SSTI Digest

Let's face it, chances are your achievements, as wonderful as they are, likely will go unrecognized unless you start telling people about the good work you are doing. SSTI wants to hear how your organization is succeeding in growing tech-based economies and we'll share your outstanding work with the entire country. Learn more about how to submit an application for the 2013 Excellence in TBED awards today. Download the brochure at: www.sstiawards.org and check out the latest adventures of The Traveling Vase.

Gov. Inslee of Washington released his budget request for the 2013-2015 biennium in his Working Washington plan. Among the priorities are STEM educational investments and clean energy research and development. Overall, the Governor's proposed budget totals more than $34.4 billion, and would result in nearly $532 million in reserves, without proposing new taxes.

Working Washington will attempt to improve the business climate of the state through enhanced funding for STEM education, secondary education aerospace training, and tax relief for new businesses in high-growth sectors.

Specifically, the budget calls for the elimination of tax breaks deemed inefficient, as well as reducing the value of the special tax rates on business and occupation by 25 percent, except for the aerospace and radioactive waste cleanup sectors.

This week, President Obama unveiled a new, long-term initiative to further understanding of the human brain. The Brain Research through Advancing Innovative Neurotechnologies (BRAIN) Initiative, the latest in a series of federal Grand Challenges, would attempt to reproduce the scientific and economic gains of the Human Genome Project. In FY14, the administration plans to invest $100 million in the initiative, with key operations within the Defense Advanced Projects Agency (DARPA), the National Institutes of Health and the National Science Foundation. Read more about the initiative...

Ahead of the president' FY 2014 budget proposal release date (April 10, 2013) and amid federal sequestration, the U.S. Government Accountability Office (GAO) released two reports that contend duplication, fragmentation and a lack of cooperation between federal agencies may plague federal support for wind energy deployment and entrepreneurial assistance. To address these issues, the GAO reports recommend enhanced collaboration between agencies and consolidation of funding programs. Looming budget cuts and political support could place these reports in the midst of political and public dialogue on government duplication and potentially be used as evidence of federal wasteful spending.

Mark Lytle has been named the University System of Georgia's new vice chancellor for economic development.

Frederick Cartwright has been appointed the executive director of the Clemson University International Center for Automotive Research.

Jeffrey Margolis recently joined the Illinois Science and Technology Coalition as managing director.

F. King Alexander has been appointed as president of the Louisiana State University System and Chancellor of LSU A&M.

A new Office of Economic Development and Competitiveness started operation April 1 within the Washington state Department of Commerce. The new office has merged the business services division and energy office into one entity.

From the earliest days of technology-based economic development in the 1980s, and through its formitive years in the 1990s, women leaders have played an integral role in the development of the field. As Women's History Month draws to a close, this week's special issue of the Digest pays tribute to those women and takes a closer look at the opportunities and challenges that face women in TBED today.

Her Perspective: Reflections on Leadership from Five Successful Women in TBED

To call them trailblazers is quite fitting. They have broken barriers in traditionally male-dominated fields and led some of the most progressive initiatives designed to boost our nation's competitiveness. But beyond the "wild west" analogy, these five women are top-notch innovators, who for the past 25 years have helped shape technology-based economic development in states and regions across the country through hard work, sacrifice, dedication, and a passion for leadership.

Several reports, assessments, and plans have been released related to energy development — particularly clean energy. On March 15, both President Obama's Blueprint for a Clean and Secure Energy Future and the Government Accountability Office's review of the Department of Energy's loan programs were released. In addition, the Information Technology and Innovation Foundation published their report on recent trends in federal investment in clean energy, specifically from the American Recovery and Reinvestment Act of 2009.

After a lengthy legal process, the state Supreme Court unanimously ruled that the Missouri Science and Innovation Reinvestment Act (MOSIRA) — an incentive fund for science and technology businesses — violated a state constitutional requirement that bills address only a single subject. According to a Kansas City Star article, the judges upheld a ruling by a Cole County, MO, judge that lawmakers illegally included a clause making the fund contingent upon passage of a separate proposal overhauling the state's tax credit programs. The clause was added during a 2011 special session of the state general assembly (see the October 26, 2011 issue of the Digest). Although the separate proposals never passed, Gov. Jay Nixon's administration implemented the fund in 2012. In response, the Missouri Roundtable for Life and other anti-abortion activists filed a suit against the fund due to fears that it would be used to finance human embryonic stem cell research.

The Obama administration announced the $40 million "Make it in America" Challenge to accelerate the growing trend of reshoring, attract more foreign direct investments (FDI) and create well-paying domestic jobs. The multiagency competition will award up to 15 grants to regions from across the country to develop and implement regional economic development strategies that encourage reshoring, foster increased FDI, incentivize companies to expand U.S. operations and establish industry-focused training programs. U.S. states, local governments, institutions of higher education and nonprofit organizations are eligible for awards. Applications are due May 31, 2013. More information is available at the challenge's website...

Two important and timely topics for regional innovation strategies will be the topics explored through a series of hour-long webinars SSTI will be offering in April: 1) improving the partnership between regional innovation programs and the nation's foundation community; and 2) the role the private/nonprofit accelerator model plays in tech-based economic development. Participation in these and selected other SSTI webinars to be announced in the coming weeks will be free thanks to generous funding from the U.S. Economic Development Administration for the Regional Innovation Acceleration Network (RIAN). Four to add to your calendar today include:

Last week, the SSTI Weekly Digest offered an overview of the many TBED-focused tax incentives currently under consideration in a number of state legislatures. Tax credits for research and development and for angel capital investment, in particular, appear to be under consideration in many parts of the country. At the same time, there appears to be a renewed emphasis on transparency in the operation and effectiveness of these kinds of tax credits.

Recent national strategies for innovation investment have been publicized by the governing parties in Brazil and Australia, highlighting both a growing global focus on national innovation as well as a growing global divide over how public investments are paid for.

Brazil is launching a public investment initiative aimed at modernizing the country's economy and paying for it, in part, with revenues generated from nationalized industries. However, across the Pacific, Australia is proposing to pay for new investments in the country's innovation infrastructure by eliminating R&D tax breaks for some of the country's largest companies. This contrast highlights a growing divide between the ability of developed and developing states to pay for large investments in national innovation.