SSTI Digest

Venture capital (VC) funds that invest in rural and low-income regions can be as successful as those in tech-oriented metropolitan regions if they are large enough to attract high-quality deals and provide follow-on funding, according to a recent report published through the Ford Foundation's Wealth Creation in Rural Communities project.

Author Patricia Scruggs examines the practices of rural and urban angel and venture funds and the impact their investments have on rural communities. In particular, the report focuses on the application of triple bottom line (TBL) practices in the equity capital community. These practices incorporate social and environmental benefits, alongside financial and economic returns, in making investment decisions and evaluating the success of the venture capital firms. While TBL practices still are seldom used in an explicit and consistent manner within venture firms, they are growing in popularity and create a useful standard by which communities can assess the contribution of these firms to the local economy. TBL criteria are used throughout the report to identify VCs that have been successful in generating community wealth.

The Office of Science and Technology Policy and the National Economic Council have extended the comment deadline for their request for information (RFI) on the commercialization of university research and proof-of-concept centers (see the March 31, 2010 issue). The new deadline is May 26. Read the announcement and original RFI ...

U.S. Secretary of Energy Steven Chu has announced that the Obama Administration will invest $200 million over the next five years to expand and accelerate the development, commercialization, and use of solar and water power technologies across the U.S.. The funding includes up to $125 million for s photovoltaic manufacturing intiative, $40 million for photovoltaic supply chain development, $4.5 million for a new national administrator for the solar instructor training network and $39 million for marine and hydrokinetic technologies. Read the announcement ...

Gov. Jim Douglas last week signed a jobs bill that distributes $8.7 million in federal stimulus funds to help seed high-tech entrepreneurial ventures, increase broadband access across rural areas of the state, train workers for careers in emerging sectors, and provide low-interest rate subsidies on loans approved under the Vermont Jobs Fund.

The bill appropriates $750,000 to the Vermont Seed Capital Fund established last year to accelerate job growth by helping emerging companies overcome a gap in financing. This appropriation is in addition to $1 million from the state's Clean Energy Development Fund for a total $1.75 million in FY11. Funding is targeted toward sectors with high-growth potential such as life sciences, agriculture, energy, software and manufacturing. Over two years, the fund has been capitalized with nearly $5 million in state and federal monies.

President Barack Obama recently outlined his administration's vision for the future of U.S. space exploration, including $6 billion in additional funding for NASA over the next five years. The new strategy would create 2,500 new jobs at Kennedy Space Center by 2012, initiate heavy-lift rocket development by 2015 and restructure the Orion crew exploration vehicle program to extend U.S. use of the International Space Station. Obama's plan also includes $40 million to help retrain workers affected by the end of the space shuttle program. Read the president's remarks ...

A competition for high-risk, high-reward research funding recently was announced under the Technology Innovation Program (TIP). The goal is to improve critical manufacturing processes that reduce costs, save time, increase quality or reduce waste to dramatically improve the competitiveness of process-based industries, including the biomanufacturing sector, which produces vaccines and other biopharmaceuticals. To fund the program in its first year, $25 million may be available for up to 25 projects. The deadline to apply is July 15. Proposals are sought in three areas, which are described in greater detail at: http://www.nist.gov/public_affairs/releases/20100413_TIP_comp_announce.html

In response to dwindling state funding and concerns related to leadership, focus and productivity in the state's current economic development model, Arizona Gov. Jan Brewer announced the creation of a new quasi-public state agency to focus on targeted industries such as solar, science, technology, aerospace, and defense to help the state grow jobs and remain globally competitive. The Arizona Commerce Authority (ACA) would replace the Arizona Department of Commerce, but does not assume all of its current functions. In addition to an annual appropriation from the general fund or another dedicated state funding source, private sector funds would be used to support the marketing efforts of the ACA. These funds would come from a 1.5 percent fee charged to companies accessing certain state incentive programs. Read the press release or the full report from the Governor's Commerce Advisory Council: http://www.azgovernor.gov/dms/upload/PR_GovernorsCommerceAdvisoryCouncilReport.pdf

Massachusetts ranks first in the country in patents per capita, SBIR awards and in R&D spending as a percent of gross domestic product (GDP), according to the latest version of the Index of the Massachusetts Innovation Economy. Though the report finds that the state's innovation economy is growing and, in many ways, suffered less than others during the economic crisis, it recommends taking action to increase student interest in STEM careers and to help launch new businesses.

For the fifth consecutive year, the number of international students applying to U.S. graduate schools has risen. This year, U.S. schools experienced 7 percent growth in foreign applications, the largest gain since 2007, according to the Council of Graduate Schools (CGS). Most of the growth came from applicants in China (19 percent increase) followed by the Middle East and Turkey (18 percent). Graduate applications from students in India decreased by 2 percent.

The CGS report finds the majority of all international graduate students at U.S. institutions are enrolled in three broad fields and international applications increased in each of those fields in 2010. They include engineering (up 7 percent), physical and earth sciences (up 10 percent), and business (up 8 percent). Additionally, the survey finds graduate applications increased at doctoral institutions by 8 percent, but fell by 21 percent at master's-focused institutions.

The State University of New York has released a ten-year strategic plan to help revitalize the New York state economy. One major element of the plan is increasing the university's involvement in statewide entrepreneurship through several new inititiatives, including SUNY Start-UP, which would invite entrepreneurial mentors on campus to work with students and professors, and SUNY-INC, which would align research teams across the state to accelerate the commercialization of new technologies. Read more ...

The TechColumbus TechStart Program supports and develops viable entrepreneurial companies from their earliest phase through their launch as significant economic contributors. SSTI's exclusive interview with Will Indest of TechColumbus digs deeper into the mechanics of the program to find out how the organization's impressive pipeline for entrepreneurs has led to the creation of high-wage jobs throughout the region. Download the interview ...

U.S. colleges and universities spent $51.9 billion on research and development (R&D) in 2008, according to new data from the National Science Foundation (NSF). National R&D spending increased 5 percent in 2008 over 2007 spending and 29.4 percent over the spending levels five years earlier. Between 2003 and 2008, every state except Alaska increased its R&D spending. All except Alaska, Idaho, Maine, Mississippi and Wyoming increased their spending over 2007.

Academic R&D Expenditures: FY 2008 provides the results of NSF's annual survey of colleges and universities covering their separately budgeted R&D expenditures in science and engineering fields. The statistical tables provide spending data by type of institution, funding agency and field of research. Data also is included on expenditures for research equipment and for research at federally-funded R&D Centers (FFRDCs).