SSTI Digest

In case you missed it, the midterm elections were on Tuesday, resulting in Republicans taking control of Congress, several new governors, and five states endorsing minimum wage increases. Although the 146 state ballot measures up for vote were a quarter-century low, several proposals were relevant to the TBED community, as highlighted in a Digest article last week. Voters ultimately approved many of these proposals, although initiatives related to higher-education in North Dakota and Oregon both failed. 

On November 4, 42 states will vote on 146 ballot issues across a wide array of issues. In addition to initiatives on gun control, bear baiting, and the minimum wage, several initiatives relevant to the TBED community are also up for decision. SSTI has gathered information on many of these and will discuss their results after next week’s elections.

In Q3 2014, venture capital (VC) investments in the U.S. dropped by 30 percent from Q2 totals, according a new report from CB Insights. Q3 VC deal levels also dropped by 10 percent from Q2 totals. The severe drop, however, can be attributed to Q2 being the most successful VC quarter since Q1 2001. The good news is that the first three quarters of 2014 saw the U.S. VC investment total reach $33.75 billion – an increase of 59 percent compared to the first nine months of last year.

The initial public offering (IPO) market fell off significantly in Q3 with just 18 U.S.-based, VC-backed companies going public. In comparison, 59 companies went public in Q1 and Q2 combined. CB Insight researchers also found while late-stage deal share remained consistent at about 16 percent with Q1 and Q2, the size of those investments in share of venture capital dollars by series dropped from 35 percent in Q1 to only 22 percent in Q3. Read the report…

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.

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.

Oregon derived about 28 percent of its GDP from information and communication technology (ICT) industries in 2012, according to a new report from the Technology CEO Council, based on Moody’s Analytics data.  The report highlights the importance of ICT exports to each state economy. ICT hardware, software and services were the largest U.S. export sector in 2012, generating $272 billion for the U.S. economy. Oregon, Colorado and Washington were the country’s most ICT-focused economies in terms of GDP, while Virginia employed the largest share of its workers in ICT industries. Read the report…

Investments and policy to support innovation-focused agendas have flourished with the close of the 2014 legislative sessions in several states. Crowdfunding legislation, incentives for attracting talent, higher education affordability, punishing patent trolls, and encouraging greater accountability are some of the areas where lawmakers focused their efforts.

The National Institute for Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) program recently awarded $2.5 million for five pilot projects to improve small U.S. manufacturers' supply chain competitiveness and foster their readiness to adopt advanced technologies. The projects will be led by MEP centers and bring together teams of experts in specific technology areas. MEP centers in California, Georgia, Oregon, Texas and Wisconsin each will receive approximately $500,000 for the pilot efforts, which, in most cases, involve partners in other states. Read the announcement…

UK Moves to Support Growing Social Innovation SectorThe United Kingdom (UK) recently announced that it will petition the European Commission, the European Union’s executive body, for permission to increase the size of tax relief for social investments that address significant social issues. The proposed plan would:

Expand the options for indirect investment in social enterprises; Establish a government-run accreditation scheme for Social Impact Bonds eligible for social investment tax relief; and,  Make changes to community interest companies’ regulations to promote the strategy to investors and social enterprises.

The proposed changes could spur up to £500 million (approximately $829.8 million USD) in social impact investments over the next five years. Read the announcement…

States across the U.S. are directing their attention to science, technology, education and technology (STEM) education, and already have passed a plethora of new initiatives in the current legislative session.  These programs are directed at various levels of education including primary education and higher education, with one program specifically designated for the state’s community colleges. A number of states have created STEM advisory councils under the governors’ offices, following the lead of Iowa and Massachusetts. Such measures suggest that STEM is no fleeting policy issue and that states are beginning to recognize the economic value of making long-term investments in students.

A continued trend toward improved fiscal conditions gave rise to targeted and riskier investments in research for several states this legislative session. In particular, lawmakers dedicated funds for life sciences research and for initiatives aimed at commercialization through partnerships with higher education and the private sector. Other states dedicated additional funds to expand promising research and technology-focused initiatives already underway.

Oregon lawmakers unanimously approved a bill (HB 3472) that instructs the state's Higher Education Coordinating Commission to design a pilot program to evaluate a new college funding system known as "Pay It Forward." Under the proposed model, students would commit a percentage of their future incomes to repay the state, instead of paying tuition or taking out traditional loans to attend community colleges and universities. The bill currently awaits the signature of Gov. John Kitzhaber.