SSTI Digest

Four organizations were named winners of SSTI's 2010 Excellence in TBED Award, serving as national models for states and regions investing in science, technology and innovation to grow and sustain their economies and create high-paying jobs.

"We're very excited to share with the country the success stories from these four organizations," said Dan Berglund, SSTI President and CEO. "Communities and regions across the nation working to transform their economies can learn from the positive results demonstrated by these organizations selected in part for their ability to be successfully replicated."

Awards were presented Wed., Sept. 15 in Pittsburgh during SSTI's 14th Annual Conference, Accelerating Innovation: The Road Ahead for Technology-based Economic Development, attended by some of the nation's top economic development policymakers and practitioners. The following initiatives were named 2010 recipients of SSTI's Excellence in TBED Award:

Lawmakers called into special session on Friday approved a $75 million incentive package for a Texas-based energy company to build five biofuel facilities in the state expected to generate 1,000 new jobs through a total $500 million investment. The package approved by lawmakers also includes $4 million for a workforce training fund through the state's institutions of higher education and up to $2 million for biomass research at Alcorn State University and Mississippi State University.

The state assistance package totals $81 million, which includes $51 million in new bonds and $30 million available from a previous state-level authorization.

Texas-based KiOR, Inc. will receive $75 million to build five commercial-scale renewable crude oil production facilities in the state, three of which will be built over the next five years. Another $4 million is allocated to the Mississippi Development Authority Workforce Training Fund and $2 million is available for research on biomass usage in the production of renewable crude oil at the previously mentioned universities.

Four bond issues totaling $108.3 million appear headed for passage by voters following the primary election yesterday. Two of those measures are aimed at job creation efforts through capital investments, funding for R&D, and renewable energy measures. The Associated Press has projected the $23.75 million economic development bond as winning with a narrow lead of 51-49. The energy bond is passing with 59 percent of the vote.

With the passage of Question 2, voters will approve $4 million for the Small Enterprise Growth Fund to provide Maine companies and entrepreneurs access to sources of capital and $3 million to be matched with private funds for R&D and commercialization activities administered by the Maine Technology Institute. Small businesses, grants for food processing for fishing, agricultural, dairy and lumbering businesses, and redevelopment projects at the Brunswick Naval Air Station also are funded through the bond.

Maine's 2010 legislative session wrapped up last week, ending on a relatively high note for tech-based economic development (TBED). Actions supporting TBED include a measure signed by Gov. John Baldacci to encourage venture capital investment in innovative companies and the legislature's approval of a bond package that includes $11 million for ocean wind energy demonstration sites through the University of Maine System.

LD 1, An Act to Stimulate Capital Investment for Innovative Businesses in Maine, allows the Maine Public Employees Retirement System to invest up to $20 million in innovative companies through venture funds. The goal of the program is to attract more venture capital and spur more innovative startups in the state. A larger Fund of Funds measure was pocket vetoed by the governor in 2008 because of its potential liability for the state, according to Gov. Baldacci (see the May 14, 2008 issue of the 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.

A bill being debated in Congress would provide federal support for the development of research parks, a major contributor to scientific discovery, technology commercialization and new company formation. S. 583, entitled the Building A Stronger America Act and introduced earlier this year, would make available grants and loan guarantees for the development and construction of science parks to promote the clustering of innovation through high technology activities. The Senate Committee on Commerce, Science and Transportation will hear testimony today in support of the legislation from Brian Darmody, President of the Association of University Research Parks and Charles Wessner of the National Research Council. Over the past few months, several announcements for development of new research parks have been made from around the world. Following is an overview of select announcements.

TBED People
Eric Abelquist has been named executive vice president of Oak Ridge Associated Universities and deputy director of the Oak Ridge Institute for Science and Education.

Arn Boezaart, who has been interim executive director of the Michigan Alternative and Renewable Energy Center the past six months, will take over the position permanently.

Melanie Brandt has been hired as chief operating officer for the Technology Association of Georgia.

President Barack Obama announced his intent to nominate Nicole Y. Lamb-Hale to serve as assistant secretary of commerce for manufacturing and services within the International Trade Administration.

Since the 1990s, Maine has done an excellent job investing in R&D to establish a robust research capacity, but little has been done in terms of building a capacity for innovation and entrepreneurship, according to the 2010 Science and Technology Action Plan. The report identifies three main strategies to position the state as a global competitor and create high-paying jobs and economic prosperity.

The roots of Maine’s investment in science and technology are traced back to a $20 million bond approved by voters in 1998 for R&D, which established the Maine Technology Institute, the Maine Economic Improvement Fund, the Advanced Technology Development Centers, and the Maine Patent Program. This support was continued with additional bond investments in 2003, 2005 and 2008. And while those investments have paid off in total R&D performance, the research is not being commercialized or connected to industry in a way that maximizes economic impact to the state, the report finds.

Three main strategies and several actions steps are described in the plan, which calls for $32 million annually to implement the recommendations, including:

The lazy days of summer may be the most challenging time to keep students and teachers motivated and engaged in academics. Fortunately, several programs across the country have risen to the challenge. And, with the Obama Administration's pledge to make math and science education a national priority, now may be an opportune time for collaboration among federal and state agencies, private foundations, and industry to reverse the U.S. decline in science, technology, engineering, and mathematics (STEM) fields.

Gov. John Baldacci signed two major bills this session supporting renewable energy R&D and creating a path for building private sector jobs in clean energy businesses. Lawmakers also passed a $150 million bond package, which includes funding for ocean and wind energy demonstration projects and support for Maine technology entrepreneurs. Voters will have the final say on the bond package in three separate ballot measures presented over the next two years.

In a period of tightening budgets, it is important for stakeholders to know that the investments they are making in tech-based economic development are yielding positive economic results - and returning revenue to the state. Recent impact assessments to examine comprehensive TBED programs in three states show how smart these investments have been. More telling, different evaluation models were used in all three states and they each reached similar conclusions: strategic TBED investments can stimulate economic growth.

State governments are poised to play a vital role in the economic recovery through their use of federally-appropriated funds and through their internal policy responses to the global crisis. Several states are focusing on innovation as a means of recovery. Massachusetts and Maine both recently released the latest editions of their annual innovation indices. These annual publications have long helped to clarify trends in the innovation economy and provided assessment of their performance relative to other states. This year these indices take on new significance as state governments search for potential paths out of the economic crisis.