SSTI Digest

Well-designed research centers can help bring an innovation ecosystem together through the spillover effects of knowledge dissemination, student learning experiences, local early access to new technologies, and by attracting R&D funding. In New York, Gov. Andrew Cuomo recently announced a $30 million initiative led by SUNY’s College of Nanoscale Science and Engineering (CNSE) to transform and revitalize a vacant building into a hub for smart cities technology companies, research, education and workforce training.

Recently, Michigan Gov. Rick Snyder announced a statewide Regional Prosperity Initiative — a voluntary, competitive grant process for existing state-designated planning regions and metropolitan planning organizations. The plan will divide the state into 10 zones with the intent of empowering local and regional partners to develop a consensus vision and implementation plan for economic success. Under the initiative, all state government departments also will begin serving the 10 regions, enhancing service delivery and encouraging communities to collaborate on a regional basis. Although specific details still are being worked through, starting in 2014, regions will compete for grant funding to support economic development efforts including establishment of regional prosperity collaboratives, councils and boards. The Initiative was signed into law as a part of the state’s FY14 budget (59 PA 2013).

The co-locating of researchers, donated equipment, and capital are recent examples of key elements provided by private-sector partners to help accelerate technology commercialization. In the past month, leaders from universities and nonprofit organizations across the country have announced new efforts to expand research capacity and bring more products to market by launching innovative centers in collaboration with corporate partners.

University-industry alliances often are credited with helping build regional innovation ecosystems with successes cited in new company formation, high-tech job creation and a better trained workforce, among others. Often times, companies look to leverage their R&D activities with complementary initiatives taking place at local universities. So is the case in Burlington, MA, where a new innovation center aimed at accelerating the commercialization of basic research is the product of a partnership between Northeastern University and Rogers Corporation.

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

As many state legislative sessions wind down, a clearer picture of the current direction of state innovation policies is emerging. This week’s SSTI Weekly Digest presents a few of the major trends in technology-based economic development initiatives approved by state legislatures during their most recent sessions. While this review is not meant to be comprehensive, it should illuminate the shifts states are making to refine their investments in the high-tech economy by providing smarter, more targeted support.

Over the past few months, the Digest has reported on several major capital access initiatives, transparency efforts and agency reorganizations that have made headlines amid a slow economic recovery and renewed attention to accountability in economic development.

While other stories in this issue will examine some of the trends in legislation that previously have gone unreported in the Digest, several major legislative efforts have appeared in earlier issues, but represent other intriguing developments in state innovation policy.

Industry support for additive manufacturing is exploding as startups find new ways to market the technology to businesses. States and universities are taking advantage of this growing trend to form partnerships with companies that support the lean innovation approach is driving the 3D printing renaissance.

The Wall Street Journal reports that Stratasys, a major 3D printing company that focuses on additive manufacturing, acquired MakerBot in a deal worth $403 million in stock. MakerBot, which specializes in the production of consumer 3D printers, will retain its brand and operate as a subsidiary. The move positions Stratasys to push for broader adoption of 3D printing across industries. MakerBot has sold 22,000 3D printers since 2009, but because of rapid market growth, half of those sales have come in the past 9 months. This has propelled the company's stock to rise 76 percent over the past 12 months.

Rice University's Rice Alliance for Technology and Entrepreneurship has been named the top university business incubator in the world by the University Business Incubator (UBI) Index based in Sweden. The group reviewed 550 university business incubators and studied 150 incubators to determine the top incubators in the world based on their value for the ecosystem, their value for clients, and their attraction rate and past performance. Other U.S. incubators that made the UBI Index Top list include VentureLab, the University of Buffalo Technology Incubator, and Tech 20/20.

Businesses on SUNY campuses outside of New York City, and on certain designated private campuses, will be exempt from sales, property and corporate state taxes under a new initiative unveiled this week by New York Gov Andrew Cuomo. In addition, employees of these businesses will be exempt from income taxes. Eligible businesses must have a relationship with the host university related to its academic mission. The state will offer an additional 3 million square free of tax-free commercial space at New York private universities as part of the Tax-Free NY initiative. Read the announcement...

With a continued push toward regionalism to better support the state's high-tech platform, lawmakers approved in the FY14 budget startup funding for a new statewide incubator program that provides grants for the incubators and tax incentives for client companies. The initiative is part of Gov. Andrew Cuomo's planned expansion for the state's 10 regional councils. Other innovation-focused initiatives approved in the recently enacted budget include a $50 million innovation venture capital fund, a third round of funding for the SUNY 2020 program, and $55 million to launch the CUNY 2020 challenge.

The budget signed into law this week includes $1.25 million in initial funding to launch the Innovation Hot Spots program that will create or designate 10 high-tech innovation incubators at locations affiliated with higher education institutes. Created with broad industry support, the new program is a combination of Gov. Cuomo's "hot spots" proposal (see the Jan. 9, 2013 issue of the Digest) and legislation introduced by Sen. Martin Golden (R, C, I-Brooklyn).

Innovation was a key term used in Gov. Andrew Cuomo's State of the State address and is referenced heavily throughout his economic development agenda for the upcoming year. The governor proposed creating innovation hot spots, an innovation network and innovation venture capital fund. Efforts would be focused on accelerating technology transfer and providing funds to attract startup companies. Cleantech investments and support for competitive university-based projects that emphasize economic impact also are a priority for the governor.

Titled “NY Rising,” Gov. Cuomo's 326-page accompanying agenda to the annual speech outlines proposals that cover a wide range of issues, from raising the minimum wage and decriminalizing marijuana possession to equality issues for women and gun policy. However, a key component to the plan is building on the work of the regional economic development councils established in 2011 and strengthening partnerships with higher education to continue growing the state's tech-based sector.

The New York State Energy Research and Development Authority (NYSERDA) announced that it will commit a total of $15 million to Columbia University, the Polytechnic Institute of New York University (NYU-Poly) and High Tech Rochester to create three proof-of-concept centers focused on turning university-developed, clean energy ideas into successful businesses. Each regional center will receive $5 million in seed money over the next five years, cost-sharing required, with the expectation of being self-sustaining once NYSERDA funding ends. Each organization will partner with regional institutions of higher education to connect potential early stage entrepreneurs with multiple industry and investor partners. Read the press release...

The Obama administration announced winners of the Advanced Manufacturing Jobs and Innovation Accelerator Challenge on Tuesday. The challenge — publicized earlier this year — is one of the key initiatives of the interagency Taskforce for the Advancement of Regional Innovation Clusters and is sponsored by a partnership between the U.S. Department of Commerce, the National Institute of Standards and Technology, the Departments of Energy and Labor, and the Small Business Administration. Winners include programs in AZ, CA, MI, OK, TN, NY, PA, and a WA and OR bi-state partnership, each receiving approximately $2 million in grants. See the complete list of challenge winners and their reward amounts here. This is the third in a series of multiagency Jobs and Innovation Accelerator challenges administered since 2011. Learn more...