Clean Tech Commercialization in NM Will Create High-tech Businesses and Jobs, Says Group

In Growing New Mexico's Clean Tech Economy, the Clean Technology Commercialization Working Group examines steps that must be taken for New Mexico to capitalize on the state's clean technology opportunity by bridging the funding "valley of death." In a report commissioned by the New Mexico Economic Development Department, the advisory group asserts four high-priority recommendations will accelerate New Mexico's clean technology commercialization. New Mexico's strengths mainly revolve around the state's existing intellectual infrastructure (e.g., research universities and two national laboratories). Currently, the state is a national leader in federal R&D spending. However, the state currently faces several weakness related to private and state financing for clean technology ventures including, state budget deficits, lack of investment banks, lack of larger venture capital firms, insufficient technology maturation funding/programs and missing incentives for venture capital and business R&D. They rank last among all states in state R&D spending. The advisory group asserts that these recommendations will incentivize private investors and entrepreneurs to turn basic research in to market-ready products. The recommendations include:

• Improving statewide coordination, promotion, evaluation and monitoring and technology commercialization: This would include the establishment of a statewide institution that coordinates, promotes, evaluates, monitors and secures sustained funding for clean technology ventures.
• Expanding incentives to stimulate technology commercialization and industry engagement at research institutions: Recommendations include the creation of a state matching fund for technology maturation, expansion of the New Mexico Small Business Assistance Program and coordination of education and workforce programs.
• Strengthening incentives to attract angel, venture capital and business R&D investments: The group recommends improvement of the state's Angel Investment Tax Credit, expansion of the existing State Investment Council targeted programs and tax credits for entrepreneurs.
• Cultivating the market for targeted technology products: New Mexico's leaders also must commit to growing the state's green economy.

If these policy changes would be adopted the state would see economic growth, and according to the report attract and retain high-tech business that would lead to more high-wage jobs. The increased business activity would have positive effects on the state's long-term budget due to the increased tax revenues that will offset short-term expenditures needed to institute these changes. The report references several states including Arizona, Ohio, Pennsylvania and Washington that have seen returns on investments (ROI) from S&T initiatives as high as three to 11 times or more their state's investment. A similar ROI could significantly reduce the New Mexico's existing budget deficit. Read the Report ...