SSTI Digest

The first of three new manufacturing innovation institutes will be headquartered in Raleigh, NC, and led by a consortium of 18 companies, seven universities and labs, and the state of North Carolina. The announcement was made today by President Obama. Developing wide-bandgap semiconductor devices and industry-relevant processes is the goal of the Next Generation Power Electronics Institute. Such technologies are used to develop smaller, faster, cheaper and more efficient electronics for personal devices, electric vehicles and renewable power interconnection, according to a press release. The selection process is still underway for two other institutes, with awards expected in the coming weeks.

Despite a small decline in research investment in 2011, New Mexico continues to have the country’s most research-focused economy, according to the National Science Foundation National Patterns of R&D Resources survey. Maryland, Massachusetts, Washington and California also ranked among the top most R&D intensive economies in 2011. SSTI has prepared tables, based on the NSF data, showing total R&D spending and R&D intensity at the national and state level from 2006-11.

Governors in Idaho, Kentucky, New York, Virginia and West Virginia outlined their achievements in building stronger technology economies and unveiled some of their plans for the coming year as SSTI kicked off its annual Tech Talkin' Govs series. SSTI also examined  the decline in U.S. basic research, even as overall R&D spending rises.

The SSTI Digest now delivers the latest news and analysis from the world of technology-based economic development all week long. Visit ssti.org to stay informed about the people, trends, policies and initiatives that are shaping the innovation economy.

Here are a few of the other stories featured this week:

JPMorgan Chase & Co recently announced details of a new five-year, $250 million global initiative to address the global skills gap in high-tech industries. The New Skills at Work initiative will help generate accurate data on employer demand at the regional level, and assist workforce training groups in developing effective programs to meet those demands. Operations will focus on major U.S. and European cities, staring with Chicago, Columbus, Dallas, Detroit, Houston, Los Angeles, Miami, New York, the San Francisco Bay area and London. The first round of grants will be announced in early 2014. Read the announcement…

Funding to universities to compete for endowed chairs and startup funds for a commercialization initiative are among New Mexico Gov. Susana Martinez’s proposals for tech-based economic growth in the coming year. The governor also wants lawmakers to expand the state’s angel investment tax credit and reform the Technology Jobs Tax Credit and R&D Small Business Tax Credit to better support startup companies. The announcements were rolled out over the past two weeks and detailed in the FY15 budget presented to lawmakers.

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.

Ted McAleer has resigned as executive director of USTAR. Also Gary Herbert has announced the appointment of former Lt. Gov. Greg Bell as chair of the USTAR Governing Authority. Bell, now president and CEO of the Utah Hospital Association, takes the place of outgoing chair Dinesh Patel.

Martha Connolly has been named director of bioentrepreneurship, a new program supported by the Maryland Technology Enterprise Institute (Mtech) and the A. James Clark School of Engineering.

Matthew Nemerson, president of the Connecticut Technology Council for the past decade announced he has taken a new position as Mayor Toni Harps’ economic development director in New Haven.

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.

U.S. R&D spending began to rebound in 2011 and 2012 after several years of stagnation, according to new survey data released by the National Science Foundation. During the economic crisis of 2008-10, R&D expenditures froze at just over $400 billion. Newly revised data for 2011 and preliminary data for 2012 indicate that R&D spending began to recover in those years, outpacing U.S. GDP growth. This resurgence, however, has not materialized for all stages of research. While spending on applied research and development have bounced back, basic research spending decreased in 2011 and grew only slightly in 2012. The long-term U.S. shift in focus away from basic research appears to have accelerated in the aftermath of the economic crisis.

Following a national economic development trend toward regionalism, governors in Iowa and Nebraska announced a partnership to provide more investment and talent opportunities for area businesses, and increased exposure for the region. Under the multi-county collaboration, Advance Southwest Iowa will join the Greater Omaha Economic Development Partnership. The group plans to implement a five-year regional economic development program focused on establishing a recognized brand and image for the region, growing and recruiting businesses, and retaining a trained workforce. The partnership is funded by public and private investors throughout the region, according to a news release.  

As the outlook for general revenue funds improves in many states, governors are looking to boost investment in higher education and STEM as a means for growing the economy and enhancing the workforce. Universities' economic return to states can be quite impactful. A recent study commissioned by the Presidents Council, State Universities of Michigan, found the state's 15 public universities have a $23.9 billion economic footprint — collectively supporting more than $12 billion in earnings in 2012. Governors in Alaska, Missouri, Utah, Virginia, and Washington recently unveiled budget recommendations for the upcoming fiscal year or biennium calling for additional funds to support university-based initiatives including research, infrastructure, tuition freezes, and funding to graduate more students in STEM fields.

The European Union is investing € 15 billion ($20.5 billion) over the next two years toward the Horizon2020 project, an initiative designed to boost Europe's knowledge-driven economy, increase global competitiveness, and address key societal challenges. The European Commission has declared funding priorities for the project and opened submissions for the 2014 budget.

Funding will be directed toward the three pillars of Horizon2020, which are: