SSTI Digest

Regular readers of the Digest know that over the last year, SBA has launched a set of new programs and initiatives, including support for cluster development, changes to the SBIC application process, the revival of the FAST program, and a request for information on mentoring and entrepreneurship education for high-growth companies. At SSTI's 14th Annual Conference in Pittsburgh, Sean Greene, SBA's Associate Administrator for Investment and Special Advisor for Innovation, will provide an update on what he and his colleagues at SBA have been working on and are planning for the future. With SBA pursuing a larger role in issues involving tech-based economic development, this session will provide an excellent chance to understand what lies ahead for SBA — and the opportunities presented for regional innovation strategies.

Join us Wednesday, September 15, 10:45 A.M. - 12:00 P.M. to learn more about the federal government's plan for small business assistance. Register today ...

Lawmakers called into special session on Friday approved a $75 million incentive package for a Texas-based energy company to build five biofuel facilities in the state expected to generate 1,000 new jobs through a total $500 million investment. The package approved by lawmakers also includes $4 million for a workforce training fund through the state's institutions of higher education and up to $2 million for biomass research at Alcorn State University and Mississippi State University.

The state assistance package totals $81 million, which includes $51 million in new bonds and $30 million available from a previous state-level authorization.

Texas-based KiOR, Inc. will receive $75 million to build five commercial-scale renewable crude oil production facilities in the state, three of which will be built over the next five years. Another $4 million is allocated to the Mississippi Development Authority Workforce Training Fund and $2 million is available for research on biomass usage in the production of renewable crude oil at the previously mentioned universities.

By 2035, nearly 40% of all new energy capacity will come from renewable energies according to a report from the National Conference of State Legislatures (NCSL). However, one resource or technology will not meet the energy needs of the future. It is necessary to develop a comprehensive plan that includes a combination of many technologies and resources. This plan may include energy efficiency, natural gas, cleaner coal technologies, nuclear energy, smart grid technologies and renewable energy. Local, state and federal governments will play an important role in shaping the future sources of energy, electricity transmission & delivery systems and electricity production & supply system.

SSTI is proud to premier a new type of event at our 14th Annual Conference. The Power Roundtable is equal parts best tips of the trade, informational interviews, and speed dating. We'll start with nationally recognized experts in six critical areas for TBED providing a rapid-fire roundtable of their top four insider tips for success — so you are guaranteed to leave with two dozen of the most important lessons for better TBED practices.

Each of the experts will then move to private tables, giving practitioners a chance to ask their own questions directly to gain insider perspective. At points in the session, you may find yourself in a small group, having an insightful discussion with other TBED practitioners. At other points, you may be one-on-one with the expert, asking candid questions in a setting where you don't need to worry about others. Join us Tuesday, September 14, 9:00 A.M - 12:00 P.M for this one-of-a-kind event. Register today ...

The "New Realities" will have a dramatic effect on the future of metros and the metro's effect on U.S. economic growth and prosperity, according to a recent Brookings Institute study. Metropolitan areas have changed from their traditional groupings (e.g., Sun Belt vs. Rust Belt and Southwest vs. North East) into a new demographic seven-category typology of metropolitan cities. Metros that have diversified successfully were among the "demographic winners" of the 2000s. However, metros still face similar issues regarding an educated and skilled workforce. The report's authors argues that local, state and federal governments will have to enact legislation that will sustain long-term economic growth and prosperity.

The top 100 most populated metropolitan areas were classified into one of seven categories. Economic growth and educational achievement were among the variables that shaped these categories. These categories include:

It is often taken for granted that small businesses are the primary vehicle of employment growth in the private sector. While this is debated, academics have struggled to demonstrate a strong inverse relationship between firm size and job creation. A recent paper by John Haltiwanger of the University of Maryland and Ron S. Jarmin and Javier Miranda of the U.S. Census Bureau shows that once the data is adjusted to account for firm age, there appears to be no systematic relationship between firm size and growth. Instead, it is new businesses, of all sizes, that play the most significant role in gross and net job creation.

Kevin Carr was named CEO of Kansas Technology Enterprise Corp., after serving as interim leader since June 2009. KTEC is a public-private partnership charged with promoting tech-based economic development throughout the state.

Jo Anne Goodnight will resign her position as director, Division of Special Programs for the National Institutes of Health (NIH) SBIR/STTR program effective Sept. 17 after 21 years at NIH. Ms. Goodnight has accepted a program manager position in the private sector.

Kerry Taylor was hired as first director of the state-created aerospace innovation hub in Dayton, OH. Kerry, who retired from the Air Force in 2005, will focus on attracting more aerospace companies to the Dayton area.

TechConnect WV, a nonprofit advancing technology-based economic development, is seeking an executive director and solicits interest from individuals and entities able to provide services on a contractual basis.

The executive director will provide full-time support for TechConnect in executing an established strategy for promoting the Innovation Economy in WV. Critical skills will involve organizational management, branding/marketing, and financial development through a variety of sources, including state and federal government sources. The candidate should be a self-starter with the ability to work effectively with many organizational partners and a large, diverse board of directors. Experience as an entrepreneur, small business consultant, strategic consultant, or non-profit executive is desirable.

The contract will run concurrent to an 18-month grant, which TechConnect WV seeks to secure by Oct. 1, 2010. Responses will be accepted through Friday, Sept. 17 at blueprintwv@gmail.com.

The candidate elected as New Mexico's 27th governor will make history as the state's first female governor. Democratic nominee Diane Denish and Republican nominee Susana Martinez both offer plans largely focused on New Mexico's economic recovery and balancing the state budget. Denish's plan centers on support for small businesses such as greater access to capital and establishing a Federal Innovation Research Matching Grant program for small, high-tech companies. Martinez has proposed a variety of tax cuts and regulatory reform as well as a plan to revive the energy sector by encouraging producers to invest in new technology.

Diane Denish (D)

Both candidates for Wisconsin governor want to reorganize and refocus the state's agency for job creation. Tom Barrett (D) has proposed moving the Department of Commerce's economic development staff into a new Office of Job Creation headed by a director who would report directly to the governor. Scott Walker (R) would hire an experienced economic development professional to head up a newly consolidated agency that replaces the department. Uncertainty regarding the state's ongoing commitment to stem cell research also has become a focal point of the race with the two candidates on opposing sides of the issue. Throughout his term as governor, Jim Doyle, who is not seeking a third term, worked with the legislature to establish state incentives to promote and enhance the biotechnology industry and expand stem cell research. Media reports indicate Barrett supports embryonic stem cell research while Walker advocates adult stem cell research and would support a ban on embryonic stem cell research.

Tom Barrett (D)

Proposals to cut taxes in order to generate job creation and to raise taxes to generate new state revenue are dominating the polls in several of the 36 states across the country where ballot measures appear. Voters also will be asked to decide on issues surrounding budgets, elections, environment, and education, among others. Missing from this year's slate of proposals is major bond funding for science and technology initiatives or R&D efforts. (Note: Ohio and Maine voters approved economic development bonds related to R&D earlier this year.) Only five states have proposed bond measures appearing on the November ballot totaling $1.9 billion, which is down significantly from 2008 when proposed bond measures totaled $18.4 billion, according to the National Conference of State Legislatures. A summary of select ballot initiatives are highlighted below.

Alaska
Proposition B allows the state to issue $400 million in general obligation bonds to build library, education and educational research facilities.

Gov. Jan Brewer is directing $10 million in federal stimulus funds to Science Foundation Arizona (SFAz) to support research and education initiatives. The bulk of the money ($6.5 million) will go toward research initiatives and the remaining $3.5 million will be directed toward education programs. SFAz was created in 2006 as a public-private organization to strengthen the state's economy through investments in science and technology. Arizona's neighbor to the north, Utah, also directed a portion of federal stimulus funds to enhance its technology-based economy. In 2009, legislators approved $33 million in stimulus funds for the state-funded USTAR initiative (see the March 25, 2009 issue of the Digest).  Read SFA's press release ...