SSTI Digest

Michigan’s University Research Corridor, an alliance of Michigan State University, the University of Michigan and Wayne State University, conducted $1.2 billion in academic R&D in the life, medical and health sciences, and served as a stabilizing force to the state’s economy as one of the only sectors that grew during the 2000s. Those are among the findings of the 2017 URC sector report, which was prepared by Public Sector Consultants. The report, Leading Discovery: URC Contributions to the Life, Medical and Health Sciences, notes that employment in the life, medical and health sciences sector, which accounts for one in eight jobs in Michigan, is up 18.9 percent since 2000, compared to overall Michigan employment, which is down 9.3 percent.

The URC also was successful in moving discoveries out of the lab and into the marketplace. From 2012 to 2016, the following results relating to the life, medical and health sciences sector were found:

After training nearly 80 PhD scientists and engineers in the craft of policy making, the California Council on Science and Technology (CCST) has awarded planning grants to nine other states to evaluate the potential to create a policy fellowship for scientists and engineers in their state capital.  The new one-year grant, which is administered by CCST and funded by the Gordon and Betty Moore Foundation and the Simons Foundation, will support teams in Alaska, Colorado, Connecticut, Idaho, Massachusetts, Michigan, New Jersey, North Carolina, and Washington as they work on feasibility studies and other strategic steps toward creating science fellowships in their state policy arenas. It is up to each state to design the fellowship that would work best in their state, whether that is a position in the legislature or another body.

In the latest round of state budget proposals, TBED initiatives receive mixed reviews. Some governors are boosting funding while others in cash-strapped states are proposing cuts.

Alabama

Gov. Robert Bentley’s FY 2018 budget would boost spending on education, provide government workers a cost of living adjusted raise, and remove the sales tax on groceries. Notable for technology-based economic development is $2.9 million for the Alabama Innovation Fund in FY 2018, an increase of 20.1 percent from FY 2017. The fund operates two programs: a renewal program, which helps support university high technology infrastructure, and a research program, which allocates funding for commercialization and university-industry partnerships.   Additionally, the Alabama Technology Network would receive $4.9 million in FY 2018, the same as it received in the previous fiscal year.

Connecticut

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.

The U.S. Department of Commerce’s Economic Development Administration (EDA) announced a number of grants last week to aid regional innovation and entrepreneurship efforts through infrastructure improvements, the creation of new spaces, and business improvements in regions across the country. The grants fund projects in AR, AZ, CA, ME, MI, and OH.

San Pedro, CA – A $3 million grant to AltaSea business hub will fund infrastructure improvements at City Dock No. 1 at the Port of Los Angeles, which will aid in the development of new ocean-related technologies. The hub will provide access to the deep-ocean and research space to study ocean-related problems. It is expected to create 220 jobs and attract $120 million in private investment over a six-year period.

Phoenix, AZ – A warehouse in Phoenix will get new life as a makerspace through a $3 million grant to the Maricopa County Community College District and Gateway Community. The space will be used by students and individuals to access the tools and equipment needed to generate ideas and develop products.

As the water crisis in Flint, MI, continues to capture headlines, details on potential relief efforts are beginning to emerge. In January, President Obama granted $5 million in emergency funding to address the crisis, while the state has approved $67 million in funding since October. To provide for more immediate relief efforts, The FlintNOW Foundation, created by Flint-native Tom Gores, Chairman and CEO of Platinum Equity and the owner of the Detroit Pistons, seeks to deliver private sector support in the wake of the crisis. FlintNOW announced late last month that Ohio-based Huntington Bank would help to support the foundation’s mission for comprehensive economic development programming in the region, providing $25 million to support businesses, entrepreneurs, and residents.

Illinois and Michigan are among the few states that support regular comprehensive examinations of the role higher education plays in the overall innovation economy. Organizations in both states recently completed studies on university-generated entrepreneurship, licensing, investment and employment, finding a steady rise in university economic impact over the past five years.  In both cases, the increase in university impact was linked to an expanding university role in supporting entrepreneurs and researchers. However, while the Illinois Science and Technology Coalition (ISTC) focuses on the creation of startups directly supported by university programs, the Michigan University Research Corridor (URC) takes a more expansive view, encompassing alumni entrepreneurs as a key pillar of university impact.

Governors around the country continue to lay out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Illinois, Michigan and New Jersey.

Illinois

Illinois is now in its eighth month without an annual budget bill for the current fiscal year, but Gov. Bruce Rauner presented his spending plan for fiscal year 2017 last week. The state faces a $6.6 billion deficit, which the governor said would have to be bridged with drastic spending reductions, or a mix of tax increases and program reductions along with the governor’s larger legislative agenda.

About $1.5 billion is proposed for the Department of Commerce and Economic Opportunity in FY 2017. This would include about $4.8 million for Regional Economic Development, $5.3 million for the Emerging Technology Program and $1.7 million for job training for economic development. No funding is provided for the Invest Illinois Venture Fund, which was also true in FY16.

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states. The multi-state effort will work to implement clean energy policies and initiatives in four areas: clean energy, clean transportation choices, a modern electrical grid, and plan for a new energy future. Although the accord doesn’t provide specific efforts, senior advisors to participating governors are expected to convene shortly to discuss initial steps to pursue their shared priorities and commitments according to solarindustrymag.com.

Although universities are often pitted against each other in athletic events or competitions for state funding, one area in which they have increasingly been able to collaborate is in research and development. Modeled after the hugely successful Research Triangle in North Carolina, the University Research Corridor (URC), an alliance of Michigan’s three largest higher education institutions – Michigan State University, the University of Michigan, and Wayne State University – was established by the state in 2007 with the goal of accelerating statewide economic development.

While speaking in Detroit last week, Vice President Joe Biden announced the creation of an Institute for Advanced Composites Manufacturing Innovation (IAMCI)  location in Detroit, aimed at creating better composite materials for wind turbines, compressed gas storage, and in particular, the automotive industry. Funded by the U.S. Department of Energy and the Michigan Economic Development Corporation, Michigan State University will serve as the primary academic partner for the IAMCI consortium, which consists of 122 members across six states: Colorado, Illinois, Indiana, Kentucky, Michigan and Tennessee. According to a press release from Michigan Gov. Rick Snyder, the IACMI’s open-access pilot manufacturing test facility and technology development and demonstration programs will be driven by major industry participation.

Over the past few months, SSTI has followed proposals issued by governors in their budget requests, State of the State Addresses, Inaugural Speeches and other events. Now that many governors have signed spending bills, the SSTI Digest will check on the status of these proposals, and examine the state of technology-based economic development funding in the states. This week, we review actions in Kansas, Michigan and Minnesota.

KansasGov. Sam Brownback signed House Substitute for SB 112, a $15 billion budget for fiscal year 2016.

Under the approved budget, a total of $2.7 million is appropriated for the Department of Commerce's Innovation Growth Program, and $358,568 will be available for Technology Innovation and Internship Grants. Note that SB 112 includes allocations for both fiscal years 2016 and 2017, though legislators will meet again next year to set actual FY17 levels. The figures listed above are evenly split between FY16 and FY17 to match releases from state officials.