SSTI Digest

Karl Fooks, a past managing director for J.P. Morgan & Co. in Asia, is the new president of the Hawaii Strategic Development Corporation. Fooks replaces John Chock who retired last year. The U.S. Senate confirmed by unanimous consent President Barack Obama's nomination of Karen Gordon Mills as the 23rd Administrator of the U.S. Small Business Administration. The Indiana Economic Development Corporation has named Stephen M. Hourigan executive director of the 21st Century Research and Technology Fund. He also will oversee the state's entrepreneurship efforts. Hourigan replaces Bruce Kidd who resigned in December. Innovate Texas Foundation was launched to enhance Texas' competitiveness in bringing promising technologies to the marketplace and creating high-value jobs in the state. David Guajardo Nance will become the Foundation's first executive director. Northern Kentucky University and their alliance partners have formed the Northern Kentucky Entrepreneurial Alliance to promote entrepreneurship in the region. Bill Taylor, the longtime head of Mercedes-Benz's Alabama operations, will become president of the Economic Development Partnership of…

The fourth installment of the Tech Talkin' Govs series includes highlights from state of the state, budget and inaugural addresses from governors in Hawai'i and Texas. Hawai'i Gov. Linda Lingle, State of the State Address, Jan. 26, 2009 "Last year we entered into a unique partnership with the federal Department of Energy called the Hawai'i Clean Energy Initiative or HCEI. It established the goal of a 70 percent clean energy economy by 2030. "HCEI experts from government, national labs, our military, utilities, universities and the private sector have recommended specific actions to achieve the 70 percent clean energy goal through indigenous renewable  resources and energy conservation. "My administration and legislators will introduce several bills based on these HCEI recommendations. . When adopted, these proposals will form the basis for Hawai'i's transformation to one of the world's first economies based primarily on clean energy." Texas Gov. Rick Perry, State of the State Address, Jan. 27, 2009 "We should start by replenishing the Emerging Technology Fund . and the Enterprise Fund, to…

Tax cuts for economic development purposes are supposed to be revenue-neutral over the long term for the government, with job creation, corporate income growth, and increases in property value ultimately making up for lost revenue. Hawaii's beleaguered tech tax credit, the subject of much debate over the past decade, may have exhausted the patience and pocketbook of Hawaii leaders based on a recent study by the state's Department of Taxation.   Hawaii's tax credits for research and investment in high-tech companies have cost the state more than $747 million since it was instituted in 1999 through the end of 2007, according to the study. The Department found that the state's investment has yielded only one full-time job at the associated firms per $535,000 in credits. In response to the report and the state's tightening fiscal situation, Governor Linda Lingle announced that more restriction would be put on these credits under the upcoming biennial budget. Under the state's High Technology Business Investment Tax Credit, Hawaii residents who invested in qualifying business received more than $657 million in income tax credits between 1999 and 2007. Ninety-five…

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. A report late last year found that Hawaii's High Technology Business Investment Tax Credit has played a major role in encouraging development in the state (see the November 14, 2007 issue of the SSTI Weekly Digest). Forty-five percent of a sample of high-tech business owners said the controversial credit program played a "major influence" in their decision to…

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.   Ralph Coppola, director of Worldwide Education for Parametric Technology Corporation, said many aerospace and defense companies that work as contractors to national security agencies are concerned the U.S. is not producing enough qualified workers who must be able to work on both the defense and commercial side. A survey conducted with these companies in the Northeast found 54 percent of the workforce is 45 years or older and one-third are eligible for retirement today. At the same time, engineering…

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: Colorado - for the Colorado Carbon Fund to provide carbon offsets for consumers and to fund community-based clean energy projects; Maryland - to fund EmPOWER Maryland, which offers energy efficiency programs to low-income consumers; Hawaii - for the Hawaii Clean Energy Initiative and efforts to evaluate the costs and benefits of electric vehicles and their supporting…

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.   The Hawaii High…

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.”   DOE’s role is to begin immediately, according to…

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).   Under the Strategic Industries Division (SID), Gov. Lingle is requesting one-time funding of $700,000 to establish a Bioenergy Program. The funding would be used to complete the statewide master plan for the program. Annual recurring funding would be necessary to continue operations, the budget documents note. To conduct the expanded responsibilities of the science and technology branch related to the Science, Technology, Engineering and Mathematics education priorities of the Governor’s Innovation Initiative, an additional $50,000 is requested within SID. The renamed Office of Aerospace Development would receive $235,000 to support a comprehensive…

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.   Hawaii residents claimed $195.6 million in investment tax credits between 1999 and 2005. The tax department reports that qualifying businesses spent $1 billion on salaries and infrastructure and created more than 5,300 jobs in Hawaii. The most frequent applicants have been…

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.

While legislators did not agree to all of Gov. Linda Lingle’s Innovation Initiative – including a $100 million innovation fund - some of the governor’s original concepts emerged from several other bills at the close of the 2007 legislative session last week.   The legislature passed a number of measures to promote science, technology, engineering and math (STEM) education, a major priority in the governor’s innovation package. SB 885 establishes the Career and Technical Education program within the state Department of Education and provides $5 million over the biennium for several technical education initiatives. Among those are Gov. Lingle’s proposals for the Hawaii Excellence through Science and Technology (HiEST) Academy Pilot Program and a Fostering Inspiration and Relevance through Science and Technology (FIRST) Pre-Academy Program.   Under HB 1630, Project EAST (environmental and spatial technology via experiential learning) will be maintained in existing schools and expanded to schools statewide. Project EAST incorporates cutting-edge technology into school curriculum in order to prepare students for high…