SSTI Digest

With the start of the new year, many governors around the country have begun laying 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 Idaho, Iowa and New York.

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 state legislatures have begun approving budgets, the 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 budgets in Arizona, New Mexico, South Dakota, Utah, West Virginia and Wyoming

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses.

The second installment of this year’s series includes excerpts from speeches delivered in Arizona, Idaho, Indiana, South Dakota, Virginia, Washington, Wisconsin and West Virginia. Read last week’s installment featuring speeches in California, Kentucky and Vermont here.

Arizona
Gov. Doug Ducey, State of the State Address, Jan. 12, 2015
“… Last week, I signed an order placing a moratorium on new regulations in the executive branch. It was a good beginning, but only a beginning.

As governors around the country begin their newest terms, their proposed budgets are beginning to take shape. Although few governors specifically target technology based economic development, after the first wave of budgets a variety of initiatives related to workforce development and higher education have garnered support.

Several bills aimed at supporting startups, advancing research and improving the workforce have been introduced with the start of the 2014 sessions. Some of the proposed legislation offers a glimpse into the investment priorities of governors and lawmakers in the wake of economic recovery. Providing innovative companies with access to startup funds is a continued theme from previous years. Some states are seeking to expand tax credits for angel investors or offer new tax credits to encourage emerging industries. Other bills focus on generating more skilled workers quickly and positioning universities to enhance regional economic competitiveness.

Angel capital has long played a vital role in state and regional innovation economies, but recent trends in investment capital have pushed angel investment to the fore. As the supply of seed stage venture capital declines in many parts of the country, angels have stepped in to bridge early stage funding gaps for technology startups. Many states have stepped up their efforts to attract and incentivize angel investment. Recent initiatives in Minnesota, Florida, Kentucky and West Virginia seek to book seed and early stage capital by working with angel investors.

Now in its 14th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in Idaho, Kentucky, New York, Virginia, and West Virginia.

On November 6, in addition to the presidential election, eleven state and two territorial gubernatorial contests will be decided. Seven of these races (Delaware, Missouri, North Dakota, Puerto Rico, Utah, Vermont, and West Virginia) include a sitting governor running for re-election, while the remaining six (American Samoa, Indiana, Montana, New Hampshire, North Carolina and Washington) are open races.

Of the races involving incumbents, four are a Democratic governors being challenged, while three sitting Republican governors are up for re-election — two of them for a full term after completing the terms of the previous governors who left for other positions.

Five of the open races are a contest for a seat being vacated by a Democrat, while only one is currently held by a Republican.

SSTI took a look at the TBED platforms of the candidates for governor.

Delaware

On Thursday, the Obama administration announced it had selected the TechBelt region, encompassing northeast Ohio, western Pennsylvania and northern West Virginia, to host the pilot institute of the National Network for Manufacturing Innovation (NNMI). The new National Additive Manufacturing Innovation Institute (NAMII) will operate as a partnership of more than 60 companies, research universities, community colleges and nonprofit organizations from the region. As the pilot effort of NNMI, the partnership will receive $30 million in initial federal funding, with another $40 million from regional partners. The institute will be housed at Youngstown Business Incubator in Youngstown, OH.

Caren Franzini, the CEO of the New Jersey Economic Development Authority, stepped down after leading the agency for 21 years. Michele Brown, Gov. Chris Christie's appointments counsel, will take over as CEO.

Karen Merrick has joined the Iowa Innovation Corporation as CEO. Merrick previously had been with the Iowa Economic Development Authority.

Thomas Dann, the founder and managing director at CastleHaven Advisors, a Washington, D.C., private-equity firm, was named managing director of the Maryland Venture Fund.

Baiju Shah, the president and CEO of BioEnteprise, is leaving to become the CEO of BioMotiv, a drug development company that spun out of University Hospitals.

As budgets for economic development tighten across all sectors, measuring and reporting impact becomes even more crucial for sustaining support. The Association of University Research Parks points to three impressive impact reports released this year from Indiana's Purdue Research Park, Nebraska Technology Park and North Dakota State University Research and Technology Park.

The Purdue study found the park network is responsible for a $1.3 billion annual impact for the state and more than 4,000 high-quality jobs paying an average annual salary that is 65 percent higher than the state's average. In Nebraska, researchers found the University of Nebraska Technology Park has an estimated $589.6 million annual impact on the state's economy, and North Dakota State University Research and Technology Park generates $10.9 million annually for local and state governments.

SSTI has compiled below recent announcements for development of tech parks from states including Alabama, Connecticut, Florida, Maryland, South Carolina, and West Virginia.

Jill Kline has been named the State director of the Wyoming Small Business Development Center.

Daniel Hasler has been named the Indiana Secretary of Commerce, effective Sept. 16. He will replace Mitch Roob who is leaving the post to accept a position in the private sector.

The National Governors Association named David Moore as the director of its NGA Center for Best Practices.

Phillip Halstead has been named executive director and CEO of the West Virginia Regional Technology

Park Corporation.

James Watson has been appointed as the president and CEO of CMTC (California Manufacturing Technology Consulting).