SSTI Digest

Throughout the United States, innovation districts have been proposed with varying degrees of emphasis on inclusivity and opportunity. In January 2016, a public-private partnership representing many of Baltimore’s most influential anchor institutions, community-based organizations, and private companies declared their intent to develop an innovation district in West Baltimore dubbed the “Innovation Village.”  This week, the Innovation Village steering committee announced several initiatives aimed at supporting inclusive economic growth in West Baltimore neighborhoods including free Wi-Fi, entrepreneurial assistance programs, and the development of a food hub. The commitments made to support the Innovation Village are aimed at increasing economic inclusion in an area of the city mired by inequality, as noted in Technically.Baltimore. Among the most notable is the intent to set up free wireless Internet connectivity in the entire district. This would be led by a pilot project seeded with $50,000 from OneBaltimore, a nonprofit organization created by the city of Baltimore in spring 2015 to support ongoing efforts to rebuild communities and…

Maryland legislators recently approved a $42.3 billion fiscal year 2017 spending bill that incorporates many of the funding levels included in Gov. Larry Hogan’s proposal. Gov. Hogan made education a main focus of his proposal, and the final bill would hold university tuition increases to no more than 2 percent. In addition, legislators formalized the growing strategic partnership between University of Maryland campuses in Baltimore and College Park. The unification is intended to bolster the state’s research profile, and drive high-tech industries in the Baltimore region. Funding for the Maryland Technology Development Corporation (TEDCO) total $26.8 million, up from $18.9 million in FY 2016. TEDCO manages the Maryland Stem Cell Research Fund, which is set to receive a $9.1 million appropriation in FY 2017. Other life sciences initiatives, outside TEDCO, include the Office of BioHealth ($1.7 million) and the Maryland Biotechnology Investment Tax Credit Reserve Fund ($12 million). Maryland also offers a number of cybersecurity-related programs, including TEDCO’s Cybersecurity Investment Fund ($900,000), the Office of Cybersecurity and Aerospace…

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Arizona, Maryland, Missouri and South Carolina. ArizonaLast week, Gov. Doug Ducey released his $9.5 billion budget proposal for fiscal year 2017 and presented his second State of the State Address. The governor highlighted his office’s work in reducing spending, offered several tax-reduction proposals and pushed for additional funding for the state’s child safety system and a boost for K-12 education. Gov. Ducey also noted that immediately before his address, he signed an executive order creating the Governor’s Council on the Sharing Economy, to help encourage growth and innovation in this emerging economic sector. The council will develop recommendations to help improve the environment for businesses based on ridesharing and other peer-to-peer services. Under the proposed budget, the Arizona Commerce Authority would receive $48.7 million, including $21.8 million from the general fund and…

Last month, Minnesota Gov. Mark Dayton signed the MNVest bill – an intrastate securities exemption that allows Minnesota-based companies and entrepreneurs to raise money through equity crowdfunding. To qualify for the exemption, businesses must show evidence of several requirements including being organized under state laws and that its principal office is located in Minnesota. Companies can raise capital from both accredited and non-accredited investors from across the state. In any 12-month period, a company cannot raise more than: Up to $2 million if the business provides prospective purchasers with audited or reviewed financial statements; and, Up to $1 million if the financial statements are not audited or reviewed. The exemption allows accredited investors to invest an unlimited amount (up to the maximum investment of $2 million) in companies using the state rules. However, non-accredited investors are capped at $10,000 per transaction. To facilitate investments and protect consumers from fraud, the offering must be conducted exclusively through an authorized MNvest portal – an authorized broker-dealer registered by the State of Minnesota as a…

Forty-one states are spending less per student than before the 2008 recession, according to a recent study from the Center on Budget and Policy Priorities. As a result, more of the burden of higher education costs is being passed on to students, putting college out of reach for many. With state budgets still tight, many states are experimenting with new ways to make a college education accessible to all students. Last week, Georgia Gov. Nathan Deal signed legislation removing barriers to dual enrollment for high school students taking post-secondary courses. SB 132 streamlines requirements for high school juniors and seniors to take universities courses, including virtual courses, for credit. The revisions are based on the findings of the state's 2014 Dual Enrollment Task Force. High schools will be able to apply for grants to provide transportation to dual enrollment students, and tuition will be covered by the state. A separate bill, SB 2, will allow students to simultaneously pursue credit for a high school degree and a technical college or associate's degree at a public institution. Gov. Deal said the program will target training in strategic industries.…

Following a lively debate over education funding, state worker pay and pensions, Maryland legislators approved a $40 billion budget. Under the approved legislation, $68 million would be available to support the state's most expensive school districts. Gov. Larry Hogan, however, had favored using those funds, and an additional $132 million, to shore up the state's pension fund, according to the Washington Post. Gov. Hogan will not be able to spend these funds for any other purpose than that approved by the legislature, but has expressed an interest in letting the funds go unspent. The approved budget provides $3.8 million for the Office of Business Development, $3 million for Maryland's Office of Strategic Industries and Innovation, and $1.8 million for the Small Business Development Financing Authority. The $19 million set aside for programs under the Maryland Technology Development Corporation includes $9.4 million for the Maryland Stem Cell Research Fund, $3.6 million for Technology Development, Transfer and Commercialization, $4.9 million for the Maryland Innovation Initiative, and $1 million for the Cybersecurity Investment Fund. The budget…

Last week, Johns Hopkins University released an action plan to cultivate and support a culture of innovation and entrepreneurship throughout the university and the Baltimore region. The implementation plan, which represents $40 million in new university investments in innovation initiatives over five years, is a response to the 22 specific recommendations for university innovation included in a May 2014 innovation report. The initiatives included in the implementation plan will be carried out by Johns Hopkins Technology Ventures, a new organization that encompasses technology licensing, corporate and industry relations, and FastForward, the university’s business accelerators. Read the press release here… In her State of the City speech on March 9, Baltimore Mayor Stephanie Rawlings-Blake announced pieces of her small business and entrepreneurship plan, including a $1M innovation fund to promote growth in high-tech businesses. The plan includes 20 specific action items along four key goal areas: increasing resources for small businesses, cultivating the innovation economy, promoting an inclusive economy, and making Baltimore more business-friendly.…

Over the past decade stem cell research has been touted as a game-changer in the life sciences and a potential fount of new biomedical innovations. As a result, several states have launched targeted programs to support stem cell research, despite the controversy that tends to surround the field. New research suggests that these programs have been effective at increasing the output of researchers in their respective states. State investments in California and Connecticut have helped researchers outperform their colleagues around the country, according to a recent paper published in Cell Stem Cell. Programs in New York and Maryland did not have quite the same impact, but helped research output in those states keep pace with other states. Authors Hillary B. Alberta, Albert Cheng, Emily L. Jackson, Matthew Pjecha and Aaron D. Levine examine the impact of stem cell programs in California, Connecticut, New York and Maryland, though the study also acknowledges efforts in Illinois and New Jersey. Over the past 10 years, each of these states has invested in basic and translational stem cell research for the stated purpose of advancing the science and creating jobs. The programs…

Governors in Maryland, Minnesota, and Florida proposed substantial funds to higher education in their budgets this week, with an emphasis on affordable education and expanded research capacity. Maryland Gov. Larry Hogan’s structurally balanced $40.5 billion FY 2016 budget marks the first time in 10 years that the state’s general fund spending would be aligned with available general fund revenues, according to the governor’s office.  Included in Gov. Hogan’s proposed budget allowance is: $10.6 million to support small, minority, and women-owned businesses and $6.3 million to promote small businesses owned by economically and socially disadvantaged entrepreneurs. $12 million in biotechnology tax credits to leverage investment for life sciences companies, $9.4 million to further develop stem cell technology, and $2.5 million, after contingent reductions, in investments and tax credits to promote cybersecurity research. $9 million in research and development tax credits, $8.5 million to create endowed research chairs at universities, and $4.9 million to commercialize research conducted at participating universities through the Maryland…

The Maryland Technology Development Corporation (TEDCO) announced that it received state-backing for its Cybersecurity Investment Fund (CIF) – a fund that helps companies across the state develop and commercialize new cybersecurity products. TEDCO will make investments of up to $100,000 to help companies achieve early technical milestones that are critical to the commercialization process. Technologies eligible for CIF funding include devices and software that protects networks and components of networks from unintended or unauthorized access, vulnerabilities, attacks, use, change, or destruction. Additionally, computer and critical infrastructure security includes protection from unplanned events and natural disasters. Read the announcement… Learn More at SSTI's 2014 Annual Conference!Join us for Private Funds in Nonprofit Innovation Initiatives, TEDCO’s President & Executive Director Robert Rosenbaum and Tom Walker, President & CEO of TechColumbus, will share their insight on the role of venture development organizations in helping support regional prosperity through geographically focused equity investment funds. For more…

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, capital & tax credits, technology commercialization & infrastructure, workforce & STEM and manufacturing & clusters. With an eye toward long-term payoffs associated with investments in research, lawmakers dedicated funds and strengthened ties with industry partners. Some states made significant investments in facilities and R&D to grow cancer research capabilities, while others looked to universities to establish new avenues for discovery or attract star researchers. In Washington, the life sciences community banded together to save a nine year-old grant fund that invests in R&D and helps the state remain competitive. Two states, Florida and Oregon, passed bills that dedicate funds to elevate their state’s status in cancer care and research. In Florida, lawmakers earmarked $80 million in the FY15 budget for a cancer research initiative announced earlier in the year by Gov. Rick Scott.  Of the amount, $60 million is slated for existing…

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, research capacity, technology commercialization & infrastructure, tax credits & STEM and manufacturing & clusters. Addressing accessibility, affordability and ensuring workforce preparedness topped legislators’ agendas in many states during the 2014 sessions. States and regions are increasingly competing for talent as the trend toward growing and nurturing innovation ecosystems continues. Attracting and retaining high-tech companies also requires states to have a steady stream of tech-savvy workers. Specifically, policymakers are interested in matching worker skills with industry sectors important to their communities, and many of the efforts put into place during the legislative sessions focus on building long-term relationships between industry and higher education. Three states, Louisiana, Utah and Wisconsin, dedicated notably large sums of money toward workforce training with a STEM focus. One of the largest investments was made in Louisiana, where…