SSTI Digest

An upcoming report finds that Hawaiian high-tech industries contributed $3 billion to the state's economy in 2007. Preliminary data released to Pacific Business News by the Hawaii Science and Technology Council indicates that the state is home to almost 2,000 high-tech companies in ten sectors, including biotechnology, aerospace, energy and information technology. The complete report is due later this summer.

Jobs at high-tech firms count for 3.6 percent of the state's total employment. These jobs provide an average annual salary of $69,000, 43 percent higher than the overall average personal income. Public and private tech companies combined created 4,158 new jobs between 2002 and 2007. Private Hawaiian high-tech companies grew at an average annual rate of 3.3 percent during that same period.

Armed with professional advice from mentors in scientific fields and free access to sophisticated design and engineering software, teachers and students from Hawaii, Kansas, Minnesota, Oklahoma, Vermont and Virginia will participate in a national competition to solve a real-world engineering challenge defined by the aviation industry.
 
The idea behind the U.S. Department of Energy’s (DOE) Real World Design Challenge is to create a pipeline of highly qualified workers by preparing high school students for careers in science, technology, engineering and mathematics (STEM) fields based on issues facing high-tech and defense industries.
 

National Governors Association
Twelve states recently received grants of $50,000 from the National Governors Association (NGA) Center for Best Practices to support clean energy initiatives and to overcome obstacles preventing the adoption of clean energy technologies in their region. The awards were made through NGA’s Clean Energy State Grant Program, a part of the association’s Securing a Clean Energy Future Initiative. Several companies and foundations, including American Electric Power, Dominion Resources, The Ford Motor Company and The Rockefeller Fund, have provided financial support for the grants, which are intended to fund state projects that support research, analysis, training or outreach to advance clean energy implementation.
Highlights from the list of awardees include:

Legislative approval of several measures to support the state’s energy initiatives were accompanied with lawmakers’ rejection of Gov. Linda Lingle’s proposals to fund Science, Technology, Engineering, and Mathematics (STEM) programs and expand TBED initiatives at the conclusion of the 2008 legislative session earlier this month.
 
Lawmakers allocated $8.7 million ($2.8 million above the governor’s recommendation) in fiscal year 2008-09 for the Hawaii Renewable Hydrogen Program, a key component of the governor’s Energy for Tomorrow package. The legislation stipulates that the Hawaii Strategic Development Corporation submit a report before the 2009 legislative session convenes on the measures of effectiveness of the program, details of expenditures, and a master plan for the renewable hydrogen program detailing planned expenditures.
 
The legislature also adopted Gov. Lingle’s proposal to expedite permitting of renewable energy facilities and created an energy facilitator position to assist with the permitting process in support the Hawaii Clean Energy Initiative.
 

With the goals of reducing crude oil consumption by a whopping 72 percent and identifying clean energy sources to cover 70 percent of the state’s energy needs by 2030, Hawaii has signed a memorandum of understanding (MOU) with the U.S. Department of Energy (DOE) to figure out exactly how to get the job done under the Hawaii Clean Energy Initiative.

 

To call the plan merely ambitious seems like an understatement. Hawaii currently depends on imported fossil fuels to meet 90 percent of its energy needs, the MOU begins. Despite that, Hawaii already generates more of its energy from biomass than any other state.

 

Both the state and DOE believe the goal is reasonable, however, given the abundance of clean energy resources the islands naturally enjoy – sunshine, wind and geothermal sources. In addition, the cost of importing fossil fuels across the Pacific continues to make traditional energy sources less attractive economically. The MOU states “every 10 percent increase in world oil prices results in a 0.5 percent reduction in the state’s GDP.”

 

Building on a successful legislative session in 2007, Gov. Lingle is requesting additional funds to supplement various ongoing TBED programs.

 

Seeking to continue a pilot program approved by lawmakers last year, Gov. Lingle is requesting  $2 million for a second year for the Hawaii Excellence through Science and Technology Academy Program and Robotics Programs within the Department of Business, Economic Development and Tourism (see the May 14, 2007 issue of the Digest).

 

Hawaii's research and investment tax credits for high-tech companies have been a issue of debate for nearly a decade. In a survey conducted earlier this year, 45 percent of a sample of high-tech business owners said these credits played a "major influence" in their decision to grow and expand in Hawaii. Opponents, however, claim that the program's generous tax breaks overstep their bounds by extending incentives to movie and television companies.

 

A new report from the Hawaii Department of Taxation suggests that, despite these concerns, the two credits have been successful in generating greater technology investment. The department claims that participating businesses attracted more than $821 million in investment, paid out $506 million in salaries, and have been a major driver of technology business in Hawaii since the credits were introduced.

 

Gov. Linda Lingle announced 18 appointments to the Hawaii Innovation Council, which will work with groups statewide to increase the economic impact of Hawaii's innovation resources. Co-chairmen include Mark Benioff, Ron Higgins and Jay Shidler.