SSTI Digest

The Department of Energy’s (DOE) Advanced Research Projects Agency-Energy (ARPA-E) announced that it will commit up to $125 million for its 2015 OPEN competition to Support R&D projects on potentially disruptive new energy technologies. Applications should be able to address how the proposed technology will be able to make a significant impact in one of the three mission areas of ARPA-E – to reduce imported energy, to reduce energy-related emissions, and to improve energy efficiency. Via the 2015 OPEN program, DOE intends to make up to 50 awards across the full spectrum of energy applications. Concept papers are due February 27, 2015, with the full application due date yet to be determined. Read the announcement…

As competition increases within the venture capital industry to fund the next Google or Uber, the most highly desirable startups often have multiple investment offers and must decide upon the best. There are several factors that can affect evaluation of potential equity investors. For many startups, the decision may focus solely on the terms of the deal. However, there may be many more factors – outside of financial considerations – that impact the startup’s evaluation process.

To date, most of the discussion in the academic literature and research conducted has focused on the decision-making process for the investors. However, over the last few years, researchers have started to refocus their research on the entrepreneur’s perspective to better understand what makes a deal more desirable for startups looking for financing. They want to know what drives the decision-making process and what factors make an equity investor more desirable to the startups with the most growth potential.

President Barack Obama recently announced a pair of initiatives to provide American students better access to two-year degrees and technical training programs. Under the first program, American’s College Promise, the federal government would cover three-quarters of the cost of an average community college education for students who attend at least half-time and maintain a 2.5 GPA. States would be required to contribute the rest of the tuition funds.

The second program, the American Technical Training Fund, would provide awards to 100 technical training centers to partner with employers and offer training in strategic fields. Additional grants would be provided for pilot programs and program expansion. Details are still being released, but a Los Angeles Times article indicates that the community college plan would require approval from Congress and participating states. Read the White House fact sheet…

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.

Pennsylvania’s largest universities by student population, Penn State and Temple University, both announced plans this week to make a concerted investment in their respective innovation ecosystems. Pennsylvania State University (PSU) President Eric Barron announced $30 million in new investments for economic development and student career students, while Temple University and Ben Franklin Partners of Southeastern Pennsylvania established a new startup accelerator to assist university ventures.

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.

President Obama recently announced that the University of Tennessee was awarded the $259 million Institute for Advanced Composites Manufacturing Innovation (IACMI). The U.S. Department of Energy will commit $70 million to support the project with the remaining $189 million coming from IACMI partners including $15 million from the Tennessee Department of Economic and Community Development. The University of Tennessee will lead the 122-member consortium in its effort to connect the world's leading manufacturers with universities and national laboratories pioneering advanced composites technology development and research. IACMI will focus on advanced fiber-reinforced polymer composites that combine strong fibers with tough plastics. For more information, read the announcement about the IACMI, the White House’s IACMI fact sheet, or visit the IACMI website…

Now in its 15th year, 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 first edition includes excerpts from speeches delivered in California, Kentucky, and Vermont.

Under the assumption that regulations place an unnecessary strain on the innovative free-market companies that create the jobs and industries needed to drive the economy, liberalization is oftentimes the go-to policy prescription for states or countries hoping to spur innovation. Although proponents of deregulation cite incidents of government overreach and inefficiency as evidence of the state suppressing the market’s innovativeness, the government does not always hinder innovation, according to articles featured in the January 2015 issue of Foreign Affairs. By making the strategic investments the private sector is often unwilling to make, the state can play a major role in providing the necessary infrastructure needed for prosperity generating innovation.

Global patent applications jumped by 11 percent in 2013, while patents granted rose by a more modest 4 percent in the top five worldwide patent offices. The 2013 data was recently released by IP5, a cooperative effort of the European, Japanese, South Korean, Chinese and U.S. patent organizations, which together represent about 80 percent of the world’s patent activity. China has now solidly emerged as the top nation for patent applications and first filings after first taking the lead in 2011. China has also become the top country of origin for global patent filings, with the U.S. ranking third behind China and Japan. The U.S. Patent and Trademark Office reported that it had reduced its backlog of applications by 31 percent from the peak level in 2009, and finalized the first-to-file provision of the Leahy-Smith America Invents Act.  Download the report…

Massachusetts remains the most tech-oriented state economy in the country, according to the latest edition of the annual Massachusetts Innovation Index. Nearly 38 percent of the state’s workforce is employed in tech industries, the highest share in the country, and Massachusetts generally outperforms other leading tech states in tech industry output, research and licensing. The MassTech Collaborative warns, however, that the state’s innovation economy is experiencing some of the same negative trends present in its peer tech states. Tech employment has rebounded at a slower rate than other types of employment and high school graduation rates have fallen. Download the report…

U.S. companies performed over $294 billion in research and development (R&D) in 2011, according to the Business R&D and Innovation Survey (BRDIS) – a business survey conducted annually by the U.S. Census Bureau and the National Science Foundation. Companies funded an overwhelming majority of the industrial R&D conducted in the U.S. (81.2 percent, approximately $238.8 billion). Approximately $55.3 million of industrial R&D (18.8 percent) was funded by other sources, predominately from the federal government ($31.3 billion). U.S. industrial R&D spending accounted for approximately 81 percent of worldwide R&D performance – $363.3 billion in total industrial R&D in 2011. 

The top industries for domestic industrial R&D spending in 2011 were manufacturing and information technology (IT) with R&D manufacturing accounting for 68.4 percent ($201.3 billion) of all industrial R&D. The top manufacturing sectors for industrial R&D include: