SSTI Digest

With overwhelming support from the Idaho legislature, Gov. Butch Otter signed into law HB 546, a measure to establish the Idaho Global Entrepreneurial Mission (IGEM), an industry-university research partnership to facilitate and accelerate tech transfer. The governor proposed $5 million for the initiative within the FY13 Higher Education and Commerce budgets, which are pending approval in the legislature. The bill signed by the governor modifies the existing Idaho Innovation Council into an oversight and governing body called the IGEM Council, which is charged with distributing grants, developing and implementing a statewide strategic plan for innovation and establishing objectives for the program. Funding for the initiative is divided among three areas: $1 million for the Department of Commerce to set up the IGEM Innovation Grand Fund for investment in new technologies with oversight from the IGEM Council; $2 million in increased funding for Idaho's universities; and, $2 million in ongoing, permanent support for the Center for Advanced Energy Studies.

"In the 2000s, U.S. manufacturing suffered its worst performance in American history in terms of jobs. Not only did America lose 5.7 million manufacturing jobs, but the decline as a share of total manufacturing jobs (33 percent) exceeded the rate of loss in the Great Depression," according to a new report from the Information Technology & Innovation Foundation (ITIF). In Worse Than the Great Depression: What the Experts Are Missing About American Manufacturing Decline, ITIF contends that there is a fundamental flaw in the conventional wisdom regarding U.S. manufacturing job loss. Most economists, pundits and elected officials maintain manufacturing job loss is a result of productivity-driven restructuring, similar to the U.S. agriculture sector that has lost jobs but remains healthy due technology-driven increased productivity. However, the authors provide two methodological flaws that have led to poor data and shaped conventional wisdom: Most economists and pundits do not extend their analysis beyond one macro-level number — change in real manufacturing value-added relative to real gross domestic product — which at first glance appears stable; and, More fundamentally, U.S.

Thirteen federal agencies, led by the Economic Development Administration (EDA) and the Department of Agriculture (USDA), will provide up to $15 million in funding and other resources to assist in job creation and economic growth in rural areas. The Rural Jobs and Accelerator Challenge is intended to leverage local assets and foster connections to industry in up to 20 rural regions across the country. Approximately $750,000 may be made available per award. Applications are required to provide matching funds and apply for funding from both the EDA and USDA. USDA will target investments to support technical assistance to develop rural communities' capacity and ability to undertake projects related to housing, community facilities or economic and community development. EDA will target investments to support projects that create regional linkages by connecting communities with innovation clusters and regional opportunities leading to job creation, expanded markets and economic growth. To be eligible for an award, projects must benefit rural communities, but the applicant is not required to be located in a rural area. U.S.

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards.

Providing Access to Capital

The Arizona Senate approved last month a bill to empower the state to facilitate $250 million in loans to manufacturers and other businesses by allowing third parties to sell income and insurance premium tax credits to venture capital firms, banks and other lenders, reports The Arizona Capitol Times. Supporters say the program, which has been employed at the federal level over the last decade under the New Markets structure, has been adopted successfully by nine other states. The measure awaits action in the House.

The Abell Foundation and Maryland Technology Development Company (TEDCO) announced the Propel Baltimore Fund — a $3.3 million angel investment fund targeted at startups and entrepreneurs in Baltimore. The fund will invest in technology companies with innovation-focused business plans that are located in Baltimore or are willing to relocate to the city. Initial investments will be between $50,000 and $100,000 (maximum investment of $220,000 per company). Propel investments will require a 50 percent match from outside investors. Read the press release.

Over 181,900 international patents were filed in 2011, up 10.7 percent from 2010, according estimated data from the World International Patent Organization (WIPO). China, Japan and the U.S. accounted for 82% of the total growth, the highest since 2005. Estimated data was collected from the WIPO-administered Patent Cooperation Treat (PCT) system. The PCT system facilitates the process of seeking patent protection across its over 140-member countries by postponing the requirement to file a separate application in each country until after a centralized processing and initial patentability evaluation have taken place. The U.S. with an estimated 48,596 filings (26.7 percent of all patents filled worldwide in 2011) remained the largest user of the PCT system. The U.S. was followed by Japan (38,888 fillings; 21.4 percent of all patents filled), Germany (18,568 fillings; 10.2 percent of all patents filled) and China (16,406 fillings; 9.0 percent of all patents filled).

A contribution of $4.2 million CAN ($4.2 million USD) by FedDev Ontario will be used to place 320 recent graduates in science, technology, engineering and mathematics (STEM) fields with businesses in a competitive six-month internship and mentorship program. The idea is to provide graduates with real world opportunities to develop business skills and experience. The grads will be matched with small- and medium-sized enterprises in southern Ontario. Read the press release

Discovering the ideal conditions for entrepreneurs to succeed is a topic widely researched in today's economy. Most researchers will agree that having access to capital, a culture conducive for risk, and skilled workers are key components. A new report from the Technology CEO Council (TCC) adds that powerful and affordable new technologies, and companies that harness them, are at a greater advantage than ever before when it comes to driving job creation. The report points to new research from Catherine L. Mann of Brandeis University indicating companies that were intensive users of IT grew jobs at a rate of 5.1 percent from 2001-09, while overall employment shrank by 0.5 percent. And, although small IT-intensive service firms represent only 5 to 6 percent of all employment, they averaged 34 percent of new jobs created between 2002 and 2008.

The Office of Management and Budget (OMB) released a request for information (RFI) on the Reform of Federal Policies Relating to Grants and Cooperative Agreements. OMB intends to use these comments in its development of a whitepaper, to be published later this year, which may propose specific revisions to increase efficiency and effectiveness of federal grant programs by eliminating unnecessary and duplicative requirements. Comments should address possible reforms to one or more of four topics: Overarching Questions — reform ideas related to reducing the administrative burden of applicants; Single Audits — reform ideas related to the federal single audit framework; Cost Principles — reform ideas related to indirect cost rates and a flat rate framework; and, Administrative Requirements — reform ideas related to specific standards that should be considered in federal agencies' evaluation of merit. Comments are due March 29, 2012. Read the Request For Information.

With the goal of integrating STEM learning into schools and strengthening teacher effectiveness in STEM areas, Science Foundation Arizona (SFAz) is launching the Arizona STEM Network, which will be implemented over the next five years in school districts throughout the state. In Texas, officials are counting on a new $30 million fund to produce more STEM graduates by recruiting top-notch research faculty to the University of Houston (UH). The Arizona STEM Network builds on Gov. Jan Brewer's plan for STEM education announced in 2010. SFAz will serve as the operational management hub to provide focus, commitment and structure to achieve the goals outlined in the implementation plan. Four strategic concentrations will guide the work of the STEM Network over the next five years. These include: Integrating STEM into schools and districts by working with the governor's office, Department of Education and county superintendents to extend STEM expertise through Regional Education Service Centers.

The U.S. Department of Treasury recently announced the selection of 70 organizations from around the country to receive a total of $3.6 billion in New Markets Tax Credits awards. The awards may be used to provide individual and corporate taxpayers with a credit against federal income taxes for making equity investments in community development entities. Read the complete list of awardees...

The Michigan Economic Development Corporation announced the Tech Transfer Talent Network — a new $2.6 million initiative to increase the supply of seasoned entrepreneurs and innovators who can lend their expertise to member universities' tech transfer offices. The University of Michigan's (U-M) tech transfer office will lead the seven-university network and share its tech transfer resources with member institutions. In addition to U-M, the members are: Wayne State University, Michigan State University, Michigan Technological University, Western Michigan University, Grand Valley State University and Oakland University. The Tech Transfer Talent Network's primary purpose is to increase the supply of seasoned entrepreneurs and innovators who can lend their expertise to university tech transfer offices. The state hopes these connections will serve as important bridges to launch technology-based startups or license university inventions to established companies.