SSTI Digest

Lawmakers approved Gov. Tom Corbett's proposal to restructure the state's economic development efforts by consolidating several programs within the Department of Community and Economic Development (DCED). Total general fund spending for DCED in FY12 is $212.8 million, down from $327.5 million last year or a 35 percent reduction. Much of this is achieved through consolidating programs.

The Ben Franklin Technology Development Authority Fund will receive $14.5 million, down from $16.9 million in FY11. The authority funds the Ben Franklin Technology Partners, which provide access to capital and entrepreneurial support services to promising tech-based companies through its four regional networks. The budget funds a new line item of $9.9 million for the Discovered in PA, Developed in PA initiative to help entrepreneurs connect with state resources. The program seeks to develop and deploy regional experts to reach out to high-growth companies and provide them with access to services and financing to help grow their businesses.

This week, President Barack Obama announced a new interagency pilot initiative to bolster regional economic strategies in select towns and cities. The Strong Cities, Strong Communities (SC2) initiative will offer federal resources to support ongoing efforts in six pilot communities, including Chester, PA; Cleveland, OH; Detroit, MI; Fresno, CA; Memphis, TN; and New Orleans, LA. Cross-agency teams will assist with mayoral initiatives in the participating cities, while a fellowship program will recruit and train local policy specialists. In addition, a national grant competition will support economic strategy development in six other cities.

Federal advisors from various agencies, picked based on the type of projects undertaken by the city, will help the participating communities leverage existing federal funding and programs. The initiative will involve four cross-agency components:

The 2012-13 biennial budget signed into law last month by Gov. John Kasich authorizes the state to transfer the liquor distribution system to JobsOhio, a private nonprofit partnership created to assume the business-incentive and job-creating functions of the Ohio Department of Development. With the transfer, the state expects to generate $1.2 billion in a lump-sum payment, with $500 million deposited into the general fund in FY12 and $700 million used to pay off outstanding bonds supported by liquor profits, according to an analysis by the Ohio Legislative Service Commission.

Ohio is one of several states to enact legislation privatizing some or all economic development functions during the 2011 legislative sessions. Governors in Arizona, Iowa, Nevada, and Wisconsin signed similar bills this year eliminating their primary economic development agencies and replacing them with public-private partnerships intended to reduce state spending and improve the responsiveness of state efforts.

New research suggests that the current jobs crisis may have its roots in factors that predate the 2007-2009 recession. In Starting Small; Staying Smaller; America's Slow Leak in Jobs Creation, the Kauffman Foundation's E.J. Reedy and Robert Litan find that over the past few years new businesses are starting off smaller and growing less than in previous years. For example, the cohort of firms that started in 2009 are now predicted to contribute one million fewer jobs over the next decade than historical averages would suggest. Read the report...

During the Clinton Global Initiative's (CGI) America meeting, CGI announced 51 new projects that will create jobs and spur economic growth in the U.S.. On the final day of the conference, former President Clinton discussed the impact that these commitments will have when fully funded and implemented. Clinton said, "[the] 51 commitments will improve the lives of 2.7 million people in the United States." These commitments also should create or fill more than 124,000 jobs, provide more than 364,000 people with access to job training and support entrepreneurs with $265 million in investments or loans. The former president hopes that these projects "will inspire others to take action to revitalize their own communities." The CGI America conference focused exclusively on the U.S. and brought together over more than 750 leaders from businesses, nonprofits and all levels of government to generate new ideas for spurring economic growth and highlighting existing programs.

The clean economy employs over 2.6 million workers spread across a diverse group of industries, according to a new report from the Metropolitan Policy Program at the Brookings Instition in partnership with Battelle's Technology Partnership. In Sizing the Clean Economy: A National and Regional Green Jobs Assessment, the researcher developed, analyzed and commented on a detailed database of establishment-level employment statistics related to clean economy industries at the national, state and regional levels. Through the report, the research team intends to define what constitutes a clean/green job and what the clean/green economy in the U.S. is. The authors contend that the clean economy is "defined as the sector of the economy that produces goods and services with an environmental benefit."

The report's significant findings include:

The Department of Commerce, National Institute of Standards and Technology is seeking applications for the director, Technology Innovation Program. This position is perfect for you if you are ready for a challenge and are committed to making significant improvements in the operations of one of the world's premier research and science organizations. NIST is located in Gaithersburg, Montgomery County, MD. This is a great opportunity to have a tremendous impact on an agency's programs and enjoy the benefits of working outside the Washington beltway.

The director of the Technology Innovation Program (TIP) serves as the executive responsible for managing and leading this critical program for NIST. The TIP was established as part of the America COMPETES Act (P.L. 110-69) to assist United States businesses and institutions of higher education or other organizations, such as national laboratories and nonprofit research institutions, to support, promote, and accelerate innovation in the United States through high-risk, high-reward research in areas of critical national need.

Pamela Goldberg has been appointed as the executive director of the Massachusetts Technology Collaborative. Currently, Goldberg serves as director of entrepreneurial leadership at Tufts University.

Alabama Gov. Robert Bentley announced the appointment of Greg Canfield as the new director of the Alabama Development Office. Current ADO director Seth Hammett is returning to his position with PowerSouth Energy. Canfield is expected to begin his duties on or before Aug. 1.

Ohio Gov. John Kasich announced that Jim Leftwich is resigning as director of the Development Department. Leftwich, former CEO of the Dayton Development Coalition, stepped in as former director Mark Kvamme moved to a different position within the administration.

President Barack Obama recently announced the creation of a national Advanced Manufacturing Partnership (AMP) to accelerate the development of manufacturing technologies at top engineering universities. The AMP initiative, which was developed based on recommendations from a report by the President's Council of Advisors on Science and Technology (PCAST), would leverage existing programs and proposals to invest more than $500 million in university and private R&D. The partnership is being called an "umbrella" for federal innovation programs.

Funding for the effort would support federal research and research at universities and private companies that could help invent, deploy and scale next-generation technologies. Through the programs associated with the AMP initiative, the federal government would invest in four key technology development areas, including:

The 2011-13 biennial budget for the Oregon Business Development Department recently approved by lawmakers allocates $16 million for the Oregon Innovation Council (Oregon InC), the same amount as last biennium, but short of the $19 million requested by Gov. John Kitzhaber to broaden research and technology transfer programs.

Funding for Oregon InC is provided through lottery revenues and is divided among six signature centers and programs dedicated to growing the state's innovation economy. Funding in 2011-13 will be distributed as follows:

• $5.2 million for the Oregon Nanoscience and Microtechnologies Institute (ONAMI)
• $3.8 million for the Built Environment and Sustainable Technologies Center (BEST)
• $2.8 million for the Oregon Translational Research and Drug Development Institute (OTRADI)
• $2.5 million for the Oregon Wave Energy Trust (OWET)
• $1.2 million for Drive Oregon
• $0.5 million for the Northwest Food Processors Innovation Productivity Center

At the close of the 2011 legislative session in Louisiana last week, lawmakers approved three measures to encourage investment in high-tech economic endeavors. This includes renewing and enhancing the R&D tax credit and the Technology Commercialization credit and reinstating an angel investor tax credit for investment in emerging startups.

Lawmakers last week passed a measure establishing the Innovate NY Fund to invest $25 million of federal funds in technology development organizations, research universities, and seed-stage investment funds. The Empire State Development Corporation will administer the fund and establish a competitive process for evaluating applicants. Investment priority is given to companies involved in commercialization of R&D or high-tech manufacturing.

Funding comes from the State Small Business Credit Initiative, which is part of the Small Business Jobs Act of 2010 signed into law by President Obama in September. All states are eligible to apply for the funds meant to spur lending to small businesses and manufacturers. New York was awarded $55.4 million. The legislation requires funds to be invested in New York-based, seed-stage companies with substantial potential growth and job development in emerging technology fields. The bill (A. 8452) awaits action by Gov. Andrew Cuomo and is available at: http://public.leginfo.state.ny.us