SSTI Digest

The third installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Delaware, Maine, Missouri, New Hampshire, Ohio, Rhode Island, South Dakota, Utah and Wisconsin. The first and second installments are available in the Jan 13 Digest and Jan. 20 Digest, respectively.

Delaware Gov. Jack Markell, State of the State Address, Jan. 21, 2010 “We have a proud legacy of technology innovation that we will build on. Together, we will create a Delaware where entrepreneurs and inventors imagine the new products and services that make life better, more productive and more enjoyable for millions, and workers make good livings delivering these wonders to the world.

The New York State Foundation for Science, Technology and Innovation (NYSTAR), the state’s lead tech-based economic development agency, would see a significant boost in funding under a proposal unveiled by Gov. David Paterson to distribute $100 million in new Innovation Economy Matching Grants. Announced during his State of the State Address, the grants would be divided among a new Technology Seed Fund ($25 million), a Small Business Revolving Loan Fund ($25 million) and funding for other economic development initiatives ($45 million).

NYSTAR is slated to receive $142 million in FY11 general fund appropriations, an increase of $101.3 million. Total funding for the High Technology Program is $135.7 million, which includes $100 million for the matching grants and $6.9 million for the state’s six centers of excellence. Additional NYSTAR appropriations include $1.9 million for the Research Development Program (down $4 million), and $1.5 million for state matching funds for the manufacturing extension partnership program, the same as last year.

In his budget presentation to the legislature last week, Gov. Martin O’Malley called for continued support of his 10-year, $1 billion plan to build Maryland's reputation as a global leader in biosciences. To this end, the governor recommends $43 million in FY11 for stem cell research, tax credits for biotech companies, and support for biotechnology commercialization and translational research.

Gov. O’Malley’s budget includes $12.4 million for stem cell research administered by the Maryland Technology Development Corporation (TEDCO), about the same as last year. Although lawmakers approved $15.4 million for the Stem Cell Research Fund last year, budget documents indicate a FY10 appropriation of $12.35 million. TEDCO would receive a total $15.85 million in FY11 under the governor’s proposal, which is $115,000 more than the FY10 appropriation. This includes $3.45 million for technology development, transfer and commercialization activities through TEDCO’s University Development Transfer Fund and the Maryland Technology Transfer and Commercialization Fund. Additional recommendations in support of Bio 2020 include:

Most impact models look at broad measures, sometimes including multiplier estimates for indirect effects. Connecticut Innovations (CI) takes a different approach, but one that might be expected from the venerable equity investment program – the direct capital return to its initial stakeholder, the state.

Bottom line: the program pays for itself, according to recent impact study performed by Connecticut’s Department of Economic and Community Development.. In fact, it has paid nearly $2 for every dollar invested between 1995 and 2008.

The pool of investment capital available to CI originated from the sale of state-issued bonds worth $106 million. During the study period, CI made investments in 84 portfolio companies, investments that resulted in $209 million of net revenue to the state.

In sum, the results of the 14-year study period reveal $1.97 of state revenue for every state dollar invested. Looking at the impact on an annual basis, the study also calculated an average of 1,610 jobs and $256 million in GDP added to the economy each year.

Earlier this month, Gov. Jim Douglas announced a plan to use $8.7 million in federal stimulus funds for job creation programs, including broadband infrastructure, low-interest loans and workforce training. Many of the proposals mirror last year’s SmartVermont plan, a proposal rejected by lawmakers that would have leveraged federal funds to provide $17.2 million for statewide economic development. (see the June 3, 2009 issue of the Digest).

“Minnesota faces a crisis of competitiveness.” It didn’t take Minnesota’s leaders long to recognize the state’s precipitous fall in the standings for many major indicators over the past two decades paralleled the state’s prolonged diinvestment from a proactive TBED strategy. The report from the Minnesota S&T Economic Development Project Committee, created by the state legislature just last fall and co-chaired by the commissioner of the Minnesota Department of Employment and Economic Development, holds little back in its condemnation of the state’s nearly 20-year abandonment of any significant investments or policies to promote science, technology and innovation. More available at: http://image.exct.net/lib/ff2c15797266/m/1/2010+Science+and+Technology+Initiative+Presentation.pdf.

Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).  A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals. A report from Dow Jones VentureSource, however, notes that investment activity rebounded in the fourth quarter, and both outlets predict growth in 2010.

Venture firms invested a total of $17.7 billion in 2,795 deals last year, down from the post-tech boom peak of $30.5 billion in 4,027 deals in 2007. Activity increased during the fourth quarter, exceeding the amount of dollars and deals during the same quarter in 2008, but not enough to salvage the overall low numbers for the year.

Virginia Governor Bob McDonnell dropped his previous nomination, Robert Sledd, as his secretary for Commerce and Trade and instead nominated businessman James Cheng. Cheng, whose nomination needs to be confirmed by the Democratic-controlled Senate, was sworn in on January 17.

Pennsylvania Governor Ed Rendell said that the Department of Community and Economic Development (DCED) Secretary George Cornelius will step down on June 30 to become the president of Bridgewater College in Virginia.

Rick LeFaivre and Tom Clement are joining the UW Center for Commercialization as key deputies to vice provost Linden Rhoads. LeFaive will split his time evenly between the university and his other job as a managing director at OVP Venture Partners, while Clement is expected to work full-time for about 18 months.

The National Science Foundation is seeking a Senior Analyst in its Science & Engineering Indicators Program, Division of Science Resources Statistics’ (SRS) Directorate for Social and Behavioral Sciences, Arlington, VA. The appointment is under the Intergovernmental Personnel Act (IPA) for a two-year renewable period

The second installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Colorado, Virginia and West Virginia. Our first installment was in the Jan 13 Digest.

Colorado Gov. Bill Ritter, State of the State Address, Jan. 14, 2010 “Colorado voters were the first in the country to pass a renewable energy standard. … So, this session let’s think bigger, creating even larger markets for solar, wind, biomass, hydro and geothermal. Let’s increase our standard to 30 percent.

“This will trigger the creation of tens of thousands of new jobs, draw new capital investments and new companies to our state, and keep Colorado at the epicenter of America’s energy revolution. …

The Economic Development Administration invites proposals to distribute $37 million through the Community Trade Adjustment Assistance Program. Funds are available for communities that have experienced, or are threatened by, job loss resulting from international trade impacts. Communities must be certified as eligible for trade adjusted assistance. Funding can be used for planning, technical or infrastructure projects that could involve innovation and entrepreneurship. Proposals are due April 20. Funds will be disbursed through EDA’s six regional offices. More information regarding Community Trade Adjustment Assistance is available at: http://www.eda.gov/xp/EDAPublic/PDF/CommunityTAAFFOFINAL2.pdf

Describing the nation’s innovation system as broken, U.S. Secretary of Commerce Gary Locke yesterday said the Department of Commerce will be “working hard to find solutions” that move more federally funded R&D into the commercial market.

“Even in areas where we are allocating enough funding for R&D, we’re not doing a good enough job getting these ideas into the marketplace, particularly through entrepreneurs.

“For much of the last century, the way we moved federal R&D out of our labs and into the marketplace worked well enough… It wasn't a terribly efficient system, but for a time, it didn't really matter, because the United States was the unquestioned leader in innovation…

“But those days are over – and today, too many of our research ideas never make it out of the lab, and if they do, they get lost in the “valley of death,” where a high-risk idea doesn't have the resources or the funding to make it to market.