SSTI Digest

In his fifth State of the Union address, President Barack Obama touted the administration’s Institutes of Manufacturing Innovation program as central to its plan to reinvigorate the American economy. The president called on Congress to expand the manufacturing network beyond the two existing institutes in Ohio and North Carolina and the six additional institutes to be rolled out in 2014. He also requested legislative action to undo last year’s sequester-related cuts to basic research, to pass patent reform and to improve U.S. STEM education. While much of the coverage following the address has focused on the president’s plan to make extensive use of executive orders to enact the administration’s agenda in the coming year, much of his plan to boost American innovation would require additional action from Congress.  Many of the policy options that the president linked to innovation and entrepreneurship in his address, including immigration reform, patent reform and boosting federal funding for research, would require legislative approval and have already met resistance in the House and/or Senate. President Obama, however, was able to…

The fourth installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Illinois, Massachusetts and Utah. Read part I, part II and part III.  Illinois Gov. Pat Quinn, State of the State Address, Jan. 29, 2014 "Part of our jobs strategy is investing in industries that are the future of a 21st century economy. ... "... And that's why now, we're going to invest in a new bio-hub for pharmaceutical, medical device, and health IT startups.” Massachusetts Gov. Deval Patrick, State of the Commonwealth Address, Jan. 28, 2014 “And let’s give our public colleges and universities the resources they need to freeze tuition and fees once again. … “… Let’s keep playing to our strengths by supporting the life sciences and advanced manufacturing, by expanding our clean tech initiatives, including in the burgeoning water technology cluster, by encouraging technology clusters of every kind.” Utah Gov. Gary Herbert, State of the State Address, Jan. 29, 2014 "Science, technology, engineering and math are…

Filling the pipeline with skilled workers able to perform the high-tech jobs employers say are sitting vacant has long been advocated by state leaders and policymakers as essential to competing in the global economy. Governors in Florida and Louisiana are stepping up efforts this legislative session with proposed multi-million dollar investments through training and scholarship programs to change the landscape of their states’ workforce. In both states, the governors say the goal is to strengthen the link between college coursework and industry needs while increasing opportunities for job seekers. The Florida plan encompasses worker re-training in its plan while the Louisiana plan puts a greater emphasis on new graduates in STEM fields.  Florida’s plan includes $30 million in funding for a two-part STEM workforce training initiative under Gov. Rick Scott’s FY15 budget. The Workforce State Training program would be administered by Workforce Florida, Inc., and would provide flexible funding to businesses to train current employees and individuals seeking training in high-wage or high-skill occupations. Scholarship funding for students to study…

After hitting an all-time high in 2012, California’s dominance of the nation’s venture capital activity receded a bit last year. California continues to receive about half of the country’s venture investment dollars and about 40 percent of its dealflow, but in 2013, the state’s share of dollars fell from 53 to 50 percent, according to data from the PricewaterhouseCoopers/National Venture Capital Association (PwC/NVCA) Moneytree survey. Massachusetts, which has been host to about 10 percent of national venture activity in past years, also saw its share of total U.S. activity decline. Gains in second tier venture capital states appear to account for the shift, including upticks in Florida, Maryland, New York, Texas and Virginia. Massachusetts continue to lead the country in terms of dollars and deals per capita, though for the first time that lead was threatened by the rise of Washington, D.C., as a venture capital hotspot. Last week, SSTI reported that national venture capital activity picked up in 2013 following a slower 2012, but investment levels had generally been stable over the past three years. The current level of activity is similar to the…

The FY15 budget proposal outlined last week by Gov. Andrew Cuomo would provide funding to continue many of New York’s innovation-focused efforts while investing in new initiatives, including a genomic medicine network and STEM scholarship program. First announced in his State of the State address, the NY Genomic Medicine Network is a proposed partnership between the New York Genome Center and the University at Buffalo’s (UB) Center for Computational Research to accelerate advances in genomic medicine and develop the burgeoning industry in the state. The budget provides $55.75 million for the New York Genome Center and authorizes $50 million of the Buffalo Billion initiative for UB’s Center for Computational Research. With the investment, the state hopes to attract and grow companies on the Buffalo Niagara Medical Campus, including those with a focus on diagnostics and information technology. Companies would benefit from the research and supercomputing resources provided by UB, according to a press release. The initiative is modeled after the nanotechnology initiative created in Albany, a $1.5 billion public-private investment to create a major…

Tech Talkin’ Govs: Part III The third installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Delaware, Michigan, Missouri and New Mexico. Read part I and part II. Delaware Gov. Jack Markell, State of the State Address, Jan. 23, 2014 “As we send more of our students into higher education, we need to make sure that they have a roadmap from the classroom to employment, and that our major employers are working with our universities so that our youth are prepared for the workforce. I’m pleased to announce today that DuPont has agreed to partner with our colleges on this effort. “They will work to identify skills needed for entry-level positions, match those skills with courses offered by our colleges, and provide internships. ... “...  Let’s also ensure that those students who choose an accelerated career path – one that doesn’t involve a degree – get a head start on their futures. “This fall, we will roll out a new two-year comprehensive program in manufacturing technologies for high school juniors and seniors. The…

Ontario officials launched a new fund-of-funds this week intended to boost capital resources for high-tech companies. The Northleaf Venture Catalyst Fund is a privately led initiative, supported by federal and provincial funds. The governments of Canada and Ontario have agreed to make a combined capital commitment of $1 for every $2 secured from the private sector. Current commitments total $217.5 million CAD ($195.4 million USD), but leaders hope to match the government’s maximum match level of $300 million CAD ($269.6 million USD) in a second closing later this year. Read the announcement…

North Dakota has announced it will relaunch its Innovate ND business venture competition as a more expansive suite of services for innovative startups and entrepreneurs. Participants will receive vouchers for up to $2,500 to help pay for coaching and consulting services at an entrepreneurial center, development of a business plan or building a prototype. Education services also will be available, including biannual Entrepreneur Boot Camps.  Read the announcement…

Michigan’s University Research Corridor (URC), an alliance between the state’s three largest higher education institutions, leads its peer clusters in generating high-tech talent and ranks second overall in innovation activity, according to a report commissioned by URC. The corridor, which includes Michigan State University, University of Michigan and Wayne State University, outperforms peer university clusters in Northern California, North Carolina’s Research Triangle region and Massachusetts’ Route 128 Corridor, ranking second only to the universities of Southern California. Among the report’s findings, the Michigan URC conferred 32,483 graduate and undergraduate degrees, higher than any of its peer universities clusters in 2012. Michigan’s URC also topped the list in medical degrees and ranked second in high-demand degrees. Researchers estimate that the URC contributed about $16.6 billion to the state economy in FY12. This estimate includes faculty and staff wages, university operating expenditures, student expenditures and alumni earnings. URC activity boosted the state’s tax revenue by about $449 million and led to…

Several common themes surrounding higher education have emerged as governors across the country unveil investment priorities for the upcoming fiscal year or biennium. In many states, governors have proposed more funding to increase affordability by freezing tuition or creating new scholarship funds. Support for expanding research capacity, technology-related infrastructure and job training in high-demand industries are some of the proposed measures aimed at competitiveness.   College Affordability Governors in several states are requesting additional funds for higher education in exchange for holding tuition steady. The FY15 budget outlined by Georgia Gov. Nathan Deal proposes new funding streams to encourage more students to attend technical schools. For example, $5 million in new lottery funds would provide additional financial assistance above what is covered by the state’s HOPE scholarship for students pursuing in-demand certificates or training programs. A new Zell Miller grant also would be established to provide full tuition for students in technical schools who maintain a 3.5 grade point average, and the state’s traditional HOPE…

Powered by strong growth in the Internet and Software sectors, U.S. venture capital activity grew by about 7.5 percent in 2013, according to new data from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers (PWC) Moneytree survey. Both venture dollars and deals ticked up last year, bouncing back to 2011 levels after a slow 2012. For the nation and most states, investment seems to have returned to its pre-crisis level. Last year, almost $29.4 billion was invested in 3,995 deals, according to the NVCA/PWC data. These levels indicate a modest increase over a weak 2012, but about equal to 2011 activity. Over the past five years the venture capital industry has been in a rebuilding mode. When the global economy collapsed in 2007-08, venture capitalists became cautious, leading to a severe drop in activity beginning in Q4 2008. Venture dollars shrunk by a third in 2009, making equity capital scarce for businesses at all stages of development. Investment rebounded, however, by about $2.9 billion in 2010 and about $6.1 billion in 2011. It now appears that activity has levelled off, with a small tick down in 2012 and a small tick up in 2013. Since…

Gov. Martin O’Malley’s FY15 budget includes increased funding for the state’s biotech tax credit, cyber tax credit and R&D tax credit, and provides level funds to continue longstanding tech-based and workforce initiatives. The budget recommendations submitted last week to the legislature would provide the following increases for tax incentives: $2 million increase for the Biotechnology Incentive Tax Credit, bringing the total funds to $12 million to assist life sciences companies in raising funds. The program provides refundable income tax credits equal to 50 percent of an eligible investment. $1 million increase for the newer Cybersecurity Investment Incentive Tax for a total $4 million. This incentive provides a refundable tax credit equal to 33 percent of an eligible investment up to $250,000. $1 million increase for the state’s R&D tax credit for a total $9 million. Funding for the Maryland Technology Development Corporation (TEDCO) would be held steady at $18.6 million with $10.4 million designated for the Maryland Stem Cell Research Fund, the same as last year. Another $5 million would continue commercialization activity at…