SSTI Digest

Want to participate in a new concept in innovation clusters? The Southern Advanced Materials in Transportation Alliance (SAMTA) is a regional innovation cluster that promotes the research, commercialization, and production of new and specialized materials important to the automotive and aerospace industries. Although traditional clusters are based on geographic concentration, SAMTA will use telecommunications networks to minimize geographic distance and facilitate the industry network. The Economic Development Administration has provided seed funding for this project. If you are a researcher, businessperson, or advocate, working in, or with facilities in the South and want to be on the mailing list, email Scott Doron at sdoron@southern.org.

Gov. Deval Patrick signed into law last week an economic development bill that includes the creation of the Massachusetts Growth Capital Corporation to provide access to capital and mentoring for small businesses capitalized with $35 million, and a $5 million recapitalization of the Massachusetts Technology Development Corporation to provide funds for early stage technology startups. The bill also reorganizes and consolidates economic development agencies focused on regionally based efforts to grow and attract businesses to the state, according to a press release. A broader version of the bill proposed earlier this year by the governor included a $50 million tax credit to small businesses for new job creation. The measure, however, was not approved in the enacted version (see the Feb. 17, 2010 issue of the Digest). Specifically, the bill:

• Establishes the Massachusetts Growth Capital Corporation to offer working capital, loan guarantees, grants and financial guidance, capitalized with $35 million;

North Carolina's Golden LEAF Foundation is seeking proposals for a special $4 million initiative to improve STEM education for 4th-to-9th graders in rural, economically-distressed and/or tobacco-dependent regions of the state. Applicants must be a governmental entity or 501(c)3 organization, and are eligible to receive up to $750,000 in funding. The program is seeking projects that have a regional focus and connect educational outcomes to the needs of local industry sectors. Letters of intent are due September 7, 2010. Read more ...

The clean energy economy has "tremendous potential for growth" due to policies that create incentives to "develop new technologies, infrastructure and processes for clean energy, efficiency and conversation," according to a recent report from the Pew Charitable Trusts. Five types of policies — Financial Incentives, Renewable Portfolio Standards, Energy Efficiency Standards, Regional Clean Energy Initiatives and Vehicle Emissions Standards — should continue to fuel the growth of the clean energy technologies over the coming years. Effective leveraging of federal stimulus dollars intended for renewable energies also should help to spur economic growth and innovation in the sector. For example, utilizing $36 million in stimulus dollars, Florida launched its Clean Energy Investment Program to spur long-term growth in the clean energy sector.

In an interview with Globes, an Israeli business magazine, former Pennsylvania governor Tom Ridge discussed the importance of innovation in the renewable energy industry and its role in the transition from "the industrial era to the green era." Ridge said, "Renewable energy isn't another discovery and research field, it must be an applied science that will lead to energy solutions to guarantee our lives in the near and distant future." During his time in the Governor's office, Gov. Ridge was part of three decades of governors who saw the connection between science, technology, innovation and economic growth. Read the Globes article ...

Two recent papers shed light on the distribution and benefits of entrepreneurial capital. A CB Insights' report on the "human capital" of venture-backed Internet companies finds that vast majority of company founders are white. They also tend to be between 35 and 44 years old, male and have MBAs. The second report provides evidence that getting angel capital boosts a company's odds of survival, securing additional funding and faster growth. These benefits derive not only from the injection of capital, but also from the sustained guidance and supervision provided by angel groups. If both are correct, they suggest that founders outside of the typical profile might be underserved in access to capital and to mentoring and connections.

Specialized and high-tech incubators provide crucial services and resources to promote and enhance Commercialization & Entrepreneurship, one of the six thematic tracks of this year's annual conference. Three sessions tied to this theme will be explored during SSTI's annual conference, focusing on direct lessons from successful and proven TBED programs, regional innovation clustering, and more. They include:

• Distributed, Non-University Models for Commercializing New Technologies
• Technology Entrepreneurship: Direct Contact Required
• Sustaining Entrepreneur-in-Residence & Mentoring Programs

Announcements of new incubators designed to hatch ideas, speed commercialization of university-based inventions, and grow technology-focused companies across the nation are detailed below.

Florida is one of many states without an incumbent governor participating in the 2010 gubernatorial election, as Gov. Charlie Crist, who served just one-term in office, will seek an open Florida U.S. Senate seat this fall in a race against former Florida House Speaker Marco Rubio and Democratic U.S. Rep. Kendrick Meek. Crist is running as in Independent. Policy aimed at job creation is the topic of much debate in Florida, where unemployment is around 12 percent. Gubernatorial candidates Rick Scott (R) and Alex Sink (D) recently provided detailed jobs plans and outlined proposals to achieve energy independence, which are highlighted in the second installment of SSTI's special election series.

Rick Scott (R)

Companies that engage in R&D activities — either through performing R&D or funding others to perform R&D — are far more likely to innovate than companies that do not, according to new data from the National Science Foundation's (NSF) 2008 Business R&D and Innovation Survey (BRDIS). NSF researchers found that companies with R&D "exhibit far higher rates of innovation than do non-R&D companies. However, only 47,000 (3%) U.S. companies engaged in R&D activities from 2006 to 2008. Among those R&D active companies, 66% reported at least one product innovation and 51% reported at least one new process innovation. In contrast, of the almost 1.5 million non-R&D companies, only 7% reported new product innovations and 8% reported new process innovations. The BRDIS data also indicates that there is a clear positive relationship between R&D spending and increased instances of product or process innovations.

The European Commission has released the first comprehensive innovation strategy for the European Union. The strategy has over thirty action points including the development of European Innovation Partnerships, improving access to finance, creating a major research program on the public sector & social innovation and modernizing Europe's intellectual property rights regime. European Innovation Partnerships would step up R&D, coordinate investments, speed up standards and mobilize stakeholders in areas that tackle major challenges faced by the EU to become a world leader in innovation. Proposed projects include public health, energy, "smart" cities and mobility, water efficiency, non-energy raw materials and sustainable & productive agriculture. Under this strategy, the EU wants to achieve investments in R&D totaling 3% of the EU's GDP by 2020. If this goal is achieved, the European Commission projects 3.7 million jobs would be created and annual GDP would increase by €795 billion ($1.1 trillion) by 2025.

Regional innovation clusters can be a useful framework in understanding the high-tech economy, but only if local leaders recognize the limits of cluster-based strategies, according to a recent study by the Brookings Institution. Authors Mark Muro and Bruce Katz suggest that research has confirmed the positive impact clusters can have for local workers, firms and regions, but that effective policy interventions must focus on targeted initiatives to foster existing clusters. Clusters cannot be created out of nothing, and regional efforts should instead help to develop clusters where there is evidence of under-performance. Read "How Regional Innovation Clusters Can Foster the Next Economy" at: http://www.brookings.edu/papers/2010/0921_clusters_muro_katz.aspx.

A recent report from the National Science Foundation's (NSF) National Science Board calls for a new NSF research agenda to identify and develop the next generation of STEM innovators. The board developed a STEM agenda built on findings from a two-year study on math, science and engineering education in the U.S. The report, entitled "Preparing the Next Generation of STEM Innovators," provides recommendations that are intended to help set funding priorities at NSF for STEM education in the coming years. Overall, the board's report encourages policymakers to view STEM and innovation issues as integral to the national discussion on education. Read the report ...