SSTI Digest

Massachusetts Gov. Deval Patrick has unveiled an economic development package intended to bolster the state’s role in the global tech economy through multi-year investments totaling an estimated $100 million. More details will be available soon, but the package includes a new Global Entrepreneur in Residence Program that will help entrepreneurial foreign students remain in the country even without H-1B visas, an expansion of the Massachusetts Technology Collaborative’s internship and mentoring program, recapitalization of the MassVentures public venture fund, an expanded R&D tax credit program, and a new Middle Skills Job Training Grant Fund. The governor also is proposing to eliminate non-compete clauses for tech businesses, a move modeled on policies in California. More details…

Registration is now open for the Excellence in TBED awards informational call. The purpose of the call is to share tips on writing a better proposal, explain the program in greater detail, and answer questions. Advice from past judges of the awards program also will be highlighted. Learn more and register at: http://www.sstiawards.org/. 

On the first anniversary of President Obama's BRAIN Initiative (Brain Research through Advancing Innovative Neurotechnologies) announcement, the National Science Foundation (NSF) unveiled a new online portal that allows visitors to find NSF brain-related information in one place. The Understanding the Brian Portal will be a centralized source for the latest funding for brain related research, event announcements and federal resources that support neuroscience research. The portal also hosts public-facing articles and videos about new findings.

Montana’s new business plan commissioned by Gov. Steve Bullock outlines five overarching themes, described as pillars, with specific goals, objectives and tasks for diversifying the state’s economy. Encouraging innovation and supporting emerging industries is the focus of one pillar, with recommendations for strengthening the role of universities, establishing funding streams for entrepreneurs, and developing a network of statewide business mentors. The Main Street Montana Project was lead by two top business leaders in the state to ensure private sector buy-in, according to the governor.

The team convened seven roundtables in each of the state’s five geographic locations and tribal communities to gather information about challenges and opportunities facing businesses and workers. Participants included representatives from business, labor, education, local government, nonprofit, and other interest groups. They also visited surrounding states to look at best practices and analyze Montana’s regional competitiveness.

A progress report from the White House Office of Science and Technology Policy (OSTP) provides a useful overview of the Obama administration’s ongoing STEM efforts and the roster of STEM initiatives included in the president’s FY15 budget request. Under the proposed budget, federal spending on STEM education would reach $2.9 billion in FY15, a 3.7 percent increase over FY14 funding as enacted. The largest agency increases would come from the Department of Education, which would receive $658 million (35.7 percent increase) with support for a new STEM Innovation Networks program, and the Department of Transportation, which would receive $100 million with funding for a University Transportation Centers Program (16.3 percent increase).  Read the report…

Massachusetts’ continuing success in the biopharmaceutical sector depends on finding new ways to fund startup and early stage research activities, according to a new strategic plan released by the Massachusetts Biotechnology Council (MassBio). The report cites recent data showing that life sciences venture capital has fallen by 50 percent over the past five years and many investors have turned to later stage investments. In place of this model of startup funding, the group recommends engagement with a number of alternative funding channels, including angel groups, foundations, wealthy individuals and crowdfunding services. The report also includes a number of other recommendations to improve the environment for new and growing life sciences firms.

Pointing to the growth potential in jobs and health within the life sciences industry sector, Gov. Jay Inslee vetoed a $20 million cut in funding to the nine-year-old Life Sciences Discovery Fund (LSDF), allowing the fund to honor existing commitments and proceed with the 2013-14 Proof of Concept grant program and Entrepreneur Mentoring grant program. The state’s budget director David Schumacher said the sheer volume of letters from biotech companies in support of saving the fund carried weight in the governor’s decision, reports The Olympian.

LSDF invests monies from the Master Tobacco Settlement Agreement in R&D that demonstrates the strongest potential for delivering health and economic returns to the state.

Moving forward, John Des Rosier, executive director of the fund, said the group has been engaged in a strategic planning process to diversify funding for future years and the recent legislative session has prompted them to act with more urgency. LSDF’s tobacco settlement funding is scheduled to run out in 2017.

Maria Contreras-Sweet has been confirmed as the administrator of the Small Business Administration.

Larry Ferguson has been chosen as the vice chancellor for economic development and workforce solutions at Kentucky Community College and Technical System.

Rebecca Lovell has been selected as the startup liaison for the City of Seattle’s Office of Economic Development.

A limited number of printed original copies of Innovation U 2.0 are available. The publication identifies the 12 best practice universities at generating economic impact from their intellectual capital. SSTI wants to share them with our community and will randomly select FIVE winners from our Facebook fans. Hurry! Winners will be announced on Facebook Friday, April 11. https://www.facebook.com/ssti.org

Together, New York and the Mid-Atlantic region were home to as much angel investment activity as California, according to the 2013 Year in Review edition of the HALO Report, published by Silicon Valley Bank and the Angel Resource Institute. Last year, California continued its reign as the top single region for angel activity, with 18.6 percent of U.S. deals and 19.6 percent of dollars. For the first time however, the combined activity of New York and the other Mid-Atlantic states reached levels similar to California, with 18.6 percent of deals and 19.7 percent of dollars. Activity dipped in New England, the Southeast and the Northwest. Combined activity in the Internet, Healthcare and Mobile & Telecom sectors represented more than three-quarters of all angel deals.

Groups in the greater Detroit and Pittsburgh regions recently released reports documenting the progress these metros have made over the past few years in building thriving technology economies. Detroit’s Automation Alley found that tech industry employment in the region grew by 15 percent in 2011, outpacing growth in all of the other 14 regions used as benchmarks in the study. A report on Pittsburgh’s investment economy, conducted by Ernst & Young LLP and Innovation Works, shows the region to have grown its per capita venture capital investment levels by 34.6 percent during the 2009-2013 period.

Many of the proposals put forth by Gov. Andrew Cuomo for growing New York’s innovation economy were fulfilled or received ongoing support in the enacted FY15 budget. This includes a final installment of $680 million to complete the Buffalo Billion initiative, new rounds of funding for the Regional Economic Development Councils, SUNY and CUNY challenge grants, and tax breaks for manufacturers. Lawmakers also approved funding for a new genomic medicine network and STEM scholarship program.

Highlights of funding for new initiatives within the enacted budget are outlined below: