California

Massachusetts Governor Deval Patrick recently signed two bills to improve the commonwealth's standing as a leader in environmental protection and to support the growth of the clean technology industry.  Supporters of the Global Warming Solutions Act and the Green Jobs Act believe that the legislation will position Massachusetts as a recognized center for cleantech policy and business.

According to National Science Foundation (NSF) data released two weeks ago, companies spent in aggregate $247.7 billion on R&D expenditures performed in the U.S. in 2006. Leading the nation was California, with $58.4 billion in industrial R&D, followed by Michigan ($16.5 billion), Massachusetts ($15.6 billion), New Jersey ($14.6 billion), and Texas ($13.3 billion).
 

Technology-focused incubators are an important component to fostering entrepreneurial development in a region by nurturing businesses in the earliest stages of development and helping them grow into larger companies that employ high-wage workers and bring new technologies to the market. The following select announcements provide an overview of new incubators from across the nation, illustrating the vital role of entrepreneurial development in growing high-tech regional economies.

The demand for highly qualified talent in Massachusetts' bioscience industry will add more than 10,000 life sciences workers to the state's workforce by 2014, according to a recent report prepared by the University of Massachusetts Donahue Institute.

Karl Fooks, a past managing director for J.P. Morgan & Co. in Asia, is the new president of the Hawaii Strategic Development Corporation. Fooks replaces John Chock who retired last year.

One of the biggest challenges for green technologies and products is breaking into the market. Achieving the critical mass that allows production volume to drive down prices is difficult, particularly when the commodity being sold is, at least initially, more expensive to make because more of the actual cost of production is captured in the green company's business model.

Despite the global growth of the industry over the past few decades, U.S. venture capital remains as concentrated as ever in the Silicon Valley region, and to a lesser extent, Massachusetts.

Gov. Deval Patrick announced last week a venture funds competition providing seed money and mentoring to support new business development, adding to a growing number of states seeking to boost entrepreneurial efforts during the economic downturn (see the March 5, 2009 issue of the Digest).

Gov. Bob Riley signed a bill last month extending tax credits and incentives to knowledge-based industries and green employers to encourage growth and expansion in these fields throughout the state.

Massachusetts Governor Deval Patrick recently announced plans to develop a $100 million high-performance computing center powered by clean and renewable energy in the small city of Holyoke. The center will be managed by a consortium of state agencies, universities and technology companies including the Massachusetts Institute of Technology, the University of Massachusetts, Cisco Systems and EMC Corp..

Three metropolitan areas dominate the U.S. venture capital landscape: San Francisco, Boston and New York. These cities are home to about half of all U.S. venture firms and about half of all U.S. venture-backed companies. Though venture firms have sprung up around the country over the past 25 years, the three cities have maintained, and even expanded, their share of national firms and investment.

Over the past few months, several states have enacted spending plans for the upcoming fiscal year and passed legislation to support renewable energy initiatives and tax credits for R&D. While some TBED programs will face dramatic cuts in FY10, others are slated for slight decreases or will receive level funding. The following synopsis provides an overview of the 2009 legislative sessions across the following states:

MIT's Department of Urban Studies and Planning is researching how economic development organizations are working with small businesses to address market opportunities or needs related to global climate change and the "green economy." The department currently is looking for economic development organizations to complete a brief, voluntary survey (10 minutes) relating to "green" programs and activities. Results will be shared with the economic development community and be made publicly available.

Chris Atkinson is the new director of West Virginia University's Center for Alternative Fuels, Engines, and Emissions (CAFEE).

Massachusetts ranks first in the country in patents per capita, SBIR awards and in R&D spending as a percent of gross domestic product (GDP), according to the latest version of the Index of the Massachusetts Innovation Economy. Though the report finds that the state's innovation economy is growing and, in many ways, suffered less than others during the economic crisis, it recommends taking action to increase student interest in STEM careers and to help launch new businesses.

A group of Massachusetts CEOs, venture capitalists (VC) and entrepreneurs recently launched a new initiative to create new, successful companies. The 12x12 Initiative will allow successful CEOs to collaborate with entrepreneurs to develop their ideas into new businesses. The resulting "team" also would include an experienced VC and would help the companies connect to mentoring services, capital and other opportunities.

Enlisting support from industry, policymakers and academics, Gov. Deval Patrick unveiled an initiative to help the state's manufacturers evolve with changing technology, adopt new innovations, and grow their operations through a new multi-tiered loan program. The Advanced Manufacturing Initiative is a public-private collaboration designed to maximize job creation within the manufacturing sector, which added more than 19,000 jobs last month, according to the governor's office.