SSTI Digest
Clean Tech Venture Investment Declines, USDA Supports VC-Backed Clean Tech Firms
Clean Tech venture investments declined in the third quarter of 2012, according to the MoneyTree report released on Friday by PricewaterhouseCoopers (PWC) and the National Venture Capital Association (NVCA). The numbers reinforce the current trend of decreasing investment in clean tech companies and projects and the inherent challenges of VC backing in the sector. However, many are attributing this drop to a shift in the focus of clean tech investment by private and public entities rather than complete disenchantment in the promising sector.
SBA Reports Record Level of SBIC Financing For Third Straight Year
The U.S. Small Business Administration's (SBA) Small Business Investment Company (SBIC) debenture program provided $2.95 billion in financing to small businesses in FY12, according to a recent SBA release. SBICs around the country help small businesses to expand by providing them with access to long-term capital. For the third year in a row, SBIC activity reached an all-time high, growing 14 percent over FY11 and 85 percent over FY10. Read the announcement...
Want to learn more about federal capital resources for expanding businesses? Join us next week in Atlanta as we explore the intersection of technology-based economic development and community finance in our session on Funding the Next Step: Helping Companies Expand. Learn more...
U.S. Remains Top Destination for Doctoral Students Post-Graduation
As the rate of foreign students earning doctorates from American universities increases — from 17 percent of the total science, engineering, and health doctoral degrees in the 1960s to nearly 40 percent in 2010 — the question is where do these foreign nationals seek work? Do they remain in the United States post-graduation or do they return to their country of origin or do they go elsewhere?
Using information from a 2008 Survey of Doctorate Recipients and 2010 Survey of Earned Doctorates, an NSF report this month suggests that a total of 85.7 percent of recent doctoral graduates continued to live in the United States after graduation, including 67.5 percent of foreign-born graduates. However, 20.4 percent of foreign-born doctoral graduates return to their country of origin. Students from South Korea, Taiwan, and Central and South America have more than 40 percent of their U.S. doctoral students return to their home country, while China, India, and Soviet Union countries have lower repatriation levels.
Voters Reject Tax Increases, Back Bonds for Higher Ed
While election night's main focus was on the presidential race, the importance of ballot measures for states and metros is growing as public services and budgets are being severely trimmed. A recent article in The New Republic reports on a new trend where states are embracing ballot measures as a potential source of dedicated funds for targeted investments in regional economic growth and development.
Aside from California Gov. Jerry Brown's victory in raising taxes on top earners to help fund education and balance the budget, most state measures to increase taxes were defeated by voters. This includes extending a one-cent sales tax increase in Arizona, a cigarette tax increase in Missouri and implementing a 1 percent sales tax increase in South Dakota — all of which were slated to fund education.
$20M Awarded to 10 Public-Private Regional Partnerships Geared towards Advanced Manufacturing Initiatives
The Obama administration announced winners of the Advanced Manufacturing Jobs and Innovation Accelerator Challenge on Tuesday. The challenge — publicized earlier this year — is one of the key initiatives of the interagency Taskforce for the Advancement of Regional Innovation Clusters and is sponsored by a partnership between the U.S. Department of Commerce, the National Institute of Standards and Technology, the Departments of Energy and Labor, and the Small Business Administration. Winners include programs in AZ, CA, MI, OK, TN, NY, PA, and a WA and OR bi-state partnership, each receiving approximately $2 million in grants. See the complete list of challenge winners and their reward amounts here. This is the third in a series of multiagency Jobs and Innovation Accelerator challenges administered since 2011. Learn more...
Govs Detail New Policies to Broaden Energy-Focused Economic Development
New energy plans unveiled by governors in Connecticut and Mississippi promise to capitalize on current strengths, build capacity for future projects, and encourage public-private partnerships to scale up clean energy projects and create jobs by attracting more R&D investment to the states. Connecticut's draft strategy proposes economic incentives to drive down costs of new technology and maximize the use of clean energy finance banks — an approach that is heralded as a model for other states in a recent policy report. At the same time, a new roadmap for energy opportunities in Mississippi focuses on using available resources to attract businesses while expanding research and training more high-tech workers.
Early Registration Extended; Register by Monday to Save $100
Register by Monday, Oct. 15 to Save $100! SSTI has extended early registration for our 16th Annual Conference in Atlanta until Monday, October 15! Register now to save at least $100 per registration! Join the more than 250 people who already have signed up for the conference!
Join us for the biggest and best conference yet. This year we are offering two full days of conference activities including 16 breakout sessions, four session tracks, three workshops and two networking receptions.
Federal Agencies Unveil R&D Dashboard
Several federal agencies have joined forces to launch a new beta website that allows individuals to look at U.S. federal investments in science and engineering from two agencies — the National Institutes of Health (NIH) and the National Science Foundation (NSF). The R&D dashboard gives users the ability to search and download data on grants issued by the federal government to research institutions (investments) and on output activities (e.g., patents and publications) from federally funded research by state, congressional district and research institution. Users also may search investments and outputs by select topic areas at the same geographic levels of detail.
A requirement of the 2002 eGov Act, the government intends for the full version of the website to include data from all federal R&D spending. It also would expand information on outputs of federally funded research. The public is encouraged to review the beta site and provide feedback. Visit the website at: http://rd-dashboard.nitrd.gov/.
Coming Home: A Look at the U.S. Reshoring Movement
Manufacturers across the nation celebrated National Manufacturing Day on Friday and the topic on many people's minds was reshoring. Earlier this week, General Motors announced it will build a software development center in Michigan, joining a number of companies like Google, Caterpillar, GE and Ford who all have revealed plans to make products in the U.S. previously outsourced or purchased overseas. Although the prospect of a reshoring trend and resurgence in U.S. manufacturing has been a topic of debate, there are still skeptics who say the evidence of this movement is highly anecdotal and the U.S. still faces a future of offshoring.
Air Force To Launch $4.4 Million Virtual Nano-Bio Manufacturing Institute
The Air Force Research Laboratory announced that it will commit up to $2.2 million, plus up to an additional $2.2 million in matching funds collected by the recipient organization, to establish a National Nano-Bio Manufacturing Institute for Defense Aerospace, a virtual public-private partnership to spur collaborate research in industrially-relevant nano-bio manufacturing technologies and establish developmental roadmaps for the aerospace manufacturing community. Existing or near-established nonprofit organizations, including institutions of higher education, are eligible to apply. Proposals are due by November 13, 2012. Read the federal funding announcement...
Angel Investment Continues Rebound in First Half of 2012
Angel investment activity continues to recover from the crash that hit startup capital markets in late 2008, according to the latest report from the University of New Hampshire's Center for Venture Research (UNH CVR). During the first half of 2012, the number of ventures receiving angel funding grew by a modest 3.7 percent over the same period in 2011. Healthcare remains the dominant target of angel investments, comprising about a quarter of angel dollars into the first half of the year. Internet sector investments, however, dominate angel group investments, according to the recent Halo Report on angel group activity.
Total investments by angels in the first half of the year reached $9.2 billion in 27,280 companies, according to the UNH CVR report. Both angel investment dollars and deals modestly grew over the first half of 2011, increasing by 3.1 percent and 3.7 percent respectively. The number of individual investors reached 131,145, a 5 percent increase over the previous year. Average deal size remained steady.
Foundation Support for Regional Innovation on Display at SSTI Conference
At the upcoming SSTI Annual Conference in Atlanta, SSTI staff will present on the role foundations have played in support of Venture Development Organizations (VDOs), accelerators, and other regional economic development organizations. Through research and interviews with various foundations, SSTI staff have identified nearly 200 examples of foundation grants to organizations that support a regional innovation system. Some of the major providers include the Kauffman Foundation, Benedum Foundation, Knight Foundation, McCune Foundation, Mellon Foundation, and the Cleveland Foundation. The grant amounts have considerable range, from $5,000 to $10 million, with an average grant over $350,000 but a median of $138,000. Many of the grants are more modest in scale, with 35 of the grants less than $25,000.