SSTI Digest

Coming a little late in the year to be included among our Tech Talkin’ Govs series (see Digest issues for Jan. 8, 15 and 29 and Feb. 19), Ohio Gov. Ted Strickland delivered his first State of the State Address on Mar. 14. Below are excerpts from his address calling for a $1 billion investment in alternative and renewable energy technologies over four years.

 

“Ohio has everything it takes to become a center of advanced energy technology. ... Next-generation energies biofuels, fuel cells, clean coal, and renewable sources such as wind offer us the opportunity to create jobs, support our farmers, reduce our dependence on foreign oil producers, and be responsible stewards of our environment.

 

“That's why my administration will coordinate an almost $1 billion investment in energy programs, to ensure energy will be an economic development leader in Ohio.

 

More than 51,000 early-stage ventures took in $25.6 billion of angel investment in 2006, according to the 2006 Angel Market Analysis released Mar. 19 by the Center for Venture Research at the University of New Hampshire. The dollar figure reflects a 10.8 percent increase from the 2005 findings. The number of deals made in 2006 only rose 3 percent over the previous year. As a result, average deal size grew 7.5 percent.

 

As in 2005, healthcare services and medical devices and equipment accounted for the largest share of angel investments, with 21 percent of total angel investments in 2006, followed by software (18 percent) and biotech (18 percent). The remaining investments were approximately equally weighted across retail, financial/business products and industrial/energy sectors.

 

The center found the 51,000 angel investments made in 2006 helped support the creation of 201,400 new jobs in the U.S. during the year, or four jobs per angel investment. These figures, the center notes, only refer to employment at the time of investment and do not reflect anticipated growth as the ventures grow.

 

South Dakota recently announced it is reorganizing its programs to support entrepreneurs and high-tech start-ups. Instead of offering assistance to new firms through small, targeted programs, the state will reallocate the funding for these smaller programs into a larger fund with fewer restrictions on how that money can be spent. The change will allow the state greater leeway to assist expanding businesses, many of which were not eligible for the existing support programs. Mike Youngberg, finance manager of the Governor's Office of Economic Development, believes the change in tactics will help the state target higher-paying, high-tech jobs through its support programs and help retain its high-tech businesses.

Over the next few years, public policies that support innovation in alternative energy will determine whether or not the United States will successfully make the transition to clean and renewable energy, TechNet reports. The pro-innovation group, whose membership includes top executives from more than 115 tech firms, believes the move away from nonrenewable sources of electricity and fuel will require timely, active support from federal and state government. TechNet issued an agenda last week that would focus national attention on expanding policies that encourage the development and adoption of sustainable technologies. TechNet argues that the race for practical alternative energy solutions represents a unique opportunity for U.S. competitiveness. By supporting new energy technologies, the U.S. could not only improve its competitive standing, but also create a solution to growing energy consumption, reduce the country's energy dependence on the Middle East, and slow the pace of global warming.

 

Every year, some graduating high school students make the transition to college, many of them choosing to move to another state in order to continue their education. In some states, the number of students leaving the state is greater than the number entering, resulting in a “brain drain.” This net out-migration of students, many of which never to return to the state of their high school graduation, may impact a state’s skilled and competitive workforce, tax revenues, productivity gains, and appreciation of diversity.



Data collected during the fall of 2004 by the National Center for Education Statistics revealed Pennsylvania and Florida led the nation with a net gain of 12,540 students and 11,194 students, respectively. On the other end were New Jersey and Illinois, which lost 22,443 and 10,511 college-bound freshmen, respectively.

The Digest story above details the push to keep high school graduates in-state for their university experience, with the expectation that upon graduation they will positively impact the economy of the state. An essential part of keeping an educated workforce local, however, is the ability for individuals to find gainful employment upon graduation. In certain fields, where local demand is low and the supply is high, individuals often choose to move elsewhere or change careers – often an exhaustive process to the job seeker and a loss of investment for whoever paid for tuition, especially for a state that supports public education.

 

Most of the reports calling for national innovation strategies include recommendations of increasing the number of college graduates and the need to increase STEM education opportunities, but few have focused on the imbalance arising regionally in some college degree programs.

 

Southern Growth Policies Board is polling citizens on their attitudes and ideas about building a competitive Southern Workforce. Visit http://www.southern.org/surveyintro.shtml and share your ideas on how to build a competitive, entrepreneurial workforce to support the southern region's economic development initiatives in high-growth industries. The 16-question survey only takes a few minutes to complete and your feedback will be included in Southern Growth's 2007 Report on the Future of the South and in presentations at the Southern Workforce Summit conference on June 3-5, 2007. To learn more about the Southern Workforce Summit conference, visit http://www.southern.org/conf.asp.

SSTI serves as the TBED community’s go-to resource and strategic partner when dealing with TBED issues. SSTI’s unique ability to address the information needs of its members comes from the fact that SSTI’s staff and board have been “in the trenches” of technology-based economic development. SSTI’s president, vice president and board members, including former Governors John Engler of Michigan and Michael Dukakis of Massachusetts, have more than two decades’ of direct policy development and service delivery experience.



"SSTI is my security blanket, assuring me that I am never more than a few clicks or a phone call from the latest news, information, and data in technology-based economic development issues," said Angie Godwin, president of the Area Development Partnership. "SSTI has earned its place as THE 'top of mind' clearinghouse for TBED professionals."

In his recent combined State of the State and budget address on March 7, Illinois Gov. Rod Blagojevich proposed the formation of the Illinois Community Assets Fund (ICAF), a $100 million venture designed to increase access to capital and financing to economically distressed communities and populations that have had inadequate access to mainstream capital markets within the state. The assets of ICAF would be contained within the State Treasury, and the Illinois Department of Commerce and Economic Opportunity (DCEO) would administer the fund. All $100 million would be distributed within a three-year period.

 

The ICAF would consist of the following four programs:

• Community Financial Institutions Participation Fund – $30 million to partner with third-party financial intermediaries and invest in businesses that lack access to traditional lending sources;