SSTI Digest

Tech firms in New Mexico received happy tax news on April 4 as Gov. BIll Richardson signed several bills to encourage economic growth across New Mexico. House Bill 410 authorizes the Small Business Technology Tax Credit, created to attract R&D investment into the state by providing small companies with a three-year “tax holiday.” The tax credit is available to businesses with total revenue of $5 million or less, no more than 25 employees, and qualified research expenditures of at least 20 percent.

Gov. Richardson also signed H.B. 518, the SMART Money Initiative, which creates a $10 million fund to be used as loans for companies looking to build or expand in New Mexico, particularly in rural areas. The initiative will be administered by the New Mexico Finance Authority and is estimated to grow to $30 million over 10 years with loan paybacks. The governor anticipates the state's one-time $10 million investment will net approximately 3,000 jobs over the decade.

Former New Mexico Gov. Garrey Carruthers (1987-1990) has been named vice provost for economic development at New Mexico State University.

New Mexico Firms Would Receive $30M in Venture Funding New Mexico might be close to closing on two venture deals worth a combined $30 million, the Albuquerque Journal recently reported. The New Mexico State Investment Council (SIC) gave preliminary approval of the $30 million to two Santa Fe-based firms early last month. Flywheel Ventures, one of the two companies in consideration for the money, was said to be raising its own $30 million for investment in seed and early-stage technology companies. Rio Grande Venture Partners, the other beneficiary, would indirectly contribute to tech firms through a $100 million fund it hopes to close this spring. The New Mexico investment program requires that both companies provide match funding and do business in the state, either whole or in part.

Deborah Fleischaker has been appointed deputy secretary for the New Mexico Department of Economic Development.

The Association of University Research Parks has recognized Sandia National Laboratories for the 2003 Excellence in Technology Transfer Award. Over the past five years, Sandia has participated in 183 new cooperative research and development agreements with industry partners to jointly develop technology that is incorporated into commercial products. In addition, Sandia has had 1,472 technical advance disclosures, 639 new non-federal entity agreements to assist partners in addressing specific technical challenges, and 415 commercial licenses that have transferred technologies developed at Sandia to the private sector.

Randy Burge has announced his resignation as director of the New Mexico Department of Economic Development's Office of Science and Technology. Mike Orshan will serve as acting director beginning Sept. 29.

Larry Willard, president of the University of New Mexico Board of Regents, is leaving the position to become chairman of the New Mexico Economic Development Corp.

With a combined annual research budget totaling $4.8 billion, New Mexico's 12 largest research facilities signed a Memorandum of Agreement on May 30 to help turn intellectual property into jobs for New Mexicans. Members of the newly formed New Mexico Technology Research Corridor (TRC) include:

Noreen Scott, former economic development division director for the New Mexico Department of Economic Development, is the executive director for the Rio Rancho Economic Development Corp.

As states and communities consider how to build a tech-based economy, the prospects of centering efforts around hydrogen fuel cell technology has become an increasingly appealing option. Fuel cells may have huge implications for the future, and the technology already is the focus of some states' multi-billion economic development strategies. California, Connecticut, Massachusetts, Michigan, New York and Ohio offer a few examples (see May 17, 2002 issue of the Digest). In all, approximately 20 states are believed to be in various stages of hydrogen development.

Gov. Bill Richardson has appointed his chief of staff, David Harris, to serve as executive director of the New Mexico Finance Authority.

Increased funding for equity investments and a new university-industry R&D partnership program are among the pieces of legislation New Mexico Governor Bill Richardson signed this week, greatly expanding New Mexico's portfolio of programs to grow a tech-based economy. Most of the initiatives were included in the economic development agenda Gov. Richardson outlined during his first State of the State address in January. They are: