SSTI Digest

The third installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Colorado, Georgia, Nebraska, and South Dakota. The first and second installments are available in the Jan. 5 and Jan. 12 editions of the Digest.

Colorado
Gov. John Hickenlooper, State of the State Address, Jan. 12, 2011
"We also hope that every bill you consider passing will be viewed through the lens of its impact on our economic growth. ...

"... For example, we know there are several bills you are considering that will establish a venture capital fund for small businesses. We will work with you on these proposals and create strong public-private partnerships.

Arizona Gov. Jan Brewer will convene a special session to focus on job creation proposals centered on her effort to replace the state's Department of Commerce with the public-private partnership she established through executive order last year (see the July 14, 2010 issue of the Digest). Along with legislative approval of the Arizona Commerce Authority (ACA), the governor is calling for $25 million to launch the Arizona Competes Fund, providing tax incentives for businesses locating in the state.

Climbing back from a deep recession without over burdening taxpayers is a main focus of this year's legislative session for many states, leaving little room for bold initiatives needed to position state and regional economies for future growth. Nebraska Gov. Dave Heineman, however, is asking lawmakers to look beyond the state's current conditions and invest in economic sectors he says are likely to create high-quality jobs and enhance the state's "economic momentum."

The Iowa Innovation Council, a 29-member state advisory board, released a strategic plan focused on entrepreneurship and targeted industries (e.g., advanced manufacturing, biosciences and information technology) to grow the state's innovation economy. The council believes this plan will create high-skilled, high-wage jobs through several new initiatives including:

• A private seed capital investment fund;
• New strategies to accelerate technology transfer and commercialization; and,
• Expansion of services available to businesses including a source for best practices and standardized due diligence processes.

In April, University of Hawaii's President M.R.C. Greenwood appointed an eight-member council to develop a strategy that would increase innovation and technology transfers throughout the university system. The council recently announced a drafted of four recommendations that would help the university system to "achieve a high-value economy in Hawaii." The recommendations build and approve upon the system's existing research capacity. The recommendation also focuses heavily on creating an innovation ecosystem built upon entrepreneurship and university-private partnerships. The four recommendations include:

1) Identifying Research as an Industry in Hawaii

Minnesota needs additional support for science and technology commercialization, manufacturing and entrepreneurship in order to remain competitive, according to a new strategic plan released by the Minnesota Science and Technology Authority. The plan recommends an initial appropriation of $10 million annually, ramping up over ten years, to invest in the state's R&D capacity, talent development and capital and business development. The group estimates that the plan could create up to 30,000 to 45,000 direct jobs and leverage up to 30 times the state's investment in the form of federal and private sector funding. Read the report ...

Thomson Reuters has updated their 2008 report on the Chinese boom in patenting. In 2006, the 11th Chinese Five-Year Plan for national economic and social development made innovation a priority, with the goal of creating an "innovation-oriented" society by 2020. Over the past few years, China's increase in overseas patent filings has outpaced other leading countries. The report examines the approaches used by the China government to boost patent activity, including increased R&D expenditures, tax deductions for R&D investments and grants to patent registrants. Read the report ...

U.S. real gross domestic domestic product (GDP) and per capita personal income fell in 2009 as the economic crisis spread across the country, according to data from the Bureau of Economic Analysis (BEA). Most states experienced the same declines, particularly in the Great Lakes region. In 2009, real GDP fell in every state, except Alaska, Louisiana, Oklahoma, South Dakota, West Virginia. West Virginia was the only state to increase its per capita income (current dollars, unadjusted) in 2009. The 2008 and 2009 crisis ended the period of steady growth in most states since 2001.

The second installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Arkansas, Connecticut, Idaho, Kansas, New Hampshire, Virginia, Washington, and Wyoming. Our first installment was in the Jan. 5 Digest.

Arkansas
Gov. Mike Beebe, State of the State Address, Jan. 11, 2011
"I want to tie funding for higher-education institutions more closely to coursework completion and graduation rates, not simply to enrollment. These tax dollars must produce college graduates, not just fill up seats. We can and must double the number of college graduates in Arkansas by 2025 if we are to stay competitive. This is a lofty goal aimed at the future, but we must begin implementing it today."

New Jersey lawmakers last week approved several bills as part of the "Back to Work NJ" economic development and jobs plan proposed by Democratic legislative leaders. Among the measures approved is The New Jersey Angel Investor Tax Credit Act (S.2454) providing incentives to taxpayers who invest in emerging technology companies. Gov. Chris Christie has yet to take action on the package of the bills, which could cost the state up to $805 million in business subsidies and lost corporate tax revenue in the coming fiscal year, reports New Jersey Newsroom.

A recent Brookings Institution report looks at the nearly 30-year impact of manufacturing's global realignment on US metropolitan areas, finding those with the highest dependence on manufacturing were impacted in several negative ways in addition to the losses in manufacturing. In particular, the resilience of the most manufacturing-centered economies — their ability to transition employment into other sectors — was particularly poor, many experiencing below national average growth in jobs and wages. Brookings reports only 3 of the 114 metro areas in the study exceeded the national averages for both jobs and wages: Charlotte, Manchester and Portland, ME.

The State of Wisconsin Investment Board (SWIB), on of the largest public pension funds in the country, plans to invest $80 million in a new "Catalyst Portfolio", intended to create profitable returns from venture investments and to attract the attention of coastal venture firms. SWIB intends to use to funds to invest in one or more venture funds, likely through a firm on the East or West coast. That investment would allow the board to act as a matchmaker between large investors in other states and Wisconsin's investor community. SWIB decided to create the fund following a 2010 analysis that found ample opportunities for profitable venture investment in the Midwest, but a lack of capital to support emerging companies. Read the announcement ...