SSTI Digest

While seeking to spur economic growth through new investments in university-based research, Gov. Sam Brownback also proposes to consolidate the efforts of a longstanding program recognized for creating high-wage jobs and diversifying the state's economy. Under the governor's FY12 budget proposal, many of the programs currently managed by the Kansas Technology Enterprise Corporation (KTEC), which provides dedicated support for researchers, entrepreneurs and technology companies, would be transferred to the Department of Commerce.

Eliminating KTEC and folding some of its programs into the Department of Commerce would save $1.7 million, according to budget documents. Overall, the governor's budget proposes elimination of eight state agencies for a cost savings of $9.2 million. A similar plan was proposed by former Gov. Kathleen Sebelius two years ago and subsequently rejected by the legislature.

The Obama administration plans to award $2 billion in grants to two-year, degree-granting institutions over the next four years to expand job training programs across the country. The funding was allocated through last year's health care act and will support training programs designed to meet the needs of local employers. Awards will range from $2.5 million to $5 million for individual institutions and from $.25 million to $20 million for consortia. The administration also is using the program to support the development of free, online learning materials, according to The Chronicle of Higher Education. Find out more ...

Massachusetts continues to be the country's most successful high-tech economy, according to the 2010 edition of the Milken Institute State Technology and Science Index: Enduring Lessons for the Intangible Economy. The Index uses 79 indicators to evaluate and rank state performance in five categories: R&D inputs, risk capital and entrepreneurial infrastructure, human capital capacity, technology and science workforce, and technology concentration and dynamism. Since the last update in 2008, Utah climbed three places to rank fifth overall due, in part, to improved risk capital availability. Alaska and Ohio had the greatest improvement, each moving up seven spots in the overall rankings. Download the Index (requires login) ...

New York City Mayor Michael Bloomberg recently launched the NYC Urban Technology Innovation Center, an initiative that will connect universities, technology companies and building owners in an effort to bring new green building technologies to market. The initiatives will provide a database of technology needs and research, and will provide researchers with real world test sites for their work. Building owners will be able to use the technologies at discounted rates. Learn more ...

With the fears of rising state deficits and high unemployment, states must make tough decisions regarding their economic development efforts in the coming years. Researchers at the Brookings Institute contend that states should focus on regional economic clusters because it provides a "low-cost means" to reignite innovation, entrepreneurship and job creation. "Organic" job growth should be the focus of state economic development, according to the report — Job Creation on a Budget. The researchers say, "Some 95 percent of all job gains in a year in an average state come from the expansion of existing businesses or the birth of new establishments (i.e., organic factors of job growth)." These efforts also take significantly smaller financial commitments by the state and provide a more streamlined approach to achieve meaningful job growth than other more conventional economic development efforts.

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 ...