SSTI Digest

In an effort to help spur economic prosperity, several universities recently have unveiled new initiatives to connect potential entrepreneurs with university resources and help integrate the entrepreneurs into their region’s innovation ecosystem. The Blackstone Charitable Foundation also announced it will expand LaunchPad, a university-led entrepreneurship program, to a partnership that includes three universities in Southern California.

John Sider has accepted a position with Pennsylvania State Senator Vincent Hughes and the PA Senate Democratic Caucus to work on economic development policy and projects, effective April 1. Currently, Sider is the managing director of statewide initiatives at Ben Franklin Technology Partners.

Vic Nole has joined the Buffalo Niagara Medical Campus, Inc. as director of business development and entrepreneurial activity.

Norris Tolson, who has been the president and CEO of the North Carolina Biotechnology Center since 2007, will retire from the organization on June 30.

Patrick Gallagher has been named the 18th chancellor and chief executive officer of the University of Pittsburgh. Gallagher currently serves as acting deputy secretary of the U.S. Department of Commerce and director of the National Institute of Standards and Technology.

Ben Walker has joined the Innovation Center of the Rockies team as the program manager working directly with CSU Ventures.

Bryan Toney has been named The University of North Carolina at Greensboro’s associate vice chancellor for Economic Development.

Rich Luank, President & CEO of Innovation Works, recently was elected to the State Science and Technology (SSTI) Board of Trustees. Lunak will assist in providing strategic guidance and oversight of SSTI’s operations as the group works to encourage economic growth through science, technology and innovation.

Last week the White House hosted a Google Hangout on the American Maker Movement and highlighted some dynamic programs that are turning the Maker Movement into a legitimate economic development tool for regions across the country.

Event speakers highlighted the rapidly shifting industrial climate in the U.S. as a main driver of the Maker Movement. Low-cost energy, low-cost data storage, and an increasingly skilled workforce are supporting the explosive growth of industrial artisan entrepreneurship. Cities across the country are moving to provide the cooperative workspace Makers need to develop, test, and scale their businesses.

Public institutions also are being transformed into Makers Spaces. The Pittsburgh Kids Museum serves as a national model for public support of Makers programs, providing public space and outreach events at local libraries for Makers programming.

At the close of many recent legislative sessions, states across the country moved to strengthen their high-tech workforce while supporting industry cluster development.

According to the Philadelphia Business Journal, Pennsylvania Gov. Tom Corbett has signed off on the creation of a new program, InnovatePA, which will auction off $100 million in tax credits to generate state revenue that will be invested in the funding of tech and biotech startups.

The state auction will sell off deferred insurance-premium tax credits to insurance companies that pay Pennsylvania's insurance-premium tax. The sale is expected to generate at least $75 million in funds, with credits not being sold below 70 percent of their face value.

Insurance companies that purchase the credits would be able to claim up to $20 million annually beginning in 2017, with unused credits expiring in 2026. The annual cap will limit state spending while making up-front investments in high-tech businesses that create jobs and boost regional economic development.

While public debate rages over the role of surveillance in our society, one particularly infamous government surveillance technology, drones, is being prepared for private sector deployment in the U.S. Drone-related technologies are predicted to revolutionize commerce in the U.S., with industry projections valuing their initial deployment as an $82 billion boost to the national economy. In preparation for Federal Aviation Administration (FAA) rollout of drone-use regulations in 2015, entrepreneurs, multinational corporations and state governments are scrambling to be in a competitive position to benefit.

Ben Franklin Technology Partners (BFTP), Pennsylvania's tech-based economic development program, released a joint study by the independent Pennsylvania Economy League and KLIOS Consulting, which determined the economic impact of the organization between 2007-2011. These numbers aggregate the impact of the four regional Ben Franklin Technology Partners. In total, the activities of the organizations have resulted in 7,485 new jobs in client firms and an additional 12,715 indirect jobs as a result of these clients' activities, for a total of 20,200 jobs. The activities of BFTP increased the Gross State Product by $6.6 billion. The client companies directly returned $358 million in additional state taxes and a further $144 million in state taxes was received from related client services. In total, $502 million in state tax revenue was received, which represents a 3.6:1 tax return to the state on $137.7 million in state investments during the five year period.

In the January 2011 edition of the Harvard Business Review, Michael Porter and Mark Kramer called for a redesign of the existing business model and their role within society. Instead of simply embracing corporate responsibility and corporate giving, businesses should work to create shared value within their community by helping to support local clusters and institutions to address societal needs and issues. In the face of great uncertainty for the overall venture capital industry, it seems that some corporations might be heeding their advice. Over the last few years, there has been a rapid rise in the number of corporate-backed venture capital funds with long-term acquisition and absorption as the driving force. However, the lack of early stage capital in regions across the country also may be ushering in an era of public-private partnerships to create industry-led, locally focused venture capital funds.

Recent research on the evolving role of universities finds the emergence of an entrepreneurial society has contributed to a broader and more fundamental role for universities — that is to provide thinking, leadership and activity to enhance entrepreneurship capital. University-based entrepreneurship programs and initiatives seem to have gained steam following the recession with federal support for programs to enhance entrepreneurial efforts in states and regions and increased interest from students and out-of-work individuals. Freestanding entrepreneurship schools and creative programming to encourage risk taking are two recent examples of the evolving role of universities in the knowledge-driven economy.

Upbeat revenue forecasts and shared economic principles have Republican governors in four states requesting more funds for higher education tied to performance metrics or workforce outcomes. Recent budget proposals introduced in Florida, Ohio, Pennsylvania and Texas focus on competing for talent and jobs through efforts to encourage STEM learning and teaching and incentivizing outcomes such as graduating more students in high-demand fields, conducting research and more. College affordability is addressed through measures that would freeze tuition or cap increases.

Highlights from the governors' budget proposals as they relate to higher education and economic development for the upcoming year or biennium are outlined below: