SSTI Digest

The answer may not be clear, but both sides can agree the U.S. skills gap will continue to deepen if changes do not occur. In the U.S. manufacturing sector, the skills gap may be less pervasive than many believe, according to a report from the Boston Consulting Group (BCG). BCG researchers estimate the U.S. is short 80,000 to 100,000 highly skilled manufacturing workers. That shortage represents less than 1 percent of the nation's 11.5 million manufacturing workers and less than 8 percent of its 1.4 million highly skilled manufacturing workers. The researchers also found only seven states — six of which are in the bottom quartile of U.S. state manufacturing output — show significant or severe skills gaps. They conclude shortages are local, not nationwide, in nature and reflect imbalances driven by both location and job classes.

While election night's main focus was on the presidential race, the importance of ballot measures for states and metros is growing as public services and budgets are being severely trimmed. A recent article in The New Republic reports on a new trend where states are embracing ballot measures as a potential source of dedicated funds for targeted investments in regional economic growth and development.

Voters in 37 states will decide on more than 170 ballot measures this year, many of which are related to tech-based economic development (TBED). Tax measures seem to be dominating ballots this year, with questions relating to both decreases and increases for sales, property and income taxes. Several states are counting on voters to agree to temporary increases to help fill budget deficits and ensure steady funding for education.

Richard Bendis has been named the first president and CEO of BioHealth Innovation, Inc. a regional private-public partnership focusing on commercializing market-relevant biohealth innovations and increasing access to early stage funding in Central Maryland.

Alabama's new strategic plan defines three economic development drivers to help diversify the state's economic development efforts and maximize opportunities for growth. Programs that focus on job creation through innovation, entrepreneurship, R&D, and commercialization are listed among the "renewal" efforts of the three-part plan. This includes establishing a statewide innovation council, designating funds to expand commercialization programs, and creating a mechanism to provide state grant matching for SBIR/STTR awards. Similar to the economic gardening concept that has emerged in many other states, the Alabama plan moves away from pure recruitment efforts and focuses on creating and fostering a system that enhances the growth potential of jobs through technology developed within the state. Creating the Alabama Innovation Council to serve as a statewide, coordinated initiative is imperative for this effort to succeed, the report finds. Several tactics with funding recommendations for achieving this type of growth are outlined in the report, including: Coordinating and Increasing Commercialization Efforts — $2 million in state funds annually matched with $2 million in local funds for: Integrating renewal allies including the universities' Office for Technology Transfer, Launchpad, angel investors, venture community and incubators; Developing pre-seed, seed, startup and early and late stage support in conjunction with the venture community; and, Expanding Alabama Launchpad Building R&D Capacity — $20 million annually from the state and $20 million annually from other sources for: Selecting two or three targets of investment in research; Linking university and private research institutions around targets and developing a plan to expand capacity; Creating a Commercialization Scholars program; and, Using the 501(c)(3) status of universities for tax credits for contributions to support incubator initiatives. Providing Financial Support for Innovation-based Commercialization — unspecified state general revenue and private-sector matching R&D dollars to: Increase financial commitment to Alabama Innovation Fund to a minimum of $25 million; Create R&D tax credit; Create and fund Applied R&D Matching Grant program to encourage private sector/university research partnerships; and, Create Angel Investment and Tax Credit programs. Developing a Legislative Agenda Focused on Innovation Drafting legislation and securing sponsors for a comprehensive package to address creation of the Alabama Innovation Council; creation of a Commercialization Scholars program; and, creation of a mechanism for state support for grant matching for SBIR/STTR. Recruiting new business and industry and retaining programs that focus on expansion of existing companies round out the Accelerate Alabama plan, which is available at: http://www.boyettestrategicadvisors.com/wp-content/uploads/2012/01/Accel....

Across the U.S. and Canada, universities continue to forge public-private partnerships focused on creating a formalized approach to turn university research into market-ready products and startup companies. Three universities and their respective partners recently have announced efforts to bring inventors, the community and investors closer together. They also intended to provide potential entrepreneurs with the skills, mentorship and resources need to launch a startup company. Simon Fraser University Simon Fraser University (British Columbia, Canada) launched a $210,000 high-tech entrepreneurship initiative that will establish an incubator targeted at third- and fourth-year business and applied sciences students. The program will provide skills, mentors and resources to help launch new, student-led startups from innovative ideas. Students accepted into the program will take a variety of courses and have access to mentors, scholarships and a product design studio. Over the next seven years, the university hopes to accept 20 to 25 students with the goal of producing six potential companies or products annually. The initiative received approximately $205,000 in matching funds from the province through the British Columbia Innovation Council. Read the press release... University of Alabama at Birmingham The University of Alabama at Birmingham (UAB) recently unveiled the Invention to Innovation (i2i) initiative — a formalized approach intended to directly link the business community to university research activities. UAB, in partnership with the Birmingham Business Alliance, hopes to match potential entrepreneurs and research teams with technology-specific mentors (i.e., market experts, technology experts or as entrepreneurial quarterbacks). The University also intends to revive a certificate in the life sciences entrepreneurship program. Currently, the four-course graduate program is working with candidates in the Alabama Launchpad, a statewide competition between tech-based startups held by the Economic Development Partnership of Alabama. However, the certificate will be made available to all students in the future. Read the press release... University of Arizona Tech Launch Arizona is intended to help University of Arizona (UA) students and researchers move their inventions from the labs to the marketplace. The initiative is intended to restructure university technology transfer and commercialization and bring UA inventors, the community and investors closer together. To achieve these goals, Tech Launch Arizona will consolidate resources and provide funding for proof-of-concept tests, or prototyping and testing. The state will contribute about $1 million a year in funding from the Technology Research Initiative Fund to increase this funding through Tech Launch Arizona. The program also will work to match business students with innovators to help with business plans and potentially create startup companies. Currently, Tech Launch Arizona is a decentralized hub, but long-term the University plans to construct a physical area to house Tech Launch projects.

With increasing pressures from state and local policymakers to show a return on investment, universities and colleges across the country are stepping up their efforts to transform innovative ideas into ready-for-market products and develop a new generation of entrepreneurs that will spur regional and state economic growth. Recently, several universities announced new initiatives to foster innovation and build entrepreneurial capacity including: Auburn breaking ground on a new $28.8 million science center; Harvard's Innovation Lab opening its doors; and, The LaunchPad Ohio announcement at four universities in Northeast Ohio.

As budgets for economic development tighten across all sectors, measuring and reporting impact becomes even more crucial for sustaining support. The Association of University Research Parks points to three impressive impact reports released this year from Indiana's Purdue Research Park, Nebraska Technology Park and North Dakota State University Research and Technology Park.

Governors in several states are bringing lawmakers back into session this fall with a more focused agenda on job creation. During a one-day special session on Friday, lawmakers in Mississippi approved a $175 million incentive package to bring two high-tech manufacturing facilities to the state. Meanwhile, Missouri Gov. Jay Nixon will try again to enact the Missouri Science and Innovation Reinvestment Act (MOSIRA) to support science and tech companies and the Compete Missouri Initiative, both which failed to pass during the regular session. In New Mexico, lawmakers will consider legislation clarifying language in the state's high-wage tax credit statute — a measure Gov. Susana Martinez says will make it easier for employers to retain and hire workers.

Spending time at a technology or business incubator may be the key to learning about entrepreneurship. Some universities, seeking to ramp up entrepreneurship programs, are turning to incubators as real-world teachers. A recent Washington Post article points to several business schools pairing traditional education, such as courses and lectures, with less-conventional approaches, including incubators and business competitions to prepare students for opportunities outside the classroom. Recent announcements of new and emerging technology incubators from across the U.S. and Canada are included below.

Pamela Goldberg has been appointed as the executive director of the Massachusetts Technology Collaborative. Currently, Goldberg serves as director of entrepreneurial leadership at Tufts University.

Recent announcements of new and emerging technology incubators range from Google's selection of Cape Town, South Africa to launch a pilot incubator supporting technology entrepreneurs that it hopes to replicate globally to Alabama Gov. Robert Bentley's plan to create a statewide business incubator focusing on workforce training. Select announcements from across the globe are highlighted below.