SSTI Digest

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. Arkansas voters will decide on Issue Three, an initiative that seeks to establish an independent citizens’ commission to evaluate salaries for public officials, eliminate free meals and gifts to state politicians, prohibit politicians from receiving donations from corporations, and restructure term limits for state senators and house representatives. Currently, Arkansas’ state representatives can serve six years in office, while senators can serve eight. Issue Three will allow politicians to serve 16 years in either chamber, rather than forcing them to switch chambers after serving at the current limits. The bill will also force legislators to wait two years before they can become a lobbyist. In Colorado, residents will vote on Proposition 105, which would require any prepackaged, processed food or raw…

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… Ohio Startups Attract $149M in Investments in 2013Investors made $149 million in total investments to Ohio startups in 2013, according to a recent report from VentureOhio. In Ohio VentureReport…

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…

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. States Support Crowdfunding LawsTwo states passed legislation to amend state securities laws in order to allow entrepreneurs to raise capital through crowdfunding platforms. Maine passed LD 1512 last month (see related Digest article) and more recently, a measure (HB 2023) was passed in Washington that enables businesses to raise up to $1 million through crowdfunding websites. The law stipulates that contributions must come from residents and businesses in the state. At least five other states have passed similar laws, and a related bill is making its way through the Alabama legislature. Enhancing Incentives for Job CreationNebraska lawmakers passed LB 1114, a measure that extends for another five years the Business Innovation Act, a program that offers technical assistance and R&D grants to…

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… These changes were among several recommendations from the Social Investment Roadmap. The government commissioned report outlined a process to further transform the UK into a global leader in social innovation and entrepreneurship. The proposed changes are the latest in a series of steps that the UK government has undertaken since David Cameron became…

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. Both Connecticut and Massachusetts included funding for STEM initiatives within their most recent budgets. The Massachusetts budget included a line item of $4.75 million for a new STEM Starter Academy that will work with one or more community colleges in the state to train students interested in STEM career fields. Connecticut allocated $1.5 billion to University of Connecticut campuses over the next 10 years to expand STEM facilities and enrollment. See SSTI’s…

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. Lawmakers Support Efforts to Promote Research CommercializationNew funding commitments in life sciences occurred in Connecticut and Indiana. Connecticut lawmakers approved Gov. Dan Malloy’s proposal to create a $200 million fund to spur bioscience R&D as part of a broader economic development agenda announced in his State of the State address. With the passage of SB 842, Connecticut Innovations (CI), a quasi-public venture development organization, over 10 years will provide capital to early stage companies with the goal of driving efforts toward commercialization of new businesses and products. CI also plans to focus funds toward translational research and riskier investments for helping university…

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. If the bill is signed by Gov. Kitzhaber, the pilot program may take several years to launch due to procedural and practical hurdles according to the New York Times. First, the Higher Education Coordinating Commission's proposed pilot program would have to address issues related to the size, structure and funding source of the pilot program. Once those concerns are addressed, the pilot program's design would have to receive legislative approval. In a Washington Post article, Dylan Matthews looks at other long-term issues related to a universal pay it forward model including initial startup cost (estimated at $9 billion in Oregon), the potential effects of a "…

A new article from Governing magazine is promoting free digital access to public information, or “Open Data,” as a pathway for promoting entrepreneurship and government cost-savings. When governments release free digital public records entrepreneurs can use the information to create apps that provide valuable and profitable services to consumers. In San Francisco, local company Appallicious used park data to build the SF Rec Park appthat allows users to easily locate the city's green spaces and search by available facilities and volunteer opportunities. Open Data can also potentially help cash-strapped local and state governments find savings through efficiency. The state of Oregon recently turned business registration into a self-service, saving significant labor costs for the state. Google has recently invested in promoting open data entrepreneurship and The Obama Administration is strong promoter of open data access, promoting a Digital Government Strategy and providing the data.gov website as a platform for civic innovation.