SSTI Digest

From the earliest days of technology-based economic development in the 1980s, and through its formitive years in the 1990s, women leaders have played an integral role in the development of the field. As Women's History Month draws to a close, this week's special issue of the Digest pays tribute to those women and takes a closer look at the opportunities and challenges that face women in TBED today.

Her Perspective: Reflections on Leadership from Five Successful Women in TBED

To call them trailblazers is quite fitting. They have broken barriers in traditionally male-dominated fields and led some of the most progressive initiatives designed to boost our nation's competitiveness. But beyond the "wild west" analogy, these five women are top-notch innovators, who for the past 25 years have helped shape technology-based economic development in states and regions across the country through hard work, sacrifice, dedication, and a passion for leadership.

Several reports, assessments, and plans have been released related to energy development — particularly clean energy. On March 15, both President Obama's Blueprint for a Clean and Secure Energy Future and the Government Accountability Office's review of the Department of Energy's loan programs were released. In addition, the Information Technology and Innovation Foundation published their report on recent trends in federal investment in clean energy, specifically from the American Recovery and Reinvestment Act of 2009.

After a lengthy legal process, the state Supreme Court unanimously ruled that the Missouri Science and Innovation Reinvestment Act (MOSIRA) — an incentive fund for science and technology businesses — violated a state constitutional requirement that bills address only a single subject. According to a Kansas City Star article, the judges upheld a ruling by a Cole County, MO, judge that lawmakers illegally included a clause making the fund contingent upon passage of a separate proposal overhauling the state's tax credit programs. The clause was added during a 2011 special session of the state general assembly (see the October 26, 2011 issue of the Digest). Although the separate proposals never passed, Gov. Jay Nixon's administration implemented the fund in 2012. In response, the Missouri Roundtable for Life and other anti-abortion activists filed a suit against the fund due to fears that it would be used to finance human embryonic stem cell research.

The Obama administration announced the $40 million "Make it in America" Challenge to accelerate the growing trend of reshoring, attract more foreign direct investments (FDI) and create well-paying domestic jobs. The multiagency competition will award up to 15 grants to regions from across the country to develop and implement regional economic development strategies that encourage reshoring, foster increased FDI, incentivize companies to expand U.S. operations and establish industry-focused training programs. U.S. states, local governments, institutions of higher education and nonprofit organizations are eligible for awards. Applications are due May 31, 2013. More information is available at the challenge's website...

Two important and timely topics for regional innovation strategies will be the topics explored through a series of hour-long webinars SSTI will be offering in April: 1) improving the partnership between regional innovation programs and the nation's foundation community; and 2) the role the private/nonprofit accelerator model plays in tech-based economic development. Participation in these and selected other SSTI webinars to be announced in the coming weeks will be free thanks to generous funding from the U.S. Economic Development Administration for the Regional Innovation Acceleration Network (RIAN). Four to add to your calendar today include:

Last week, the SSTI Weekly Digest offered an overview of the many TBED-focused tax incentives currently under consideration in a number of state legislatures. Tax credits for research and development and for angel capital investment, in particular, appear to be under consideration in many parts of the country. At the same time, there appears to be a renewed emphasis on transparency in the operation and effectiveness of these kinds of tax credits.

Recent national strategies for innovation investment have been publicized by the governing parties in Brazil and Australia, highlighting both a growing global focus on national innovation as well as a growing global divide over how public investments are paid for.

Brazil is launching a public investment initiative aimed at modernizing the country's economy and paying for it, in part, with revenues generated from nationalized industries. However, across the Pacific, Australia is proposing to pay for new investments in the country's innovation infrastructure by eliminating R&D tax breaks for some of the country's largest companies. This contrast highlights a growing divide between the ability of developed and developing states to pay for large investments in national innovation.

SBA and the Department of Commerce launched Startup University in response to a series of roundtables with accelerators and universities that highlighted the need for a forum to share best practices and build connections between universities and startups. Users can post and comment on specific programs or general ideas that foster these positive relationships. Many programs listed in the forum will be presented at this week's NCET2 Conference. Explore the online forum here...

Rebecca Blank, the acting U.S. secretary of Commerce, is expected to be the next chancellor of the University of Wisconsin at Madison. The Board of Regents is scheduled to vote on the recommendation April 5.

President Obama announced he has chosen Thomas Perez, the head of the U.S. Justice Department's Civil Rights Division, to be the next secretary of Labor. The nomination, announced Monday, will require Senate confirmation.

Lars Hasselblad Torres has been named the director of the Vermont Department of Economic, Housing and Community Development's Office of the Creative Economy.

David Goodman was appointed director of the Ohio Development Services Agency by Governor John R. Kasich. Previously, Chris Schmenk held the position.

Measuring impact is critical to the success and sustainability of any economic development initiative, and as the national debate over fiscal austerity and taxpayer spending continues, TBED organizations can expect increased scrutiny and accountability for their investments.

Amid growing skepticism from the public, lawmakers increasingly struggle with finding a balance for funding new efforts that may take awhile to pay off with more pressing state needs. This year, measures to encourage the creation or expansion of high-growth companies through the use of tax incentives have been unveiled in several states. At the same time, lawmakers in some states are pushing for greater disclosure requirements through transparency measures. SSTI has compiled pending and recently approved legislation below.

Over the past thirty years, state research and development (R&D) tax credits have become one of the most common state tools to boost their local technology economy. Few studies, however, have attempted to provide a comprehensive evaluation of their effectiveness. In this article, SSTI provides an overview of the literature on state R&D credits, examining why states introduce these incentives and whether or not tax credits are an effective policy tool to promote high-tech businesses and jobs.

The first state R&D tax credits were introduced in the early 1980s. One year after the introduction of the federal Research and Experimentation Tax Credit in 1981, Minnesota passed its own credit, followed by six other states over the next five years. Earlier this year, a review by the Texas Legislative Budget Board reported that 43 states now offer R&D tax incentives.

In his first speech as secretary of State, John Kerry declared that U.S. economic competitiveness should be the centerpiece of American foreign policy. In the weeks following his appointment, the U.S. government has signaled a push to work with international partners to enhance U.S. global competitiveness and protect tech innovation at home. Two key elements of this strategy include continued harmonization of global antitrust laws and new efforts to protect American intellectual property from theft.

Recent developments in U.S. foreign relations have triggered federal action on antitrust policies and trade-theft protection: eminent U.S.-European Union (EU) free trade negotiations and the recent escalation of cyber crime against U.S. IP assets perpetrated by the governments of developing states like China and Iran.