SSTI Digest

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.

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.

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.

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.

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:

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.

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.

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.

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. …

U.S. R&D spending began to rebound in 2011 and 2012 after several years of stagnation, according to new survey data released by the National Science Foundation. During the economic crisis of 2008-10, R&D expenditures froze at just over $400 billion. Newly revised data for 2011 and preliminary data for 2012 indicate that R&D spending began to recover in those years, outpacing U.S. GDP growth. This resurgence, however, has not materialized for all stages of research. While spending on applied research and development have bounced back, basic research spending decreased in 2011 and grew only slightly in 2012. The long-term U.S. shift in focus away from basic research appears to have accelerated in the aftermath of the economic crisis.