SSTI Digest

Facing massive government deficits and stagnant regional economies, many states are exploring new options for their economic development activities. Three states recently have taken steps towards eliminating their primary economic development agencies, and replacing them with public-private partnerships, intended to reduce state spending and improve the responsiveness of state efforts.

Arizona
Last week, Arizona Governor Jan Brewer signed off on a comprehensive economic competitiveness package. The centerpiece of the legislation is the elimination of the Arizona Department of Commerce, and the creation of a new Arizona Commerce Authority (ACA). Brewer says that the restructuring is needed to streamline the responsibilities that had been accumulated by the Commerce Department and to clarify the state's focus on creating new jobs. Many of the programs currently associated with the department may be permanently eliminated, including the state's energy efficiency and renewable energy deployment office, the Rural Economic Development Initiative (REDI) program, the Arizona Main Street program and many of the state's technology programs.

The State of Wisconsin Investment Board (SWIB), on of the largest public pension funds in the country, plans to invest $80 million in a new "Catalyst Portfolio", intended to create profitable returns from venture investments and to attract the attention of coastal venture firms. SWIB intends to use to funds to invest in one or more venture funds, likely through a firm on the East or West coast. That investment would allow the board to act as a matchmaker between large investors in other states and Wisconsin's investor community. SWIB decided to create the fund following a 2010 analysis that found ample opportunities for profitable venture investment in the Midwest, but a lack of capital to support emerging companies. Read the announcement ...

Neal Wade will resign his position as director of the Alabama Development Office in November and has been named senior vice president of economic development for St. Joe, one of Florida's largest real estate development companies.

Business Leaders for Michigan and the University Research Corridor have formed Accelerate Michigan to identify Michigan's best opportunities to grow clusters of innovation based on university-industry R&D.

Wisconsin's largest academic energy research organizations have merged to form the Wisconsin Energy Research Consortium to stimulate basic energy research discovery from funded projects. The consortium brings together the state's four largest engineering schools and eight industry partners.

Both candidates for Wisconsin governor want to reorganize and refocus the state's agency for job creation. Tom Barrett (D) has proposed moving the Department of Commerce's economic development staff into a new Office of Job Creation headed by a director who would report directly to the governor. Scott Walker (R) would hire an experienced economic development professional to head up a newly consolidated agency that replaces the department. Uncertainty regarding the state's ongoing commitment to stem cell research also has become a focal point of the race with the two candidates on opposing sides of the issue. Throughout his term as governor, Jim Doyle, who is not seeking a third term, worked with the legislature to establish state incentives to promote and enhance the biotechnology industry and expand stem cell research. Media reports indicate Barrett supports embryonic stem cell research while Walker advocates adult stem cell research and would support a ban on embryonic stem cell research.

Tom Barrett (D)

Two recent reports from Wisconsin economic development organizations suggest different paths for the state's economic initiatives. A white paper from the Wisconsin Technology Council (WTC) lays out a plan to increase access to capital for Wisconsin entrepreneurs, create new workforce development strategies, improve the state's infrastructure and business climate, and implement technology development and transfer strategies. Another report calls for greater coordination and streamlining of Wisconsin's existing programs through the creation of two new entities with a statewide reach. Both papers include extensive recommendations for the state's efforts to make capital available to startup businesses.

In Looking to the Future: A Case for Bold Action, WTC proposes a policy agenda for the next year that could help augment current initiatives, such as the Act 255 investor tax credits (now called "Accelerate Wisconsin"). The report includes several options for state leaders to consider in the broad areas of capital access, workforce development, infrastructure and technology transfer.

Wisconsin Governor Jim Doyle recently signed several economic development bills intended to spur job creation and high-tech development. The new legislation authorizes additional job creation tax credits, expands the state's enterprise zones program and establishes new incentives for angel investors. Key among the bills is Wisconsin's CORE Jobs Act, which creates and expands a number of tax credits, loan and grant programs for manufacturing, R&D and venture capital investment. Bill sponsor State Senator Julie Lassa (D-Stevens Point) noted that the CORE Jobs Act should help commercialize new technologies and convert existing factories into green energy manufacturing and production businesses.

Wisconsin Governor Jim Doyle recently signed several economic development bills intended to spur job creation and high-tech development. The new legislation authorizes additional job creation tax credits, expands the state's enterprise zones program and establishes new incentives for angel investors. Key among the bills is Wisconsin's CORE Jobs Act, which creates and expands a number of tax credits, loan and grant programs for manufacturing, R&D and venture capital investment. Bill sponsor State Senator Julie Lassa (D-Stevens Point) noted that the CORE Jobs Act should help commercialize new technologies and convert existing factories into green energy manufacturing and production businesses.

TBED People
Michael Burcham has been named the first president of the Nashville Entrepreneur Center. Burcham currently serves as a clinical faculty member at Vanderbilt University's Owen Graduate School of Management.

Austin Burke, longtime president of the Greater Scranton Chamber of Commerce, is being nominated secretary of the Pennsylvania Department of Community and Economic Development. Burke will replace George Cornelius, who is leaving his post to become the president of Bridgewater College in Virginia.

Former National Science Foundation official Deborah Crawford has been appointed Drexel University's vice provost for research. Crawford will begin her tenure at Drexel in September.

California Gov. Arnold Schwarzenegger signed an executive order establishing the Governor's Office of Economic Development and appointed Joel Ayala as the director of the new office.

Dennis Lower has been named the new president and chief executive office of the Center of Research, Technology and Entrepreneurial Exchange. Currently, Lower serves as vice president of planning and development and director of InterTech Science Park for the Biomedical Research Foundation of Northwest Louisiana. He will start at CORTEX in May.

Wisconsin Department of Commerce Secretary Dick Leinenkugel has resigned as secretary of the Department to pursue a new opportunity.

Milwaukee's Public Policy Forum finds that the city has a stronger lean manufacturing/high-tech workforce than many of its peer cities, but still faces challenges in new high-tech business starts and patent generation. The study used benchmarks from six other metropolitan areas, including Austin, Kansas City, Portland, Cincinnati, Indianapolis and Minneapolis. The report recommends new efforts to improve patent activity, resident educational attainment and number of SBIR awards. Read the full report at: http://www.publicpolicyforum.org/pdfs/InnovationIndex.pdf

The third installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Delaware, Maine, Missouri, New Hampshire, Ohio, Rhode Island, South Dakota, Utah and Wisconsin. The first and second installments are available in the Jan 13 Digest and Jan. 20 Digest, respectively.

Delaware
Gov. Jack Markell, State of the State Address, Jan. 21, 2010
“We have a proud legacy of technology innovation that we will build on. Together, we will create a Delaware where entrepreneurs and inventors imagine the new products and services that make life better, more productive and more enjoyable for millions, and workers make good livings delivering these wonders to the world.

Kathy Collins has been appointed as the Wisconsin Entrepreneurs’ Network (WEN) regional director in Madison. Previously, Collins worked as the technology and financial development manager in the Commerce Division of Business Development.

Ron Cox has been appointed as the assistant dean for economic development in the engineering college at Iowa State University. He retains his current position as director of CIRAS, the Center for Industrial Research and Service.

Frank DiBello, a veteran aerospace consultant who’s been Space Florida’s interim president since May, was named as the permanent leader of the aerospace development agency.

Utah Gov. Gary Herbert appointed businessman and philanthropist Spencer Eccles to lead the Governor’s Office of Economic Development. Eccles, son of the former First Security chairman and CEO Spencer Eccles, will be joined by Josh Romney, son of former Massachusetts governor Mitt Romney. The younger Romney will serve as the state’s national business recruitment policy advisor.