SSTI Digest

Robin Schabes, Chicago Mayor Richard Daley's special assistant for technology, has announced her resignation. Schabes staffed the Mayor's Council on Technology Advisors.

Tucked in the fine print of Illinois' budget bills was language to merge seven financing agencies, according to the June 11 edition of The Bond Buyer. Among the agencies included in the merger are the Illinois Development Finance Authority, the Illinois Research Park Authority (inactive), the Illinois Community Development Authority and the Illinois Rural Bond Bank.

Speaking to a joint session of the House and Senate, Illinois Governor Rod Blagojevich recently presented his first budget, one that addresses a $5 billion budget crisis.

In economic development, while Governor Blagojevich wants the state to be proactive in keeping Illinois competitive in the global economy, the $1.77 billion planned for the Department of Commerce and Economic Opportunity (DCEO) reflects a $576 million, or 25 percent, decrease over the FY 2003 level. Central to the governor's plans are creation of the $200 million Illinois Opportunity Fund that would use private investments to bring venture capital to the state; development of six new Centers for Entrepreneurship around the state to provide, training, tools and resources to help businesses get started; and the consolidation of 30 economic development and job training programs within DCEO, which is projected to save $16 million.

Several recent project announcements highlight communities using incubators and research parks, some of the tools for technology-based economic development, in specialized formats to capitalize on existing strengths and nurture additional growth of clusters of related tech firms. Such targeted approaches can help to focus other TBED activities for additional benefits. For example, workforce training can be designed for the particular technology sector rather than tailored at higher costs to the needs of several unrelated technology firms in a general technology incubator or research park. Other savings can come in promotional and marketing strategies, tie-ins to university research capabilities, and specific EPA or OSHA regulations. Examples of some of the projects underway include:

Illinois Governor Rod Blagojevich has nominated Jack Lavin to run the newly named Department of Commerce and Economic Opportunity. The agency was formerly called the Department of Commerce and Community Affairs. Lavin was chief financial officer for Rezco Enterprises.

Illinois Governor Rod Blagojevich has appointed Julie Curry as deputy chief of staff for economic development and labor.

Midwest Angel Network Association Launched in Illinois

Several Chicago area investors and numerous local organizations have launched MANA, or Midwest Angel Network Association, in an effort to make seed-stage investment a greater reality. MANA will be dedicated to strengthening the existing angel community and providing assistance and education to potential investors looking to join or form an angel fund or network. Although MANA does not provide angel funding directly, entrepreneurs can also look to MANA's website for direction in how to access angel funding and advisors or service providers who want to help start-ups.

Pam McDonough, director of the Department of Commerce and Community Affairs for the past four years, has been appointed to the Illinois Labor Relations Board by outgoing Governor George Ryan. Joseph Hannon will serve as the department's director for the remainder of Ryan's term, which ends in January.

On Thursday, Illinois Governor George Ryan announced nearly $3 million in state grants for eight Illinois Technology Enterprise Corporation (ITEC) centers, quadrupling the number of ITECs. Funded by the Illinois Department of Commerce and Community Affairs (DCCA), the centers assist technology-based start-up businesses and serve as incubators for the new ventures.

The grants announced for the centers will continue to fund operations at Northwestern University in Evanston and the University of Illinois in Champaign and support six new centers in Chicago, Naperville, Lemont, Peoria, Carbondale and Springfield.

The Illinois Biotechnology Industry Organization has appointed David Miller to serve as president, effective September 3.

The Illinois General Assembly has passed legislation to encourage venture capital investment in technology businesses across the state. HB3212 creates the Technology Development Fund, which permits the State Treasurer to use up to 1 percent of the state's total investment portfolio for equity investments through Illinois venture capital firms.

The Chicago Tribune reported last Friday that the total amount of state funds available for venture capital investment will be as much as $60 million.

Eligible Illinois venture capital funds to receive monies from the new Technology Development Fund must use the state funds to place investments in technology businesses seeking to locate, expand, or remain in Illinois.

John S. Maxson has been named as the new president of The Illinois Coalition. Mr. Maxson fills the position vacated by Shaye Mandle earlier this spring.