SSTI Digest

The House approved the Senate amended version of the Jumpstart Our Business Start-ups, or JOBS, Act 380 to 41. Although, the House overwhelmingly approved the bill earlier this month, the House had to accept the Senate's amendments to the crowd funding provision. Crowd funding allows small business and startups to sale small amounts of stock to many individuals through the internet or other means without registering the shares for public trading with the Securities and Exchange Commission (SEC). However, the companies seeking crowd funding capital must file some basic information with the SEC including a description of the business and its financial condition. Other Senate amendments to the JOBS Act require companies seeking crowd funding capital to provide: Financial statements to all investors; An independent accounting review of their statements, if they are seeking between $100,000 and $500,000 in capital; and, Audited financial statements for companies seeking more than $500,000 in capital. The amendment also limits the total amount that a company can raise through crowd funding to $1 million.

Funding is inlcuded for Gov. Andrew Cuomo's regional economic development initiatives under a FY13 budget agreement between the governor and legislative leaders announced earlier this week. This includes a new round of funding for the state's 10 regional councils and university challenge program initiated last year. The agreement also provides a down payment on the Buffalo Regional Innovation Cluster and funding to create a statewide energy initiative. The budget agreement authorizes $220 million in a second round of funding for the regional councils to implement strategic plans identified last year (see the Dec. 7, 2011 issue of the Digest). Of this amount, $150 million is new capital funding and $70 million is tax credits from the Excelsior Jobs program, according to the governor's office. Lawmakers also agreed to provide funding for the Buffalo Regional Innovation Council, announced by the governor in his State of the State address. The budget includes $100 million for the first year, with $75 million in capital funding and $25 million from the Excelsior Tax Credit program.

The U.S. Advanced Manufacturing National Program Office will hold its first workshop to help design a national network of regional manufacturing innovation hubs on April 25 at the Rensselaer Polytechnic Institute in Troy, NY. The event will be the first in a series of meetings to gather ideas from industry, academia and government participants on how to best structure the proposed National Network for Manufacturing Innovation. The president's FY13 budget requests $1 billion for the initiative to create up to 15 regional institutes, which will help develop industry-relevant manufacturing technologies. Read the announcement...

A new program launched in Massachusetts will help companies commercialize technologies developed under the Small Business Innovation Research (SBIR) program by picking up where Phase II of the program leaves off, providing financial support, coaching and introductions to potential investors. The Massachusetts Technology Development Corporation will initiate the program with $6 million over the next three years. The START program is aimed at helping companies transition from SBIR Phase II contracts, which fund technology development, to the commercialization stage, during which time companies typically rely on private sector funding. MTDC says a lack of private funding is impairing more technologies from coming to market and the START program will fill this gap by paying for patents, building prototypes, performing market research, and writing fundable business plans. The program consists of three stages over three years beginning with stage I grants of $100,000 each for 10 applicants who have won SBIR Phase II contracts. Based on the progress demonstrated over the first year, an additional stage II grant of up to $200,000 will be awarded to five of the most promising companies.

Six federal departments and agencies today announced a total of $200 million in commitments to support R&D related to the manipulation of large data sets. The Big Data Research and Development Initiative will invest in efforts to improve our ability to extract knowledge from large collections of digital data. The announcement comes in response to recommendations issued last year by the President's Council of Advisors on Science and Technology, which found that the federal government was under-investing in data science. Learn more...

MaRS Discovery District, Toronto's innovation and entrepreneurship center, has launched a $30 million early stage clean tech fund, the first of its kind in Canada. This week, the group announced that it had raised its fundraising goal entirely from private sources, and that released information about its first two investments. The MaRS Cleantech Fund LP portfolio companies will be encouraged to seek maximum support from MaRS. Read the announcement... Interested in how U.S. states and regions are catalyzing clean tech innovation? Join Lewis Milford of the Clean Energy Group, Mark Muro of the Brookings Institution and Matthew Stepp of the Information Technology and Innovation Foundation on April 19 for a webinar to learn about how the energy debate is resulting in new policies and programs and the local level. Read about SSTI webinars...

The SBA announced Supplier Connection, a private-public collaboration intended to help small businesses strengthen their revenue streams by gaining access to more than $300 billion in combined supply chain spending by a consortium of 15 of America's largest corporations. Supplier Connection, a free online portal created by the IBM Foundation, allows small businesses to send information about their products and services to 15 large private sector companies. The Obama administration hopes it will help bridge the gap between small, nimble businesses looking for new opportunities and large corporations looking for innovative new ideas and diversity in their supply chains. Visit the Supplier Connection website...

SSTI's 2012 awards program kicks off May 15 with an open call for applications. The awards showcase initiatives that greatly impact state and regional economies through successful and innovative efforts to: Commercialize and Expand Research Capacity; Increase Access to Capital; Build a Culture of Entrepreneurship; and Improve the Competitiveness of Existing Industries. Entry fees are $75 for SSTI members and $95 for non-members. Applications are due July 17. Learn more about the program and our past recipients: http://www.sstiawards.org/.

A new report from TechNet finds that on the two-year anniversary of the National Broadband Plan aimed at getting more Americans to use broadband at home, the adoption rate remains about the same. The study identifies several reasons behind the plateau and calls for better coordination among policymakers and private stakeholders to improve adoption rates. Meanwhile, some states have big plans in the works to improve their broadband networks, including governors in Hawaii and New York pushing for funding to expand Internet access to underserved areas. Ohio's governor is taking a different approach in hopes of attracting new employers and cutting-edge researchers with a $10 million state-led initiative boasting broadband speeds that officials say would far exceed the rest of the nation. The TechNet report finds the number of Americans with broadband at home has remained around 65 percent since 2009 when the National Broadband Plan was implemented under the American Recovery and Reinvestment Act (ARRA). At the same time, smartphone adoption and apps usage has grown significantly.

While many state programs provide periodic reports on their activities and impacts, a few states provide regular data on their innovation economy as a whole. These reports can be useful in assessing a state's overall approach to TBED and in finding new areas for strategic intervention. Recently, groups in Massachusetts, Maine and Illinois separately released innovation indices that provide quantitative guides to their state's progress in fostering innovation. Massachusetts The Massachusetts Technology Collaborative's John Adams Innovation Institute has released its 2011 Index of the Massachusetts Innovation Economy, an annual review of the Commonwealth's high-tech economy through 25 indicators. Each year, the index tracks Massachusetts' progress in these indicators, along with comparisons to other U.S. states and national economies. In addition to Massachusetts, the 2011 edition provides indicator data for comparison from seven leading technology states, including California, Connecticut, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania and Virginia.

Only 42 percent of Americans believe that the U.S. will maintain its dominance in science and technology through 2020, according to a recent survey by Research America. Americans also appear to expect that this change will have dire consequences. Sixty-four percent believe that it is important that the U.S. lead in R&D, and 78 percent believe that S&T leadership is important to U.S. competitiveness. Science, innovation and health ranked above "the environment" and "faith and values" in importance for future presidential debates, according to survey respondents. Read the report...

The U.S. economic crisis spurred more Americans to become entrepreneurs than at any point in the last 16 years, according to the 2011 edition of the Kauffman Foundation's Index of Entrepreneurial Activity. The study found that 320 out of every 100,000 (0.32 percent) adults (individuals between the ages of 20 and 64) in the U.S. started a new business each month in 2011, a 5.9 percent decline from 2010 (0.34 percent), but an increase over the pre-recession period. Many of these new entrepreneurs, however, are not creating new jobs through their startups. Instead, they tend to start sole proprietorships. The study posits that these opposing trends are due to new businesses launched by individuals who may have lost their jobs and have decided to become entrepreneurs. Lacking sufficient startup capital to take on employees, many of their businesses are sole proprietorships or other kinds of non-employing firms. High economic uncertainty also may have influenced entrepreneurs to choose the cautious approach of sole proprietorships over the more costly employer firms. Entrepreneurial activity rates varied substantially across states, but several states stand out.