SSTI Digest

Only six states have statewide measures on the ballot in 2013, which is 28 percent fewer than the average number of measures on the ballot in an odd-numbered year, as noted by Ballotpedia's executive editor. Tech-based economic development measures will be decided in at least two states — Missouri and Maine. Although not a statewide measure, Jackson County, MO, voters will be asked to approve a sales tax of one-half of 1 percent for 20 years to fund medical research and discovery across Kansas City. Maine voters will be asked to approve a $15.5 million bond to upgrade classrooms and labs within the University of Maine System. Supporters refer to the ballot measure in Jackson County, MO, as a transformational tax that would produce an estimated $40 million a year for an institute charged with turning research, or basic lab discoveries, into treatments and cures, reports the Kansas City Business Journal. Question 1 on the ballot asks voters to approve a sales tax for the purpose of establishing a medical R&D institute serving as a collaborative effort involving area hospitals and universities, including the University of Missouri-Kansas City and the Kansas…

President Obama launched the Advanced Manufacturing Partnership Steering Committee “2.0.” Former SSTI board member Luis Proenza, president of The University of Akron is part of the steering committee chaired by Andrew Liveris, president, chairman, and CEO of the Dow Chemical Company, and Rafael Reif, president of the Massachusetts Institute of Technology. Mark Kittrell has been appointed the president of the Iowa Innovation Corporation. OK Gov. Mary Fallin has named Secretary of State Larry Parman as director of the Oklahoma Department of Commerce and secretary of commerce. Both positions require Senate confirmation. The University of Alabama at Birmingham launched the Institute for Innovation and Entrepreneurship. David Winwood, CEO of the research foundation, will be executive director of the institute, and Kathy Nugent, director of the biotechnology program at UAB, the institute’s managing director. Tim Franklin has accepted the position of associate VP for business and economic development and special advisor to the president at the New Jersey Institute of Technology. James Ruble has been named director of the Ohio…

In tech-based economic development circles, universities are frequently thought of as engines for regional economic growth, engines whose effectiveness is determined by the volume of research conducted and the ability of faculty and staff to turn discoveries into commercially available goods and services. The authors of two recent academic articles suggest that regional economies are also a key determinant of university success. Steven Casper’s research suggests that social linkages between research faculty and local tech professionals improve university commercialization, while Friedrich Dornbusch and Thomas Brenner find that alignment between local tech industries and university research priorities increases the prevalence of successful university-private partnerships. The Casper paper constructs a mirror-image model of the university commercialization. Instead of examining how universities drive regional tech economies, Casper argues that the quality of a university’s regional environment can significantly impact its success in commercializing discoveries. He uses social network analysis and biotechnology-related university patents from major research…

In acknowledgment of their work with private sector partners in their states and regions to support economic development, 16 public institutions were the first to be designated “Innovation and Economic Prosperity Universities” by the Association of Public and Land-grant Universities (APLU). Applicants for the designation conducted a self-study and solicited input from external stakeholders. Each applicant identified three areas of strength in economic engagement and developed case studies to reflect them. APLU said in a press release the awards enable universities to shine a spotlight on the work they are doing and to demonstrate more clearly with government and the private sector the public benefit of their work. Read more about the winners at: http://www.aplu.org/page.aspx?pid=2805.

U.S. adults are less proficient in basic reading, math and problem-solving skills than many of their international counterparts, according to the first Survey of Adult Skills from the Organization for Economic Co-operation and Development (OECD). OECD found that, overall, U.S. adults possessed below average proficiency in literacy, numeracy and problem solving in technology-rich environments. In most of the countries included in the study, younger adults entering the workforce generally possessed better skills than older adults leaving the workforce, leading to better prepared labor pools over time. In the U.S., however, adults 55-65 years old performed at levels close to the international average, while younger adults ranked among the least skilled in the 24 countries surveyed. The relative decline in skills among younger adults in the U.S. is not entirely due to a worsening educational system, according to the study. Rather, other countries included in the survey have rapidly improved the skill base of their workforce in recent years leading to better preparation for younger workers, while skills levels in the U.S. among younger adults have remained fairly steady. For…

New England led the country in total angel investment dollars during the second quarter of 2013, according to the Angel Resource Institute’s quarterly Halo Report. California continues to lead as the top market for angel deals with 17.3 percent of the national total. However, 70 percent of all deals in the second quarter were completed outside of California and New England, 10 percent more than in the previous quarter and the previous year. In contrast, more than half of all venture capital deals last year happened in those regions. For the first time, the report separates Texas-based deals from the rest of the Southwest and ranks the state as the fourth most active angel market behind California, New England and the Southeast. Read the Q2 2013 Halo Report at: http://www.svb.com/halo-report/.

City finance officers were better able to meet financial needs in 2013 than in 2012 and, despite national economic indicators pointing to continued slow growth, improved conditions for city budgets are projected for 2014 and beyond. These are among the findings in the National League of Cities annual survey on city fiscal conditions. Sales and income taxes seem to be a bright spot for cities. In 2012, city sales tax receipts increased over previous year receipts by 6.2 percent, similar to growth levels seen prior to the recession. City finance officers also reported year-over-year growth of 4.4 percent for 2012 in income taxes and are projecting growth of 2.3 percent for 2013. The report's authors warn that city fiscal conditions remain vulnerable to external policy shifts, including cuts in federal spending. Additionally, pension and health care costs continue to be a drag on municipal budgets. Read the report.

A measure to amend the state securities laws in order to permit equity crowdfunding won approval in the Wisconsin Legislature following swift and unanimous passage in the Senate this week. The bill, called the Wisconsin Crowdfunding and Securities Exemptions (CASE) for Jobs Act, is aimed at providing better access to small business capital by connecting Wisconsin-based investors with startups through crowdfunding websites. Wisconsin now joins three other states, Georgia, Kansas and North Carolina, that have enacted similar securities exemptions. Lawmakers across several states, including in New Jersey, have cited frustrations regarding the delay in full implementation of the federal JOBS Act as a reason for creating the state-level exemptions. Under The CASE for Jobs Act, a new category of certified investor is established to include individuals with an income of $100,000 or a joint income of $150,000 in each of the most recent two years. The original bill would have reduced the threshold for accredited investors in the state from $200,000 in annual income to $100,000. Instead, the amendment adopted by the legislature creates the new certified investor status, which also…

The California Governor's Office of Business and Economic Development is preparing to launch four new Innovation Hubs (iHubs) across the state. iHubs, strategically placed within existing clusters, serve as centers of collaboration for regional economic development agencies, venture capitalists, incubators, and higher education to develop joint programming for entrepreneurship (see the September 4 issue). The program is supported by public, private and federal funding and, with the recent expansion, now hosts 16 centers across California. Three of the new hubs will serve specific regions, including the San Joaquin Area, Kern and Ventura Counties and Inland Southern California. The fourth hub will offer a statewide network of manufacturing support. Read more...

Last week the Columbus Metropolitan Club hosted Alcoa CEO Klaus Kleinfeld to give remarks on the state of American manufacturing. Kleinfeld made the case that "talent is global," and that the U.S. must invest heavily in workforce development and STEM education if our country wants to continue to grow the manufacturing sector and remain globally competitive. Advocating for the overhaul of the entire K-12 and higher education systems, Kleinfeld cited the need to train students in high-tech skills and connect them to community college and apprenticeship programs that can be supported by local manufacturers. He stressed that education reform should also focus on inclusion to extend opportunity in the industrial economy to women and minorities, citing Alcoa's Women in Hardhats program as an example of successful outreach. Kleinfeld acknowledged that federal assistance is an important driver for promoting national competitiveness but stressed that public support for manufacturing is most critical at the local level. Through investments in renewable energy, infrastructure, and education, local government and nonprofit partners can foster a favorable climate for…

During most of the 20th century the textile industry was an economic pillar of the American South. During the 1990s the forces of globalization caused most of the industry to move overseas. Economic experts predicted that the textile industry would never return to U.S. soil. Recently, towns like like Gastonia, NC, and Gaffney, SC, have seen shuttered mills reopened for business as advanced manufacturing technologies have supported the growth of an emerging advanced textiles sector. Economic development organizations in the Carolinas are focusing on investment in the growth of a new Advanced Textiles value chain that uses automated technologies to produce synthetic fibers, industrial filters, military equipment, and clothing. But there are lingering concerns over workforce development and the effects of automation on job creation. In a recent New York Times article, the return of the textile industry to the American South is attributed to a boost in U.S. competitiveness. Businesses interviewed for the story note that transportation costs are a fraction of what they are overseas, turnaround time is quicker, and labor costs are much lower not from a leveling of global…

In contrast to last week's coverage of the Virginia gubernatorial candidates on issues that affect jobs and the economy, there are little specifics on the topic provided by either New Jersey candidate. Incumbent Gov. Chris Christie has a significant lead in the polls over Democratic challenger and New Jersey State Senator Barbara Buono, but he has offered little in the way of new ideas for economic growth in the next term, instead relying heavily on past accomplishments. Sen. Buono has put forth a jobs and economic security plan outlining support for increased investment in R&D, tax credits targeted to life sciences companies, and encouraging STEM jobs and workers. However, the plan lacks concrete proposals. Since taking office in 2010, Gov. Christie has shaken up the state's economic development efforts by discontinuing a decades-old program and re-organizing existing initiatives. The New Jersey Partnership for Action was established during his first year in office in partnership with a privately funded nonprofit organization and touted as a way to help promote the state's incentives and resources and assist businesses in navigating government programs…