SSTI Digest

Despite receiving some bipartisan support, the America COMPETES Reauthorization Act of 2010 failed to attract enough support to pass in the House on Wednesday. As a suspension, the bill required support from two-thirds of the House, but fell short in the final tally, 261-148. The reintroduced bill contained a 50 percent cut in the funding path from the previous version and shortened the authorization period for its programs from five years to three years. The future of the COMPETES Act is unclear, but Science and Technology Committee Chairman Bart Gordon (D-TN) plans to continue work on the bill. Read more ...

On Monday, the Senate Banking Committee voted to amend language in the financial reform bill that had drawn criticism from many organizations supporting entrepreneurship and equity investment. In its original form, the bill would have raised the net worth requirements for accredited investors, significantly reducing the pool of angel investors and capital for early-stage businesses (see the April 14, 2010 issue). A vote is expected later this week. Read the Committee press release ...

At the close of the 2010 legislative session in Minnesota this week, several initiatives supporting the state's tech-based economic development agenda were enacted into law. To help make the state more competitive, the Minnesota Science and Technology Authority was established to develop and implement a comprehensive strategy for growing the state's economy through investments in science, technology and innovation.

The 18-member S&T Authority will coordinate public and private efforts to procure federal funding for collaborative R&D projects, work with nonprofit institutions in promoting collaborative efforts to respond to federal funding opportunities, and provide commercialization assistance to Minnesota businesses. A comprehensive science and technology economic development plan will be presented to lawmakers by Jan. 15, 2011. SF 2510 establishing the S&T Authority is available at: https://www.revisor.mn.gov/bin/getbill.php?session=ls86&number=SF2510&version=list.

Wisconsin Governor Jim Doyle recently signed several economic development bills intended to spur job creation and high-tech development. The new legislation authorizes additional job creation tax credits, expands the state's enterprise zones program and establishes new incentives for angel investors. Key among the bills is Wisconsin's CORE Jobs Act, which creates and expands a number of tax credits, loan and grant programs for manufacturing, R&D and venture capital investment. Bill sponsor State Senator Julie Lassa (D-Stevens Point) noted that the CORE Jobs Act should help commercialize new technologies and convert existing factories into green energy manufacturing and production businesses.

Gov. Jan Brewer last week signed a measure modifying Arizona's existing R&D tax credit legislation to allow for small businesses to collect discounted refunds on R&D tax credits already earned. The measure is hailed as an important tool for providing small, tech-based companies with access to capital. Read the Arizona Technology Council press release ...

After a difficult 2008, venture capital returns improved slightly at the end of last year. Returns reached 3.3 percent in the fourth quarter of 2009 and 3 percent for the year, after falling 16.5 percent during 2008. Though the three-, five- and ten-year figures remain discouraging, the National Venture Capital Association reports that returns have continued to improve in 2010. Read the NVCA release ...