SSTI Digest

Oregon
Oregon Governor Ted Kulongoski has unveiled a suite of policies to address global climate change and support the state's renewable energy and clean technology industries. His proposals include instituting a cap and trade system for carbon emissions, improving the energy efficiency of commercial and residential construction, and tax credits for energy-conscious investments. The governor hopes to see the climate plan passed by the legislature in the coming year.

While the Presidential election takes center stage on November 4, voters in several states also will cast their votes on statewide ballot issues affecting the TBED community. In addition to the 11 gubernatorial races and more than 5,800 state legislative seats up for grabs, voters across the nation will consider measures to provide funding for public education, expand investment in alternative and renewable energy, lift restrictions on stem-cell research, and eliminate income tax and state spending caps. Following is a summary of selected ballot issues from across the nation.

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

Last week, the Federal Laboratory Consortium for Technology Transfer (FLC) held its annual national meeting in Portland, Ore. The gathering brought together laboratory technology transfer specialists, industry representatives and state and regional TBED organizations, among others, to discuss pertinent issues such as changes in federal legislation affecting intellectual property and SBIR reauthorization, STEM education initiatives, funding opportunities, and best practices for encouraging the successful commercialization of research. The conference also served as an entry point for those new to collaborating with the nation’s system of federal laboratories, presenting their tools and programs that can be used to enhance commercialization partnerships. 
 
At the invitation of the FLC’s State & Local Government Committee, SSTI joined the leadership of two state TBED organizations in a conference session describing the landscape of state tech-based economic development and exploring best practices and examples of collaborative efforts. From a federal laboratory’s perspective, partnering with a state TBED organization makes sense because many have connections to political leadership and access to funds for investment and infrastructure; collaborate with in-state universities and companies; can act as a gateway to specialized equipment within the state; and have connectivity to the state’s regions. This being said, the size and capabilities of each state’s TBED resources are often as varied as the diverse collection of the individual federal laboratories spread throughout the U.S.
 
Lee Cheatham, executive director of the Washington Technology Center, stressed in his presentation that technology companies are looking for opportunities where often risk is lowest and seek partners who can provide valued assistance. Federal laboratories can be those partners. The federal labs have the unique opportunity to make technology approachable though their outreach and interactions with industry partners. Additionally, the labs can influence policy and act as an access point to those wishing to explore the technology and innovation ecosystem.
 
Deborah Clayton, commissioner of Kentucky’s Department of Commercialization and Innovation, believes the best partnerships are the ones that involve “wins” for not only state TBED organizations and industry, but also the federal labs and other stakeholders at the table. Her presentation highlighted the success of past Department of Energy initiatives such as AMTEX, a cooperative R&D partnership between the U.S. textile industry DOE laboratories. Clayton recommended the re-establishment of one of these initiatives, the Laboratory Technology Research Program, which bridged the gap between basic research and technology development by incorporating cost-shared partnerships with the private sector.
 
Additionally, she advised TBED organizations to identify their state or regional strengths and resources in advance of pursuing partnerships and to become informed on the strengths and resources of nearby laboratories. TBED organizations can also be proactive by:

Many state and regional TBED organizations see federal laboratories as an integral partner in their efforts to promote technology development and commercialization. At least 22 of the leading state TBED organizations across the country have established partnerships with at least one federal laboratory to address a broad range of goals, according to a recent SSTI survey. Advancing collaborative research, strengthening industry clusters, transferring technology to/from federal labs and companies, and assisting in education and outreach were the most commonly cited reasons for pursuing closer relationships with the nation's network of 700 federal labs and research centers.

Earlier this month, Oregon’s University Venture Development Fund began operations, which will allow the state’s taxpayers to receive a 60 percent income tax credit on contributions that will be applied toward commercialization and entrepreneurial programs at Oregon’s eight public universities. Authorized by the state legislature, the fund will enable $14 million to be provided to the universities in aggregate, with each institution’s allocation formulated by its annual income from research grants and contracts.

 

The program allows individuals or corporate donors to make unrestricted gifts of cash or publicly traded stock to one or more of the selected universities. Upon university receipt of the contribution, the donor will receive a tax credit for Oregon income tax equal to 60 percent of the original donation. The credit that can be claimed by the donor in a year is 20 percent of the original contribution or $50,000 – whichever is less and does not exceed the donor’s tax liability. Any remaining income tax credits will rollover to subsequent years.

 

The full University Venture Development Fund program comes after the passage of Senate Bill 853 in 2005 and SB 582 in 2007. As specified in the legislation, each university may designate the funds for a variety of uses, including capital for entrepreneurial programs, proof-of-concept funding for turning R&D into commercially viable products, and opportunities for students to gain experience in applying research to commercial activities.

 

As currently constructed under this program, Oregon State University will be eligible to receive $5.35 million, Oregon Health and Science University $4 million, the University of Oregon $3.2 million, and Portland State University $880,000. The Oregon Institute of Technology, Eastern Oregon University, Southern Oregon University, and Western Oregon University may share $500,000. The program is designed such that the universities will repay the state for claimed tax credits from royalty incomes and licensing fees. Once repaid, the state will reissue additional tax credits.

 

Additional information about Oregon’s University Venture Development Fund is available at:

http://www.ous.edu/about/campcent/uvdf.php

Dr. J. Timothy Stout has been named to the newly created position of vice president for commercialization strategies at Oregon Heath and Science University.

The Four-County Economic Development Corp. in Portland, Ore., has changed its name to Greenlight Greater Portland.

Oregon lawmakers haveagreed to fund nearly all of Gov. Ted Kulongoski’s innovation proposals, including investments in seven new industry initiatives and the creation of two new signature research centers. The innovation plan passed by lawmakers falls $10 million short of the original $38 million proposal introduced by the Oregon Innovation Council and included in Gov. Kulongoski’s fiscal year 2007-09 budget released in December 2006 (see the Dec. 18, 2006 issue of the Digest).

 

Gov. Kulongoski signed four bills encompassing the initiative, Senate Bills 5508, 579 and 582 and House Bill 5035. SB 5508 includes $9 million over the biennium for Oregon’s first signature research center, the Oregon Nanoscience and Microtechnologies Institute (ONAMI) - $1 million less than the governor’s recommendation - and $2.5 million for a new signature research center, the Bio-Economy and Sustainable Technologies (BEST) Center. Research conducted by the BEST Center will focus on clean energy, bio-based products and green building.

 

Additionally, SB 5508 includes $2.9 million to support manufacturing competitiveness, such as advanced training and R&D to ensure a competitive workforce, and $4.2 million for the Wave Energy initiative to help build a sustainable industry on the Oregon coast by using ocean waves to generate electricity. The Food Processing Innovation and Productivity Center will receive $3.4 million for R&D and training.

 

Funding for the state’s second new signature research center is designated within HB 5035. The legislation includes $5.25 million for the Oregon Translational Research and Drug Development Institute to develop and commercialize new drugs to fight infectious diseases. The institute also will provide access to drug development resources that many companies cannot afford to build themselves, according to the governor’s press office.

 

SB 579 expands the authority of the Oregon Growth Account (OGA) Board and Oregon State Treasurer’s office, giving them the authority to invest money from the OGA account into funds designated to make seed investments in new and existing emerging companies.

 

The budget does not include funding for the proposed $5 million Cluster Accelerator Fund, a partnership with the Oregon Economic Development Department to strengthen the state’s innovation pipeline in selected technology areas.

 

The bills signed by Gov. Kulongoski represent a victory for the state’s TBED strategy. Earlier this year, Sen. Kurt Schrader (D-Canby) and Rep. Mary Nolan (D-Portland) unveiled the Co-Chairs’ 2007-09 Recommended Budget, which only included $19 million for the initiative -- about half of the original proposal (see the April 30, 2007 issue of the Digest).

The Oregon Innovation Council (Oregon InC), which spent a year reviewing how best to expand the state’s economy by leveraging industry-supported initiatives with public investments, may get to see the toils of its labor come to fruition. Gov. Ted Kulongoski released earlier this month his 2007-09 budget, with full support for the innovation plan put out by Oregon InC.



Oregon InC, a private-public statewide advisory council created by the 2005 legislature, had proposed $38.2 million for investment in industry and research initiatives to increase productivity and generate innovative technologies (see the Oct. 2, 2006 issue of the Digest). The governor's budget includes full funding for the council's proposals, including:

John Tortorici is retiring as president of the Software Association of Oregon.

The Open Technology Business Center, a Beaverton, Ore.-based incubator, has named Steve Morris as its third executive director.