SSTI Digest

SSTI has analyzed more recently released state budgets for TBED-related initiatives, and this week we present findings from our review of AZ, GA, IA, IN, UT and VA.   

Arizona

Arizona Gov. Doug Ducey’s proposed $9.8 billion FY 2018 budget would support R&D infrastructure at the state’s three public universities (University of Arizona, Arizona State University, and Northern Arizona University) through the newly-announced University Capital Investment Program. This program would enable universities to use the transaction privilege tax revenues that they generate for as much as $1 billion in bonding for new research and development infrastructure, including deferred maintenance projects.

Education is a major emphasis of the governor’s proposed budget, and while the majority of funds go toward teachers and schools more broadly, Ducey also proposes $5 million in new investments to help connect rural schools to high-speed internet, as well as $200,000 to support a new statewide computer science and coding initiative.

Tuesday’s ceremonial groundbreaking on a new building in Philadelphia marks the foundation of a new collaboration between a number of players that are hoping to accelerate the innovation community in the city. University City Science Center (UCSC), an SSTI member that has operated in Philadelphia for 54 years, is partnering with the Boston-area Cambridge Innovation Center (CIC) as well as Wexford Science and Technology on a new space that will create a stronger group of serial entrepreneurs and increase the level of investment in the community, said UCSC President and CEO Stephen Tang. The new building allows the Science Center to expand its headquarters and triple the size of its “entrepreneur’s clubhouse”, the Quorum.

More governors delivered their state of the state addresses and this week we bring you TBED news from governors around the country. Areas of focus include tech infrastructure needs, diversifying economies, cybersecurity and education. While some governors are giving their inaugural addresses, Gov. Nikki Haley used her time to bid farewell. Following are excerpts from the past week’s addresses.

Colorado

Gov. John Hickenlooper gave his annual state of the state address last Thursday, focusing on infrastructure needs – notably roads, but also tech needs:

“We need a comprehensive focus on infrastructure that supports not just transportation, but also broadband, education, healthcare, and our environment.

 “Today, I’m announcing the creation of a broadband office to help us get from 70% to 85% coverage by the time we leave office and 100% by 2020.

In an attempt to make college more affordable and accelerate the number of students completing degree programs in Rhode Island, Gov. Gina Raimondo has proposed a new program guaranteeing two years of free college for Rhode Island students. The program, Rhode Island’s Promise, would cover the entire cost of tuition and mandatory fees for full-time students who qualify for in-state tuition earning an associate’s degree and graduating on time from the Community College of Rhode Island. At Rhode Island College and the University of Rhode Island, the scholarship would cover tuition and fees for a student’s junior and senior years.

The governor’s office noted in its press release that there is an immediate need for more Rhode Islanders to obtain a higher degree in their education, and projects that more than 70 percent of jobs in the state will require a post-secondary degree in the coming years.

The Department of Homeland Security has amended its regulations surrounding its discretionary parole authority in order to increase and enhance entrepreneurship, innovation, and job creation in the U.S. The final rule, which will go into effect July 17, adds new provisions that can be used on a case-by-case basis with respect to foreign entrepreneurs of start-up entities who can demonstrate a potential for rapid business growth and job creation, and thus provide a significant public benefit to the U.S. That potential could be indicated by, among other things, the receipt of significant capital investment from U.S. investors with established records of successful investments, or by obtaining significant awards or grants from certain federal, state or local government entities. If granted, the parole would provide a temporary initial stay of up to 30 months (which may be extended by up to an additional 30 months) to facilitate the applicant's ability to oversee and grow his or her start-up entity in the United States.

The Angel Resource Institute (ARI) is looking for angels and angel groups to provide data for the 2016 Annual Halo Report to be presented at the Angel Capital Association’s Summit in April. ARI aggregates and analyzes data for reports regarding investment trends and opportunities. Data can be uploaded directly to the database, or users may download the ARI spreadsheet and send it to ARI. To be included in the 2016 annual report, data must be submitted no later than Jan. 25. More information can be found here.

Pittsburgh will be home to the Advanced Robotics Manufacturing (ARM) Innovation Hub, the newest member of the Manufacturing USA network. The U.S. Department of Defense announced that American Robotics, Inc., an independent nonprofit spun out of Carnegie Mellon University will receive roughly $80 million in federal funding to launch the institute, matched with $173 million in support from the university and a consortium representing approximately 120 industry partners, 40 academic institutions and 60 non-profit and government entities.

SSTI again presents its latest round of Tech Talkin’ Govs, where governors’ comments about TBED issues are excerpted from their state of the state and inaugural addresses. Today’s roundup includes STEM spending and workforce development in Idaho, education in Arizona, manufacturing in Connecticut and a nod to technological change in North Dakota, inaugural addresses from new governors in Vermont and Indiana, and more reports from governors who gave their addresses on the 10th. Next week the Digest will continue with Part II of Tech Talkin’ Govs featuring news from the next round of addresses.

Vermont

During the first week of January Gov. Phil Scott gave his inaugural address focusing on the state’s shrinking workforce and its implications to a joint session of the Vermont legislature.

As governors around the country are releasing their proposed budgets, SSTI is examining the proposals for TBED initiatives and will be presenting the findings here. This week Idaho, Maine and Washington are reviewed. Check back in the coming weeks for updates.

Idaho

In his FY18 budget proposal, Idaho Gov. Butch Otter recommends approximately $2.1 million for economic and workforce development efforts at institutions of higher education including:

$652,900 for a new PhD program in computing with computer science, cybersecurity, and computational science and engineering specializations; and $381,500 for the venture college program expansion to deliver innovation and entrepreneurial skill sets to students.

In addition to these efforts, Gov. Otter proposes a transfer of $35 million to the Permanent Building Fund for higher-education facilities throughout Idaho including:

SSTI encourages its member organizations to sign onto a letter to Congress organized by NDD United, a broad coalition advocating for parity under sequestration for non-defense discretionary (NDD) funding and defense funding. The current leadership in Congress has made clear its priority to increase defense department spending at the expense of nondefense domestic spending, which includes programs under the EDA, SBA, NIST, NIH, NSF, the Department of Education, and more. Should this happen, many of the federal programs that TBED organizations rely on could be cut. NDD United is bringing together organizations from across the domestic funding space—from education to the sciences to transportation to housing—to ask Congress to protect non-defense domestic spending. SSTI encourages you to join us and hundreds of other organizations in signing on. View the full text of the letter here.

The U. S. House of Representatives wasted no time at the start of the new Congress, passing seven bills Tuesday that had been approved by the chamber in a previous session but had not received consideration in the Senate. Four of these bills with particular relevance to the innovation community are the HALOS Act, TALENT Act, Leveraging Emerging Technologies Act of 2017  and Promoting Women in Entrepreneurship Act.

The HALOS Act (H.R. 79), introduced by Rep. Steve Chabot (R-OH), directs the Securities and Exchange Commission to provide a clear exemption for demo days and similar activities from Regulation D. Exempted events would not have to screen investor qualifications of attendees so long as securities are not advertised or sold at the events.

The National Science Foundation (NSF) released a solicitation committing up to $8 million to support between one and seven Innovation Corps (I-Corps) Nodes. The nodes are part of I-Corps’ National Innovation Network that builds upon fundamental research with the goal of dramatically reducing the period of time necessary to bring a promising idea from its inception to widespread implementation. NSF will support new or previously funded Nodes that will foster understanding on how to: