SSTI Digest

After training nearly 80 PhD scientists and engineers in the craft of policy making, the California Council on Science and Technology (CCST) has awarded planning grants to nine other states to evaluate the potential to create a policy fellowship for scientists and engineers in their state capital.  The new one-year grant, which is administered by CCST and funded by the Gordon and Betty Moore Foundation and the Simons Foundation, will support teams in Alaska, Colorado, Connecticut, Idaho, Massachusetts, Michigan, New Jersey, North Carolina, and Washington as they work on feasibility studies and other strategic steps toward creating science fellowships in their state policy arenas. It is up to each state to design the fellowship that would work best in their state, whether that is a position in the legislature or another body.

Leadership in the data economy should be a target for the state of North Carolina, according to a new report by the North Carolina Board of Science, Technology and Innovation (BSTI). As more economic value is placed on the ability to successfully collect and manipulate data for insight and profit, the state needs to focus on closer collaboration, proactive branding and a greater focus on data science education and talent development, according to the report, NC in the Next Tech Tsunami: Navigating the Data Economy.

Fast growth, high wages, the need for talent, improved rural economics and more competitive industries are all cited as top reasons for the state to target the data economy. The report identifies state assets in the data economy such as companies like SAS and Red Hat headquartered in the state, programs at the state’s public and private universities, and a vibrant entrepreneurial environment, among other things.

To become a top state in the data economy, the report recommends that the state should:

NC Gov. Pat McCrory conceded the election to Democrat Roy Cooper on Monday after a recount he requested in Durham County was showing no change in the election results.  Acknowledging that it was a divisive election, Gov.-elect Cooper said, “I know still that there is more that unites us than divides us.”  Cooper will face a Republican super majority in both chambers of the state legislature.

The results of Maine’s Question 2, a tax on income above $200,000 to fund education initiatives, will also stand.  Opponents withdrew their request for a recount of election results, which showed approval of the measure by a less than 1 percent margin. Revenue from the surtax will be used to fund public education.

North Carolina Gov. Pat McCrory recently signed an economic development bill (HB 117) that would expand the operations of the state’s Job Development Investment Grant (JDIG) fund. The fund, which offers grants to companies for job creation and expansion, will have a higher annual cap, and a contingency to offer even more funds in years in which a “high-yield project” is supported. The North Carolina Competes Act also offers targeted support for a particular type of job creator: data centers. Data centers that invest $75 million or more are now eligible for significant tax incentives. North Carolina’s incentives are intended to help the state compete with a number of other states that have targeted this industry.

While most state legislative sessions ended over the summer, a number of states only recently approved spending for FY16. Governors in Alabama, North Carolina and New Hampshire have approved budgets in the past few weeks, each after months of tense negotiations. SSTI reviews budgets in each of these states for spending related to technology-based economic development. For past articles in this series, visit ssti.org/tags/state-budget.

AlabamaLast week, Gov. Robert Bentley signed Alabama FY 2016 General Fund Appropriations bill (HB1, Second Special Session 2015) following a second special session of the legislature. Funding for many state agencies was reduced by 5.5 percent, and $80 million in use tax revenue from the state’s Education Trust Fund was moved to the General Fund.

Five North Carolina communities have been selected to participate in InnovateNC, a two-year economic development initiative centered on sharing knowledge, tools and resources between partner regions. Asheville, Greensboro, Pembroke, Wilmington and the city and county of Wilson were chosen from the 18 applicant regions. The initiative is spearheaded by NC State University’s Institute for Emerging Issues with nine partners and supported by a grant from the Kenan Creative Collaboratory. The selected communities will create local innovation councils and develop tailored local innovation strategies in an effort to expand the benefits of the innovation economy to parts of the state that have not experienced the same boom as the Research Triangle and Charlotte. Find more information at: http://iei.ncsu.edu/emerging-issues/innovation-reconstructed/forumnextsteps/innovatenc/.

Since the establishment of the Tennessee Promise in 2014, the first statewide free community college effort, community college systems and states are outlining their own strategies to make a two-year education free for students in their region in attempt to create an educated, qualified workforce that addresses the needs of industry and promotes economic prosperity. While it may remain too early to judge the benefits and the costs of these programs – lawmakers and educational professionals remain divided on the issue. 

In Wisconsin, Milwaukee Area Technical College (MATC) announced a plan to offer tuition-free enrollment to low-income, academically qualified high school seniors starting in the fall of 2016. Called the MATC Promise, the privately funded program is intended boost MATC’s enrollment and create a pathway to receive a college degree for students from families who otherwise could not afford to send their kids to college.

State Treasurer Janet Cowell announced a second North Carolina Innovation Fund (NCIF), a $250 million commitment to North Carolina-centered companies. Approximately $165 million will be designated to make co-investments in growth stage companies with the potential for a risk-adjusted, high return on investment (ROI) – 20 percent ROI. The second NCIF will make targeted investments into a diverse set of industries that include key sector identified by the state as growth sectors. The remaining funds, approximately $83 million, will have a multi-stage investment focus (e.g., venture, growth, buyout, and mezzanine funding), according to the Triangle Business Journal.

Even after equity crowdfunding reached a milestone earlier this month with new Securities Exchange Commission proposed rule changes, state legislatures across the country continue to pass intrastate crowdfunding bills. In April, governors from Arizona (HB 2591) and Colorado (HB 1246) signed bills that will allow startups and other businesses in their respective states to raise capital via equity crowdfunding exemptions. Arizona and Colorado joined Massachusetts (Read more in the SSTI Digest) as states that have passed exemptions since the start of the year. The next state most likely to pass crowdfunding legislation is Minnesota – once they are able to finalize compromise between lawmakers and state regulators.

Several governors released their proposed budgets over the last two weeks, and while some states continue to deal with budget shortfalls that prevent many new initiatives from coming into fruition, governors in Pennsylvania and North Carolina included numerous proposals focused on innovation and economic development. Additionally, governors in Louisiana and Massachusetts highlighted new workforce development proposals. 

Pennsylvania

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses.

The fifth installment of this year’s series includes excerpts from speeches delivered in Illinois, North Carolina, Oklahoma and Tennessee. Read the first, second, third and fourth installments of this year’s series.

Last year, 108 unique institutional funders made a total of 260 investments in North Carolina companies, according to a report from the Council for Entrepreneurial Development. The 2013 Innovators Report details the $461 million in equity investments, grants and awards received by firms, including support from venture investors, angel networks, foundations, federal agencies, competitions, crowdfunding and other sources. Life sciences firms generated the most activity with $275 million in 134 deals, driven by the biopharmaceutical industry. Technology firms secured $117 million in 106 deals. The report identifies the location of the state’s funding institutions, with the largest number based in North Carolina (26), followed by the Northeast (24) and the Mid-Atlantic (14). Read the report…