SSTI Digest

American Recovery and Reinvestment Act (ARRA) funding allowed the U.S. federal government to maintain steady funding of research and development (R&D) during the economic crisis. Now that the vast majority of those funds have been spent, however, the U.S. will have to step up its support of R&D to remain competitive. Earlier this year, the National Science Foundation (NSF) National Center for Science and Engineering Statistics released some illuminating data on how an increase in federal spending helped buoy U.S. R&D as the country's gross domestic product (GDP) declined in 2009 (see the April 4, 2012 issue). Several NSF releases over the past few months have detailed the vital role ARRA funding played in bolstering federal R&D spending as private sector spending fell.

When testing fourth-, eighth- and twelfth-grade students on their ability to conduct science experiments and thoughtfully explain the results, investigators made three key discoveries that policymakers say may be troubling for future workforce needs. The National Center for Education Statistics Science in Action report found that when using limited data sets, students could make straightforward observations on the data. However, most struggled to explain the results and were challenged by parts of investigations that contained more variables to manipulate or involved strategic decisionmaking.

The Economic Development Administration (EDA) released the third round of the i6 Challenge to spur high-growth entrepreneurship. EDA and its partners will commit up to $6 million to establish six proof-of-concept centers that promote American innovation, foster entrepreneurship and increase the commercialization of ideas into viable companies. These centers incorporate a range of services from technology and market evaluation, through business planning and mentorship and on to early stage access to capital. Organizations eligible for i6 challenge grants include U.S. states, local governments, institutions of higher education and nonprofit organizations. The application deadline is July 20, 2012.

Do you like to plan ahead? Do you have some funds left over you need to spend this fiscal year? Why not register early for SSTI's 16th Annual Conference in Atlanta, Oct. 29-30? Every year, our conference offers engaging conversations and expert opinions from the world of technology-based economic development. Visit our site for more information about this year's conference, including our opening reception at the Georgia Aquarium on Oct. 28. Read more at ssticonference.org... Interested in becoming a sponsor of this year's conference? Many sponsorship opportunities are still available! You can learn more about the benefits of sponsorship at ssticonference.org. Contact Noelle Sheets for additional information at sheets@ssti.org.

Although official results may not be declared until July, a statewide ballot measure that would raise taxes on tobacco products to fund cancer research was losing by a vote of 50.4 percent to 49.6 percent, according to unofficial results reported Wednesday from the California secretary of state.

Proposition 29 would impose an additional $1-per-pack tax on cigarettes and an equivalent tax increase on other tobacco products. If approved, the measure would generate about $735 million a year. Of this amount, $441 million is slated for grants and loans offered on a competitive basis to support research on cancer, cardiovascular disease, and other tobacco-related illnesses. A similar measure was passed in Texas in 2007 where voters approved a $3 billion bond measure to fund cancer research over 10 years (see the Nov. 7, 2007 issue of the Digest).

States have been slow to recover from the recession, but amid all the doom and gloom surrounding the national economy, state general fund expenditure trends are moving in a positive direction. The Spring 2012 Fiscal Survey of States finds governors' recommended budgets show an overall increase in both general fund expenditures and revenues in fiscal year 2013. There are, however, significant challenges ahead for states, including increased expenditures, particularly Medicaid costs and enrollment, and reductions in federal funding.

Fiscal 2013 budgets forecast that general fund revenues will reach $690.3 billion, surpassing peak pre-recession levels by $10 billion. Revenue collections are expected to be 3.7 percent above 2011 levels in sales, personal income and corporate tax collections, which make up 80 percent of general fund revenues. The report finds that growth from all of these sources produced greater collections than projected in many states.

Each year, a group of talented and dedicated practitioners from across the country converge to learn from one another, share successes and challenges, and participate in a national dialogue on improving innovation and competitiveness. This year's theme, The Power of Re- Defining, Imagining and Energizing Regional Economies, echoes the need for bold, innovation-centered ideas and TBED organizations are leading the charge.

To ensure the 2012 Excellence in TBED award winners are front and center in the lively debates, discussions and solutions that arise during the conference, we are inviting them to attend as our guests (a $595 value). In addition to promoting their achievement to a national audience, award winners will have the opportunity to network, attend sessions and better their practice. Applications are due July 17! More information is available at: http://www.sstiawards.org/.

Richard Bendis has been named the first president and CEO of BioHealth Innovation, Inc. a regional private-public partnership focusing on commercializing market-relevant biohealth innovations and increasing access to early stage funding in Central Maryland.

RI Gov. Chafee on May 17 accepted the resignation of Keith Stokes, executive director of the Rhode Island Economic Development Corporation. The RIEDC's deputy director, William Parsons, currently is serving in Stokes' place. Although a successor for Stokes has not been named yet, the governor has nominated six people to the board that oversees RIEDC after the vice chair and other members resigned. The nominations are subject to Senate confirmation.

In Pittsburgh, PA, The Technology Collaborative is dissolving. Innovation Works will take over some of TTC's programs.

Michael Pazzani, vice president for research and economic development at Rutgers, has accepted the position of vice chancellor for research and economic development at the University of California, Riverside, effective July 1.

A new report from the National Academies' National Research Council urges the U.S. federal government, state government, business and universities to act in concert to preserve the competitiveness of the nation's research universities. The report, a follow-up to 2005's Rising Above the Gathering Storm, suggests that a number of ongoing trends threaten U.S. global leadership in higher education. The most critical of these issues are declining federal funding for university research and the erosion of state support for higher education in general. By restoring university funding, easing regulatory and reporting requirements, building stronger university-business research partnerships and addressing attrition rates within graduate programs, the U.S. can restore its national research ecosystem, according to the report.

Governments of advanced economies are starting to believe as the 21st century advances significant opportunities for their technology-based product and service sectors will emerge from increasingly open, competitive and affluent global markets. To compete in this changing world, they are looking to expand access to capital for startups and entrepreneurs, support their research and development (R&D) infrastructure and address weaknesses in their national economies. Canada, the United Kingdom and the European Union (EU) are among those that recently have announced initiatives or released reports intended to strength their national innovation economy.

Canada
Canada must become more productive to sustain its high standard of living, according to the Organization for Economic Co-operation and Development's (OECD) Economic Survey of Canada 2012. The report points out that Canada's overall productivity has slightly fallen since 2002 compared to a 30% increase over the past 20 years in the United States. To address this decline in productivity, the OECD identified two priorities:

Compiling SBIR Phase I awards and proposal statistics by state for FY11, SSTI finds the 10 states with the most awards in FY11 were California (674), Massachusetts (416), Virginia (215), New York (146), Texas (143), Maryland (142), Colorado (130), Ohio (130), Pennsylvania (124), and Florida (92). New York moved into fourth place, up one spot from last year while Texas moved into fifth place, up from seventh place. Colorado fell three spots from last year to seventh place, tying with Ohio, which moved up one spot, dropping Pennsylvania to ninth place. Florida moved into the top 10, climbing from 12th place last year and dropping Michigan out of the top 10.

Notably, the total number of SBIR Phase I awards and proposals are down quite a bit from 2010 across nearly all of the participating agencies. In FY11, agencies granted a total 3,268 awards, down from 4,388 in FY10, a 25 percent decrease. Overall, agencies that reported proposal statistics received 11 percent less proposals in 2011 than 2010.

The Department of Energy (DOE) announced a new $120 million five-year multidisciplinary and sustained effort intended to identify problems and develop solutions across the lifecycle of critical materials. The Critical Materials Hub will work to advance U.S. leadership in energy manufacturing (e.g., electric vehicles, wind turbines and efficient lighting) through research aimed at having a reliable supply of these rare earths and other critical materials, as well as finding efficiencies and alternatives that reduce the amount needed. It is the fifth Energy Innovation Hub established by DOE since 2010. Institutions of higher education, nonprofit organizations and private firms are eligible to apply and are encouraged to form partnerships with regional entities. Interested organizations should submit their concept papers to the DOE by June 29, 2012.