SSTI Digest

Florida's FY11 budget, signed into law last month by Gov. Charlie Crist, replenishes the Innovation Incentive Fund with $75 million. The recruitment fund was immediately tapped by lawmakers for $50 million toward enticing Maine's Jackson Laboratory to open a branch in Collier County, leaving $25 million for other major R&D projects and create high wage jobs throughout Florida. The state has promised the Jackson Lab project an additional $80 million over the next three years if developed.

The $75 million FY11 appropriation for the Innovation Incentive Fund is contingent upon passage of increased federal Medicaid funds to the states, however.

Established in 2006, the Fund is responsible for attracting some of the most recognizable life sciences institutions, including the Burnham Institute for Medical Research, SRI International, and the Max Plank Society. The newest recruit, Maine-based Jackson Labs, specializes in genetics research. A 14,000-square-foot research institute that could break ground as early as fall is planned for the Florida branch, reports Marco Eagle.

Maryland Governor Martin O'Malley recently announced a new effort to direct $100 million to public and private venture capital investors. The InvestMaryland program would offer insurance companies tax credits to generate the funds, which would either be invested directly in startup companies or in private venture firms. Governor O'Malley's current proposal would provide $50 million to the Maryland Venture Fund and the other $50 million to venture capital firms. The state's Department of Business and Economic Development plans to work with legislators, businesses and universities to draft a bill for next year's legislative session.

Four bond issues totaling $108.3 million appear headed for passage by voters following the primary election yesterday. Two of those measures are aimed at job creation efforts through capital investments, funding for R&D, and renewable energy measures. The Associated Press has projected the $23.75 million economic development bond as winning with a narrow lead of 51-49. The energy bond is passing with 59 percent of the vote.

With the passage of Question 2, voters will approve $4 million for the Small Enterprise Growth Fund to provide Maine companies and entrepreneurs access to sources of capital and $3 million to be matched with private funds for R&D and commercialization activities administered by the Maine Technology Institute. Small businesses, grants for food processing for fishing, agricultural, dairy and lumbering businesses, and redevelopment projects at the Brunswick Naval Air Station also are funded through the bond.

After at least 40 states made mid-year budget cuts in FY 2010 totaling $22 billion, the prospect for rosier times is after 2012, according to the latest biannual Fiscal Survey of the States conducted jointly by the National Governors Association and the National Association of State Budget Officers. The midterm cuts meant states' spending was reduced from $687.3 billion in FY 2008 to $612.9 billion in FY 2010 — at the same time mandatory spending continued to increase. The report indicates FY2011 will be challenging for many states, in spite of modest revenue growth.

"Because states lag behind national recovery, they expect 2011 to be as bad as 2010, and states will not begin the path to recovery until 2012," said NGA Executive Director Raymond C. Scheppach. NGA and NASBO expect states not to see 2008 revenue levels until 2013 at the soonest.

The Survey is available here: http://www.nga.org/Files/pdf/FSS1006.PDF

The Oklahoma Center for Advancement of Science and Technology (OCAST) will remain a stand-alone entity after a proposal by Gov. Brad Henry to consolidate the agency within the Department of Commerce failed to win legislative approval. OCAST provides funding and resources to help businesses develop and commercialize technologies. The agency is slated to receive $19.15 million in FY11, a 6 percent reduction from the previous year.

In a separate bill, the Oklahoma Seed Capital Fund, which provides seed and start-up stage equity financing to small, technology-based Oklahoma companies, would receive $4.3 million from the OCAST appropriation. The fund is managed by i2E under contract to OCAST.

The Oklahoma Space Industry Development Authority is slated to receive $424,289 in FY11, down from $493,215 approved for the authority last year.

A proposal floated by Gov. Henry to create a permanent funding source for the Oklahoma Economic Development Generating Excellence (EDGE) initiative was not included in legislation this session.

JDG Associates, Executive Search Consultants, has been retained by the suburban Maryland-based National Institute of Standards and Technology (NIST) to recruit two key leaders:

• The Director for Innovation and Industry Services will focus on technology transfer and commercialization along with the fostering of public/private partnerships and joint ventures; and,
• The Director, Laboratory Programs will be wearing two hats: 1) leading the six NIST laboratories (2000 staff) and 2) serving as the Principal Deputy to Pat Gallagher-- the NIST Director. The ideal candidate for this position will have either managed a complex, multi-disciplinary scientific laboratory comprised of a minimum of several hundred staff OR be a world-renowned scientist who is interested in leveraging his/her background and reputation to further the NIST mission.

These are high-visibility c-suite positions within a rapidly-growing federal organization.

Subra Suresh, dean of engineering at the Massachusetts Institute of Technology, has been nominated by President Barack Obama to be the next director of the National Science Foundation.

Eric Cromwell, president and CEO, and Dan Schmisseur, vice president of operations and strategy, have resigned from the Tennessee Technology Development Corporation.

Rick Duke, a principal research associate with the Enterprise Innovation/Economic Development Institute at Georgia Institute of Technology has been selected as the new director of the Trent Lott National Center for Excellence in Economic Development and Entrepreneurship at The University of Southern Mississippi.

The Montana Clean Technology Alliance is being formed to foster a community of interest to support companies that want to grow Clean Technology jobs in Montana.

Lawmakers in Georgia and Kansas recently approved scaled-back funding for their states' respective tech-based economic development (TBED) programs in the coming fiscal year. Although many states are struggling to fill large deficits in the aftermath of a national economic downturn, funding for TBED initiatives, even at reduced levels, continues to be a priority for most states as a means to grow and diversify the economy.

Georgia
Lawmakers recently approved a $17.9 billion budget for FY11, an increase of $800,000 over the amended FY10 budget. Tackling a budget deficit of more than $1 billion at the start of the session, lawmakers cut funding across several state agencies, including those focused on economic development. Many of the reductions to university-based research initiatives were in line with Gov. Sonny Perdue's recommendations (see the Jan. 20, 2010 issue of the Digest). The Georgia Research Alliance, a public-private partnership that acts as Georgia's lead science and technology initiative, is slated to receive $18.25 in FY11, down from $23.9 million in FY10.

Enlisting support from industry, policymakers and academics, Gov. Deval Patrick unveiled an initiative to help the state's manufacturers evolve with changing technology, adopt new innovations, and grow their operations through a new multi-tiered loan program. The Advanced Manufacturing Initiative is a public-private collaboration designed to maximize job creation within the manufacturing sector, which added more than 19,000 jobs last month, according to the governor's office. A new loan program from MassDevelopment will offer up to $50,000 for planning loans and up to $500,000 for growth initiative loans to reduce interest rates on real estate and equipment lending to manufacturers allowing companies to pursue expansion opportunities. Read the press release ...

The Department of Health and Human Services, with the Department of Treasury, has released detailed guidelines for biotechnology companies interested in applying for the research tax credit introduced in the Health Care bill earlier this year. The Qualifying Therapeutic Discovery Project Credit provides a 50 percent income tax credit for investments in certified research projects made in 2009 and 2010. A total of $1 billion in credits will be available. Applications for certification must be submitted to the Internal Revenue Service (IRS) by July 21 for the primary allocation round. If any portion of the $1 billion remains available, there may be additional application rounds.

The Department of Health and Human Services (HHS) and the National Institutes of Health (NIH) are seeking input on proposed changes to its conflict of interest policy. As multidisciplinary, public-private research teams have become more common, HHS standards to ensure objectivity have become more complex. The department is asking for recommendations that would increase transparency and streamline regulations. Comments are due by July 20. Read the announcement ...

Kansas is home to more than 20,000 green jobs and expects that number to reach 30,000 by 2012, according to a recent survey by the state Department of Labor. The survey of 6,000 Kansas employers reveals that job growth in renewable energy, energy efficiency will drive green job numbers over the next two-to-three years. The biggest employment gains are expected in the renewable energy sector, which is expected to grow by 121 percent. Read the report ...