As developed nations slowly rebuild economies damaged by the Great Recession, many are looking to innovation and manufacturing to spur their economic revival. Similar to President Obama's proposed National Network for Manufacturing Innovation (See the March 14, 2011 issue of the Digest), several foreign government are developing networks of manufacturing research and development (R&D) centers to strengthen the ties between research and industrial needs.

Lawmakers last month approved a $19.3 billion state budget for FY13, which includes funding for many of the recommendations from a task force convened by Gov. Nathan Deal to enhance the state's innovation economy. Specifically, the budget boosts funding for the Georgia Research Alliance (GRA) to recruit researchers and allocates $5 million for cancer-related research. The legislature also passed a measure expanding the Georgia Jobs tax credits and R&D tax credit.

In his fifth State of the Union address, President Obama announced education and immigration reform as core issues for his second term and laid out a plan for innovation and job creation policies that would be fundamental drivers for broad-based, long-term economic growth. While acknowledging the need for entitlement reform and deficit reduction, President Obama held firm in his conviction that public investment is necessary to ensure that the United States remains an economic superpower in the 21st century.

As U.S. politicians turn their eyes towards this year's election season, governments around the world continue to focus their efforts on increasing national global competitiveness. Over the past couple months, Australia, China and New Zealand have announced government initiatives to spur innovation, revitalize domestic manufacturing and support R&D.

Though innovation and entrepreneurship was notably absent from Wednesday's presidential debate on domestic policy, presidential candidates Mitt Romney and Barack Obama have acknowledged the importance of technological innovation in stimulating the economy and bolstering U.S. competitive capabilities in the global economy.

Lawmakers last week passed a measure establishing the Innovate NY Fund to invest $25 million of federal funds in technology development organizations, research universities, and seed-stage investment funds. The Empire State Development Corporation will administer the fund and establish a competitive process for evaluating applicants. Investment priority is given to companies involved in commercialization of R&D or high-tech manufacturing.

A $25 million fund providing grants for tech commercialization, matching funds for research, and funding to attract "star" researchers to Virginia's universities is a key component of Gov. Bob McDonnell's $54 million Opportunity at Work agenda presented to lawmakers as part of his amendments to the 2010-12 budget. The governor's budget also includes $5 million for a refundable R&D tax credit and an extra $50 million for higher education directed toward increasing college access and economic development opportunities.

Minnesota needs additional support for science and technology commercialization, manufacturing and entrepreneurship in order to remain competitive, according to a new strategic plan released by the Minnesota Science and Technology Authority. The plan recommends an initial appropriation of $10 million annually, ramping up over ten years, to invest in the state's R&D capacity, talent development and capital and business development.

The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Delaware, Hawaii, Michigan, Missouri, Nevada, and Vermont. The first three installments are available in the Jan. 5, Jan. 12 and Jan. 19 issues of the Digest.

The sixth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Connecticut, Illinois, New Hampshire, New Jersey and North Carolina. The first five installments are available in the Jan. 5, Jan. 12, Jan. 19, Jan.

Lawmakers approved many of Gov. Bob McDonnell's proposals aimed at growing Virginia's technology and life sciences industries by dedicating about half of the funding requested by the governor to support R&D, commercialization, SBIR matching grants, and funding for early stage equity investments.

Expanding the federal research tax credit and making it permanent could help generate $10 billion per year in research activity, according to a report from the U.S. Department of Treasury's Office of Tax Policy. Treasury also suggests that the enhanced credit could expand use of the credits, which already generate a one-to-one match in research spending and help support almost one million jobs. The current credit, which has been reauthorized temporarily 14 times since its introduction in 1981, is set to expire at the end of the year.

Massachusetts House leaders introduced a bill earlier this week calling for funding to support R&D at universities and research centers, manufacturing grants and workforce training, and a venture capital mentoring program for startups. The measure is touted as a jobs bill to stimulate the state's sluggish recovery by focusing on high-growth sectors of the economy.

Unlike last year when a wave of new governors pushed sweeping proposals to re-organize economic development activities and grow the economy, the 2012 legislative sessions brought mostly modest changes for tech-based initiatives. While many programs were level funded or received smaller increases than in previous years, a handful of states increased funds or introduced new initiatives to support economic development efforts.

Three of the major thrusts for the research investments of many states –  hydrogen energy technologies, nanomanufacturing, and intelligent and integrated manufacturing – are the focus of a new report by a federal Interagency Working Group on Manufacturing R&D. Manufacturing the Future: Federal Priorities for Manufacturing R&D describes the significance of each of the three critical manufacturing R&D areas, details the challenges essential for progress, discusses existing interagency collaborations and provides recommendations for future research.

A newly established policy academy providing guidance and technical assistance will help seven states improve their environment for innovation and align state R&D investments, workforce development and education systems with current and future needs of advanced manufacturing industries. The policy academy will help each state develop a plan or overcome barriers for putting a plan into action through a highly interactive team-based process that includes input from NGA, MEP, EDA, SSTI, private sector consultants, and research organizations.

Now in its 14th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in Idaho, Kentucky, New York, Virginia, and West Virginia.