SSTI Digest

Recent research on the evolving role of universities finds the emergence of an entrepreneurial society has contributed to a broader and more fundamental role for universities — that is to provide thinking, leadership and activity to enhance entrepreneurship capital. University-based entrepreneurship programs and initiatives seem to have gained steam following the recession with federal support for programs to enhance entrepreneurial efforts in states and regions and increased interest from students and out-of-work individuals. Freestanding entrepreneurship schools and creative programming to encourage risk taking are two recent examples of the evolving role of universities in the knowledge-driven economy.

The Information Technology and Innovation Foundation (ITIF) released the sixth edition of its bi-annual State New Economy Index last month. The report uses 26 indicators to assess the progress states have made adjusting to the realities of the innovation economy. Massachusetts lead in the rankings, as it has since the lauch of the index, while Delaware rose four ranks since 2010 to occupy second place. Read The 2012 State New Economy Index...

Amid the economic uncertainty surrounding fiscal cliff negotiations, and what it means for states, some governors are erring on the side of caution when it comes to funding recommendations for the upcoming year. At the same time, several state budget officers are projecting significant revenue shortfalls in the current fiscal year or biennium as a result of lower than expected tax collections.

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.

In 2012, Big Data has become one of the hottest topics in the news and the minds of both government and business leaders. Big Data is the collection and analysis of data that is too big, growing too fast or is too complex for existing information technology systems to handle. Proponents believe that Big Data provides business, government and other organizations (e.g., nonprofit and social enterprises) the potential to generate high quality insight that enable better decision making, increase productivity, reduce inefficiencies, create new products and services and spur economic growth. In an OPED for informationweek.com, Jonathan Feldman contends existing Big Data projects already are creating social and economic value for business firms and regions, including now-ubiquitous projects such as Google Maps.

A bill introduced less than three months ago to spur economic activity through high-impact university-industry R&D projects and provide tools for tech-based startup companies was passed with overwhelming support in the legislature. In addition to the matching fund, the bill includes funding to provide paid internships to startup technology companies and establishes an entrepreneur and startup venture capital mentoring program. Measures to address the state's skills gap and promote manufacturing competitiveness also are included.

Two bold proposals seeking to make big changes to community colleges in Massachusetts and New Jersey research universities recently were approved by lawmakers. In Massachusetts, more funding for the state's 15 community colleges is tied to increased oversight, performance measures and integration of workforce development initiatives. Meanwhile, New Jersey lawmakers passed a bill merging a medical and dentistry school with Rutgers University in hopes of strengthening partnerships for research projects and drawing more federal funding. In both states, the governors say the reforms are crucial for economic and job growth.

Massachusetts Governor Deval Patrick announced the creation of the Massachusetts Big Data Initiative, a number of steps and initiatives that will help turn the state into a world leader in big data — the collection and analysis of data that is too big, growing too fast or is too complex for existing information technology systems to handle. To achieve this goal, the state will partner with several private partners and research institutions to establish several new initiatives including:

Massachusetts House leaders introduced a bill earlier this week calling for funding to support R&D at universities and research centers, manufacturing grants and workforce training, and a venture capital mentoring program for startups. The measure is touted as a jobs bill to stimulate the state's sluggish recovery by focusing on high-growth sectors of the economy.

A new program launched in Massachusetts will help companies commercialize technologies developed under the Small Business Innovation Research (SBIR) program by picking up where Phase II of the program leaves off, providing financial support, coaching and introductions to potential investors. The Massachusetts Technology Development Corporation will initiate the program with $6 million over the next three years. The START program is aimed at helping companies transition from SBIR Phase II contracts, which fund technology development, to the commercialization stage, during which time companies typically rely on private sector funding. MTDC says a lack of private funding is impairing more technologies from coming to market and the START program will fill this gap by paying for patents, building prototypes, performing market research, and writing fundable business plans. The program consists of three stages over three years beginning with stage I grants of $100,000 each for 10 applicants who have won SBIR Phase II contracts. Based on the progress demonstrated over the first year, an additional stage II grant of up to $200,000 will be awarded to five of the most promising companies. At the end of the second year, two companies will be chosen for a $500,000 investment based on growth potential. The process will be renewed annually. More information about the START program is available at: http://www.mtdc.com/start.html.

While many state programs provide periodic reports on their activities and impacts, a few states provide regular data on their innovation economy as a whole. These reports can be useful in assessing a state's overall approach to TBED and in finding new areas for strategic intervention. Recently, groups in Massachusetts, Maine and Illinois separately released innovation indices that provide quantitative guides to their state's progress in fostering innovation. Massachusetts The Massachusetts Technology Collaborative's John Adams Innovation Institute has released its 2011 Index of the Massachusetts Innovation Economy, an annual review of the Commonwealth's high-tech economy through 25 indicators. Each year, the index tracks Massachusetts' progress in these indicators, along with comparisons to other U.S. states and national economies. In addition to Massachusetts, the 2011 edition provides indicator data for comparison from seven leading technology states, including California, Connecticut, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania and Virginia. Highlights from the 25 indicators include Industry cluster employment and wages, patenting activity, R&D performed, business formation, funding for R&D, and talent flow and attraction. Massachusetts' innovation once again ranks impressively next to its benchmark state and national economies, though the report notes that several indicators have had a downward trend over the past few years. The state leads the U.S. in per capita venture capital and SBIR awards, but that lead has shrunk since 2000. Employment in the state increasingly has become concentrated in key innovation sectors, and maintained its high rate of entrepreneurship activity throughout the recession. Massachusetts must now find ways to better fund higher education and get its students interested in STEM fields. Download the report... Maine Maine's Department of Community and Economic Development has released three reports examining the state's R&D and innovation economy performance in 2011. The first, Maine's Innovation Index 2012, tracks 24 indicators measuring Maine's progress toward building an innovation-driven economy. The state's performance is compared to U.S trends and to the New England region as a whole. Maine continues to improve in R&D performance, patenting, math and science skills of its eighth graders, and science and engineering enrollments and degrees. The second publication, a comprehensive R&D evaluation, tracks innovation inputs and outputs and progress toward the goals of the state's 2010 S&T plan. The report finds that although Maine's technology investment levels have not met the goals set out in the plan, they have brought substantial increases in research capacity and infrastructure, as well as new companies. Recommendations include providing more targeted supported for strategic industries, linking capital programs to advisory services and supporting retraining for existing workers. A third report evaluates the growing importance of middle-skill jobs, jobs that require some post-high school training, but not a four-year degree. The report finds that 30 percent of all Maine jobs fall in this category and that many of the job opportunities that open for workers in the coming years will require some type of post-secondary certification or training. Download the reports... Illinois Several groups in Illinois, including the Chicagoland Chamber of Commerce, the Chicago Metropolitan Agency for Planning, the Illinois Science and Technology Coalition, World Business Chicago and the Illinois Innovation Network, are taking a different approach to innovation tracking by releasing monthly updates that feature select indicators. Since September 2011, the Illinois Innovation Index has highlighted a number of key innovation metrics, including venture capital investment, entrepreneur optimism, and R&D funding for industry and universities. This month's issue uses the Chicago MSA's patent output to gauge the region's innovation trajectory. Using patent data since 2006, the issue shows a decrease in activity in multiplex communications, but increases in financial and data processing and continued strength in advanced manufacturing.

Lawmakers in several states will consider legislation this year aimed at solving the workforce disconnect as states continue to struggle with unemployment and look for ways to attract industries in emerging fields. Many of the recent proposals, including those in Connecticut and Massachusetts, focus on revamping oversight of higher education and workforce training to offer better tools and a quicker path to a degree and skills matched with the needs of businesses. In Missouri, a new Innovation Campus will allow high school students to train for high-tech careers while they earn college credit and, in South Dakota, the governor wants to recruit 1,000 skilled workers from outside the state. Connecticut Gov. Dan Malloy earlier this month proposed legislation making changes to the Connecticut Technical High School System (CTHSS) in order to tailor programming to the needs of employers. In addition to programmatic changes, the governor wants to change the governance of CTHSS to an independent, 11-member board whose members are made by appointment, removing oversight from the State Board of Education. The process would be led by the Department of Education in collaboration with the Board of Regents, Department of Labor and Department of Economic and Community Development. The governor hopes to put in place reforms that will position the 20-school system to provide programs relevant for high-tech jobs available in Connecticut. Lt. Gov. Nancy Wyman singled out fields like precision manufacturing, bioscience and fuel cells in a press release. To help the efforts and increase the training and resources available for students, Gov. Malloy would allocate $500,000 in additional funding. The governor's bill is available at: http://www.cga.ct.gov/2012/TOB/s/pdf/2012SB-00024-R00-SB.pdf. Massachusetts By aligning the state's 15 community colleges under a statewide system with authority to allocate all state funding, Gov. Deval Patrick hopes to improve the state's efforts to provide skilled workforce training for regionally specific jobs. Under the proposal, the Board of Higher Education (BHE) would have the authority to allocate all state funding to community colleges, consolidating the 15 separate funding lines into one line item within the Department of Higher Education budget. The BHE would be responsible for developing a system to make funding allocations to the individual colleges taking into account enrollment data, credits that can be transferred across campuses, and the creation of new programs better aligned with regional labor market needs, according to the governor's office. The plan also gives the BHE authority to establish new parameters for setting student fees and the use of revenues generated from the fees. In support of these reforms, the governor's FY13 budget includes a $10 million increase in total funding for community colleges. Read more... Missouri A new Innovation Campus at the University of Central Missouri (UCM) will serve as a testing ground for helping students find work in high-demand fields while reducing student loan debt. Announced by Gov. Jay Nixon earlier this month, the initiative will provide high school students with intensive training in science and technology fields through apprenticeships with local employers while they also earn college credit. Thirty students will be selected to enroll in the Innovation Campus this fall with hopes to expand the program to 100 students by year three. During high school, Innovation Campus students can earn up to 30 college credits and participate in apprenticeships with local business partners, including Cerner, Exergonix Inc., Sprint, and DST. To support the training opportunities, Gov. Nixon announced the availability of $500,000 through a Community Development Block Grant. To participate in the program, corporate partners must commit to creating or training a specified number of jobs, according to the governor's office. Read the governor's press release: http://governor.mo.gov/newsroom/2012/Gov_Nixon_President_Ambrose_launch_.... South Dakota Gov. Dennis Daugaard is hoping to attract skilled workers outside of the state through a new recruiting initiative with the employment firm Manpower. Under the 1,000 New South Dakotans initiative, the state would pay $5 million to the recruiting firm to fill a surplus of private sector jobs in fields such as accounting, engineering and information technology, according to a Stateline article. Positions would be posted locally for 30 days before being turned over to Manpower. The article notes that the proposal is a short-term fix while the state works to improve its own job-training efforts. Gov. Daugaard approved a contract with the firm on a conditional basis in January. However, lawmakers must appropriate the money to close the deal. More information is available at: http://www.southdakotawins.com/newsouthdakotans/1000newsouthdakotans/.