SSTI Digest

Two universities, the University of New Mexico (Albuquerque, NM) and the University of Arizona (Tucson, AZ), are expanding or restructuring their economic development operations to improve commercialization of technology stemming from faculty research and the coordination and business development in their communities.

The University of New Mexico's Science and Technology Corporation (STC) will assume economic development responsibilities for the university. The STC is a nonprofit organization that has managed the university's technology commercialization since 1994. In its new role, the STC will coordinate all university-related economic development operations. The STC will function as the innovation door between the academic community and the general public, including businesses, national laboratories like the Sandia National Laboratory and the Los Alamos National Laboratory, and public entities.

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 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 Incentives
Two 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.

New efforts to step up technology transfer at the University of New Mexico (UNM) and the University of Tennessee (UT) have resulted in a record number of invention disclosures over the last year. In both cases, much of the achievement is attributed to faulty involvement, including new outreach efforts by the universities and more aggressive and ambitious goals set for the institutions.

In New Mexico, UNM's technology transfer office, the Science and Technology Corp., reported a record number of new technologies disclosed by faculty, including a 50 percent increase in biomedical or life science breakthroughs, reports the Albuquerque Journal. Aggressive efforts to recruit entrepreneurs to develop and market the technology led to 46 marketing licenses acquired by investors in 2012 and seven new startups were formed based on UNM inventions, the article states.

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 second installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Colorado, Missouri, and New Mexico. Our first installment was in the Jan. 11 Digest. Alaska Gov. Sean Parnell, State of the State Address, Jan. 19, 2012 "I also thank you for working with me to create a merit scholarship that gives all Alaska's children an incentive to complete a more rigorous high school curriculum. ... "... In its first year, this scholarship has been a remarkable success. Now we must secure it for future years. This legislative session, let us take the $400 million that we set aside last year, and build a strong fence of moral obligation around it. Let us create a fund for that money so the fund's earnings can pay for these scholarships for future generations." Colorado Gov. John Hickenlooper, State of the State Address, Jan. 12, 2012 "We established the Colorado Innovation Network (COIN) to foster collaboration and idea-sharing across private sector, academic and public lines, including the 29 research laboratories in Colorado. ... "...

With a sharp decline in state funding available for higher education over the past several years, performance- and outcome-based funding has garnered a great deal of attention in several states seeking to maximize education funds and support economic growth. Governors in Arizona and New Mexico recently proposed significant reforms in higher education funding so that universities with greater R&D expenditures and those that graduate more students in science, technology, engineering and mathematics (STEM) fields would receive a bigger share of state funds. Arizona Gov. Jan Brewer's funding plan for higher education builds on a formula recommendation published last year by the Board of Regents that includes increases in degrees, credit hours and outside research and public service funding. Gov. Brewer recommends moving to the Board of Regents $15 million of the universities' base funding, which would be allocated using each university's share of total general fund support. The state would match the $15 million, for a total $30 million to be allocated by the Board of Regents to the universities based on an agreed-upon funding formula.

SSTI Board member Phillip Singerman has been named as the Associate Director for Innovation and Industry Services for the National Institute of Standards and Technology. He will assume this position on January 31.

Alabama Gov.-elect Robert Bentley named former house speaker Seth Hammett as the director of the Alabama Development Office.

Colorado Gov. Bill Ritter announced he will become director of the Center for the New Energy Economy at Colorado State University effective Feb. 1.

Michigan Gov. Rick Snyder named Michael Finney, current president and CEO of Ann Arbor SPARK, as the new Michigan Economic Development Corp. director, replacing Greg Main. Ann Arbor SPARK announced the appointment of Skip Simms as interim president and CEO.

In Growing New Mexico's Clean Tech Economy, the Clean Technology Commercialization Working Group examines steps that must be taken for New Mexico to capitalize on the state's clean technology opportunity by bridging the funding "valley of death." In a report commissioned by the New Mexico Economic Development Department, the advisory group asserts four high-priority recommendations will accelerate New Mexico's clean technology commercialization. New Mexico's strengths mainly revolve around the state's existing intellectual infrastructure (e.g., research universities and two national laboratories). Currently, the state is a national leader in federal R&D spending. However, the state currently faces several weakness related to private and state financing for clean technology ventures including, state budget deficits, lack of investment banks, lack of larger venture capital firms, insufficient technology maturation funding/programs and missing incentives for venture capital and business R&D. They rank last among all states in state R&D spending.

The Tennessee Biotechnology Association has changed their name to Life Science Tennessee.

Ann Arbor SPARK recently added Bill Mayer as director of their business accelerator team.

Fred Mondragón, New Mexico's economic development secretary announced that he is retiring. Gov. Bill Richardson has appointed Allan Oliver, the deputy secretary of economic development, to replace Mondragón during the final weeks of the administration.

Robert Rosenbaum has been appointed president and executive director of the Maryland Technology Development Corporation. John Wasilisin has been serving as acting president and executive director since Renée Winsky stepped down in July 2009 to become CEO of the Tech Council of Maryland. Wasilisin will now shift to a role as executive vice president and chief operating officer.

The candidate elected as New Mexico's 27th governor will make history as the state's first female governor. Democratic nominee Diane Denish and Republican nominee Susana Martinez both offer plans largely focused on New Mexico's economic recovery and balancing the state budget. Denish's plan centers on support for small businesses such as greater access to capital and establishing a Federal Innovation Research Matching Grant program for small, high-tech companies. Martinez has proposed a variety of tax cuts and regulatory reform as well as a plan to revive the energy sector by encouraging producers to invest in new technology.

Diane Denish (D)