SSTI Digest

Gov. Tim Pawlenty recently unveiled his 2010 supplemental budget recommendations, which includes new tax incentives to boost job creation and spending cuts across state agencies to help eliminate a projected $1.2 billion deficit. Announced during his State of the State Address earlier this month, the proposed Jobs Creation Bill is a six-part plan with components aimed at stimulating formation of early-stage capital in new emerging businesses and encouraging businesses to invest in R&D.

Under the proposal, a 25 percent tax credit for angel investments in qualified businesses would be established. The tax credits would be capped at $5 million a year in 2010 and $10 million in 2011, according to budget documents. Angel tax incentives are likely to be a topic of debate during the upcoming legislative session with competing bills introduced in both the House and Senate (Read the article).

Florida's efforts to boost it's biotechnology sector may not be paying off as quickly as originally hoped. A recent report finds that the $449 million invested through the Innovation Incentive Program has yet to result in industry growth in counties where the program's grantees have their facilities. The report, published by the Florida Office of Program Policy Analysis and Government Accountability (OPPAGA), suggests that the state's lack of early-stage capital for biotech startups may be contributing to the sluggish pace of development.

Academic, industrial and federal R&D spending is surveyed annually by the National Science Foundation (NSF). Similar information regarding state R&D investments, however, only is captured periodically. The latest survey results, for fiscal years 2006 and 2007 were released this past December and used to create an SSTI Useful Stats table on state R&D intensity (see the Dec. 9, 2009 Digest). Is this information useful for state and local TBED practitioners and policy makers? Should NSF and the Census Bureau, which conducts the survey for NSF, continue the effort?

The Census Bureau has asked OMB for reinstatement of the collection of state R&D expenditures. The Bureau requests public comments and recommendations, within 30 days, as to whether or not the survey in its present form is useful to its primary target audience.

Being located within an incubator can provide tech startups help beyond low-rent space. Networking opportunities and direct counseling and technical assistance can play important roles toward the firms' success. Or do they? A recent study published in the journal Technovation finds the interactions incubator managers have with their tenant firms may not be as helpful as the metrics would suggest.

Most incubators use a variety of measures for interactions with tenants as indicators of their contribution to the companies' success. Increasing the number of hours counseled, number of meetings held, types of assistance provided, etc., generally would suggest more value to the company. Joanne Scillitoe and Alok Chakrabarti, the authors of The Role of Incubator Interactions in Assisting New Ventures, say not so fast.

Increasing life science and health-related research remains a major component of many state, local and university TBED strategies. Change in federal R&D obligations from the Department of Health and Human Services (HHS), which includes the National Institutes of Health, the Centers for Disease Control & Prevention, and Agency for Healthcare Research and Quality among other agencies, could be a good indicator of progress — or an indicator of the need to expand or amend those strategies. This week's Useful Stats column presents five-year data on changes in HHS R&D obligations by state.

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.