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SSTI Digest
Recent Research I: Global Trends in Business Creation and Entrepreneurship Policy
Ten to forty percent of entrepreneurs launching businesses in high-income countries expect that more than a quarter of their customers will come from outside of their country, according to a new study of trends in global entrepreneurship.
The Global Entrepreneurship Monitor (GEM), a report prepared annually by researchers from Babson College and London Business School, provides insight into international entrepreneurship trends and the factors that influence the rate of new business creation. This year’s edition dedicates particular attention to the national regulatory environments and other policy-based factors that encourage entrepreneurs. It also provides a glimpse into the increasingly global nature of entrepreneurship.
Recent Research II: Reports Offer Suggestions for Small and Medium Manufacturers to Compete in Global Supply Chain
Considerable changes are affecting the structure of traditional manufacturing supply chains, and firms that do not adapt to these shifts will suffer economically, according to a recent report from the National Association of Manufacturers (NAM). Forging New Partnerships: How to Thrive in Today’s Global Value Chain provides information about specific programs and organizations, as well as suggestions and best practices, that may improve the difficulties small and medium manufacturers (SMMs) face as both their competitive markets and internal management needs are changing.
The report is the second release in NAM’s Small and Medium Manufacturers Series. The first report identified the challenges facing SMMs in the 21st century (see the March 6, 2006 issue of the Digest). Small manufacturers are considered to have less than 500 employees, and medium-sized manufacturers have between 500 and 2000 employees. Together, these two groups account for 99 percent of all manufacturers and 40 percent of U.S. production value.
Useful Stats: State Business Churning Rankings, 2000-2006
Using data from the Small Business Administration's Office of Advocacy, SSTI has prepared a table showing how each state (and the District of Columbia) has ranked in business churning over the past seven years. Business churning is a measure of the creation of new companies and the death of existing companies as a share of total firms (small businesses with employees). Churning increases as the number of new start-ups and existing business failures per year increase. A high level of business churning can be a major driver of innovation and growth, since it can indicate the presence of entrepreneurial activity and the transition to new industries.
Over this period, Nevada, Utah and Washington have consistently occupied the top three spots, though they have traded places. Colorado and Arkansas have shown the most relative improvement, with Arkansas rising from 50th in 2000 to 16th in 2006. Maryland, Idaho and Tennessee were also consistent top performers.
SSTI Welcomes Newest Members
It is only through the involvement of the each and every one of our more than 185 members that SSTI is able to continue its mission -- to lead, support and strengthen efforts to improve state and regional economies through science, technology and innovation. Together, we’re growing a strong and vibrant tech-based economic development community. New members include:
State Sponsors
Kansas Bioscience Authority
Oklahoma Department of Commerce
Affiliates
California State University, Office of Tech Transfer & Commercialization
George Mason University, Office of Research Development
Institute for Triple Helix Innovation
Luther Forest Technology Campus
SSTI Job Corner
A complete description of this opportunities and others is available at http://www.ssti.org/posting.htm.
The Oak Ridge National Laboratory (ORNL) is seeking a director to lead the Industrial and Economic Development efforts for ORNL’s Partnerships Directorate. The incumbent will develop and execute a new Industrial Partnerships strategy, interface with the region’s economic development professionals to maximize ORNL’s contributions to regional economic growth, lead ORNL’s entrepreneurial efforts, and perform other responsibilities. A bachelor’s degree in general business, planning, marketing or a related field and at least 10 years of senior experience involving a combination of community, technology and economic development marketing and recruitment are required. A master’s degree is preferred.
New York Unveils $1B Upstate Revitalization Fund
Last week, Gov. Eliot Spitzer gave New York’s first ever “State of the Upstate” address in Buffalo, outlining his administration’s $1 billion Upstate Revitalization Fund. Among the components intended to encourage economic growth in the northern part of the state are:
- $350 million for a Regional Blueprint Fund to construct development-ready sites and industrial parks, to provide loans for small businesses and to create an international marketing office for the Upstate. $10 million from the Blueprint Fund will be used to provide seed capital for 10-15 small companies.
- $115 million for new Upstate City-to-City Projects, which include $25 million for the University of Rochester’s Clinical and Translational Science Institute and Syracuse’s Connective Corridor.
- $100 million for an Investment Opportunity Fund, designed to be a competitive grant program administered by the Empire State Development Corporation.
University Initiatives Slated for Increased Funding in Arizona Budget
With a budget management plan for the current fiscal year making its way through the state legislature, Gov. Janet Napolitano announced increased funding and borrowing for university programs and research initiatives in her fiscal year 2009 budget recommendation.
Maryland Budget Maintains State Investment in Biotech
Funding for several TBED-focused initiatives aimed at increasing the state’s biotech portfolio is prominent in Gov. Martin O’Malley’s fiscal year 2009 budget proposal. Under the recommendation, stem cell research, biotechnology and nanotechnology are targeted for investments to grow the state’s economy, building on the actions of the 2007 legislative session (see the April 16, 2007 issue of the Digest).
Gov. O’Malley unveiled his FY09 budget last week, recommending $23 million for the Stem Cell Research Fund. The fund – in its second year of existence – supports stem cell R&D at Maryland research universities and private sector research institutions and is administered by the Maryland Technology Development Corporation (TEDCO). TEDCO is slated to receive $27.8 million in FY09 total funds – a slight decrease from the FY08 appropriation.
Research, Innovation and Education Initiatives Proposed in Kansas Budget
Gov. Kathleen Sebelius delivered her State of the State Address last week proposing new initiatives and continued funding for several TBED programs emphasizing education and innovation as key to the state’s future economy.
Gov. Sebelius announced a proposal to create the Kansas Innovation Consortium, comprised of leaders from business, higher education, and state and local officials charged with advising the governor on research and education priorities for the state to achieve an innovation-based economy. The consortium also would develop specific strategies for investing in innovation and entrepreneurship and develop metrics to measure innovation and determine if the strategy is successful. The governor is requesting $150,000 from the Economic Development Initiatives Fund (EDIF) for start-up costs associated with the new group.
Tech Talkin’ Govs, Part III
Highlights from State of the State addresses delivered in Alaska and Hawaii are included in the third installment of the Tech Talkin’ series.
Alaska
Gov. Sarah Palin, State of the State Address, Jan. 15, 2008
“I'm appointing an Energy Coordinator, to activate a statewide Energy Plan. We'll use earnings from a $250 million ‘Renewable Energy Fund’ for alternative projects, like hydro, wind, geothermal, and biomass.”
Hawaii
Gov. Linda Lingle, State of the State Address, Jan. 22, 2008
“We are proposing to start Creative Academies, modeled after the successful STEM Academies, to nurture and support the many talents of Hawai‘i’s keiki. These academies would focus on animation, digital media, game development and writing and publishing in elementary through high school.
Local Capital Programs Help Address Regional Gaps
Although the national venture capital investment continues to expand, many parts of the country still lack access to reliable sources of business capital. Even in states that rank in the top tier for venture investment, there are often insufficient capital resources to support businesses at every stage of development. In order to support entrepreneurs and to attract more attention from the industry, an increasing number of cities, regional organizations, community and technical colleges, and other groups are creating their own capital programs. These programs frequently focus on providing funding at the pre-seed and start-up stages of business development when it is difficult to attract funding.
Northeast Ohio
Venture Capital Events Offer Educational Opportunities for Undergraduates
While many universities offer business plan competitions and programs in entrepreneurship and commercialization, fewer opportunities are available to learn about the capital side of the equation. Last week, however, two major conferences invited students to learn more about venture capital (VC) investment and emerging trends in the venture industry.
The Wharton School of the University of Pennsylvania's student-run Private Equity & Venture Capital Conference hosted a day of discussions about developments in the venture capital field. More than 900 industry leaders, alumni, faculty and students met for the 14th annual conference to discuss changes in legislation and the regulatory environment for venture investors and the expanding global-orientation of investment.