SSTI Digest

Department of Labor

The Department of Labor will receive $750 million for a program to provide competitive grants for worker training and placement in high growth and emerging industries. Of this amount, $500 million is directed for careers in energy efficiency and renewable energy. Training for health care careers is specified in the bill to be the main priority of the remaining $250 million in this program, but the conference report indicates training for wireless and broadband deployment, advanced manufacturing, and other high-demand industry sectors may be included.

Department of Energy

ARRA includes $39 billion in stimulus funding for the Department of Energy (DoE) as part of the package's support for upgrading the country's infrastructure and power grid. DoE allocations include funding for the department's science office, research grants, and energy efficiency programs.

The stimulus bill provides $16.8 billion for DoE energy efficiency and renewable energy projects, including $2.5 billion to support applied research, development, demonstration and deployment of advanced energy technologies. Almost half of this R&D funding will be dedicated to biomass- and geothermal-related projects, which will receive $800 million and $400 million respectively. Other energy efficiency and renewable energy investments include:

Whichever version of the H.R. 1, the American Recovery and Reinvestment Act (ARRA), emerges from conference committee would provide a significant reversal to the direction spending has gone for the past four years for federal research and development, based on data released by the National Science Foundation during the past week.  From FY 2005 through FY 2008, federal R&D obligations decreased 7.8 percent in constant dollars. Between FY07 and FY08 alone, total federal R&D spending dropped $3.5 billion or 4.8 percent of the $116.7 billion total in FY07 once adjusted for inflation.

In constant 2000 dollars, projected obligations for FY08 approximate the FY03 spending levels.  Potentially more troubling for sustaining the nation's innovation edge are the disproportionate drops in basic and applied research versus development. Basic research spending in constant dollars has not been as low as FY08 levels since FY2002; applied research levels set innovation back to 2001.

On March 12 from 1:00-5:00 p.m. in San Francisco, SSTI is co-hosting a meeting with officials from the Technology Innovation Program (TIP) and the Manufacturing Extension Partnership (MEP) that we would encourage you or one of your colleagues to attend. TIP and MEP are two of the most market-driven programs operated by the federal government. Both programs have launched new investments and innovative services in the last year. The meeting will give you a chance to learn about:

• New federal funding opportunities;
• New resources to support early-stage research;
• New products and services to expand manufacturing;
• New tools to help foster growth and innovation in companies you work with;
• New models to accelerate technology commercialization and translation; and
• New ideas about ways to integrate state, local,and federal investments.

Who should attend?

As the U.S. Congress is ironing out the details of the stimulus package, the final share of science and technology investments within the bill is not known at this time. However outside of the U.S., other countries have recently announced their own proposals to improve the research and innovation infrastructure of their countries.

Gov. Jim Doyle unveiled today an economic stimulus plan for Wisconsin that includes a proposal to enhance tax credits for angel and venture investors in support of start-up technology companies. A coalition assembled to improve Wisconsin's existing investor tax credits law applauded the governor's announcement to refine the four-year-old program.

The Wisconsin Growth Capital Coalition, which is comprised of nearly 30 public/private TBED organizations and investment funds, have suggested specific improvements in Wisconsin's investor tax credits law to encourage angel and venture capitalists to invest in qualified early-stage deals.

Wisconsin's investor tax credits law, sometimes known as the Act 255 tax credit law, currently grants 25 percent credits spread over two years. The program is credited with helping to nearly triple early-stage investments by angel investors and venture capitalists in Wisconsin companies since its enactment.

Adding to a growing number of governors proposing to consolidate state economic development agencies, Gov. Jodi Rell last week announced in her budget request her intention to overhaul Connecticut's job creation infrastructure by merging several state agencies into the Department of Economic and Community Development (DECD). In recent months, governors in New York and Kansas, for example, have touted cost savings, streamlining government services, and creating a more efficient system to assist in business development and job creation as reasons for the proposed mergers. However, in two cases, critics have argued the consolidations would lead to a loss of key programs serving the TBED community (see the Jan. 21, 2009 and the Dec. 17, 2008 issues of the Digest).

According to the most recent release of gross domestic product (GDP) by metro area, 23 of the nation's 363 metro areas experienced a decrease in inflation-adjusted GDP from 2002 to 2006. Benchmarking against the aggregate U.S. metro GDP growth rate over those five years - which increased 12.8 percent - 167 of the nation's metros grew at a faster rate.

On a per-capita GDP basis however, the wealth was more concentrated as only 61 (about one-sixth) of metros had an average per-capita GDP higher than the U.S. metro average of $41,510. Topping the list of metros in per-capita GDP were the regions concentrated around Bridgeport, CT ($78,944 per person); San Jose, CA ($76,290); Charlotte, NC ($63,668); San Francisco/Oakland, CA ($61,895); and the District of Columbia ($60,757).

From 2002 to 2006, the per-capita GDP across all U.S. metros increased by 8.2 percent. Of the 363 metros, 157 bested this increase. Only 40 of the metros witnessed a per-capita GDP decrease over this period.

The complete description of this opportunity and others are available at http://www.ssti.org/posting.htm.

LEESBURG -- Lake County commissioners agreed to partner with the city and the University of Central Florida to beef up a business incubator in hopes of attracting more start-up companies.

The partnership includes $85,000 in county funds for the UCF Research Foundation to support the incubator's staffing. The incubator, which was created last year, is at the Leesburg Business & Technology Center on Market Street.

This is UCF's first incubator in Lake. It is designed to provide training and infrastructure to upcoming companies. Through an incubator program, businesses have a better chance of thriving, county officials say.

The partnership also includes the combined efforts of the Lake-Sumter Community College Business Resources Center and the Leesburg Chamber of Commerce.