SSTI Digest

Governors in Kansas and New York unveiled budget proposals for FY13 that would maintain funding for economic development proposals initiated last session. In Kansas, Gov. Sam Brownback proposed funding for a new Creative Industries Commission, while New York Gov. Andrew Cuomo proposed a new round of $200 million in competitive grant funding for the state's regional economic development councils.

On the one-year anniversary of the entrepreneur-focused Startup America Initiative, President Obama issued a new legislative agenda to boost the creation and growth of startup companies. The proposals include tax breaks for small business payrolls and expenses, an expansion of the Small Business Investment Company (SBIC) program and the elimination of country-specific caps on immigrant visas. The agenda was released in concert with the announcement of a third round of the Economic Development Administration's i6 Challenge, a second round of the Department of Energy's America's Next Top Energy Innovator program and a new Small Business Administration regional mentor network initiative.

A survey of Georgia's 12 regions finds collaboration and leveraging assets to support existing businesses are most critical for enhancing the innovation economy. In support of these efforts, a task force convened by Gov. Nathan Deal recommends increasing funds for the Georgia Research Alliance (GRA), extending the state's angel investor tax credit, and marketing the state to promote its research and innovation assets. Gov. Deal unveiled last week the findings of the Georgia Competitiveness Initiative, led by a group of business leaders and government officials tasked with identifying regional and statewide factors affecting the state's competitiveness. The initiative centered on six areas, including Business Climate, Education and Workforce Development, Innovation, Infrastructure, Global Commerce, and Government Efficiency and Effectiveness. Among the strategies for investing in innovation is continued support and expansion of GRA — namely an increase in funds for the Eminent Scholars program, which matches university funds for recruiting world-class researchers to the state. Gov.

The Michigan Strategic Fund (MSF) and the Michigan Economic Development Corporation (MEDC) announced public hearings for the Pure Michigan Venture Match Fund — a new program that will match early stage investments from eligible venture funds in Michigan-based technology businesses. MSF and MEDC intend for the program to attract venture funds, within and outside of Michigan, to consider investments in early stage and pre-revenue technology companies and to mitigate some risk for venture fund investments through the matching MSF funds. The minimum venture investment of $700,000 is required and the maximum eligible investment is $3 million. MSF will match between $350,000 and $500,000 with similar investment terms as the venture investment. To be eligible for funding, a company must have secured a qualified venture investment and face a peer review of its business plan. Eligible investors must fulfill all the requirements of the 21st Century Jobs Fund legislation. After consideration of the comments and information received at the public hearing, the final MVM Fund program guidelines will be presented to the MSF Board for approval and implementation.

The U.S. must increase the access to three elements help small businesses thrive and restore U.S. competiveness, according to a new report from the Center for Public Policy Innovation (CPPI) — Restoring U.S. Competitiveness: Creating Jobs and Unleashing the Potential of Small Businesses through Technology and Innovation. The key elements include: Access to Capital — Gaining access to capital is an obstacle for all small businesses. However, the U.S. must work to connect local startups with regional investors to boost local investments and make the capital gains tax exemption permanent for investors in qualified small businesses. Access to Modern Technology — U.S. small business must have access to cloud computing, mobile technologies and virtual global supply chains to invest more into their products, to collaborate on a global scale and to expand their presence to foreign markets. Access to Global Markets — The U.S. government must make existing programs, that help domestic small business enter foreign markets, easier to find and navigate. The authors contend that it is imperative that the U.S.

John Morris, who has led Tech 20/20's Center for Entrepreneurial Growth, has become the president and CEO. He succeeds Mike Cuddy who retired. The Tech Council of Maryland named Art Jacoby as its interim CEO. Jacoby, who is also a managing partner at Maryland Cyber Investment Partners, will head TCM as the organization looks for a full-time replacement for former Chief Executive Officer Renee Winsky, who left the council in December. Don Cardon, CEO of the Arizona Commerce Authority, a joint public-private entity created to replace the state Department of Commerce, is resigning. The University at Buffalo reorganized its research office. The Office of the Vice President for Research is now the Office of the Vice President for Research and Economic Development. In addition, Marion LaVigne has been named associate vice president for economic development. Douglas Banks has been selected as associate vice president for economic development at the University of Massachusetts. Most recently, Banks was editor/publisher of Mass High Tech, New England's leading high tech journal. He succeeds Jeff Brancato, who left UMass to join Northeast Ohio-based NorTech as vice president.

The third installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Delaware, Hawaii, Massachusetts, Mississippi, and Utah. The first and second installments are available in the Jan. 11 and Jan. 18 editions of the Digest. Delaware Gov. Jack Markell, State of the State Address, Jan. 19, 2012 "Following up on the recent "Imagine Delaware' forum sponsored by the News Journal, we are finding new ways to support entrepreneurs. Over the last months, we studied best practices at entrepreneurial support centers around the country... Working with Representatives Lavelle and Bryon Short and groups like First State Innovation, we will apply what we have learned to further support emerging start-ups and growing companies in Delaware." Hawaii Gov. Neil Abercrombie, State of the State Address, Jan. 23, 2012 "Not only is it important to emphasize brick and mortar, we must also build an infrastructure for technology to meet the demands of the 21st century. This is the intellectual and social infrastructure that we must have to provide opportunities and experience for our people to become an advanced workforce that can compete in the global marketplace.

A recent invitation from the White House to a high-tech entrepreneur who grew his company with help from TBED programs signifies the important role of high-growth companies for improving our nation's competitiveness. Hiroyuki "Hiro" Fujita, founder and CEO of Quality Electrodynamics, a medical device company founded in 2006, was invited to attend the State of the Union address as a guest of the First Lady upon recommendation from Cleveland Clinic Innovations, an SSTI member. At the request of the Office of Science and Technology Policy, SSTI surveyed members in five cities for suggestions of technology entrepreneurs to be invited to sit in the First Lady's box and the White House selected Mr. Fujita. Read more...

Alabama's new strategic plan defines three economic development drivers to help diversify the state's economic development efforts and maximize opportunities for growth. Programs that focus on job creation through innovation, entrepreneurship, R&D, and commercialization are listed among the "renewal" efforts of the three-part plan. This includes establishing a statewide innovation council, designating funds to expand commercialization programs, and creating a mechanism to provide state grant matching for SBIR/STTR awards. Similar to the economic gardening concept that has emerged in many other states, the Alabama plan moves away from pure recruitment efforts and focuses on creating and fostering a system that enhances the growth potential of jobs through technology developed within the state. Creating the Alabama Innovation Council to serve as a statewide, coordinated initiative is imperative for this effort to succeed, the report finds.

Building on the momentum of the InvestMaryland initiative passed last session, Gov. Martin O'Malley unveiled a joint venture between the state, federal research labs and academic institutions to accelerate technology commercialization. Under the Maryland Innovation Initiative, participating universities would pay a fee of $250,000 each year and, when leveraged with state funds and private donations, a pool of money would be used to award grants to startup companies seeking to advance research from Maryland labs. The program would be administered by the Maryland Technology Development Corporation (TEDCO). Legislation to establish the program was introduced as SB 239.

Atlanta Mayor Kasim Reed unveiled Invest Atlanta — the city's new economic development authority that places a renewed effort on job creation and competitiveness. Invest Atlanta will work primarily to attract new investment, grow international trade, fuel innovation and support entrepreneurship. Mayor Reed said, "[Invest Atlanta] represents an effort to modernize our approach to investment, attracting businesses, foreign capital and trade." Mayor Reed, who serves as chairperson of the nine-member board of directors, also announced that the organization is tasked with developing a new regional economic growth strategy. Invest Atlanta intends to leverage the benefits of bond financing, revolving loan funds, housing financing, tax increment financing and tax credits to achieve their economic development goals. Invest Atlanta will be headed by President and CEO Brian McGowan, former U.S. deputy assistant secretary of commerce under President Obama. McGowan said, "Invest Atlanta will continue to honor its traditional mission but will place a renewed emphasis and focus on ensuring that the city has the right atmosphere to help existing companies grow and attract new companies.

A new report from the Center for American Progress contends that increasing globalization, connectivity, access and acceleration of technology has caused an urgent need for investment in innovation. To resolve this issue, the authors believe that the U.S.