SSTI Digest

Geography: North Carolina

North Carolina Launches $1M Green Business Fund

The North Carolina Board of Science and Technology, for a long time serving mostly in an advisory capacity to Gov. Mike Easley, increasingly is more involved in the direct delivery of technology-based economic development programs. The latest addition to its growing portfolio of programs is a $1 million Green Business Fund to help small businesses commercialize promising green and alternative energy technologies.

 

Under the new program, the Board will provide grants of up to $100,000 to North Carolina-based small businesses with 100 or fewer employees. The award process will be competitive, with priority given to proposals that aid in the following:

People

Peter Hermann was selected as the N.C. Technology Association's new CEO. Hermann replaces Joan Myers, who took a position with a software company.

People & TBED Organizations

The Idaho communities of Greenleaf, Homedale, Grand View, Marsing, Melba, Parma and Wilder have formed the Western Alliance for Economic Development.

SSTI Job Corner

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.



Following its corporate mission of "turning knowledge into practice," RTI International is launching an initiative aimed at eliminating underdevelopment and unlocking opportunity in economic growth centers throughout the U.S. and worldwide. For this initiative, RTI seeks to immediately fill two important positions: (1) a program manager for innovation-based economic development who will play a key role in leading this initiative with other professionals across RTI and (2) an economic development analyst who will design, manage, and support technology-based economic development research and implementation projects. Each position has its own set of responsibilities and qualifications.

SSTI Job Corner

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.



The Office of Extension, Engagement and Economic Development at North Carolina State University (NCSU) is seeking someone for the position of director of the NC Economic Development Partnership. This position will have primary responsibility for building alliances for economic development and connecting the unique strengths of NCSU to appropriate agencies and industry clusters. These alliances include a significant partnership the North Carolina Department of Commerce. An M.A.or M.S. degree in an appropriate discipline and three years of experience in economic development program delivery in extension, outreach or public service, or a combination of suitable educational background and professional certification in economic development are required.



Penn State's Office of Economic and Workforce Development seeks a motivated, self-directed individual with a proven track record for the role of senior new initiatives specialist. This position will assist with the expansion and diversification of the Pennsylvania Technical Assistance Program (PennTAP), which provides technology assistance to all types of businesses throughout the Commonwealth to improve their competitiveness and strengthen the state's economy. The position requires a master's degree or the equivalent, plus three years of work-related experience showing demonstrated strong, independent and entrepreneurial work attributes, among other requirements.

People & TBED Organizations

Tom Clarkson was named the new director of Wake Forest University's Babcock Demon Incubator, replacing Paul Briggs.

People & TBED Organizations

Tom Clarkson is the new chief executive officer of Wake Forest University's Babcock Demon incubator. Clarkson replaces Paul Briggs, who retired.

People & TBED Organizations

Joan Myers resigned as president and chief executive of the North Carolina Technology Association to join the global public policy division at a local software company. Myers' resignation is effective Aug. 21.

North Carolina Lawmakers Fund Major Research, Education, TBED Initiatives

After running on a month-long stopgap budget, North Carolina lawmakers reached a $20.7 billion budget agreement for fiscal year 2007-08 earlier this week that includes funding for major research initiatives, public and higher education, and TBED-related items.

 

Under the budget agreement signed Tuesday by Gov. Mike Easley, University of North Carolina (UNC)-Chapel Hill is slated to receive $25 million this year, $40 million next year and a recurring $50 million in future years to expand cancer research. Funding for the initiative comes from a 10 percent increase on tobacco products other than cigarettes, $21.2 million in general fund revenue over the biennium, and $8 million from the Tobacco Trust Fund each year.

 

In keeping with a legislative mandated study enacted last year, the budget appropriates $5 million to establish the North Carolina Biofuels Center. The action plan, Fueling North Carolina’s Future: North Carolina’s Strategic Plan for Biofuels Leadership, outlines nine strategies for the coming decade to strengthen the state’s future in biofuels development and use.

 

The budget also provides $1 million to establish the North Carolina Green Business Fund as a special revenue fund within the Department of Commerce. The fund will invest in projects focusing on three priority areas: encouraging the development of the biofuels industry; fostering the development of the green building industry; and, attracting and leveraging private-sector investments in clean technology and renewable energy products.

 

The North Carolina Biotechnology Center appropriation for FY 2007-08 is $15.6 million, with $3 million earmarked to create regional innovation centers that focus on research and technology transfer in biotechnology-related fields. Budget funding for other initiatives includes $14 million for the One North Carolina Fund; $4.8 million for the One North Carolina Small Business Fund to provide grants under North Carolina’s SBIR/STTR program; $4 million to the e-NC Authority to increase availability of internet connectivity in rural areas of the state; and $1.5 million for the Support Defense and Security Technology Accelerator, a business incubator focused on homeland security and defense industries.

 

Education initiatives in both K-12 and higher education fared well in the budget. The budget provides $4.4 million to fund the Focused Education Reform Pilot program, which will offer teacher recruitment and retainment bonuses, teacher mentoring and science and math instructional assistance. A new School Technology Pilot program will receive $3 million, which - along with a grant from the Golden LEAF Foundation and private sector funds - will be used to establish eight pilot high schools that incorporate technology in the classroom by providing computers for all teachers and students. UNC System initiatives funded within the budget include:

People & TBED Organizations

E. Norris Tolson is officially the president and CEO of the North Carolina Biotechnology Center, having served as interim CEO since January.

North Carolina to Start Statewide Micro Angel Fund

North Carolina does not, at first glance, seem to be a venture capital underperformer. In 2006, venture capitalists invested close to $510 million in North Carolina, almost $60 million of which was invested in seed and early-stage businesses, according to the Pricewaterhouse Coopers Moneytree Survey of VC investment. However, while the state ranks 12th in seed/early-stage investment, many in the state perceive the lack of seed funding to be a major obstacle to economic growth. Earlier this year, a survey conducted by the Wilmington-based Council on Entrepreneurial Development (CED) revealed that access to capital, particularly to seed-stage equity investment, was one of the top concerns of entrepreneurs in the state.

 

Last week, the North Carolina Small Business and Technology Development Center (SBTDC) announced a new plan to make capital available to entrepreneurs and begin building a stronger early-stage investment industry. In 2003, SBTDC launched the Inception Micro Angel Fund (IMAF) in the Piedmont Triad area of North Carolina, with an investment zone that included Greater North Carolina and selected areas of South Carolina and Virginia. SBTDC now plans to build on the success of IMAF-Triad by creating a statewide network of six angel funds that will provide capital to new businesses in every part of the state. The new funds will be able to provide local support for nascent businesses and improve the stream of promising mid-to-late-stage companies for venture capital investment. This family of seed-stage funds will target technology-based companies and will provide mentoring, counseling, and networking opportunities to their investees.

 

Each of the six funds will use a similar, member-managed structure and will seek investments from larger angel funds, venture funds and individual angel investors. The IMAF-Triad fund is now in the process of raising $2 million for its second round and primarily engages with investors from the medical and dental fields. Individual angels can buy into the fund with a minimum investment of $15,000; the level is $30,000 for angel groups and VC firms. Typical investments will range between $25,000 and $100,000. The IMAF Source Capital Fund will provide the capital for each local fund and will follow up on successful local investments with additional financial and advisory support.

 

One of the new funds (ITAF-RTP) will focus on investments in the Research Triangle Park region, including spin out companies from Duke University, UNC Chapel Hill, the associated medical schools from both of those universities, North Carolina Central University, and NC State University. In 2005, CED reported that the Research Triangle region raised 81 percent of all venture investment in the state, including seven of the top 10 deals that year.

 

The areas of the state outside of the Research Triangle and Piedmont Triad regions, which will be served by the other four new funds (IMAF-West, IMAF-East, IMAF-Coastal, and IMAF-Kannapolis), received only 18.5 percent of venture capital investment that year. SBTDC officials hope that the new family of funds will provide a more even distribution of capital and other business resources across the state.

 

One of North Carolina's previous efforts to build a strong statewide angel marketplace is now up for extension at the state assembly. The Qualified Business Venture Tax Credit (QBV) is estimated to have raised $1.7 billion in equity financing from when its creation in 1999 through last year, according to data from the North Carolina Biosciences Organization and the North Carolina Entrepreneurial Association. The credit is scheduled to expire at the end of this year.

 

Under the current legislation, angel investors may receive a 25 percent personal income tax credit for individual investments in businesses with less than $5 million in annual revenue. The QBV credit encourages investment in new businesses engaged primarily in manufacturing, processing, warehousing, wholesaling, or R&D. State Representative Bill Daughtridge recently introduced a bill extending the credit through 2010, noting that before it existed the state frequently lost entrepreneurs and small businesses to other states. Though angel investment fell dramatically in North Carolina following the tech bust in the early part of the decade, investment in QBV-eligible companies has grown more than 60 percent since 2004.

 

Read more about the new angel network at: http://www.inceptionmicroangelfund.com

Website Launched along with 2007 Report on the Future of the South

Building on past reports calling for higher levels of educational achievement in the South, the 2007 Southern Growth Polices Board Report outlines a three-pronged strategy to aid the southern region in attaining its goal of building a globally competitive workforce. The annual Report on the Future of the South, released earlier this month, labels its new approach "Convene-Connect-Commit," addressing the process in detail.



The report condenses information from many sources to illustrate the status of the Southern workforce. The authors reveal that, in 1980, 16 percent of the nation’s population 25 years and older had attained a bachelor’s degree or higher, compared to 14 percent in the South. However, in 2000, these numbers had risen to 24 percent for the nation and 20 percent for the South. While the percentage of degree attainment is rising, the gap is widening.



Concurrently launched with the report was http://www.enterprisesouth.biz/, an Internet portal to promote and document the development of the southern economy and workforce. The site contains selected education statistics and achievements for the Southern Growth Policy Board’s 14 members, which includes 13 states and Puerto Rico. Also incorporated into the site is a link to the Southern Growth Idea Bank, a database of best development practices from around the South. The database is searchable by the type of program, the geographic scope of the program, and the state in which the program is located.



The report can be ordered for $20 at http://www.enterprisesouth.biz/report.html. The Idea Bank database can be accessed at http://www.southernideabank.org/.



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