SSTI Digest

Using one-time lottery surplus funds available for fiscal year 2008, Gov. Joe Manchin wants to invest $80 million in world-class research and specialized job training to propel the state toward a knowledge-based economy. The proposal was unveiled to lawmakers during Gov. Manchin’s State-of-the-State Address last week in conjunction with the fiscal year 2009 budget recommendation.

Coinciding with a plethora of state-of-the-state addresses delivered over the past week, several governors have released budget recommendations for the upcoming fiscal year. The following states’ budgets include crucial TBED investments and reductions in programs.



California

Upon declaring a fiscal emergency and calling a special legislative session to address the current-year budget deficit of $3.3 billion, Gov. Arnold Schwarzenegger unveiled his fiscal year 2008-09 budget recommendation to lawmakers alongside the proposed budget stabilization plan aimed at reducing the deficit.



The proposal calls for 10 percent reductions to nearly all general fund departments and programs, boards, commissions and elected officials, with limited exceptions.

On Tuesday, the National Science Foundation (NSF) released Science & Engineering Indicators 2008, its comprehensive biennial analysis of the U.S. and international science and technology landscape. This version provides thorough details about the features of a rapidly-changing global economy, as countries continue to make investments in their knowledge-based capacity and industries.

 

With many states anticipating or already preparing for budget pressures, state leaders are increasingly looking for ways to increase their revenue streams. A new report from the Pew Center for the States finds that in many cases outdated state tax systems are stifling growth and failing to build a stronger tax base. Authors Katherine Barrett and Richard Greene argue that many of these systems have not been overhauled since the rise of service economy. In 2005, service industries accounted for 68 percent of U.S. gross domestic product; however, only a handful of states tax more than 80 of the 143 most common types of services. At the same time, other industries, particularly telecommunications, are subjected to a variety of taxes based on their former monopoly status.

 

Yes, it could happen. Bid packets are available today. Your organization could host SSTI's 14th annual conference during the fall of 2010. More than 350 of the nation's greatest thinkers and practitioners for building tech-based economies could descend on YOUR city.



Over the past 11 years, SSTI's annual conference has grown to become the nation's largest gathering of the tech-based economic development community. The 14th annual conference brings the opportunity to acknowledge the impact and growth of tech-based economic development. It is our hope that this conference will inspire even more collaboration, creativity and success across the nation.



The conference host is an integral part in the preparation and success of each conference. Because of the host’s knowledge of local and regional resources, the host is asked for suggestions and advice concerning local suppliers, destinations and potential experts/speakers. Also, the host receives 40 complimentary conference registrations.

SSTI’s eighth annual Tech Talkin’ Govs series highlights new and expanded TBED proposals from governors’ state-of-the-state, budget and inaugural addresses. With mounting budget deficits spanning the nation, this year’s anticipated overarching theme is proposals aimed at mending states’ finances with less focus on the introduction of new initiatives. The first installment of the series includes excerpts from California and New York.

 

California

Gov. Arnold Schwarzenegger, State-of-the-State Address, Jan. 8, 2007

“California leads the nation in biotechnology ... nanotechnology ... medical technology ... information technology. And we will soon be recognized as the leader in clean technology.

 

“Worldwide, clean-tech investments are up by 50 percent in the first nine months alone last year… so I have asked myself, what must we do in this chamber to help fulfill this future? ...

 

A new AAAS analysis of the disappointing federal budget for 2008 reveals Congress’s obsession with earmarks is back with a vengeance, guaranteeing that competition for the remaining federal funds for R&D will be even more fierce.
 
While lower than 2006, earmarks consumed $4.5 billion of the federal R&D budget, scattered among 2,526 projects AAAS was able to identify.
 
Congressional earmarks amounted to $939 million in the omnibus appropriations bill signed last month by President Bush and $3.5 billion in the Department of Defense appropriations bill enacted in November, said Kei Koizumi, head of the AAAS R&D Budget and Policy Program.
 
"Although earmarked R&D funding declines in 2008 compared to previous years," Koizumi said, "in a tight budget environment, earmarks once again crowd out hoped-for increases in competitively awarded research programs."
 

Gov. Jim Doyle announced two new initiatives focusing on investments in manufacturing R&D and increasing angel and venture capital investment to grow new businesses.

 

With the goal of remaining globally competitive, the governor’s new Innovate Wisconsin initiative offers tax incentives to encourage manufacturers to increase R&D. Specifically, the plan calls for new ‘Innovate’ tax credits that are given to companies who increase spending on R&D by 25 percent over their three-year average. Companies would receive a $1 tax credit for every $1 spent above this threshold, which is capped at 50 percent of its tax liability, according to the governor’s office. Additionally, the plan calls for machines and equipment used in manufacturing R&D to be exempt from sales and property tax.

 

With rumors of recession building, several of the nation’s governors are announcing new TBED-focused initiatives in 2008 – many of which will be presented to lawmakers for funding in the coming months. In Illinois, Gov. Rod Blagojevich unveiled two new initiatives encouraging entrepreneurship to grow high-technology businesses throughout the state.

 

The average cost of bringing a Food and Drug Administration-approved drug to market could be cut by 25 percent to 48 percent by making targeted investments in the national biopharmaceutical R&D technology infrastructure, according to a recent report from the National Institutes of Standards and Technology. Economic Analysis of the Technological Infrastructure Needs of the U.S. Biopharmaceutical Industry cites current costs as averaging $560 million per drug, but could drop to between $289 million and $421 million. Furthermore, these improvements can reduce the time from drug identification to clinical trial completion from a current average of 11 years to sometime between 8-10 years.

 

As you begin to fill in your 2008 calendar, remember to mark Oct. 14-16, 2008, to attend SSTI's 12th annual conference in Cleveland! Past attendees know SSTI's conference is the premiere professional development event for the TBED community. And 2008 will be no exception. Back by popular demand, we will be offering an array of pre-conference workshops on Oct. 14.



The InterContinental Hotel Cleveland, site of this year's conference, is built with state-of-the-art conference technology, including an automated response system to maximize the interaction between the audience and speakers. The hotel is located in the heart of the Cleveland Clinic, which is ranked among America's top three hospitals by U.S.News & World Report.

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.



The BioBusiness Alliance of Minnesota, a nonprofit organization that represents Minnesota companies, academia and government, is seeking a bio-network specialist. This position will report to the BioBusiness Alliance CEO but will work in close partnership with the Southern Minnesota Initiative Foundation and other statewide constituents to support the growth of biobusiness in greater Minnesota. A bachelor’s degree is required; a master’s or Ph.D. degree is preferred.