SSTI Digest

The Small Business Administration (SBA) announced the selection of 10 regional economic development and job creation efforts through a new pilot program, Innovative Economies, that supports small business participation in regional economic clusters. SBA's funding is designed to expand the opportunities and the role small businesses play in these regional collaborations. The awardees were selected from among 173 applicants. Awards went to organizations in: Alabama, California, Connecticut, Illinois, Michigan, Minnesota, Mississippi, North Carolina, Ohio and South Carolina. Read the full release

Specialized and high-tech incubators provide crucial services and resources to promote and enhance Commercialization & Entrepreneurship, one of the six thematic tracks of this year's annual conference. Three sessions tied to this theme will be explored during SSTI's annual conference, focusing on direct lessons from successful and proven TBED programs, regional innovation clustering, and more. They include:

Click here to listen to SSTI's Interview with Susan Palisano of the Connecticut Center for Advanced Technology (CCAT)
SSTI has an effective new learning tool for TBED policymakers and practitioners seeking guidance in approaches to building and sustaining tech-based economies. Through exclusive interviews with Excellence in TBED Award recipients, find out first-hand how these award-winning initiatives successfully responded to a critical need by applying innovative approaches to generate substantial economic gains for their region.

A jobs bill that garnered near unanimous support in both legislative chambers was signed into law by Gov. Jodi Rell last week. The bill includes pre-seed funding for innovative ideas, a program authorizing tax credits for insurers investing in many different types of businesses, including technology startups, student loan reimbursements to retain green collar workers, a small business loan pool, and a green manufacturing pilot program.

Jeff Blodgett, Vice President of Research, at the Connecticut Economic Resource Center, Inc. is retiring.

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.

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.

Most impact models look at broad measures, sometimes including multiplier estimates for indirect effects. Connecticut Innovations (CI) takes a different approach, but one that might be expected from the venerable equity investment program – the direct capital return to its initial stakeholder, the state.

High-tech manufacturers in Connecticut seeking to innovate and diversify their processes are eligible for grants of up to $25,000 each under a new pilot program announced last week by Gov. Jodi Rell. The goal of the Connecticut Small Business Innovation and Diversification Program is to help the state's small businesses develop, produce and commercialize new products while streamlining delivery of products and services, according to the governor's press office. Matthew Nemerson, president and chief executive officer of the Connecticut Technology Council, said in a New Haven Register article that the money will be helpful in the innovation process for companies that have not yet received seed money, but are trying to develop a model or prototype or advance research. The program, administered through the Small Business Innovation Research Office at Connecticut Innovations, is open to Connecticut-based companies with fewer than 500 employees and requires matching funds. A press release is available from the governor's office at:  http://www.ct.gov/governorrell/cwp/view.asp?A=3675&Q=452840.

Governors across the nation are trying to find ways to prevent their state finances from falling further in the red as revenues continue to fall while costs for Medicare and unemployment remain high. Deficit-reduction plans announced in two states seek to delay payments and cut funding to biomedical research initiatives that were established to expand the states’ research capacity and generate wealth.

The national recession that began at the end of 2007 is "very likely over," according to Federal Reserve Chairman Ben Bernanke. Recovery, however, may be a long way off. Because states were affected differently by the economic downturn in both timing and impact, recovery for state and local economies is likely to occur at different times. Moody's Economy.com predicts, according to an MSNBC article, that job growth will return first in five states: Colorado, Idaho, Oregon, Texas, and Washington. Four of those states benefit from high-tech industries, and the fifth, Texas, has a strong base of energy industries, the article notes.

This year as states were wrestling with significant deficits, several proposals to consolidate TBED initiatives with other units of government emerged. The most recently decided was in Connecticut, where the General Assembly did not move forward with a plan to merge the state's two primary financing agencies, Connecticut Innovations and the Connecticut Development Authority to form a new Connecticut Economic Innovations Authority. Gov. Jodi Rell had proposed the consolidation.