Earlier this month, Gov. Jim Douglas announced a plan to use $8.7 million in federal stimulus funds for job creation programs, including broadband infrastructure, low-interest loans and workforce training. Many of the proposals mirror last year’s SmartVermont plan, a proposal rejected by lawmakers that would have leveraged federal funds to provide $17.2 million for statewide economic development. (see the June 3, 2009 issue of the Digest).

“Minnesota faces a crisis of competitiveness.” It didn’t take Minnesota’s leaders long to recognize the state’s precipitous fall in the standings for many major indicators over the past two decades paralleled the state’s prolonged diinvestment from a proactive TBED strategy.

Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).  A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals.

Virginia Governor Bob McDonnell dropped his previous nomination, Robert Sledd, as his secretary for Commerce and Trade and instead nominated businessman James Cheng. Cheng, whose nomination needs to be confirmed by the Democratic-controlled Senate, was sworn in on January 17.

The National Science Foundation is seeking a Senior Analyst in its Science & Engineering Indicators Program, Division of Science Resources Statistics’ (SRS) Directorate for Social and Behavioral Sciences, Arlington, VA. The appointment is under the Intergovernmental Personnel Act (IPA) for a two-year renewable period

The second installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Colorado, Virginia and West Virginia. Our first installment was in the Jan 13 Digest.

The Economic Development Administration invites proposals to distribute $37 million through the Community Trade Adjustment Assistance Program. Funds are available for communities that have experienced, or are threatened by, job loss resulting from international trade impacts. Communities must be certified as eligible for trade adjusted assistance. Funding can be used for planning, technical or infrastructure projects that could involve innovation and entrepreneurship. Proposals are due April 20. Funds will be disbursed through EDA’s six regional offices.

Describing the nation’s innovation system as broken, U.S. Secretary of Commerce Gary Locke yesterday said the Department of Commerce will be “working hard to find solutions” that move more federally funded R&D into the commercial market.

“Even in areas where we are allocating enough funding for R&D, we’re not doing a good enough job getting these ideas into the marketplace, particularly through entrepreneurs.

Gov. Sonny Perdue last week outlined an $18.2 billion budget for FY11 that reduces spending across several state agencies, including a $9.6 million reduction for R&D activities through the Research Consortium. The governor’s budget also would eliminate two science, technology, engineering and mathematics (STEM) programs within the Department of Education.

Gov. Mark Parkinson last week unveiled his FY11 budget proposal, which includes $5.9 million from the Economic Development Initiatives Fund (EDIF) for the Kansas Technology Enterprise Corporation (KTEC), down $1.8 million from the FY10 governor’s estimate of $7.75 million. Many of the governor’s budget recommendations, including funding for KTEC and university research initiatives, may hinge on a tax increase proposal, however.

Enterprise Florida released its latest five-year strategic plan for the state, calling for increased investment in STEM education, university research, commercialization assistance and early-stage capital access programs. Florida must diversify its economy and strengthen its high-tech industries in order to reduce the state’s reliance on population-based growth, according to the report. Enterprise Florida also endorses a cluster-based strategy to promote high-tech industries based on their relative levels of development in the state.

Current trends presented in the 2010 edition of the National Science Board’s biennial Science & Engineering Indicators suggest as early as the 2012 edition, the U.S. will no longer leads the world for a key indicator: total R&D expenditures – unless corrective action is taken.

Entering its tenth year covering governors’ State of the State, Budget and Inaugural Addresses, SSTI’s Tech Talkin’ Govs series highlights new and expanded TBED proposals from across the nation. The first edition includes excerpts from speeches delivered in the following states:

Arizona
Gov. Janice Brewer, State of the State Address, Jan. 11, 2010

In an effort to improve the percentage of city residents with college degrees, Philadelphia Mayor Michael Nutter announced his administration will be opening an office within City Hall to help potential students considering higher education. The “PhillyGoes2College” office will direct residents to assistance with filling out financial aid forms and applications, preparing for standardized admission tests, and writing college essays.

The Baton Rouge Area Chamber (BRAC) has released the second and final component of its strategy advocating the need to advance a tech-based economy throughout Louisiana. The white paper focuses on the topics of entrepreneurship, workforce development, risk capital, and coordinating TBED efforts at the state level. For example, BRAC calls for all returns from state funds invested in venture capital firms to be reinvested, for regional angel networks to be supported, and for the state’s angel investor tax credit to be reinstated.

The Los Angeles County Economic Development Corporation has approved what is being called the region's first consensus strategic plan for economic development. The plan includes support for local research and commercialization activities, sector-based worker training and placement programs and provides assistance to entrepreneurs. Read more at: http://www.lacountystrategicplan.com.

President Obama announced five new public-private partnerships to train more than 10,000 new math and science teachers over the next decade. The partnerships, part of the White House's "Educate to Innovate", represent a $250 million investment in STEM education.

Providing strong evidence for how public investments in research and TBED pay off even on a short time horizon, a recent impact analysis calculated the total impact from the first $19.9 million North Dakota spent over the past four years for the establishment of 20 Centers of Excellence across the state. The analysts from North Dakota State University reported a combined cumulative impact of $329.5 million for the 30 months ending June 2009. The total includes both direct reported results and estimates for indirect impacts.

Since the start of the recession, the strongest performing metropolitan areas are located in the southern midsection of the U.S., especially in Texas, and around upstate New York and the Missouri River Valley, according to the most recent edition of the Brookings Institution’s MetroMonitor series. The brief examines each of the largest 100 metropolitan areas in the U.S. using 3Q 2009 data gauging changes in employment levels, unemployment rates, gross metro products, and housing prices.

U.S. venture capital fundraising and venture-backed exits improved marginally in the fourth quarter of 2009, despite having a very slow year overall, according to the National Venture Capital Association (NVCA). Venture fundraising increased to $3.8 billion in the last quarter, an 82.6 percent increase over the previous quarter but still far short of fundraising levels in recent years. While investors expect activity to grow in 2010, most predict that the industry will remain smaller than its scale in the 1990s and 2000s, with fewer firms and increasing focus on late-stage deals.

Give a star academic researcher a full year to reflect on what the world understands so far about regional innovation and city-region dynamics and to offer suggestions to guide future economic development initiatives to encourage growth and the results are valuable for both his homeland of Canada and its southern neighbor, the U.S. The Conference Board of Canada named University of Toronto professor David A. Wolfe its 2009 CIBC Scholar in Residence in May of 2008.

The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Connecticut, Maryland, Michigan, Nevada, and Oklahoma. The first three installments are available in the Jan 13, Jan. 20 and Jan. 27 Digests.

Replenishing the Innovation Incentive Fund and investing in space industry, public research, and green energy technologies are among Gov. Charlie Crist's FY11 budget recommendations to grow the state's innovation economy and establish Florida as a pre-eminent global hub. The governor's budget includes $100 million for the Innovation Incentive Fund, which was established in 2006 to attract R&D companies and create high-wage jobs. The fund was depleted in 2008 (see the May 7, 2008 issue of the Digest).

The Oklahoma Center for the Advancement of Science and Technology (OCAST) is among a list of 16 state agencies slated for consolidation in Gov. Brad Henry's budget proposal, which he says will result in cost savings of $5.3 million. Under the proposal, OCAST would be moved to the Department of Commerce, along with Aeronautics, Indian Affairs and the Oklahoma Space Industry Development Authority. Funding for OCAST would be reduced by 3 percent, for a total $19.8 million in FY11. OCAST provides funding and resources to help businesses develop and commercialize technologies.

Gov. Jodi Rell last week unveiled her FY11 midterm budget adjustments, eliminating or reducing funding for several TBED initiatives in the second year of the biennium. At the same time, the governor proposed an economic recovery package that includes a lending program for small businesses, a student loan forgiveness program to retain green collar workers, and a sales tax exemption for green energy industries.