SSTI Digest

“I recognize the importance of attracting venture capital and new investments to Maine,” Gov. John E. Baldacci said. The governor later added, “However, as it is currently written the bill carries enormous risk. This bill would guarantee a rate of return for venture capital investors while Maine would shoulder all the risk. The potential liability for the State is too great for me to sign this bill.”   By not signing the bill, Gov. Baldacci pocket vetoed LD 2320, entitled "An Act To Stimulate Capital Investment for Innovative Businesses in Maine.” The act would have created a Maine Fund of Funds program within the state’s Small Enterprise Growth Board to increase availability of venture capital.  

A recent study prepared for the Maine Technology Institute and the Office of Innovation within Maine’s Department of Economic and Community Development examines and ranks 16 identified technology clusters in Maine - defining eight as sustainable clusters, five as potential clusters, and three as emerging clusters. These labels are based upon an extended view of clusters, namely that successful clusters depend on knowledge generation and knowledge spillovers and not just specification within certain industries. Along with measures of entrepreneurship and product production and distribution, Maine’s Technology Sectors and Clusters: Status and Strategy examines 7,300 records of patents, grants and publications in the state to determine potential research strengths and opportunities within the state’s clusters.

A growing number of state governments face revenue uncertainties in the near future. More than half now expect budget deficits and shortfalls in the upcoming fiscal year and beyond. Despite the bleak outlook, however, legislators nationwide are continuing to invest in science and technology with many lawmakers projecting high returns to their state in the coming years. Following are highlights of TBED investments and reductions in recently approved budgets in Kentucky, Maine and Nebraska.   Kentucky Recognizing the statewide economic benefits of strategic investments in university research, Kentucky legislators concurred with Gov. Steve Beshear’s proposal to continue support for the Bucks for Brains initiative. Lawmakers approved $60 million in bonds under the fiscal year 2008-10 biennial budget agreement to expand the state’s endowment matching program used to attract high-quality researchers.   

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

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm. The Maine Technology Institute (MTI) is seeking someone to serve as manager of cluster and commercialization support programs. This position is primarily responsible for managing MTI's programs supporting the development of vibrant technology-intensive clusters and its activities supporting awardee commercialization and capital access.

Sally Bilancia was selected to replace Sally Bates as the development director in the City of Bangor, Maine.

Voters in four states will consider several TBED-related measures at the polls next week, including a $3 billion cancer research proposal, state funding for stem cell research, and an R&D bond proposal to spark job creation in emerging technology sectors.   Texas Texas voters will consider 16 separate ballot items this year, including Proposition 15, a bond proposal to authorize the state to issue $300 million a year in bonds over 10 years for grants to fund scientific research at the newly created Cancer Prevention and Research Institute. Gov. Rick Perry signed HB 14 earlier this year, establishing the institute and dedicating funding of up to $3 billion, pending a voter approved constitutional amendment (see the June 27, 2007 issue of the Digest).  

A bill designed to keep new Maine graduates living and working in the state after college became law last week with Gov. John Baldacci’s signature. The Opportunity Maine bill, LD 1856, creates a tax credit to assist graduates with their student loan payments and enables employers of graduates to pay off the student loans.   Under the bill, tax credits of up to $2,100 per year or $8,400 total are provided for graduates who spend all four years in the University of Maine System or Maine Community College System. The credits can only be claimed while the person resides and works in the state. The legislation also allows for employers of Maine graduates to assume the student loan debt and collect the tax credits.   Program goals are to ensure access to training and higher education, bring higher paying jobs to the state, offer educational opportunity and retraining, and retain a workforce of young, educated individuals.  

As July 1 approaches, the beginning of the 2008 fiscal year for most states, several state legislatures are still working to wrap up their appropriation bills. Maine and Tennessee are two of the most recent to close their books on next year’s budgets, and each has included increased funds to support TBED initiatives. Highlights for both states are provided below. MaineIn light of the $50 million R&D bond referendum passed by the legislature earlier this year, additional funds were included in the FY 2008-09 biennial budget for the Maine Technology Institute (MTI). MTI will receive $750,000 each year of the biennium to administer the bond that will be voted on in November (see the April 9, 2007 issue of the Digest). In addition, $2.5 million was appropriated for a new Cluster Enhancement Fund. 

George Dycio was hired as an economic development specialist for the Lewiston-Auburn Economic Growth Council.

Nicole Witherbee has joined the Maine Center of Economic Policy as a federal budget analyst and communications coordinator.

A $295 million three-part bond referendum package passed by the Maine State Legislature last week includes a number of components central to the state’s TBED strategy, including funds to support continued development of the state’s research enterprise, expanded broadband access and increased rural/economic development financing.   The largest TBED item provides $50 million for the Maine Technology Fund to support research, development, and commercialization efforts of Maine-based public and private entities. The funds are limited to the state’s targeted fields of biotechnology, marine technology, composite materials, environmental technology, forestry and agriculture, information technology, and precision manufacturing.   Additionally, the package includes $48.5 million for improvements at the University of Maine and the state community college system and $2 million for revitalizing downtowns and expanding access to digital resources through the New Century Community Program.