SSTI Digest

The most recent annual report of Ohio's Third Frontier initiative announced $3.52 billion in non-state resources has been provided for affiliated projects and companies - a nine to one ratio of state dollars leveraged. Since the Third Frontier's creation in 2002, $893 million in state funds have been awarded, with $403 million of that amount expended to date.

The Third Frontier Initiative is a statewide effort administered by the Ohio Department of Development (ODOD) and is comprised of a diverse set of programs focused in areas such as research faculty recruitment, commercialization assistance, direct research funding, internship assistance, entrepreneurial development, and regional seed fund growth, among others.

As credit and early-stage investment capital become increasingly scarce, more state, regional and local governments and organizations are stepping in to help local entrepreneurs get their companies off the ground. In many cases, offering equity investments is not always an attractive option to the public organization.

Pittsburgh's Urban Redevelopment Authority (URA), for example, recently announced a new low-interest loan fund to provide the early-stage capital needed to start new high-tech businesses in the midst of a troubled economic situation. The Pittsburgh Entrepreneur Fund will award up to $200,000 to high-tech entrepreneurs and companies, as well as pair awardees up with organizations that can offer guidance and technical assistance. Mayor Luke Ravenstahl noted that the program is not just for existing companies, but also is targeted toward young entrepreneurs and researchers who might otherwise take their intellectual capital elsewhere.

The NSF's Federal Funds for Research and Development series illustrates trends in the U.S. government's funding obligations for science and engineering R&D. Federal funding is distributed to government agencies, academic institutions, research centers, state and local governments, nonprofit organizations, as well as private companies.

SSTI has prepared a table presenting federal R&D obligations to industry in each state for the five fiscal-year period of 2001 to 2005. In FY05, $44.03 billion, or 41.2 percent of total federal R&D obligations, went to industry.

The FY05 figure for industry represents a 63.7 percent increase from FY 2001. From year to year, many states' figures vary sharply, making trends across years harder to characterize and potentially misleading. Consequently, the SSTI table includes only the percentage of each state's total federal R&D obligations that went to industry in 2005 and the state's relative rank.

SSTI is hosting an informal phone call on Wednesday, May 13 at 2:00 PM EDT to answer your questions about the 2009 Excellence in TBED Awards.

Who should join the call? 

Anyone considering submitting an application for the 2009 awards cycle or anyone who wants to learn more about the program will find the call useful.

What should I expect? SSTI will present a brief overview of the program, including its mission and philosophy, followed by ample Q&A time to answer any questions regarding the application process, the entry guidelines and the evaluation criteria. We will also share some helpful hints provided by past judges.

The role of a technology incubator or accelerator for supporting nascent firms generally is regarded with the utmost importance by the tech-based economic development community. Tech incubators provide essential resources for startup companies to develop and commercialize new technologies, leading to the creation of high-quality jobs.

With estimates suggesting there could be as many as 5,000 incubators of all shapes and sizes worldwide, finding the latest and best practices for tech business incubation could be a challenge. Fortunately, award programs, such as the currently open SSTI's 3rd Annual Excellence in TBED Award, can help call attention to some of the most successful approaches.

SSTI has an effective new learning tool for TBED policymakers and practitioners seeking guidance in approaches to building and sustaining tech-based economies. Through exclusive interviews with Excellence in TBED Award recipients, find out first-hand how these award winning initiatives successfully responded to a critical need by applying innovative approaches to generate substantial economic gains for their region. Maryland Industrial Partnerships Program (MIPS) 2007 Winner for the Improving Competitiveness of Existing Industries category

In honor of Earth Day, SSTI has prepared a special edition of the SSTI Weekly Digest focused almost exclusively on green issues, ranging from a round-up of recent developments to encourage the creation and growth of alternative energy companies to a profile of Toledo's solar success story. Enjoy the news, and pass this issue along to others you think would be interested-but do it electronically, please.

Though green jobs have become the focus of many TBED initiatives at the federal, state and local levels, it remains difficult to estimate the size of the green workforce. Green jobs are a relatively new focus for economic development, and there is no standard definition of the green economy and green occupations. Several recent reports have taken on the task of defining green jobs, including the industry sectors that should be folded into that definition.

Green Jobs in Minnesota: Market Analysis, a report prepared for the Minnesota Green Jobs Task Force, takes a new approach to estimating the size of the green collar workforce by using market information that tracks levels of green activity in a variety of industries. The report identifies four industry sectors that make up the U.S. green energy economy: green products, renewable energy, green services and environmental conservation.

Green stimulus investments have the potential to yield a greater number of jobs and greater long-term prosperity than traditional stimulus investments, according to a new study presented at the recent G20 summit. The report examines the stimulus packages passed in the G20 countries, particularly their relative emphasis on spending related to sustainability. Since G20 members are responsible for three-quarters of the world's wealth, energy consumption and greenhouse gas emissions, the measures taken by these countries represent the forefront of the effort to combat global climate change. In addition, the study argues that these investments are the most effective use of stimulus funds.

In the midst of a national economic recession contributing to a record number of job losses in traditional industries, forward thinking states are exploring ideas and committing funds to help grow and diversify their economies and strengthen their renewable energy portfolios.

Over the past several months, governors, legislators and economic development groups have announced new initiatives aimed at job growth and energy independence in the new economy. The following overview provides a sampling of green energy initiatives and investments from numerous proposals and announcements across the nation.

On April 14, the National Science Board NSB released for public comment a draft report, Building a Sustainable Energy Future, which calls on the nation to lead the fundamental transformation of the current energy economy from one that is dependent on fossil fuel to one that thrives on sustainable and clean energy. The draft NSB report outlines key findings and makes recommendations for the federal government, with specific priority guidance for the National Science Foundation. 

The need for more urgent and more significant action underlies the Board's work. "The [current] scale and speed of adopting sustainable and clean energy technologies fall short of what is necessary to address today's challenges, which will only become more acute with the passage of time," the report says. 

Within the last two weeks, both Kentucky and Michigan announced major developments in their ongoing efforts to build a statewide advanced battery industry. With these initiatives, the states hope to better position themselves for upcoming rounds of advanced battery development grants from the federal government and other future sources of investment.

A partnership between the state of Kentucky, the University of Kentucky, the University of Louisville, and Argonne National Laboratory is establishing a national Battery Manufacturing R&D Center to be located in Lexington. Focusing initially on advancing lithium-ion battery manufacturing, the Center will utilize the research and personnel from the universities, but also will have complementary R&D facilities at Argonne. Existing Kentucky programs to fund research grants and recruit researchers will be used to enhance the Center's activities.