growth companies; $100 million for transferability of the Venture Capital Investment tax credit to increase the accessibility of private sector funding for innovators and startup companies; and, $100 million to further advance innovation and entrepreneurship education, programs and practice through strategic partnerships with higher…

To drive state competitiveness and job creation, Indiana and Mississippi announced new efforts to engage regional institutions of higher education and other organizations to provide workers with the skills that match the needs of existing industry as well as attract new business and industry to their state. Through the Indiana Department of Workforce Development (DWD), the state will commit $22 million to fund industry-led regional partnerships aimed at aligning education and workforce needs. Mississippi Gov. Phil Bryant announced the creation of a new workforce training fund to allow state leaders to allocate dollars toward workforce training with a focus on recruiting new business to the state.  Indiana Over the last two months, the state announced the winners of the first round of Skill UP Indiana! and is now accepting applications for the second round of the program. Via these two rounds of funding, the state will commit up to $22 million to encourage the development of sector-focused training and education programs for in-demand occupations as well as teach necessary workforce skills and competencies as identified by local employers. In the first…

The Indiana Biosciences Research Institute (IBRI), first unveiled in May 2013, is a statewide public-private partnership advanced by BioCrossroads that considers itself the first industry-led collaborative life sciences research institute in the country. Late last month, the institute announced two new grants totaling $100 million that would support scientific innovation addressing metabolic disease and poor nutrition.  Of the $100 million in grants announced by IBRI, $80 million would come from the Lilly Endowment, with $45 million granted unconditionally and the remaining $35 million subject to dollar-for-dollar matching, encouraging contributions from the broader life sciences community. The Eli Lilly and Company Foundation contributed $20 million, which qualifies for the endowment’s match. An additional $15 million remains to be matched. This announcement comes just one month after the appointment of metabolic disease research scientist Raghu Mirmira as the first Indiana Research Fellow and interim Scientific Director for the Institute. IBRI’s research focus on diabetes, metabolic disease, and poor nutrition is directly related to the…

The Indianapolis-based Lilly Endowment announced three grants totaling $42 million to boost regional development efforts in 11 counties located in Southwest-Central Indiana with a focus on research and development, workforce and education, and efforts to enhance quality of life. The recently formed Regional Opportunity Initiatives will receive $25.9 million to implement an education and workforce plan as well as a regional opportunity fund for quality-of-place investments. The Lilly Endowment awarded $16 million to the Central Indiana Corporate Partnership Foundation to establish an Applied Research Institute near the Naval Surface Warfare Center, Crane Division. To address societal challenges faced by rural communities, Indiana University Foundation will receive $126,000. In December, Gov. Mike Pence and the Indiana Economic Development Corporation Board of Directors approved up to $126 million state matching funds to support the implementation of regional development plans in North Central, Northeast and Southwest Indiana through the Indiana Regional Cities Initiative. Each of the eligible regions will receive up to $42 million in matching funds to advance talent attraction…