SSTI Digest

With the start of the new year, 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 Idaho, Iowa and New York. Idaho In his State of the State and Budget Address earlier this week, Gov. Butch Otter emphasized the need for investment in STEM education and building a stronger bridge between the K-12 system and well-paying jobs. To achieve this, the governor hopes to implement the recommendations of a recent educational task force, and to fund a number of STEM-centered initiatives. These include $4 million for the state’s STEM Action Center to fund grants and projects and to match industry contributions. Gov. Butch Otter’s proposed fiscal year 2017 budget includes $25.3 million for post-secondary education to expand research initiatives, workforce development and educational opportunities. Another $10 million would bolster the state’s STEM Education Fund while $99,000 would be provided to prepare students for university computer science…

Over the past few months, SSTI has followed proposals issued by governors in their budget requests, State of the State Addresses, Inaugural Speeches and other events. Now that many state legislatures have begun approving budgets, the Digest will check on the status of these proposals, and examine the state of technology-based economic development funding in the states. This week, we review budgets in Arizona, New Mexico, South Dakota, Utah, West Virginia and Wyoming ArizonaArizona legislators approved many of Gov. Doug Ducey's proposals to dramatically reduce higher education spending. The governor's budget recommended ending all funding for three of the state's community colleges. Under the approved bill, community colleges in Maricopa and Pima will lose all state support, though the Pinal County Community College system would receive about $2 million, according to an article in The Arizona Republic. However, STEM and workforce programs at state-funded community colleges will receive about $5 million. Legislators approved even larger reductions for the state's higher education system than the governor proposed. Gov. Ducey proposed a $75…

SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2015 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The second installment of this year’s series includes excerpts from speeches delivered in Arizona, Idaho, Indiana, South Dakota, Virginia, Washington, Wisconsin and West Virginia. Read last week’s installment featuring speeches in California, Kentucky and Vermont here.   ArizonaGov. Doug Ducey, State of the State Address, Jan. 12, 2015“… Last week, I signed an order placing a moratorium on new regulations in the executive branch. It was a good beginning, but only a beginning. “There is also the matter of many state regulations already in place, often for reasons that nobody even remembers. Our small businesses have to deal with all these little rules all the time, just because they’re on the books and nobody’s bothered to change them. I’m instructing the directors of every agency to conduct a top-to-bottom review of regulations,…

As governors around the country begin their newest terms, their proposed budgets are beginning to take shape. Although few governors specifically target technology based economic development, after the first wave of budgets a variety of initiatives related to workforce development and higher education have garnered support.    California Gov. Jerry Brown released his proposal for a $164.7 billion budget for FY 2015-16 with a $113.3 billion general fund. As budget deliberations continue until June 15th, it is expected that resistance will come from both the University of California (UC) system and Democratic policymakers hoping to restore the health and social services programs that were reduced during the most recent recession.  Of the general fund, 12.4 percent is projected to go toward higher education, with the UC and the California State University (CSU) system each receiving about $3.1 billion, and the California Community College (CCC) system receiving $8.1 billion. By providing an increase of $119.5 million to both, both the UC system and the CSU system will be able to hold tuition flat. The budget also provides $25 million for…

Several bills aimed at supporting startups, advancing research and improving the workforce have been introduced with the start of the 2014 sessions. Some of the proposed legislation offers a glimpse into the investment priorities of governors and lawmakers in the wake of economic recovery. Providing innovative companies with access to startup funds is a continued theme from previous years. Some states are seeking to expand tax credits for angel investors or offer new tax credits to encourage emerging industries. Other bills focus on generating more skilled workers quickly and positioning universities to enhance regional economic competitiveness. Two More States Introduce Crowdfunding Bills Lawmakers in Alabama and Maine hope to make it easier for startup companies to raise money through crowdfunding platforms with legislation to amend state securities laws. In Alabama, the Senate unanimously approved SB 44, allowing individuals to invest up to $5,000 in a venture. Small businesses are limited to raising $1 million through crowdfunding websites. Legislators in Maine will consider LD 1512, An Act to Increase Funding for Startups. Similar to the Alabama bill,…

Angel capital has long played a vital role in state and regional innovation economies, but recent trends in investment capital have pushed angel investment to the fore. As the supply of seed stage venture capital declines in many parts of the country, angels have stepped in to bridge early stage funding gaps for technology startups. The proliferation of angel investors and groups over the last few years has outpaced the recovery of the venture capital industry since early 2009, according to data from the PricewaterhouseCoopers/National Venture Capital Association Moneytree Survey and the University of New Hampshire Center for Venture Research. In the midst of these changes, many states have stepped up their efforts to attract and incentivize angel investment. Recent initiatives in Minnesota, Florida, Kentucky and West Virginia seek to book seed and early stage capital by working with angel investors. Minnesota Gov. Mark Dayton recently announced the creation of a new $6.7 million Angel Loan Fund to augment the state’s Angel Tax Credit. Both initiatives operate with federal support through the State Small Business Credit Initiative (SSBCI). The new loan program will…

Now in its 14th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in Idaho, Kentucky, New York, Virginia, and West Virginia.  Idaho Gov. Butch Otter, State of the State Address, Jan. 6, 2014 “We also must continue investing in the strong collaborative relationship between our universities and the Center for Advanced Energy Studies. That's why my budget calls for adding $1 million to our annual investment in that facility, which consistently yields incredible returns and value to Idaho's asset portfolio. … “… Partnerships also are at the heart of efforts to improve our Workforce Development Training Fund program. You can expect to see more targeted use of grants for training employees not just for individual businesses, but for the market-driven growth of industry sectors that add value to Idaho's economy. “My focus on…

On November 6, in addition to the presidential election, eleven state and two territorial gubernatorial contests will be decided. Seven of these races (Delaware, Missouri, North Dakota, Puerto Rico, Utah, Vermont, and West Virginia) include a sitting governor running for re-election, while the remaining six (American Samoa, Indiana, Montana, New Hampshire, North Carolina and Washington) are open races. Of the races involving incumbents, four are a Democratic governors being challenged, while three sitting Republican governors are up for re-election — two of them for a full term after completing the terms of the previous governors who left for other positions. Five of the open races are a contest for a seat being vacated by a Democrat, while only one is currently held by a Republican. SSTI took a look at the TBED platforms of the candidates for governor. Delaware Jack Markell (D)Gov. Jack Markell has pursued a multi-pronged approach to economic development that includes providing small businesses access to credit, creating tax incentives for businesses to hire Delawareans, expanding the research and job training facilities at the…

On Thursday, the Obama administration announced it had selected the TechBelt region, encompassing northeast Ohio, western Pennsylvania and northern West Virginia, to host the pilot institute of the National Network for Manufacturing Innovation (NNMI). The new National Additive Manufacturing Innovation Institute (NAMII) will operate as a partnership of more than 60 companies, research universities, community colleges and nonprofit organizations from the region. As the pilot effort of NNMI, the partnership will receive $30 million in initial federal funding, with another $40 million from regional partners. The institute will be housed at Youngstown Business Incubator in Youngstown, OH. The president first announced his proposal to create a network of up to 15 institutes around the country that would bring together industry, universities, community colleges, nonprofits and government to invest in industrially-relevant manufacturing technologies in March (see the March 14 issue of the Digest). The proposed institutes would serve as regional hubs of manufacturing excellence that will help improve U.S. manufacturing competitiveness and commercialize new technologies with…

Caren Franzini, the CEO of the New Jersey Economic Development Authority, stepped down after leading the agency for 21 years. Michele Brown, Gov. Chris Christie's appointments counsel, will take over as CEO. Karen Merrick has joined the Iowa Innovation Corporation as CEO. Merrick previously had been with the Iowa Economic Development Authority. Thomas Dann, the founder and managing director at CastleHaven Advisors, a Washington, D.C., private-equity firm, was named managing director of the Maryland Venture Fund. Baiju Shah, the president and CEO of BioEnteprise, is leaving to become the CEO of BioMotiv, a drug development company that spun out of University Hospitals. Mark Wdowik has joined the Office of the Vice President for Research at Colorado State University as an assistant vice president for Research and Industry Partnerships. Wdowik has been at CSU Ventures since 2006. Jack Brittain stepped down July 1 as vice president of technology venture development at the University of Utah. Vice president for research Tom Parks will oversee tech ventures on an interim basis. Arati Prabhakar will join the Obama administration on…

As budgets for economic development tighten across all sectors, measuring and reporting impact becomes even more crucial for sustaining support. The Association of University Research Parks points to three impressive impact reports released this year from Indiana's Purdue Research Park, Nebraska Technology Park and North Dakota State University Research and Technology Park. The Purdue study found the park network is responsible for a $1.3 billion annual impact for the state and more than 4,000 high-quality jobs paying an average annual salary that is 65 percent higher than the state's average. In Nebraska, researchers found the University of Nebraska Technology Park has an estimated $589.6 million annual impact on the state's economy, and North Dakota State University Research and Technology Park generates $10.9 million annually for local and state governments. SSTI has compiled below recent announcements for development of tech parks from states including Alabama, Connecticut, Florida, Maryland, South Carolina, and West Virginia. Phase II of the Alabama Robotics Technology Park opened in August. The 35,000-square-foot facility features a test…

Jill Kline has been named the State director of the Wyoming Small Business Development Center. Daniel Hasler has been named the Indiana Secretary of Commerce, effective Sept. 16. He will replace Mitch Roob who is leaving the post to accept a position in the private sector. The National Governors Association named David Moore as the director of its NGA Center for Best Practices. Phillip Halstead has been named executive director and CEO of the West Virginia Regional Technology Park Corporation. James Watson has been appointed as the president and CEO of CMTC (California Manufacturing Technology Consulting). Steven Ceulemans is joining the Birmingham Business Alliance as vice president of Innovation and Technology.