SSTI Digest

The Social Venture Connection (SVX), a new impact investing platform in Toronto, was launched to catalyze debt and equity investments in socially driven ventures that have demonstrable social and/or environmental impact and the potential for financial return. Developed by the MaRS Discovery District, SVX provides local, socially minded accredited investors (e.g., high net-worth individuals, foundations and financial institutions) a savvy web tool to make investments in vetted nonprofit or for-profit organizations.

Startups spun out of university research parks stayed in business longer than the overall national average and helped to improve regional competitiveness by establishing their companies within the area where they were incubated, according to a recent survey from the Association of University Research Parks (AURP). The survey reported the findings of 108 university research park directors over the past five years to demonstrate the extent to which the parks are focused on advancing innovation in their region. Among the top rated opportunities for enhancing growth, effectiveness and impact of research parks going forward are: developing and expanding the business services offered by incubators, capitalizing on more corporate outsourcing of research and deepening university-industry research partnerships, and strengthening collaboration between the park and its affiliated universities. Read the report…

As the TBED community seeks to diversify its funding partners, corporations would seem to be logical prospects. Pickings are getting slimmer, however. Despite tallying record profits and stock market values over the past few years, corporations are getting stingier with their giving programs, according to a new report from the Foundation Center.

The center estimates in its annual survey that giving from corporate foundations, totaling an estimated $5.1 billion in 2012, is 1 percent less than the 2011 total. Total giving from the nation's 81,777 foundations in 2012 is expected to top $50.9 billion, up $1.9 billion from the previous year. At $4.7 billion and a 9 percent growth, community foundations increased giving the most of the four foundation types covered in the report. More information...

In the days before the federal government shutdown, the White House released details of a $300 million cross-agency strategy to revive the Detroit economy following the city government’s bankruptcy filing. Most of the funding comes from existing programs that will either continue to support efforts in Detroit or will now allocate a portion of their grants, loans or services to Detroit-based recipients. However, while innovation and entrepreneurship is a major plank of the strategy, little of the $300 million will directly benefit technology-based economic development programs. Instead, the White House has announced that it will supplement the work of community-focused foundations, which plan to provide $22 million for small business efforts in the city.

Google recently designated seven local entrepreneurial support organizations as the inaugural members of its new Tech Hub network. These organizations will receive financial support, technical content, business tools, and infrastructure upgrades, to support increasing demand from software developers and startups. Google’s announcement notes that these specific organizations were chosen because of their innovative approaches to launching businesses and their success in creating jobs in their respective communities. The first seven partners include Chicago’s 1871, Durham’s American Underground, Minneapolis’ Coco, Waterloo’s (ON) Communitech, Denver’s Galvanize, Detroit’s Grand Circus and the Nashville Entrepreneur Center. Read the announcement...

Only two states will hold gubernatorial elections this year: New Jersey and Virginia. But those states have garnered a great deal of media attention because of the candidates’ stark policy differences on a wide range of issues, including jobs and the economy. This week, SSTI takes a look at the plans for economic growth and higher education put forth by Virginia Democratic nominee Terry McAuliffe and Republican nominee Ken Cuccinelli.

Current polls indicate a slight lead of 43.1 to 38.9 percent by Terry McAuliffe, former Democratic National Committee chairman, over Virginia Attorney General Ken Cuccinelli. On one side, improving biotech commercialization is touted as necessary for growing high-tech companies. The other candidate’s jobs plan promotes tax reform and emphasizes higher education with a focus on supporting STEM workers.

Oklahoma Gov. Mary Fallin announced that Jonna Kirschner, executive director of the Oklahoma Commerce Department, will serve on a transition team to establish a new workers’ compensation system. Vaughn Clark , the Commerce Department’s director of community development, was named as interim executive director.

Colorado Gov. John Hickenlooper named Mark Sirangelo, who is head of Sierra Nevada Corp., as chair of the Colorado Innovation Network and the state's new chief innovation officer.

John Rhodes has been appointed as president and CEO of NYSERDA.

According to the National Science Foundation’s (NSF) Higher Education Research and Development (HERD) Survey the percentage of university R&D funded by private sector investment has remained mostly stable since the late 1970s, hovering between 5 percent and 7 percent of total R&D expenditures. In FY 2011 the private sector invested $3.2 billion, or 4.9 percent of the total $65 billion university R&D expenditures. Sixty-seven percent of surveyed universities reported some level of R&D funding from businesses, with the majority of that funding being directed toward the medical sciences (39 percent) and engineering (26 percent). 

The Alliance for American Manufacturing (AAM) released a five-year report highlighting the progress it has made since its creation in 2007. In that time it has hosted 40 town hall meetings, won a Campaign Excellence Award, released a number of research reports and publications, and has worked with federal, state and local governments to advocate for American Manufacturing. Scott Paul, President of the AAM, Stacey Jarrett Wagner, a speaker at SSTI’s recent conference, and Sridhar Jota are participating in a Google Hangout next week to discuss their recently released book, ReMaking America, and the role of small- and mid-sized manufacturers in the U.S. Innovation Economy.  The dialogue will be held on Thursday, October 3, at 2:00 PM ET. Click here to watch the live discussion…

The Nevada Office of Economic Development, with guidance and funding from the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI), has launched the Battle Born Venture Program. “Battle Born” is a state venture capital program that makes equity and equity-like investments in early stage, high-growth Nevada businesses. The fund will invest in a wide range of sectors that represent the economic base of the state, and returns on investment will be recycled back into the fund.  The Nevada program is the newest venture capital program established by the U.S. Department of the Treasury under the SSBCI with the intent of enhancing local capital infrastructure. As of this year, the U.S. Treasury has approved 47 state-run venture capital programs across 30 states. Read the announcement…

On the heels of their big win last week in Portland, OR, SSTI’s 2013 Excellence in TBED award winners have announced more exciting news surrounding their programs’ impact and new initiatives to support regional growth strategies. This year’s winner for Most Promising TBED Initiative, ASU Entrepreneurship & Innovation Group (EIG), has attracted a new partner to expand on their model for entrepreneurial support by repurposing existing library space. The Massachusetts Life Sciences Center announced nearly $200,000 in grants for STEM education as they continue to improve the competitiveness of the life sciences sector, and in Utah, two impact reports have been released by partners of USTAR detailing progress made to expand research capacity.

The agenda for the upcoming legislative session unveiled by Gov. Scott Walker promotes investment in technical schools to provide skill development and quickly fill critical needs of employers. The governor outlined a package of eight workforce development bills, which include funding for youth apprenticeships, tuition reimbursement for apprentices and employers, technical education incentive grants, and scholarships for students to attend technical schools. Much of the new investment would augment funding for existing programs.

Gov. Walker’s plan invests $8.5 million in new state funds and would secure another $14 million in federal funds for vocational rehabilitation programs. Some of the bills are outlined below.