SSTI Digest

The rapid proliferation of accelerators world-wide has raised questions about whether this model is viable and sustainable. Though many accelerators have been founded and funded by private investors, accelerators are now getting a public boost on both sides of the Atlantic. The European Commission and the U.S. Small Business Administration are both becoming involved in the accelerator phenomenon, perhaps representing an expanded role for national (and quasi-national) public support for accelerators. The European Commission recently announced the launch of Startup Europe's Accelerator Assembly. The Accelerator Assembly is an offshoot of the Startup Europe initiative, which works to encourage Internet entrepreneurs to start and grow business in Europe. The Accelerator Assembly will be organized and led by seven accelerators, including TechStars, and consists of a network of 20 accelerator programs across the European Union in 10 countries. The United Kingdom is the most represented, with seven accelerators participating in the program. Eastern Europe is also well-represented, however, with participants in Lithuania, Bulgaria, the Czech Republic and two in…

Oregon lawmakers unanimously approved a bill (HB 3472) that instructs the state's Higher Education Coordinating Commission to design a pilot program to evaluate a new college funding system known as "Pay It Forward." Under the proposed model, students would commit a percentage of their future incomes to repay the state, instead of paying tuition or taking out traditional loans to attend community colleges and universities. The bill currently awaits the signature of Gov. John Kitzhaber. If the bill is signed by Gov. Kitzhaber, the pilot program may take several years to launch due to procedural and practical hurdles according to the New York Times. First, the Higher Education Coordinating Commission's proposed pilot program would have to address issues related to the size, structure and funding source of the pilot program. Once those concerns are addressed, the pilot program's design would have to receive legislative approval. In a Washington Post article, Dylan Matthews looks at other long-term issues related to a universal pay it forward model including initial startup cost (estimated at $9 billion in Oregon), the potential effects of a "…

he Department of Defense (DOD) released funding announcements to help establish and sustain two new manufacturing innovation institutes in the areas of lightweight and modern metals manufacturing and digital manufacturing and design. DOD intends to commit up to $70 million for each institute, with at least a 1:1 cost share ($70 million over five years) of non-federal funds from the recipient organizations. Proposals for both awards are restricted to domestic nonprofit organizations, but applicants are encouraged to partner with local small businesses, institutions of higher education and government entities. Administered by the Office of Naval Research, the proposed $70 million Lightweight and Modern Metals Manufacturing Innovation (LM3I) Institute will help advance the state of processing and fabrication technologies for lightweight and modern metals by facilitating the transition from basic/early research to full-scale production of associated materials, components and systems. To receive an invitation to submit a full proposal, an organization must first submit a concept paper, which is due August 9. Read the funding announcement... The U.S. Army Materiel…

During a recent public hearing, the Securities and Exchange Commission (SEC) adopted a new rule that moves equity-based crowdfunding one step closer to reality. As mandated by the JOBS Act (see the March 28, 2012 issue of the Digest), the new rule will allow companies to publicly advertise, market and disclose the fact that they are fundraising. However, the sale of securities is still restricted to accredited investors and the company must take reasonable steps to verify that all purchasers are accredited. Previously, under the general solicitation ban, companies had to raise money via word of mouth and other private forms of communication including secure online portals (AngelList, Gust, etc.). The new rule allows companies to buy ads or openly announce that they are seeking investors. According to Venture Beat, the final step of enacting the JOBS Act would allow the sale of securities to non-accredited investors, but that is still months away due to a lengthy SEC review process. Read the SEC press release...

According to the Philadelphia Business Journal, Pennsylvania Gov. Tom Corbett has signed off on the creation of a new program, InnovatePA, which will auction off $100 million in tax credits to generate state revenue that will be invested in the funding of tech and biotech startups. The state auction will sell off deferred insurance-premium tax credits to insurance companies that pay Pennsylvania's insurance-premium tax. The sale is expected to generate at least $75 million in funds, with credits not being sold below 70 percent of their face value. Insurance companies that purchase the credits would be able to claim up to $20 million annually beginning in 2017, with unused credits expiring in 2026. The annual cap will limit state spending while making up-front investments in high-tech businesses that create jobs and boost regional economic development. Of these auction proceeds, $37.5 million, or roughly 50 percent, would go towards funding Ben Franklin Technology Partners, which provides funding and support for tech and biotech companies across the state. Another $33.75 million, or roughly 45 percent, would support the Ben Franklin Technology…

A three-year effort to implement an SBIR state matching funds program gained enough traction this legislative session to win support from Rhode Island lawmakers. The measure was spearheaded by a group of leaders from 24 life science companies who advocated for a statewide program to encourage small business R&D and commercialization. Lawmakers appropriated $500,000 for the effort in FY14. Adding a workforce development component to the measure, a new bioscience and engineering internship also will be established to enhance the state's talent pipeline. The FY14 budget signed into law by Gov. Lincoln Chafee calls for the Rhode Island Science and Technology Advisory Council (STAC) to administer the new Innovate Rhode Island Small Business Incentive Program and internship program. Qualifying businesses can receive grant and loan funding for the costs associated with applying for Phase 0, Phase I and Phase II SBIR/STTR proposals. Companies can receive up to $3,000 for Phase 0; up to $100,000 for Phase I; and up to $300,000 for Phase II. Budget language notes that Phase I funding is for matching grants and funding for Phase II is in the form of a matching loan. The…

Avoiding redundancy and enhancing the efficiency and effectiveness of outdated programs are some of the major goals for governors in California and North Carolina seeking a new approach to job creation. Both proposals involve an overhaul to established economic development efforts. As part of his May revision to the FY14 budget, California Gov. Jerry Brown proposed redirecting $750 million annually from the state's decades-old Enterprise Zone program to establish three new tax incentive programs to be administered by the Governor's Office of Business and Economic Development: A statewide sales tax exemption on manufacturing equipment or R&D equipment purchases by firms engaged in manufacturing or biotech R&D; A hiring credit for businesses in areas with the highest unemployment rate and poverty, the credit would be available to hire long-term, unemployed veterans and people receiving the federal earned income tax credit; and, A California Competes tax credit program based on specific criteria, including the numbers of jobs to be created or retained during a certain time frame. If approved, two of the new programs would apply statewide, allowing…

Indiana Gov. Mike Pence has announced details of a realignment of the state's services for small business owners and entrepreneurs through the establishment of a new Office of Small Business and Entrepreneurship (OSBE). The office will incorporate the Indiana Small Business Development Center, the Procurement Technical Assistance Centers and several small business specialty programs. OSBE will offer business consulting, as well as bringing together universities, private sector businesses and government stakeholders. Read the announcement...

The National Institute of Standards and Technology (NIST) is soliciting public comments on the establishment of a federally funded research and development center (FFRDC) related to integrated cybersecurity tools and technologies. Comments should address how the FFRDC would perform its three primary responsibilities: research, development, engineering and technical support; program/project management; and, facilities management. A Request for Proposals (RFP) from organizations to establish and operate the proposed FFRDC will be released later this summer. NIST also is accepting public comments on the creation of several new Manufacturing Technology Acceleration Centers (M-TACs). These centers will provide technical and business services to small- and medium-sized U.S. manufactures as they engage in technology transition and commercialization activities. The anticipated M-TACs RFP is scheduled for release in 2014. Public comments for both announcements are due July 22.

Check out SSTI's new website for our 17th Annual Conference in Portland, OR, September 15-17! Get details about the conference, including the preliminary schedule, and register at our discount rate. Since our first conference in 1996, SSTI's annual conference has grown to become the nation's largest gathering of those working to encourage economic growth through science, technology and innovation. Dynamic Innovation Ecosystems: Bringing It All Together, SSTI's 17th Annual Conference, is focused not only on the key elements required for a dynamic innovation ecosystem — higher education, commercializing research, innovation capital, workforce, and manufacturing — but also on how to bring those elements together. Don't miss this two-day event with three plenary sessions, sixteen breakout sessions, two networking receptions, three workshops, and much much more. Visit the site today!

Industry support for additive manufacturing is exploding as startups find new ways to market the technology to businesses. States and universities are taking advantage of this growing trend to form partnerships with companies that support the lean innovation approach is driving the 3D printing renaissance. The Wall Street Journal reports that Stratasys, a major 3D printing company that focuses on additive manufacturing, acquired MakerBot in a deal worth $403 million in stock. MakerBot, which specializes in the production of consumer 3D printers, will retain its brand and operate as a subsidiary. The move positions Stratasys to push for broader adoption of 3D printing across industries. MakerBot has sold 22,000 3D printers since 2009, but because of rapid market growth, half of those sales have come in the past 9 months. This has propelled the company's stock to rise 76 percent over the past 12 months. The MIT Technology Review provides a background on the argument for a 3D printing renaissance: manufacturing was previously the domain of large companies and trained experts because of the expertise, equipment, and costs associated with production. Now, because…

Since the beginning of the year, several new partnerships have been launched that are intended to support research collaboration, enhance student-employer relationships and increase overall university-industry engagement. These partnerships focus on creating a more expedited, user-friendly process for industry to partner with universities. Recently, Motorola Mobility's Advanced Technology and Projects (ATAP) announced a new collaboration agreement with eight U.S. research universities. By reducing the time and complexity needed to establish new research projects through the use of common strategies and terms, the Multi-University Research Agreement (MURA) is intended to streamline the generation of new joint research projects and increase cooperation on the development of fundamental new mobile technologies. This single, universal agreement allows ATAP to easily engage in a spectrum of research efforts with these universities and reduce the time it takes for sponsored research agreements to be established from several months to less than 30 days. The eight universities are the California Institute of Technology, Carnegie Mellon University, Harvard University,…