SSTI Digest

President Obama launched the Advanced Manufacturing Partnership Steering Committee “2.0.” Former SSTI board member Luis Proenza, president of The University of Akron is part of the steering committee chaired by Andrew Liveris, president, chairman, and CEO of the Dow Chemical Company, and Rafael Reif, president of the Massachusetts Institute of Technology. Mark Kittrell has been appointed the president of the Iowa Innovation Corporation. OK Gov. Mary Fallin has named Secretary of State Larry Parman as director of the Oklahoma Department of Commerce and secretary of commerce. Both positions require Senate confirmation. The University of Alabama at Birmingham launched the Institute for Innovation and Entrepreneurship. David Winwood, CEO of the research foundation, will be executive director of the institute, and Kathy Nugent, director of the biotechnology program at UAB, the institute’s managing director. Tim Franklin has accepted the position of associate VP for business and economic development and special advisor to the president at the New Jersey Institute of Technology. James Ruble has been named director of the Ohio…

A measure to amend the state securities laws in order to permit equity crowdfunding won approval in the Wisconsin Legislature following swift and unanimous passage in the Senate this week. The bill, called the Wisconsin Crowdfunding and Securities Exemptions (CASE) for Jobs Act, is aimed at providing better access to small business capital by connecting Wisconsin-based investors with startups through crowdfunding websites. Wisconsin now joins three other states, Georgia, Kansas and North Carolina, that have enacted similar securities exemptions. Lawmakers across several states, including in New Jersey, have cited frustrations regarding the delay in full implementation of the federal JOBS Act as a reason for creating the state-level exemptions. Under The CASE for Jobs Act, a new category of certified investor is established to include individuals with an income of $100,000 or a joint income of $150,000 in each of the most recent two years. The original bill would have reduced the threshold for accredited investors in the state from $200,000 in annual income to $100,000. Instead, the amendment adopted by the legislature creates the new certified investor status, which also…

In contrast to last week's coverage of the Virginia gubernatorial candidates on issues that affect jobs and the economy, there are little specifics on the topic provided by either New Jersey candidate. Incumbent Gov. Chris Christie has a significant lead in the polls over Democratic challenger and New Jersey State Senator Barbara Buono, but he has offered little in the way of new ideas for economic growth in the next term, instead relying heavily on past accomplishments. Sen. Buono has put forth a jobs and economic security plan outlining support for increased investment in R&D, tax credits targeted to life sciences companies, and encouraging STEM jobs and workers. However, the plan lacks concrete proposals. Since taking office in 2010, Gov. Christie has shaken up the state's economic development efforts by discontinuing a decades-old program and re-organizing existing initiatives. The New Jersey Partnership for Action was established during his first year in office in partnership with a privately funded nonprofit organization and touted as a way to help promote the state's incentives and resources and assist businesses in navigating government programs…

A continued trend toward improved fiscal conditions gave rise to targeted and riskier investments in research for several states this legislative session. In particular, lawmakers dedicated funds for life sciences research and for initiatives aimed at commercialization through partnerships with higher education and the private sector. Other states dedicated additional funds to expand promising research and technology-focused initiatives already underway. Lawmakers Support Efforts to Promote Research CommercializationNew funding commitments in life sciences occurred in Connecticut and Indiana. Connecticut lawmakers approved Gov. Dan Malloy’s proposal to create a $200 million fund to spur bioscience R&D as part of a broader economic development agenda announced in his State of the State address. With the passage of SB 842, Connecticut Innovations (CI), a quasi-public venture development organization, over 10 years will provide capital to early stage companies with the goal of driving efforts toward commercialization of new businesses and products. CI also plans to focus funds toward translational research and riskier investments for helping university…

Over the last week, several states have announced/passed new programs focused on increasing the capital available to spur small business growth and innovation. Officials from New Jersey announced the state's new angel tax credit will take effect July 1. In Arizona and Wisconsin two bills await gubernatorial approval that would rework the Arizona R&D tax credit program and establish a $75 million venture capital fund in Wisconsin. Meanwhile, the Minnesota state legislature did not approve an additional $5 million for its popular Small Business Investment Tax Credit. ArizonaIn Arizona, a bill (House Bill 2342) seeking to expand the state's research and development (R&D) tax credit awaits the signature of Gov. Jan Brewer. Administered by the Arizona Commerce Authority, the reform is intended to help small, innovative companies with little to no cash flow by providing a refund for R&D activities. To be eligible for the R&D credit, the company would have 150 or less employees and perform research and development in one of several target industries. In exchange for the refund, the state gets to discount its research and tax obligation by…

Measuring impact is critical to the success and sustainability of any economic development initiative, and as the national debate over fiscal austerity and taxpayer spending continues, TBED organizations can expect increased scrutiny and accountability for their investments. Amid growing skepticism from the public, lawmakers increasingly struggle with finding a balance for funding new efforts that may take awhile to pay off with more pressing state needs. This year, measures to encourage the creation or expansion of high-growth companies through the use of tax incentives have been unveiled in several states. At the same time, lawmakers in some states are pushing for greater disclosure requirements through transparency measures. SSTI has compiled pending and recently approved legislation below. Angel Tax CreditsTwo states, Kentucky and Missouri, will try again to pass angel investor tax credits that failed to garner enough support during last year's legislative sessions. Lawmakers in Kentucky want to extend an angel investor tax to individuals for investment in high-tech startups currently available only to companies (HB 280). The tax credit is capped at…

While election night's main focus was on the presidential race, the importance of ballot measures for states and metros is growing as public services and budgets are being severely trimmed. A recent article in The New Republic reports on a new trend where states are embracing ballot measures as a potential source of dedicated funds for targeted investments in regional economic growth and development. Aside from California Gov. Jerry Brown's victory in raising taxes on top earners to help fund education and balance the budget, most state measures to increase taxes were defeated by voters. This includes extending a one-cent sales tax increase in Arizona, a cigarette tax increase in Missouri and implementing a 1 percent sales tax increase in South Dakota — all of which were slated to fund education. Voters were more supportive of borrowing to invest in higher education infrastructure, but rejected measures to improve teacher standards and build new revenue streams for universities. The only energy issue on the ballot appeared in Michigan and failed to garner enough voter support. Measures to provide more state authority for providing economic…

Voters in 37 states will decide on more than 170 ballot measures this year, many of which are related to tech-based economic development (TBED). Tax measures seem to be dominating ballots this year, with questions relating to both decreases and increases for sales, property and income taxes. Several states are counting on voters to agree to temporary increases to help fill budget deficits and ensure steady funding for education. SSTI has broken the ballot measures down by topic area, including Economic Development Incentives, Energy, Higher Education and Capital Bonds, Statehood and Taxes. Economic Development IncentivesTwo states, Alabama and South Dakota, will pose to voters a question regarding more state authority to dole out economic development incentives for job creation by recruiting larger projects or encouraging businesses to expand. Gov. Robert Bentley recently told a state road-building group that approval of Amendment 2 in Alabama is essential to the state's efforts to create new jobs, reports the Ventura County Star. Approval of the amendment would allow the state to refinance bonds for industrial development projects, making $150…

Whether to attract federal grants, keep up with demand to graduate more highly skilled students, or advance the capabilities for research and exploration, universities are pushing for state funding to invest in science buildings and other infrastructure needed to expand research capacity and improve competitiveness. In New Jersey, a measure to approve $750 million in higher education borrowing to build and renovate campus facilities will go to the voters in November. Meanwhile, university leaders in New York and Utah recently pitched proposals to state leaders for new science and technology buildings they say will educate more students and create high-wage jobs. New JerseyBacked by Gov. Chris Christie, the New Jersey measure is the first higher education bond issue to appear on the ballot in 24 years. While borrowing for capital improvement would be divided among the state's public and private colleges, a provision was added to the law excluding private colleges with endowments of more than $1 billion from receiving any of the funds. In a statement reported by the Star-Ledger, Rutgers officials said the construction of new classroom buildings, research…

Caren Franzini, the CEO of the New Jersey Economic Development Authority, stepped down after leading the agency for 21 years. Michele Brown, Gov. Chris Christie's appointments counsel, will take over as CEO. Karen Merrick has joined the Iowa Innovation Corporation as CEO. Merrick previously had been with the Iowa Economic Development Authority. Thomas Dann, the founder and managing director at CastleHaven Advisors, a Washington, D.C., private-equity firm, was named managing director of the Maryland Venture Fund. Baiju Shah, the president and CEO of BioEnteprise, is leaving to become the CEO of BioMotiv, a drug development company that spun out of University Hospitals. Mark Wdowik has joined the Office of the Vice President for Research at Colorado State University as an assistant vice president for Research and Industry Partnerships. Wdowik has been at CSU Ventures since 2006. Jack Brittain stepped down July 1 as vice president of technology venture development at the University of Utah. Vice president for research Tom Parks will oversee tech ventures on an interim basis. Arati Prabhakar will join the Obama administration on…

Two bold proposals seeking to make big changes to community colleges in Massachusetts and New Jersey research universities recently were approved by lawmakers. In Massachusetts, more funding for the state's 15 community colleges is tied to increased oversight, performance measures and integration of workforce development initiatives. Meanwhile, New Jersey lawmakers passed a bill merging a medical and dentistry school with Rutgers University in hopes of strengthening partnerships for research projects and drawing more federal funding. In both states, the governors say the reforms are crucial for economic and job growth. MassachusettsThe skills mismatch in the labor market is a hot topic for state and education leaders. Businesses say they have jobs to fill but not enough qualified people to fill them. Many state leaders are responding to the call from industry by working with colleges to better match employer needs. Gov. Patrick's plan to provide more skilled workers for regionally specific jobs by increasing oversight and integration of workforce development initiatives was included in the FY13 budget signed into law this week (see the Feb. 22, 2012 issue…

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. Hoping to stimulate venture capital investment in Colorado, the Senate passed SB 58, the Colorado…