SSTI Digest

Gov. Charlie Crist outlined several new alternative and renewable energy initiatives aimed at diversifying the state’s economy and creating high-wage jobs in his fiscal year 2008-09 budget recommendation. Many of the new proposals would be financed by tapping into the state’s budget reserves and relying on casino and lottery revenues.   The governor’s proposal invests $200 million in energy-related research and commercialization projects, along with rebates and tax credits for consumers, that build on the policy framework of the Serve to Preserve Climate Change Summit held last summer. Funding is directed to implement new research priorities for the state, including: $100 million for Green Tech Recruitment, an innovation incentive program for businesses to research and develop green technology projects; $20 million for a Renewable Energy Technology Grant Program, encouraging R&D and commercialization of alternative energy; $20 million for a Biofuels Grant Program, which provides funding for ethanol, biodiesel, biomass and the conversion of waste materials to energy; and, $10 million for the Florida Atlantic University…

Gov. Brad Henry unveiled the details of his fiscal year 2009 budget recommendation earlier this week, providing a substantial increase in funding to the state’s lead TBED agency and proposing a permanent funding mechanism for cutting-edge research through the EDGE Endowment.   Citing a sizable return on investment from the Oklahoma Center for the Advancement of Science and Technology (OCAST), the governor is recommending $34.5 million for FY09 – a 54 percent increase over last year’s appropriation. OCAST is slated to receive $6 million to replace one-time funding for the Bioenergy Center – established in 2007 – and $5 million to replace seed capital funds that were diverted last year for the center (see the June 6, 2007 issue of the Digest). An additional $4 million from OCAST seed funds appropriated last year would be allocated to the Bioenergy Center in FY09 for a total of $10 million. Gov. Henry also recommends $1 million to enhance existing OCAST programs.   Funding for the state’s research endowment is accumulating at a much slower rate than expected. With only $150 million deposited into the proposed $1 billion…

Several months of debate leading into a special legislative session late last year was not enough to convince lawmakers to approve funding for two of the governor’s major TBED priorities. With the release of the fiscal year 2008-09 budget recommendation, Gov. Ed Rendell is again asserting the importance of the alternative energy legislation and the Jonas Salk Legacy Fund, urging lawmakers to quickly enact the initiatives.   The alternative energy legislation calls for an $850 million bond issue securitized by an electric power public benefits charge to fund energy independence programs (see the Feb. 12, 2007 issue of the Digest). Additionally, the governor’s budget recommends $500 million – a portion of the state’s Tobacco Settlement Fund – in seed funding for the Jonas Salk Legacy Fund for biosciences research, biotechnology commercialization and investment capital.   The governor’s recommendation for the Ben Franklin Technology Development Authority Fund is nearly a $3 million less than last fiscal year. No funding is recommended for assistive technology ($500,000 decrease), telecommunications infrastructure ($6…

Measuring the strength of a state or region’s economy, particularly the elements related to tech-based economic development, is a tricky but vital tool for developing and updating TBED policies. Several challenges present themselves when deciding what information to present on the elements of the innovation system and assessing the region’s health and performance relative to appropriate surrogates.   Fortunately for the field, two states that have been leaders in using an index as a policy development tool, released reports last week which display an array of methods to analyze their own state’s relative TBED performance. Each report provides a unique perspective and can provide models for emulation and customization by other states.   Massachusetts One of the forefathers and continual innovators in design and delivery of innovation indices is the Massachusetts Technology Collaborative (MTC), which released on Feb. 1 the 11th edition of its Index of the Massachusetts Innovation Economy. The report continues to benchmark Massachusetts in 20 indicators against selected states – California, Connecticut,…

During the past two months, five reports have highlighted grim news for state budgets in fiscal year 2008, FY 2009 and beyond, brought on by declining revenues, the crisis in the housing market, increased oil prices, a potential national recession, and structure issues with state finances. In early December 2007, the National Governors Association and the National Association of State Budget Officers released The Fiscal Survey of States, which indicated that state spending is expected to grow only 4.7 percent this fiscal year and budget shortfalls are developing as rising healthcare costs put pressure on revenue and spending. In mid-December, the National Conference of State Legislatures found that states' revenue growth is slowing and deficits could reach at least $23 billion. The January State Revenue Report from the Nelson A. Rockefeller Institute of Government showed 2007 third-quarter tax revenues were down 0.6 percent over the same period last year, after adjusting for inflation, prompting governors to make mid-year budget adjustments for FY 2008. Fourth, a Center on Budget and Policy Priorities revised report released Jan. 28 found that more…

This is your opportunity to shine in the spotlight! By hosting SSTI’s 14th Annual Conference in 2010, you can increase your national and international visibility by showcasing the success of your state and/or community’s tech-based economic development efforts to thousands of TBED professionals. Letters of intent are due next week! You still have time to contact Noelle Sheets, director of membership services, at 614.901.1690 or sheets@ssti.org to request the bid packet. Some of the host benefits include: Minimal or no travel expenses incurred for conference attendees from your state. This cost savings and convenience facilitates greater participation and attendance at the conference by your key state and local decision makers and practitioners in the region's tech-based economic development community. The result can be a better understanding and stronger commitment among legislators and civic leaders to building a tech-based economy, as well as reinvigorating your program staff and board with fresh ideas, perspectives and professional development tips from peers from around the country. Opportunity to host an…

Georgia Gov. Sonny Perdue this month proposed a new $40 million Georgia Research Alliance (GRA) Venture Capital Fund to be fueled by $10 million from the state legislature and subsequently matched with $30 million from the private sector. Of the entire suite of GRA initiatives, this will be the first program not funded entirely by the state of Georgia.   The Venture Capital Fund will invest only in early-stage companies associated with GRA’s VentureLab program. The VentureLab program provides technology assessment, commercialization instruction and seed grants to marketable research developed at GRA’s partner universities. These partner universities are the University of Georgia, Medical College of Georgia, Emory University, Clark Atlanta University, Georgia Institute of Technology, and Georgia State University.   One of the Venture Capital Fund’s goals is to provide the funding that will allow new companies to stay in the state without moving outside of Georgia to access capital. The fund’s primary targets for investment will be concentrated on technology in the life sciences, especially vaccines and anti-viral…

Minnesota Gov. Tim Pawlenty recently unveiled four energy initiatives to promote clean energy R&D and the use of renewable energy technologies in the state. Through a combination of executive orders and legislative proposals, the programs are intended to push Minnesota towards its goals of having 25 percent of the state’s energy come from renewable sources by 2025 and reducing the state’s greenhouse emissions 80 percent by 2050. These new initiatives are: The Clean Energy Technology Collaborative – Created by Executive Order 08-04, the Collaborative is a 15-member group appointed by the governor that will develop a roadmap identifying the most promising R&D steps Minnesota should take to advance the use of green technologies. Committee members will be comprised of representatives from Minnesota’s universities, business members, and other individuals who have significant knowledge and experience in clean energy R&D. The Minnesota Office of Energy Security – Executive Order 08-03 establishes this Office within the state’s Department of Commerce, which will function as the entity within Minnesota state government that coordinates state policy,…

Referring to his fiscal year 2008-09 budget recommendation as “back to basics,” Gov. Phil Bredesen proposed significant investments in research and workforce initiatives while vowing not to tap into reserves or raise taxes.   Earlier this week during his State of the State Address, Gov. Bredesen unveiled his ambitious budget proposal, which includes a total investment of $30.5 million in workforce initiatives. The Department of Economic and Community Development is slated to receive $29.3 million for the governor’s Next Steps Jobs strategy – $25.3 million for the FastTrack Infrastructure Development Program and Job Training Assistance and $4 million for business development. Additionally, $1.2 million – the same level as last year – is recommended for the Rural Opportunity Fund, a public-private partnership implementing a small business loan program targeted to small, minority and women-owned businesses in rural parts of the state.   To provide training grants to employers in order to create and retain high-skill, high-wage jobs in emerging fields, the governor recommends $9.3 million from the Special Revenue Fund…

The fourth installment of the Tech Talkin’ Govs series includes excerpts from governors’ speeches delivered in Georgia, Kentucky, Massachusetts, Michigan, Tennessee, and Wisconsin.   Georgia – see article in this issue of the Digest.   Kentucky Gov. Steve Beshear, State Budget Address, Jan. 29, 2008 “I recommend a $60 million bond authorization for a new round of ‘Bucks for Brains.’ … This program has attracted and retained some of the brightest faculty and research teams in the nation. In times like these, we simply must invest in the future. …   “… It is time to revitalize our economic development efforts, and as chair of the Economic Development Partnership Board, I will work with the Secretary of that cabinet to review and revise our strategy, giving it a new focus on the entire state and on twenty-first century jobs.”   Massachusetts Gov. Deval Patrick, State of the Commonwealth Address, Jan. 24, 2008 “On the jobs front, let’s both advance human healing and add another 250,000 jobs over the next decade…

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.   New business formation rates demonstrate a U-shaped pattern across countries of varying levels of average income. Early-stage activity tends to be high in countries with low per capita gross domestic product (GDP), and then declines in middle-income nations. The figure then rises again for high-income countries such as the U.S., which continues to have one of the highest entrepreneurship levels…

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.   Forging New Partnerships looks deeper into the evolving relationships between manufacturing suppliers,…