SSTI Digest

The Michigan Economic Development Corporation announced the Tech Transfer Talent Network — a new $2.6 million initiative to increase the supply of seasoned entrepreneurs and innovators who can lend their expertise to member universities' tech transfer offices. The University of Michigan's (U-M) tech transfer office will lead the seven-university network and share its tech transfer resources with member institutions. In addition to U-M, the members are: Wayne State University, Michigan State University, Michigan Technological University, Western Michigan University, Grand Valley State University and Oakland University. The Tech Transfer Talent Network's primary purpose is to increase the supply of seasoned entrepreneurs and innovators who can lend their expertise to university tech transfer offices. The state hopes these connections will serve as important bridges to launch technology-based startups or license university inventions to established companies. U-M will help other universities implement some of its "talent-related initiatives" including: The Catalyst database — to identify and track experienced entrepreneurs who are willing to serve as experts, mentors, consultants or co-founders; The Mentors-in-Residence program — to attract experienced entrepreneurs to serve 12- to 18-month rotations in the university's tech transfer office, helping to assess new opportunities and mentor new startup ventures; The Tech Transfer Fellows program — to employ graduate students or other qualified personnel to help assess technology and analyze markets for tech transfer opportunities; and, A postdoctoral fellowship program — to encourage graduate students and postdoctoral researchers to work with a newly licensed business or a new startup venture. Each university also will collaborate with its regional economic development organization to promote increased access to mentors and partnering businesses.

With a greater focus on jobs training and arts and cultural programs, Michigan's budget for economic development would increase by more than 10 percent in FY13 under Gov. Rick Snyder's proposal. Universities and community colleges would receive a 3 percent boost under a new performance formula based on degree completion — particularly in critical skills areas such as science, technology, engineering, mathematics, and health care. The Michigan Economic Development Corp (MEDC) is slated to receive $195 million in FY13, up from $175 approved for the current year. This includes $100 million for business attraction and economic gardening. Another $25 million would support innovation and entrepreneurship programs established last year (see the June 1, 2011 issue of the Digest). To address economic development in distressed cities, the governor recommends an additional $15 million in general fund support for the Talent Fund for Job Training and Skills Development. The budget also increases funding by $3.6 million for arts and cultural grants programs ($5 million total). Funding would increase by 3 percent for universities and community colleges under new performance guidelines proposed by the governor. State universities would receive an additional $36.2 million from the general fund based on four metrics: the growth in the number of undergraduate degree completions, the number of undergraduate completions in critical skills areas, the number of undergraduate Pell Grant recipients, and compliance with tuition restraint. Community colleges would receive an additional $8.5 million, which would be distributed based on the total number of certificate and associate degree completions in critical skill areas, averaged over the past three fiscal years. Beginning in FY14, the community colleges funding formula also would recognize successful student transfers to four-year colleges or universities. The FY13 executive budget is available at: http://www.michigan.gov/documents/budget/EB1_376247_7.pdf.

The Michigan Strategic Fund (MSF) and the Michigan Economic Development Corporation (MEDC) announced public hearings for the Pure Michigan Venture Match Fund — a new program that will match early stage investments from eligible venture funds in Michigan-based technology businesses. MSF and MEDC intend for the program to attract venture funds, within and outside of Michigan, to consider investments in early stage and pre-revenue technology companies and to mitigate some risk for venture fund investments through the matching MSF funds. The minimum venture investment of $700,000 is required and the maximum eligible investment is $3 million. MSF will match between $350,000 and $500,000 with similar investment terms as the venture investment. To be eligible for funding, a company must have secured a qualified venture investment and face a peer review of its business plan. Eligible investors must fulfill all the requirements of the 21st Century Jobs Fund legislation. After consideration of the comments and information received at the public hearing, the final MVM Fund program guidelines will be presented to the MSF Board for approval and implementation. The program is anticipated to launch on March 1.

Jeffrey Brancato has recently joined NorTech as vice president. Prior to joining NorTech, Brancato was the associate vice president for Economic Development at the University of Massachusetts.

Michigan State University, Rutgers University and the University of Michigan all have announced new initiatives that are intended to fuel innovation and grow regional economies. Michigan State established the University Center for Regional Economic Innovation — a university-based, economic development research center focused on generating businesses and jobs statewide. Rutgers University created a Disruptive Innovation Fund to provide up to $1 million to support the commercialization of innovative products. The University of Michigan's Michigan Investment in New Technology Startups initiative will invest directly into U-M startup businesses.

The Michigan Economic Development Corporation (MEDC) recently announced the recipients of $25 million in awards from Michigan's 21st Century Jobs Fund. Each of the eight organizations receiving the awards will use the funding to support Michigan entrepreneurs and technology commercialization. The largest single allotment, $10.8 million, will benefit Ann Arbor SPARK, which plans to replenish its Michigan Pre-Seed Capital Fund with the award. Other recipient organizations will be offering capital and business assistance around the state.

The Kiva City program will extend small business access to microloans in U.S. cities facing the greatest small business stress. Kiva, a nonprofit organization, offers personal microlending services. Building upon Kiva's Internet-based lending model, the goal of the Kiva City program is to spur job growth and economic recovery through microfinance by building connections between Kiva's global network of 592,000 individual lenders and small business owners across the country. Kiva also intends to reach out to credit unions or other financial institutions partners at a local level to facilitate the loans and community groups and civic leaders to build awareness among small business owners and refer them to the program. Kiva.org, in partnership with Visa Inc., will administer the program. Read the press release...

Michigan's InvestMichigan! Mezzanine Fund is slated to become the Small Business Administration's (SBA) first licensed Impact Investment Fund through the agency's new Impact Investment Initiative. The SBA initiative, which is part of the White House's Startup America initiative, uses the existing infrastructure of the Small Business Investment Company (SBIC) program to encourage small business growth. Participating funds must make place-based investments in small businesses in underserved areas, or investments in the clean energy and education sectors. SBA will provide $80 million to the Michigan fund, along with another $15 million from Dow Chemical Company and $35 million from Michigan Growth Capital Partners. Read the announcement...

Pamela Goldberg has been appointed as the executive director of the Massachusetts Technology Collaborative. Currently, Goldberg serves as director of entrepreneurial leadership at Tufts University.

James Weyhenmeyer has been named the vice president for Research and Economic Development at Georgia State University. Previously, Weyhenmeyer was the senior vice provost for Research and Economic Development in the Office of the Provost of the State University of New York system. He succeeds Robin Morris, who has assumed the position of associate provost for Strategic Initiatives and innovation.

Maine Gov. Paul LePage has nominated George Gervais, the acting commissioner of the Maine Department of Economic and Community Development as commissioner. His nomination must be reviewed by the Joint Standing Committee on Labor, Commerce, Research and Economic Development and confirmed by the Senate.

Much of the recent economic recovery plans coming from governors across the country have focused on growing and nurturing existing businesses through a regional approach to economic development. The idea is that by identifying and defining the unique needs of a region, policymakers and practitioners can then provide the necessary tools and resources to grow industries likely to succeed within a given region, thus improving the overall economic landscape of the state. This approach is happening both in states and at the local level.