SSTI Digest

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.   South Dakota, Ohio, Connecticut and Wisconsin, on the other hand, continue to occupy the bottom tier. California fell from fifth place to 32nd over this same period.…

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 Murray State University, Regional Business and Innovation Center New Jersey Institute of Technology, Enterprise Development Center The Northeastern Pennsylvania Technology Institute Ohio State University, Technology Licensing & Commercialization Ohio Supercomputing Center…

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.

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. $50 million for an Agricultural Development Fund, a portion of which will be used to promote alternative fuel products in the state. $12 million to expand existing state programs that encourage high-technology development. $7 million to enlarge the state’s…

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. Universities would receive a net funding increase of $25.4 million over the FY08 appropriation under the governor’s recommendation, including $7 million to recruit, teach and retain teachers in Science, Technology, Engineering and Mathematics areas. Gov. Napolitano recommends $3 million in FY09 to the University of Arizona (UA) and $2 million each to Arizona State University-Tempe and Northern Arizona University to expand on a student loan program for math, science and special education teachers approved by lawmakers last year (see the June 27, 2007 issue of the Digest). Additionally, UA’s budget includes $1.5 million to expand and implement programs for teacher training, entrepreneurship and commerce- and defense security-related disciplines that will meet the workforce needs of the southern parts of the state. Lawmakers will be asked to approve a $470 million bond…

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.   The governor’s recommendation for the Department of Business and Economic Development is $145.5 million, an increase of 17.7 percent above the FY08 appropriation. The recommendation includes $6 million to provide tax credits to encourage investment in biotechnology firms and $2.4…

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. Beginning with education, Gov. Sebelius said that high-quality teachers are critical to retaining more scientists, engineers and skilled technicians for the Kansas workforce. Therefore, the governor’s fiscal year 2009 budget recommendation includes $1 million for a new teaching scholarship program in…

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. “We propose the creation of a Commission on Higher Education made up of the presidents of Hawai‘i’s major universities, members of the community, and business leaders. This Commission will give us the opportunity to embrace new ideas and new ways of using federal and state education dollars…

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 The Lorain County Community College (LCCC) Foundation recently announced that it would make its first three grants to support Northeast Ohio start-ups through its new Innovation Fund. These grants provide pre-seed and technology validation funding for businesses in the region that agree to provide internships for LCCC students and to participate in on-campus lectures on entrepreneurship. The program offers grants of up to $100,…

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.   Students were able to meet and talk with national and local venture professionals and to learn about how venture firms respond to change. The conference included panels on how federal and state governance can affect the competitiveness of U.S. private capital and on how capital firms can thrive despite downturns in the overall economy.  …

Each year, the National Science Foundation releases updated information for their Federal Funds for Research and Development series. SSTI has prepared a table illustrating the amount of federal R&D obligations provided to industry in each state from 2000 to 2004, the most recent years for which statistics are available. Additionally, the relative ranking of each state is displayed for every year in this period.   For the entire U.S., federal R&D obligations to industry were $27.6 billion in 2000 before steadily increasing to $39.1 billion in 2004. This represents a 41.6 percent increase over the five-year period. In 2004, the states receiving the most federal R&D funding for industry were California ($7.87 billion), Texas ($3.30 billion), Virginia ($3.25 billion), Maryland ($2.38 billion) and Missouri ($2.37 billion). In 2004, 13 states had amounts higher than $1 billion, whereas 10 states received less than $50 million.   The values show a high amount of volatility over the years, and the relative ranking among states changes dramatically in some cases. Mississippi, for example, received $105 million in…

Tom Ballard was named director of the Oak Ridge National Laboratory Partnerships Directorate, formerly known as Technology Transfer and Economic Development. Ballard had been serving as the organization's interim director since August 2007. The Howard County Economic Development Authority appointed Larry Collins as a new technology manager and as executive director of the new Howard Technology Council. The Great Lakes Entrepreneur's Quest hired Diane Durance as its new executive director, succeeding Art DeMonte, now a full-time business consultant. Durance formerly was president of the Ann Arbor IT Zone. William "Chip" Farmer was named interim director of the Greater Richmond Technology Council. Farmer replaces Robert Stolle, who left in December 2007 to join Core Consulting, a business and information technology consulting firm. The Indiana Business Incubator Society announced its plans to become a formal organization. The Illinois Technology Development Alliance (ITDA) this week promoted John Noel to become ITDA's permanent president. Noel had…