SSTI Digest

Established to focus solely on job creation and replace the state's Department of Commerce, Wisconsin's new public-private partnership would receive nearly $200 million over the next two years for operating expenses and to administer economic development programs. Lawmakers also will consider measures to improve existing tax programs focused on enhancing angel investments and eliminating capital gains taxes during the upcoming legislative session. Gov. Scott Walker unveiled the 2011-13 biennial budget amid a turbulent political climate centered on a budget repair bill for the current fiscal year that involves a controversial provision changing collective bargaining laws.

The U.S. economic crisis spurred more Americans to become entrepreneurs than at any point in the last 15 years, according to the 2010 edition of the Kauffman Foundation's Index of Entrepreneurial Activity. The study found that 340 out of every 100,000 Americans started a new business each month in 2010, approximately the same rate as 2009, but an increase over the pre-recession period. Many of these new entrepreneurs, however, are not creating new jobs through their startups. High unemployment rates may have driven more people to start new businesses, but many are creating lower-cost startups without employees at launch.

The Kauffman Index tracks startup rates by identifying all individuals between 20 and 64 years old who do not own businesses in the first month of the survey, using Census and Bureau of Labor Statistics data. Each month, the study checks if an individual has since become the owner of a business where they work 15 hours or more a week. Kauffman also tracks historical trends in startup rates since 1996, with additional data on race, gender, age and geography.

With the number of startups on the rise, several states and cities are reaching out to entrepreneurs to connect them with the assistance and capital they need to survive.

Indiana
The Indiana Economic Development Corporation (IEDC) has launched a new initiative to connect entrepreneurs to sources of early stage capital. The INVEST Indiana initiative will use the resources of Indiana's 21st Century Research and Technology Fund to build a statewide network of entrepreneurs, private sector investors and regional stakeholders. This public-private network will provide new ventures with access to experienced entrepreneurs and will actively seek out new, non-traditional sources of capital.

A new nonprofit, Elevate Ventures, has been commissioned to engage investors and work with regional stakeholders. The group hopes to attract federal and private funding to develop regional entrepreneurial action plans across the state.

Find out more about INVEST Indiana at: http://www.in.gov/portal/news_events/67630.htm.

In a recent speech in front of China's National People's Congress, China's Premier Wen Jiabao outlined the country's 12th five-year plan (2011-2115). The plan will focus heavily on boosting consumption through sustainable growth fueled by renewable energies and state support of strategic, emerging industries. Expenditures on R&D should reach 2.2 percent of GDP. Much of this R&D investment will be targeted in three sectors — healthcare, energy and technology. Along with increased spending, the plan calls for tax-breaks and other incentives to achieve the lofty goals established by the national party. According to the Telegraph, the proposed key industries include: pharmaceuticals; biotechnology; wind energy; hydropower; nuclear power; power grid technology; information technology; and, educational services. The plan also proposes a rate of 3.3 patents be held per every 10,000 people (approximately 450,000 patents).

Basic biomedical research has a greater academic impact and clinical research a greater societal impact over a 15 to 20 years timescale, according to the findings of Project Retrosight — a multinational, four-year study from RAND Europe and the Health Economics Research Group (HERG) at Brunel University. This study was based on data collected from 29 case studies on basic biomedical and clinical cardiovascular and stroke grant-funded, research projects in Australia, Canada and the United Kingdom. In a press release, Steven Wooding, researcher leader at RAND Europe, said: "The study showed that research is important, that it has real tangible benefits for society and that how you fund it matters. If you want to make a difference to patients over a 15-20 year time-scale, clinical research is more effective. If you want to build knowledge for the longer-term, then basic research is better."

Fifteen years ago this week, the SSTI Weekly Digest launched with two pages faxed to a distribution list of 56. We faxed it on Fridays because, at the time, Sprint offered free faxing on Fridays. When we started the Digest, one of our board members expressed concern about not having enough material to produce a weekly newsletter; as it turned out, that's never been a problem. As technology has changed, so has the Digest, and we're always looking for the best ways to communicate and get out the news. It seems fitting that after 15 years of publishing the Digest, SSTI would launch a Facebook page. Betty White said on her Facebook-generated appearance on Saturday Night Live, "I didn't know what Facebook was. And now that I know what it is, I have to say it sounds like a huge waste of time." We promise that if you "like" us on Facebook, it won't be a waste of your time. It will be a primary mechanism for getting you the latest news as fast as we can.

The Department Labor (DOL) will commit $40 million to a new Green Jobs Innovation Fund (GJIF). DOL intends to support up to eight projects that will increase the number of individuals who complete training programs for employment in green jobs."This grant program is an important effort in supporting green investments and equipping workers with the knowledge, skills and abilities they need to succeed in green occupations," said Secretary of Labor Hilda L. Solis. National and statewide organizations with local affiliates that have existing career training programs are eligible to apply for GJIF grants. Proposed programs must benefit a minimum of six communities per grant. Applications are due March 29, 2011. Read the announcement

Recognizing the value in supporting companies that innovate to create high-quality jobs, governors in New Jersey and Louisiana recently outlined proposals to enhance tax incentives for R&D, technology commercialization, and transferable tax certificates during the upcoming legislative sessions. In New Jersey, Gov. Chris Christie proposed increasing the R&D tax credit to 100 percent and restoring full funding for the Technology Business Tax Certificate Transfer program as part of his FY12 budget recommendations. Louisiana Gov. Bobby Jindal announced his intentions to work with the legislature to extend and enhance two innovation-related tax incentives — the R&D tax credit and the Technology Commercialization Credit/Jobs Program — when the session convenes in April.
New Jersey

Citing a lack of coordination among the state's economic development agencies as an obstacle for small businesses and entrepreneurs looking to set up shop, Gov. Dan Malloy unveiled a plan to consolidate job training and grant programs as part of the 2012-13 biennial budget. The governor's budget also would incentivize large employers through a competitive program rewarding the first five companies that create at least 200 new jobs within two years.

On February 24, 2011, the President's Council on Jobs and Competiveness held its first official meeting. President Obama opened the session with a brief speech urging those in attendance to develop ideas that will lay the foundation to win the future over the long term. The purpose of this first meeting was to develop new strategies that will lead to increased investment in businesses, encourage hiring, create a highly-skilled workforce, and attract new jobs and businesses to the country. Visit the Council's website

The Small Business Administration (SBA) announced a new pilot program that will to support more than 1,000 startup and earlystage firms across the country. The goal of the Entrepreneurial Mentor Corps' (EMC) is to mobilize members of the current generation of successful business owners to mentor and support startups and entrepreneurs to help them become the next generation of great American companies. In February, SBA Administrator Karen Mills announced one of the EMC's first initiatives to match approximately 100 clean energy startups with mentors. Four regional ‘accelerators’ will identify and match mentors with the clean energy startups. The four accelerators funded in the initial stage of the EMC's clean energy project include:

• CleanTech Open (Bay area and New England);
• CleanTECH San Diego (Southern California and the Southwest);
• Clean Energy Trust (Midwest); and,
• Nevada Institute for Renewable Energy Commercialization (Mountain Region).

Read the Press Release

National recognition for your organization's achievements is priceless. Past recipients of SSTI's Excellence in TBED Award tell us the recognition has helped to generate positive publicity, raise funds, and attract the attention of key stakeholders and legislators. SSTI's 2011 awards program kicks off May 17 with an open call for applications. The awards showcase initiatives that greatly impact state and regional economies through successful and innovative efforts to: Commercialize and Expand Research Capacity; Increase Access to Capital; Build a Culture of Entrepreneurship; and Improve the Competitiveness of Existing Industries. Entry fees are $75 for SSTI members and $95 for non-members. Learn more about the program and our past recipients: http://www.ssti.org/Awards.