SSTI Digest

Recent court decisions regarding high-speed Internet competition and net neutrality have put U.S. broadband competitiveness on uncertain terrain. Despite two decades of publically supported high-speed data infrastructure efforts, many rural areas still lack access and even densely populated areas remain underserved.  New statewide efforts in Kentucky, Minnesota and Iowa have been announced to improve broadband services and boost economic competitiveness. In addition, Google has announced that it will expand its ultra-fast fiber services to nine more cities across the country.

Several common themes surrounding higher education have emerged as governors across the country unveil investment priorities for the upcoming fiscal year or biennium. In many states, governors have proposed more funding to increase affordability by freezing tuition or creating new scholarship funds. Support for expanding research capacity, technology-related infrastructure and job training in high-demand industries are some of the proposed measures aimed at competitiveness.  

The second installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Alabama, Arizona, Georgia, Iowa, Kansas, Rhode Island, South Dakota, Vermont and Virginia. The first installment is available here.

Ted McAleer has resigned as executive director of USTAR. Also Gary Herbert has announced the appointment of former Lt. Gov. Greg Bell as chair of the USTAR Governing Authority. Bell, now president and CEO of the Utah Hospital Association, takes the place of outgoing chair Dinesh Patel.

Following a national economic development trend toward regionalism, governors in Iowa and Nebraska announced a partnership to provide more investment and talent opportunities for area businesses, and increased exposure for the region. Under the multi-county collaboration, Advance Southwest Iowa will join the Greater Omaha Economic Development Partnership. The group plans to implement a five-year regional economic development program focused on establishing a recognized brand and image for the region, growing and recruiting businesses, and retaining a trained workforce. The partnership is funded by public and private investors throughout the region, according to a news release.  

President Obama launched the Advanced Manufacturing Partnership Steering Committee “2.0.” Former SSTI board member Luis Proenza, president of The University of Akron is part of the steering committee chaired by Andrew Liveris, president, chairman, and CEO of the Dow Chemical Company, and Rafael Reif, president of the Massachusetts Institute of Technology.

A continued trend toward improved fiscal conditions gave rise to targeted and riskier investments in research for several states this legislative session. In particular, lawmakers dedicated funds for life sciences research and for initiatives aimed at commercialization through partnerships with higher education and the private sector. Other states dedicated additional funds to expand promising research and technology-focused initiatives already underway.

Gov. Lincoln Chafee has nominated Deputy Director William Parsons to lead the Rhode Island Economic Development Corporation.

Caren Franzini, the CEO of the New Jersey Economic Development Authority, stepped down after leading the agency for 21 years. Michele Brown, Gov. Chris Christie's appointments counsel, will take over as CEO.

Iowa Governor Terry Branstad announced the first major initiative of the Governor's STEM Advisory Council, a public-private partnership of six regional STEM network hubs to promote STEM education and economic development. Each of the hubs will be housed at one of the state's universities or community colleges, and will coordinate local programs with businesses, nonprofits and other institutions in their regions. The six winning hub applications are available online and lay out the hubs' individual approaches to elevating the quality of STEM education and matching efforts with the needs of local employers.

SSTI's Tech Talkin' Govs series has returned for its 12th annual edition. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses across the nation. The first installment includes excerpts from speeches delivered in Georgia, Iowa, New York, Kentucky, South Dakota, Vermont, and Virginia. Georgia Gov. Nathan Deal, State of the State Address, Jan. 10, 2012 "... I want to announce two ambitious goals. Georgians deserve a world-class, public medical university, and it will be a priority of this administration to have a medical college among the top 50 nationally. ... "... Also within this push, the Georgia Health Sciences University will seek to become the state's second National Cancer Institute designated Cancer Center ... This designation would mean greater access to research dollars and enhance our ability to recruit top cancer specialists. "... To support this goal of a second Georgia-based Cancer Center, my budget proposal includes an investment of $5 million. ... "... Businesses require a talented workforce and strong infrastructure, but they also require a business environment that allows them to compete in today's global marketplace. "With that in mind, the Georgia Competitiveness Initiative pulled together business leaders and more than 4,000 Georgians across the state to develop a strategy that would improve our business case. ... "... First, I am proposing the elimination of the sales tax on energy used in manufacturing, a move that will align us with many of our top competitors. This will have a dramatic impact on manufacturers' overall cost structure and vastly improve the competitive position of our producers. ... "... A third piece, we are proposing to restructure Georgia's Job Tax Credits and Quality Jobs Tax Credit programs. ... We will modernize our job tax credits to better incentivize small business growth and to help every Georgia community compete with their regional peers." Iowa Gov. Terry Branstad, Condition of the State Address, Jan. 10, 2012 "... I am today proposing a four point plan of action — a focused initiative designed to help create the jobs we need today and the careers we need tomorrow. ... "... Last year the legislature directed us to create a replacement for the Grow Iowa Values Fund and we are proposing a new $25 million annual investment in our existing High Quality Jobs Program. ... "In addition, my proposal will be structured so state investments in the program will decline over time so the program will be self-funding within 10 years as a direct result of the jobs it brings to Iowa. "The third component of my jobs and careers action plan will encourage those small businesses that supply key components to our strong manufacturing sector to grow their facilities and create new jobs in Iowa. ... I will offer legislation that removes the barriers that discourage suppliers from bringing their businesses close to their best Iowa customers." Kentucky Gov. Steve Beshear, State of the Commonweatlh Address, Jan. 4, 2012 "We need a way to encourage a type of private investment called 'angel investing,' in which individuals help fund new companies. Mid-level entrepreneurs are in particular need of funding, because many are too small to attract big venture capital and too large for other forms of start-up assistance. "Rep. Arnold Simpson has come forward again with a bill to create tax credits for individual angel investors similar to those already offered for investment funds. What this means is that Kentuckians who invest in Kentucky start-ups to create Kentucky jobs would receive a credit on their Kentucky income taxes. "At least 22 states offer a similar credit, and it is time for Kentucky to add this job-creation program to its toolbox." New York Gov. Andrew Cuomo, State of the State Address, Jan. 4, 2012 "We know from experience that large investments in growth industries can pay substantial dividends. Twenty-five years ago, the state began investing in the Albany area's high-tech industry. ... We can do it again. We did it in Albany, and we can do it in Buffalo. ... "... So, today, I say to national and global industries: Come to Buffalo. The State of New York is ready to invest $1 billion in a multi-year package of economic development incentives. ... "... Let's empower the Buffalo Regional Council to develop a viable plan to create thousands of jobs and to spur at least $5 billion in new investment and economic activity." South Dakota Gov. Dennis Daugaard, State of the State Address, Jan. 10, 2012 "Today I am proposing an effort we're calling 'South Dakota WINS,' short for 'South Dakota Workforce Initiatives.' South Dakota WINS is a twenty-point plan, in four categories, to get more South Dakotans trained and ready to work in a rapidly growing and changing South Dakota economy. "The first component of South Dakota WINS emphasizes math and science education by rewarding math and science teachers for teaching in this high-demand field. ... " ... The fourth category of our workforce initiative involves recruiting workers to South Dakota. South Dakota WINS when our working population grows by welcoming new skilled workers and encouraging the return of those who have left. ... "... Today I am announcing an innovative and first-of-its-kind relationship to attract a new generation of skilled pioneers to our state. The 'New South Dakotans' initiative will partner state government with South Dakota businesses and with Manpower, the world's largest workforce recruiter. Together we will work to identify and place 1,000 professional and skilled workers from outside of our state into jobs here in South Dakota. ... The program will focus on high-demand jobs in industries without enough in-state professionals to meet demand. ... "... I mentioned earlier the importance of math and science education to our future workforce needs ... Beginning in the 2013-14 school year, the state will pay every middle school and high school math or science teacher a bonus of $3500." Vermont Gov. Peter Shumlin, State of the State Address, Jan. 5, 2012 "In my budget address next week ... I will propose significant state investments in higher education and dual enrollment, all aimed at making Vermont students even more competitive and creating opportunities for employers to recruit the employees they are now seeking. ... "... This session, I will propose requiring an affordable and achievable Renewable Energy Portfolio standard that sets a goal to obtain 75 percent renewable electricity in 20 years." Virginia Gov. Bob McDonnell, State of the Commonwealth Address, Jan. 11, 2012 "This session, I am asking you to put $38 million more into targeted programs that spur job creation. "I have proposed state incentives and initiatives for ... technology, modeling and simulation, cyber security, international marketing, workforce development, advanced manufacturing, and life sciences. ... "... I am also proposing a new investor tax credit to provide working capital to small businesses which create 70 percent of the new jobs in America, and the extension of time during which the major business facility job tax credit may be taken. ... "... I am asking you to invest over $200 million in new funding for our colleges and universities. "Additionally, I am proposing a dynamic new funding model for higher education that ties new general funds to achieving our statutory goals. Institutions will be rewarded for increasing the number of degrees, especially in STEM-H fields; improving graduation rates, and expanding practical research. ... "... We will also continue to pursue the development of alternative sources of energy like solar, wind and biomass, as long as they are cost-competitive for consumers. ... That is why I have included $500,000 in the FY13 budget for research and development to accelerate and assist private development of the Virginia Wind Energy Area."

Iowa Gov. Terry Branstad signed Iowa House File 590 into law, establishing a new economic development public-private partnership. The Iowa Partnership for Economic Progress (IPEP) will be comprised of two separate entities — the Iowa Economic Development Authority and the Iowa Innovation Corporation. IPEP replaces the embattled Iowa Department of Economic Development. The passage of the bill achieves one of Gov. Brandstad's top campaign priorities to shift the state's economic development efforts away from government and more toward the private sector. The Iowa Business Council (IBC), a nonprofit organization, also released a new report that looks at the Iowa competitive advantage relative to other states over a 10-year period. Researchers found that Iowa has increased only slightly relative competitive advantage since 2001. Read more...