SSTI Digest

In his State of the State address, Gov. Neil Abercrombie stressed the importance of investing in innovation to diversify the state's economy and grow Hawaii's economic base, traditionally rooted in military and tourism. To this end, the governor wants to back startup companies with $20 million over two years for what he considers the critical building blocks of an innovation ecosystem: research commercialization, entrepreneur mentoring and the mobilization of startup investment capital. The HI Growth Initiative aims to attract support from the private sector and is geared toward businesses in digital media, food tech, med tech, information technology, clean energy, and other knowledge-based and creative industries. If approved, funding and programs would be managed by the Hawaii Strategic Development Corp. Read more....

The third installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Georgia, Hawaii, Indiana and Michigan. Our first two installments were in the Jan. 9 and Jan. 16 issues of the Digest. GeorgiaGov. Nathan Deal, State of the State Address, Jan. 17, 2013“Two years ago, we worked together to save our HOPE Scholarship program. As a result, it remains one of the most generous state run scholarship programs in the nation. It is also keeping our best and brightest students in Georgia. “Today, I am happy to say that my budget will increase the Hope Scholarship by 3 percent over last year, bringing the total funds going to Hope in FY 2014 to nearly $600 million.” HawaiiGov. Neil Abercrombie, State of the State Address, Jan. 22, 2013“What about innovation? While the hospitality industry is fortunate to have Hawaii to rely upon, while the US Military derives clear advantages from our location, and while construction is rebounding, we must look to diversify our economy in order to grow our economic base. “To this end, I will be proposing the HI…

A new report from TechNet finds that on the two-year anniversary of the National Broadband Plan aimed at getting more Americans to use broadband at home, the adoption rate remains about the same. The study identifies several reasons behind the plateau and calls for better coordination among policymakers and private stakeholders to improve adoption rates. Meanwhile, some states have big plans in the works to improve their broadband networks, including governors in Hawaii and New York pushing for funding to expand Internet access to underserved areas. Ohio's governor is taking a different approach in hopes of attracting new employers and cutting-edge researchers with a $10 million state-led initiative boasting broadband speeds that officials say would far exceed the rest of the nation. The TechNet report finds the number of Americans with broadband at home has remained around 65 percent since 2009 when the National Broadband Plan was implemented under the American Recovery and Reinvestment Act (ARRA). At the same time, smartphone adoption and apps usage has grown significantly. However, this is not because smartphone users are swapping broadband service at home with smartphone…

The High Technology Development Corporation, an agency of the State of Hawaii, is responsible for promoting and advancing technology-based economic development in Hawaii. They are currently seeking applicants for two positions: HTDC Manufacturing Extension Partnership Program Coordinator will mainly provide project support and assistance to the HTDC MEP center director and MEP project manager, reviewing documents to ensure state and federal regulatory compliance plus assisting with tracking, compiling and enter project progress data. HTDC Economic Development Specialist will work closely with the HTDC executive team to plan, organize, staff, implement, and track projects as well as provide support for programs and innovation centers across the state.

The Natural Energy Laboratory of Hawaii Authority, a semi-autonomous Hawaii State agency that developed and manages a globally unique and innovative technology incubation and commercial park in Kailua-Kona on the island of Hawaii, currently is seeking an Executive Director. The Executive Director will lead and execute NELHA's mission to develop new and diversified drivers for the Hawaii economy by providing resources, facilities and services for energy technology and ocean science research, education and commercialization activities. The Illinois Science and Technology Coalition is seeking aProgram Director, Innovation and Special Initiatives. Key traits of the ideal candidate include: The ability to analyze technical information. Experience with / knowledge of federal and state government. Experience with competitive funding proposals and grant writing. The ability to review public budgets, administrative rules and legislation.   Read more job postings

The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Delaware, Hawaii, Michigan, Missouri, Nevada, and Vermont. The first three installments are available in the Jan. 5, Jan. 12 and Jan. 19 issues of the Digest. AlaskaGov. Sean Parnell, State of the State Address, Jan. 19, 2011"That's why this year I know we can work together to enact the energy strategy that I've submitted. This comprehensive plan puts us on track to achieve the renewable energy goal we established, together, that Alaska will derive 50 percent of our electrical power from renewable sources by 2025. To get there, I'm asking you to move decisively and aggressively with me. Let's work together this year to invest at least $65 million to jump start planning, design, and permitting for the Susitna Hydro Project; provide at least $25 million for renewable energy grants ..." DelawareGov. Jack Markell, State of the State Address, Jan. 20, 2011"And to drive home the message that Delaware is the best place to start and grow a business, we must promote job-creating capital…

In April, University of Hawaii's President M.R.C. Greenwood appointed an eight-member council to develop a strategy that would increase innovation and technology transfers throughout the university system. The council recently announced a drafted of four recommendations that would help the university system to "achieve a high-value economy in Hawaii." The recommendations build and approve upon the system's existing research capacity. The recommendation also focuses heavily on creating an innovation ecosystem built upon entrepreneurship and university-private partnerships. The four recommendations include: 1) Identifying Research as an Industry in Hawaii The Council recommends that the university system put forth a strong recruiting effort to attract world-class talent in strategic advantage areas (e.g., astronomy, oceanography and volcanology). The university already attracts over $400 million in research dollars annually. With additional world-class talent in these areas, the council contends that the university could see significant increases in research funding. Developing formal relationships with non-university research entities also will "increase…

Citing further damage to the state's reputation as a place to do business, Lt. Gov. James "Duke" Aiona, vetoed SB 2401, a measure to suspend Hawaii's high-tech tax credit, which provides a 100 percent refundable tax credit for investments in qualified high-tech businesses. Lt. Gov. Aiona also challenged the legislature's assertion that the bill would have saved the state $93 million a year, stating that it was uncertain whether revenues from the measure could have been counted toward the state budget because a number of investors and businesses likely were to challenge the measure in court if it became law, according to a press release. Lt. Gov. Aiona is acting governor while Gov. Linda Lingle travels overseas. Read the veto letter: http://hawaii.gov/ltgov/news/files/2010/SB2401%20-%20SOBJ.pdf

Saving the state an estimated $93 million a year, Hawaii House and Senate negotiators agreed to suspend the High-Tech Tax Credit, known as Act 221, for three years, reports the Honolulu Advertiser. Lawmakers also agreed to repeal the tax credits in May rather than at the end of December, the article states. The tax credits, available for equity investments in qualified high-tech companies, were established to provide seed funding for technology and entertainment projects. Controversy over the effectiveness of the tax credits resulted in several revisions aimed at tightening restrictions over the past decade. Just last year, lawmakers passed a bill capping the tax credits for investors at 80 percent. The bill became law without Gov. Linda Lingle's signature (see the Aug. 12, 2009 issue of the Digest). The corresponding bills to suspend the credits are HB 2962 and SB2401.

People   Lee Cheatham announced he is leaving his position as executive director of the Washington Technology Center and has accepted the position of operations director at the Biodesign Institute at Arizona State University. Chris Coleman, WTC's current CFO and director of business operations, has been selected to serve as interim executive director for the organization. The Hawaii Science & Technology Council announced that Keiki-Pua Dancil is the new president and chief executive officer of HSTC and its sister organization, the Hawaii Science & Technology Institute. Dancil replaces outgoing HSTC/HSTI founder and president Lisa Gibson. Paul Frater is leaving his position as the director of Emerging Technologies, New Zealand Trade and Enterprise. Stephan Helgesen is leaving his position as the director of the Office of Science and Technology with the New Mexico Economic Development Department. Iowa Gov. Chet Culver has named Bret Mills as the state's new director of economic development. Keith Stokes, executive director of the Newport County Chamber of Commerce, has been appointed…

Hawaii Governor Linda Lingle recently allowed a significant revision to the state's High-Technology Investment Tax Credits program become law without her signature. The program, which has provided a 100 percent credit on high-tech investments since 2001, now will cap its credits at 80 percent. Investors also will no longer be able to transfer their credits to other investors. The revisions will apply through December 2010, when the tax credit program is scheduled to expire. Hawaii's investment tax credit has gone through a number of changes since its introduction in 1999. The credit originally allowed investors to receive a tax credit equal to ten percent of their investment in a high-tech firm, up to $500,000 per year. The credit was expanded in 2001 to allow investors to recoup 100 percent of their investment in tax credits, spread out over five years. The maximum single-year credit was raised to $700,000. The 2001 changes also removed a requirement that the company be involved in a minimum amount of research to qualify investors for the credit. In 2004, eligibility for the credit was limited by a requirement that investee firms be certified Qualified High Technology…

With less money to spend on risky endeavors, many states are taking more targeted approaches toward economic development, seeking out sectors of the economy they consider most likely to grow and be sustainable beyond current conditions. In Hawaii, for example, lawmakers established an Aerospace Advisory Committee this session seeking long-term growth in aerospace-related industries. Missouri legislators, meanwhile, passed an "emergency jobs bill" expanding tax credits for technology business projects, and North Dakota lawmakers increased funding for agricultural research and infrastructure. The following overview provides highlights of approved budgets and legislation from the 2009 sessions in Hawaii, Missouri and North Dakota. Hawaii Lawmakers agreed to a scaled-back restructuring plan for the Department of Business, Economic Development and Tourism (DBEDT), separating one division from the department and transferring two attached agencies to other departments. A proposal introduced earlier in the session called for the removal of several programs from DBEDT, including transferring the state's lead TBED organization, the High Technology…