SSTI Digest

This week, Congress approved a $10 million appropriation for the Department of Commerce’s Regional Innovation program in the FY14 Omnibus Appropriations bill and the SSTI Digest continued its Tech Talkin’ Govs series, as governors in nine states outlined their innovation plans and achievements. Among the other stories featured this week: SSTI continued its analysis of R&D spending by state. New Mexico remains the county’s most research-intensive state economy, though Idaho, Iowa, California, Alabama and Maryland greatly increased their research focus during the 2006-12 period. SSTI prepared two tables, breaking down total R&D spending and research intensity in those years. Read more » President Obama announced North Carolina had won the latest solicitation to host a Manufacturing Innovation Institute. The selection process is underway for two additional institutes, with awards expected in the coming weeks. Read more » While delays in regulatory changes held up the crowdfunding revolution in 2013, the coming year is expected bring a surge of fundraising from nontraditional investors. SSTI examined the preparations being made by…

The FY14 Omnibus Appropriations bill, which the U.S. House of Representatives passed yesterday and the U.S. Senate is expected to pass on Friday, contains $10 million for the Regional Innovation program in the U.S. Department of Commerce’s budget. This is the first time the grant portion of the program was directly funded.  The program was authorized in the America COMPETES Act of 2010 and establishes the program “to encourage and support the development of regional innovation strategies, including regional innovation clusters and science and research parks.” Funding for the Regional Innovation program was one of SSTI’s highest legislative priorities and many SSTI members reached out to their representatives and senators to express support for the program. Language indicates that the Economic Development Administration is to centrally administer the grants rather than through its regional offices and with criteria provided in the America COMPETES Act. SSTI will follow and report on the Department of Commerce’s progress in implementing the program. For more information about SSTI’s activities on this issue, contact Dan Berglund at…

Of the 118 university-based startups launched in Illinois between 2006-13, about 73 percent remain in the state, according to the latest issue of the Illinois Innovation Index. The 2013 fourth quarter report of the Index focuses on the recent strides made by the state in building a stronger technology transfer pipeline. During the five-year period of 2008-12, Illinois universities received 47 percent more patents than they did during the 2003-07 period, almost triple the national growth rate. The authors note that a majority of the companies licensing these technologies are remaining in university region. Download the index (pdf format)…

The second installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Alabama, Arizona, Georgia, Iowa, Kansas, Rhode Island, South Dakota, Vermont and Virginia. The first installment is available here. Alabama Gov. Robert Bentley, State of the State Address, Jan. 14, 2014 “We must create greater opportunity for Alabamians to acquire the skills needed for higher-paying jobs. Companies are looking for and jobs are waiting for skilled workers. ... “... We will present legislation creating a Statewide Workforce Council of business and industry leaders who will advise educators and colleges on the workforce needs on the types of jobs needed in each region. “We will expand the number of Career Coaches. We will expand Dual Enrollment Programs, so that students may attend high school and a 2-year college at the same time. ... Once implemented, this program will improve high school graduation rates and increase the number of higher-skilled workers.” Arizona Gov. Jan Brewer, State of the State Address, Jan. 13, 2014 "This year I am calling on the legislature…

Crowdfunding was poised to make a major splash on startup financing in 2013, aided by the passage of the 2012 JOBS Act, a projected explosion in the number of crowdfunding portals and the adoption of state crowdfunding exemptions. However, the crowdfunding industry did not have the anticipated gamechanging impact on startup financing, mostly due to the Securities and Exchange Commission’s (SEC) cautious approach to the adoption of the crowdfunding rules mandated by the JOBS ACT. The SEC eased into the crowdfunding era by allowing for the general solicitation by businesses to raise equity from accredited investors via secure web-based portals. Finally, late in 2013 the SEC released proposed rules that would allow for equity crowdfunding from unaccredited investors sometime in 2014. States Push Ahead with Intrastate Crowdfunding ExemptionsWhile the SEC carefully developed its rules and regulations, states developed their own intrastate crowdfunding exemptions focused specifically on increasing the availability of  and retaining startup capital in their communities. On December 31, Michigan Gov. Rick Snyder signed into law Public Act 264 that will allow…

The first of three new manufacturing innovation institutes will be headquartered in Raleigh, NC, and led by a consortium of 18 companies, seven universities and labs, and the state of North Carolina. The announcement was made today by President Obama. Developing wide-bandgap semiconductor devices and industry-relevant processes is the goal of the Next Generation Power Electronics Institute. Such technologies are used to develop smaller, faster, cheaper and more efficient electronics for personal devices, electric vehicles and renewable power interconnection, according to a press release. Bringing back advanced manufacturing jobs and accelerating new technological breakthroughs are the intended outcomes of the Manufacturing Innovation Institutes. As explained in this 60-second video, the institutes serve as hubs that bring together private sector employers and universities for cooperative research and risk sharing that can lead to major advances in technology. Those advances are shared with small businesses and entrepreneurs creating the next generation manufacturing jobs. A pilot institute focused on additive manufacturing was launched in 2012 in Youngstown, OH.…

Despite a small decline in research investment in 2011, New Mexico continues to have the country’s most research-focused economy, according to the National Science Foundation National Patterns of R&D Resources survey.  NSF’s figures include all R&D investment in the state from all sources, including the federal government, private businesses, academic institutions and others. The data indicates that, as of 2011, research spending in New Mexico represents 7.63 percent of the state’s gross domestic product (GDP).   New Mexico’s strong R&D focus is driven by the presence of large research institutions, including Sandia National Laboratories, Los Alamos National Laboratory and White Sands Missile Range. Due to the presence of these major research centers, the state’s R&D intensity is more than twice that of the U.S. as a whole, in which $2.84 was spent on research for every $100 in GDP. Maryland, Massachusetts, Washington and California also ranked among the top most research-focused economies in 2011, according to NSF. In Maryland, the second most research-oriented state, about $6.30 was spent on research for…

Governors in Idaho, Kentucky, New York, Virginia and West Virginia outlined their achievements in building stronger technology economies and unveiled some of their plans for the coming year as SSTI kicked off its annual Tech Talkin' Govs series. SSTI also examined  the decline in U.S. basic research, even as overall R&D spending rises. The SSTI Digest now delivers the latest news and analysis from the world of technology-based economic development all week long. Visit ssti.org to stay informed about the people, trends, policies and initiatives that are shaping the innovation economy. Here are a few of the other stories featured this week: New Mexico Gov. Susana Martinez has proposed new tax credits for angel investors and small technology businesses, as well as new funding for university endowed chairs and a statewide commercialization initiative. Read more » Minnesota, Florida, Kentucky and West Virginia are launching their own efforts to build stronger angel capital markets. Read more » Advance Southwest Iowa will join the Greater Omaha Economic Development Partnership to cultivate economic opportunities across state lines. Read…

JPMorgan Chase & Co recently announced details of a new five-year, $250 million global initiative to address the global skills gap in high-tech industries. The New Skills at Work initiative will help generate accurate data on employer demand at the regional level, and assist workforce training groups in developing effective programs to meet those demands. Operations will focus on major U.S. and European cities, staring with Chicago, Columbus, Dallas, Detroit, Houston, Los Angeles, Miami, New York, the San Francisco Bay area and London. The first round of grants will be announced in early 2014. Read the announcement…

Funding to universities to compete for endowed chairs and startup funds for a commercialization initiative are among New Mexico Gov. Susana Martinez’s proposals for tech-based economic growth in the coming year. The governor also wants lawmakers to expand the state’s angel investment tax credit and reform the Technology Jobs Tax Credit and R&D Small Business Tax Credit to better support startup companies. The announcements were rolled out over the past two weeks and detailed in the FY15 budget presented to lawmakers. The executive budget increases New Mexico Institute of Mining and Technology’s budget by $2 million for the Technology Research Collaborative (TRC). Created under HB 562 during last year’s legislative session, but not funded, TRC is charged with establishing advanced technology centers to aid in the development and commercialization of intellectual property. Members include national laboratories, research institutions and postsecondary institutions. Another $7.5 million would be used to attract top professors, researchers and scientists to New Mexico under the Higher Education Endowment fund. The funds would be targeted toward…

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…

Ted McAleer has resigned as executive director of USTAR. Also Gary Herbert has announced the appointment of former Lt. Gov. Greg Bell as chair of the USTAR Governing Authority. Bell, now president and CEO of the Utah Hospital Association, takes the place of outgoing chair Dinesh Patel. Martha Connolly has been named director of bioentrepreneurship, a new program supported by the Maryland Technology Enterprise Institute (Mtech) and the A. James Clark School of Engineering. Matthew Nemerson, president of the Connecticut Technology Council for the past decade announced he has taken a new position as Mayor Toni Harps’ economic development director in New Haven. Iowa Gov. Terry Branstad and Nebraska Gov. Dave Heineman announced  the formation of a two-state, regional economic development organization, Advance Southwest Iowa. Mike Dellinger, who currently works with the Council Bluffs Area Chamber of Commerce, will lead Advance Southwest as its executive director. Dellinger will have an office at the Greater Omaha Chamber.