SSTI Digest

Tech Talkin' Govs, Part V
The fifth installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Minnesota, New Jersey, and Tennessee. The first four installments are available in the Jan. 13, Jan. 20, Jan. 27, and Feb. 10 Digests.

Minnesota
Gov. Tim Pawlenty, State of the State Address, Feb. 11, 2010
"So today, I urge the Legislature to pass my Jobs Creation Bill that has six vital parts: a 20 percent reduction in the corporate tax rate; a 20 percent exclusion from taxation for small businesses; an angel investment tax credit; a supercharged research and development tax credit; a capital gains exclusion for qualified investments; and, incentives for companies to invest in Minnesota small businesses. ...

Charged with developing a replicable and sustainable model for coordinated federal and regional efforts that foster and use regional innovation clusters, a group of federal agencies announced its first pilot project anchored around a Department of Energy (DOE)-funded Innovation Hub. The project, called the Energy Efficient Building Systems Regional Innovation Cluster Initiative, will develop, expand, and commercialize innovative energy efficient building systems technologies, designs, and best practices for national and international distribution. This initiative falls under the Interagency Regional Innovation Clusters Taskforce, which was created for job creation, worker training and education, increasing GDP, and promoting innovation in science & technology. Proposals to support this initiative are invited from a consortium of partners.

The fifth installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Minnesota, New Jersey, and Tennessee. The first four installments are available in the Jan. 13, Jan. 20, Jan. 27, and Feb. 10 Digests.

Minnesota
Gov. Tim Pawlenty, State of the State Address, Feb. 11, 2010
"So today, I urge the Legislature to pass my Jobs Creation Bill that has six vital parts: a 20 percent reduction in the corporate tax rate; a 20 percent exclusion from taxation for small businesses; an angel investment tax credit; a supercharged research and development tax credit; a capital gains exclusion for qualified investments; and, incentives for companies to invest in Minnesota small businesses. ...

While nearly all of the economic indicators for the country were falling rapidly, the commercialization of university-generated technologies quietly continued to move into the market place at an increasing pace, according to the latest survey conducted by the Association of University Technology Managers (AUTM). Highlights from the AUTM U.S. Licensing Activity Survey Summary: FY2008 include:

• 648 new commercial products introduced
• 5,039 total license and options executed
• 595 new companies formed
• about 72 percent of new companies formed with the primary place of business in the institution's home state
• 3,381 startup companies still operating as of the end of FY2008
• 20,115 disclosures
• 12,072 new U.S. patent applications
• 848 non-U.S. patent applications
• 3,280 issued U.S. patents

The report is available for purchase at: http://www.autm.net/

Internet search giant Google has announced that the company is planning to build and test extremely high-speed broadband networks in one or more trial locations in the U.S. Participating communities would have access to fiber-to-the-home connections similar to those that connect many research universities. Google plans to consider communities for the pilot program based on a number of factors, including the level of community support, local resources and regulatory issues and the current level of broadband services available.

The announcement coincides with the Federal Communications Commission's (FCC) development of a national broadband plan. The plan could make the installation of fiber networks a national priority. Despite the potential of fiber-to-the-home networks to boost national competitiveness, a recent report finds that Google's fiber initiative might have limited impact on local economic development.

Last week the Rhode Island Economic Development Corporation (RIEDC) released its strategic agenda for accelerating the growth of the state's green economy, distributing action items among four topical groupings: advanced manufacturing, energy efficiency, innovation cultivation, and wind power. A Roadmap for Advancing the Green Economy in Rhode Island was produced from a series of roundtables over the past year with 120 representatives from state government, universities, industry, labor, and other economic development nonprofit entities. Some of the specific initiatives in the report include:

Two bills aiming to consolidate state agencies and establish incentives for job creation were introduced last week by Gov. Deval Patrick and Senate President Therese Murray. Gov. Patrick's bill would merge the Massachusetts Technology Development Corporation with the Massachusetts Community Development Finance Corporation and the Economic Stabilization Trust to form a new Massachusetts Growth Capital Corporation funded by a $25 million capital bond authorization and $15 million from the Emerging Technology Fund.

Under the Senate president's proposal, more than 30 state agencies, including the Massachusetts Department of Business Development, would be eliminated or merged under one economic development umbrella.

Both the governor and Senate President say the goal is to streamline state programs and services and promote economic development. The impact most likely would be broader than that, however.

Development of a new graduate energy sciences and engineering program at the University of Tennessee at Knoxville (UTK) that intends to create 200 faculty appointments for Oak Ridge National Laboratory (ORNL) researchers is underway following near unanimous passage of a higher education bill last month during a special legislative session. The measure was approved 32-0 in the Senate and 93-2 in the House. In support of the new program, Gov. Phil Bredesen's FY11 budget includes $6.2 million in non-recurring funds over a three-year period. Program expenses beyond FY13 would be funded by UTK and ORNL, according to budget documents.

The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Connecticut, Maryland, Michigan, Nevada, and Oklahoma. The first three installments are available in the Jan 13, Jan. 20 and Jan. 27 Digests.

Alaska
Gov. Sean Parnell, State of the State Address, Jan. 20, 2010
"We will create even more jobs by funding construction of two new statewide buildings, the Anchorage crime lab I mentioned earlier and we will construct the Life Sciences building at [the University of Alaska, Fairbanks]. …

"… Where energy is concerned, we will continue reducing dependency on diesel across Alaska. And we are putting $25 million toward more in-state renewable energy projects. …

Replenishing the Innovation Incentive Fund and investing in space industry, public research, and green energy technologies are among Gov. Charlie Crist's FY11 budget recommendations to grow the state's innovation economy and establish Florida as a pre-eminent global hub. The governor's budget includes $100 million for the Innovation Incentive Fund, which was established in 2006 to attract R&D companies and create high-wage jobs. The fund was depleted in 2008 (see the May 7, 2008 issue of the Digest).

Space Florida would receive a total $32.6 million, of which $20 million is slated for business recruitment activities in order to provide the necessary resources that align with a new national approach to space exploration, according to budget documents. To provide financing for new and expanding space businesses, the governor recommends $10 million. Another $3.8 million is set aside for general operations, $3.2 million for workforce development, and $3 million to fund targeted projects for business development and recruitment.

The Oklahoma Center for the Advancement of Science and Technology (OCAST) is among a list of 16 state agencies slated for consolidation in Gov. Brad Henry's budget proposal, which he says will result in cost savings of $5.3 million. Under the proposal, OCAST would be moved to the Department of Commerce, along with Aeronautics, Indian Affairs and the Oklahoma Space Industry Development Authority. Funding for OCAST would be reduced by 3 percent, for a total $19.8 million in FY11. OCAST provides funding and resources to help businesses develop and commercialize technologies.

The Oklahoma Space Industry Development Authority would receive $442,538 in FY11, also a 3 percent reduction. In partnership with the private sector, the Authority establishes new aerospace industries and enhances existing aerospace industries to retain high-tech jobs.

Gov. Jodi Rell last week unveiled her FY11 midterm budget adjustments, eliminating or reducing funding for several TBED initiatives in the second year of the biennium. At the same time, the governor proposed an economic recovery package that includes a lending program for small businesses, a student loan forgiveness program to retain green collar workers, and a sales tax exemption for green energy industries.

The governor's proposal includes the following eliminations and reductions in the second year of the biennium within the Department of Economic and Community Development (DCED):

• Eliminate FY11 funding for CCAT Manufacturing Supply Chain ($400,000).
• Eliminate FY11 funding for Hydrogen/Fuel Cell Economy ($237,500).
• Eliminate FY11 funding for Entrepreneurial Centers ($135,375).
• Eliminate FY11 funding for CCAT Energy Application Research ($100,000).
• Reduce FY11 funding for CONNSTEP ($40,000 decrease).

In total, the adjustments decrease funding for DECD by $4.1 million in the coming year.