Alabama Plan Calls for Legislative Agenda Focused on Innovation

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....