SSTI Digest

Early January 2nd, President Obama signed the American Taxpayer Relief Act of 2012 (AFTA) into law after it passed in the House by a 90-vote margin the previous evening. While the deal postponed difficult decisions concerning spending cuts and long-term debt reduction measures by delaying the FY13 sequester until March 1, 2013, AFTA averted steep, across-the-board spending cuts and tax hikes set to take place at the beginning of the year.

A number of tax credits due to expire were preserved in the fiscal deal. Of particular interest to the innovation community, the act extends the R&D tax credit through the end of 2013. A number of tech industry groups, including the Information Technology Industry Council, praised the extension of the credit as a beneficial and cost-effective way to increase research, although many would like to see it made permanent. Despite being one of the first countries to introduce such a credit in 1981, the U.S. is now 27th in the generosity of its credit out of 42 countries studied by the Information Technology & Innovation Foundation (ITIF).

In 2012, the tech industry lobby substantially ramped up their efforts to influence the federal legislative agenda. In the coming year, they are poised to grow their influence in Washington as debates rage over the future of technology investment programs and regulatory policies.

Over the past year, the American tech industry has publicly conceded it must begin actively shaping the policy agenda in Washington in response to attempts by Congress and the Obama administration to pursue regulatory policies that can have long-term consequences for their industry. In response, the tech lobby massively has ramped up efforts to influence the federal policy debate.

The Small Business Administration (SBA) announced new amendments to regulations governing size and eligibility for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Effective January 28, 2013, the new SBA rules address ownership, control and affiliation for participants in the SBIR and STTR programs including participants that are majority-owned by multiple venture capital operating companies, private equity firms or hedge funds. Learn about the rule changes...

The Information Technology and Innovation Foundation (ITIF) released the sixth edition of its bi-annual State New Economy Index last month. The report uses 26 indicators to assess the progress states have made adjusting to the realities of the innovation economy. Massachusetts lead in the rankings, as it has since the lauch of the index, while Delaware rose four ranks since 2010 to occupy second place. Read The 2012 State New Economy Index...

Former Oklahoma Treasurer Scott Meacham has been named president and CEO of i2E.

LaunchTN announced Charlie Brock as the organization's new president and chief executive officer and Stuart McWhorter as the organization's new vice-chair.

BioCrossroads President and CEO David Johnson was named President and CEO of the Central Indiana Corporate Partnership, while continuing to lead BioCrossroads, CICP's life sciences initiative, along with his new duties at CICP. David Johnson succeeds Mark Miles.

Dan Sharp has been named director of UT Austin's Office of Technology Commercialization. Sharp, who holds both law and engineering degrees from UT, formerly was associate director of intellectual property and licensing at the office.

Amid the economic uncertainty surrounding fiscal cliff negotiations, and what it means for states, some governors are erring on the side of caution when it comes to funding recommendations for the upcoming year. At the same time, several state budget officers are projecting significant revenue shortfalls in the current fiscal year or biennium as a result of lower than expected tax collections.

States could lose an estimated $7.5 billion in federal funding if the automatic spending cuts take effect for 161 grant programs, according to a recent analysis by the Associated Press. States with heavy defense spending, such as California, Texas and Virginia could also take a hit with $33.6 billion in cuts slated for military and defense contractors.

In the coming months, governors from across the nation will present their State of the State addresses — a key time to unveil new and expanded TBED programs. But for some states, shoring up budgets and preparing for worst case scenarios is the top priority.

In a new report, the National Academies' Institute of Medicine (IOM) praises the remarkable research output of California's Institute for Regenerative Medicine (CIRM) during its first seven years, but recommends several changes in oversight that could improve the quality and defensibility of its work. IOM suggests that external scientific reviews and independent oversight of the institute's management could help ameliorate concerns about conflicts of interest and increase transparency.

Launched in 2004 by ballot initiative, CIRM is tasked with distributing $3 billion in state funds for stem cell research and regenerative medicine over at least ten years. The state raised the funds through the issuance of general obligation bonds, which has helped to ensure that the state's stem cell research community has a reliable source of funding for its work. This is particularly important in the field of regenerative medicine, due to continuing uncertainty about the federal government's willingness to fund research using human embryonic stem cells.

In an attempt to leverage the economic promise of young people, the state of Kentucky is launching a new public-private initiative designed to enhance creative thinking and entrepreneurial skills. The Governor's School of Entrepreneurs will be launched this summer as an experiential program that brings together representatives from Kentucky's science, engineering, design, entrepreneurial, and higher education communities to teach promising high school students from across the state on business fundamentals, entrepreneurship, product design, and creative thinking. The program is modeled after the long-running Governor's Scholars program for academically gifted students.

A new report released by Deloitte on "U.S. Public Opinions on Manufacturing" reveals that a strong majority of Americans consider manufacturing to be the most important industry in the country. But while nearly two-thirds of Americans (64 percent) believe our manufacturing industry can be globally competitive in the 21st century, most Americans (46 percent) see the manufacturing sector getting weaker or at best staying the same (32 percent). Nearly two-thirds of Americans view the government's current support for the manufacturing industry, as well as current trade and tax policies, to be harmful to our country's ability to remain globally competitive. Read the report...

In a report, the President's Council of Advisors on Science & Technology recommends that the federal government should launch a coordinated effort to boost American agricultural science by increasing public investments.

The report prioritizes seven key scientific challenges facing U.S. agriculture in the 21st century: increasing water efficiency; managing threats posed by new pests, pathogens, and invasive species; accommodating demands for bioenergy production; climate change adaptation; and reducing the environmental footprint of agricultural production while continuing to produce safe and nutritious food for domestic and international markets.

To re-focus the USDA's mission on these emerging challenges to U.S. agriculture the report proposes rebalancing the department's research portfolio and the creation of a public-private network of six multi-disciplinary agricultural "innovation institutes" to leverage the strengths of government scientists and commercial interest. Innovation institutes would be operated as a partnership between the USDA, NSF, DOE, NIH, and private partners.

Two organizations have in recent weeks called on the United States to create a national federal office of innovation to help focus and concentrate innovation across the country.

Following the election, the Information Technology and Innovation Foundation (ITIF) announced its policy recommendations for the administration in their weekly news publication as part of their "Winning the Race 2012" series. Among other recommendations to improve the country's competitiveness, innovation, and productivity, ITIF calls for the creation of a National Innovation Foundation. Similar in scope and organization to the National Science Foundation, the National Innovation Foundation would support companies and other organizations in innovation activities. Read more...

The National Research Council has released a report that establishes key indicators for measuring improvement to the U.S. K-12 science, technology, engineering and mathematics (STEM) education system. The report lays out three key goals for national K-12 STEM education: expand the number of students who pursue advanced degrees and careers in STEM fields, and broaden sector participation for women and minorities; expand the STEM workforce and broaden the participation of women and minorities; and, increase science literacy for all students in the U.S. education system. The authors point out that progress has been made during the past decade; national common core standards in STEM education have already been adopted by 45 states.