SSTI Digest

This week, the National Science and Technology Council (NSTC) released its plan to implement the national network of manufacturing institutes announced by President Obama last March (see the March 14, 2012 issue of the Digest). The institutes would serve as regional hubs of innovation and help to accelerate the development and adoption of new manufacturing technologies. Under the newly released plan, each of the institutes would be led by U.S. nonprofit organizations, with public, private and academic partners, and receive federal matching funds over a five-to-seven year period. President Obama's original announcement called for a one-time $1 billion federal investment to create a nationwide network of up to 15 Institutes for Manufacturing Innovation (IMI). Several federal agencies would participate in the effort, including the Departments of Commerce, Defense, Education and Energy, coordinated by the Advanced Manufacturing National Program Office (AMNPO). The individual institutes would help advance technological progress on distinct manufacturing topics bringing together regional stakeholders drawn from government, industry and academia. Their work would not only…

Initiatives aimed at commercializing research were among the most common technology-based economic development approaches in 2012 for states seeking faster returns and job growth during a slow recovery. In the new legislative session that began last week in Colorado, lawmakers introduced a bill to increase access to capital for new startup companies in advanced industries aimed at accelerating the tech commercialization process. Gov. John Hickenlooper last week announced the Advanced Industries Accelerator Act (HB 13-1001), a measure to encourage collaboration between industry, research institutions and federal laboratories, and private-sector funders. It would create a program to provide grants to advanced industries seeking funding for proof-of-concept R&D, early stage capital retention and infrastructure. The state has identified seven sectors that qualify as “advanced industries.” They include aerospace, advanced manufacturing, bioscience, electronics, energy and natural resources, technology and information, and infrastructure engineering. The measure outlines eligibility requirements for the grants, which range from $150,000 for proof-of-…

According to a new brief from the National Science Foundation (NSF), preliminary 2011 data indicates that U.S. total research and development (R&D) in 2011 was $414.0 billion (in current dollars), an increase of $7.3 billion from 2010 totals ($406.7 billion). These results mark the second straight year of growth in U.S. R&D expenditures following a $1.8 billion decline in 2009 — only the second decline in current dollars since the early 1950s. However, these growth rates, 0.7 percent in 2010 and 1.8 percent in 2011, were well behind the pace of gross domestic product (GDP) expansion in both of these years (4.2 percent and 3.9 percent, respectively). The report also looks at preliminary R&D data by performers, funders, character of work and intensity. The brief also looked at Worldwide R&D expenditures, which totaled an estimated $1.341 trillion in 2010 with an average 7.1 percent annual growth over the past 5 years. Read the brief...

Babson University researchers report that nearly half of all the world's entrepreneurs are between the ages of 25-35 years, according to the 2012 edition of the Global Entrepreneurship Monitor. Also, in all geographic regions, 25-34 year olds reported the highest rates of entrepreneurship. Babson researchers, however, emphasize that large numbers of entrepreneurs are found at all age ranges. Read more...

A new article from Governing magazine is promoting free digital access to public information, or “Open Data,” as a pathway for promoting entrepreneurship and government cost-savings. When governments release free digital public records entrepreneurs can use the information to create apps that provide valuable and profitable services to consumers. In San Francisco, local company Appallicious used park data to build the SF Rec Park appthat allows users to easily locate the city's green spaces and search by available facilities and volunteer opportunities. Open Data can also potentially help cash-strapped local and state governments find savings through efficiency. The state of Oregon recently turned business registration into a self-service, saving significant labor costs for the state. Google has recently invested in promoting open data entrepreneurship and The Obama Administration is strong promoter of open data access, promoting a Digital Government Strategy and providing the data.gov website as a platform for civic innovation.

The third installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Georgia, Hawaii, Indiana and Michigan. Our first two installments were in the Jan. 9 and Jan. 16 issues of the Digest. GeorgiaGov. Nathan Deal, State of the State Address, Jan. 17, 2013“Two years ago, we worked together to save our HOPE Scholarship program. As a result, it remains one of the most generous state run scholarship programs in the nation. It is also keeping our best and brightest students in Georgia. “Today, I am happy to say that my budget will increase the Hope Scholarship by 3 percent over last year, bringing the total funds going to Hope in FY 2014 to nearly $600 million.” HawaiiGov. Neil Abercrombie, State of the State Address, Jan. 22, 2013“What about innovation? While the hospitality industry is fortunate to have Hawaii to rely upon, while the US Military derives clear advantages from our location, and while construction is rebounding, we must look to diversify our economy in order to grow our economic base. “To this end, I will be proposing the HI…

Through a combination of new funding in the current budget and legislative measures aimed at coordinating state efforts and measuring progress, Gov. Bob McDonnell hopes to showcase Virginia as the premier destination for entrepreneurs to start or relocate a business. New funding, to the tune of nearly $10 million, would be used to establish a regional accelerator grant program, cybersecurity accelerator, and career pathways development program, among others. Building on the last year's science and technology investments (see the June 20, 2012 issue of the Digest), the governor hopes his agenda will add new tools and resources to encourage startup growth and more closely align education and job creation. The additional funding requested by Gov. McDonnell is part of the amendments to the current 2012-14 budget and is targeted toward the following initiatives: $2.5 million for a cybersecurity accelerator created by the Center for Innovative Technology. The CIT accelerator would focus solely on cybersecurity company creation and initially produce up to 20 new companies per year. $1.75 million for State and Regional Pathways Development, including funding for…

Innovation was a key term used in Gov. Andrew Cuomo's State of the State address and is referenced heavily throughout his economic development agenda for the upcoming year. The governor proposed creating innovation hot spots, an innovation network and innovation venture capital fund. Efforts would be focused on accelerating technology transfer and providing funds to attract startup companies. Cleantech investments and support for competitive university-based projects that emphasize economic impact also are a priority for the governor. Titled “NY Rising,” Gov. Cuomo's 326-page accompanying agenda to the annual speech outlines proposals that cover a wide range of issues, from raising the minimum wage and decriminalizing marijuana possession to equality issues for women and gun policy. However, a key component to the plan is building on the work of the regional economic development councils established in 2011 and strengthening partnerships with higher education to continue growing the state's tech-based sector. The governor's agenda notes several troubling tech transfer facts about New York, including: New York attracts only 4 percent of…

SSTI's Tech Talkin' Govs series has returned for its 13th annual edition. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses across the nation. The first edition includes excerpts from speeches delivered in North Dakota, New Hampshire, New York, and Virginia. North DakotaGov. Jack Dalrymple, State of the State Address, Jan. 8, 2013“A year ago we set out on a state visioning process called 2020 and Beyond. We partnered with the North Dakota Chamber of Commerce and held meetings throughout the state to hear people's own ideas about how to create a better future for our state. ... “... We also heard that people in North Dakota are looking for more diversity in their career opportunities. This led us to recommend a new streamlined approach to the concept of public-private joint ventures that are based on ideas coming out of our research universities. We propose calling it Research ND, leveraging our universities to partner in ventures that create interesting, high-paying jobs.” New HampshireGov. Maggie Hassan, Inaugural…

The New York State Energy Research and Development Authority (NYSERDA) announced that it will commit a total of $15 million to Columbia University, the Polytechnic Institute of New York University (NYU-Poly) and High Tech Rochester to create three proof-of-concept centers focused on turning university-developed, clean energy ideas into successful businesses. Each regional center will receive $5 million in seed money over the next five years, cost-sharing required, with the expectation of being self-sustaining once NYSERDA funding ends. Each organization will partner with regional institutions of higher education to connect potential early stage entrepreneurs with multiple industry and investor partners. Read the press release...

Early January 2nd, President Obama signed the American Taxpayer Relief Act of 2012 (AFTA) into law after it passed in the House by a 90-vote margin the previous evening. While the deal postponed difficult decisions concerning spending cuts and long-term debt reduction measures by delaying the FY13 sequester until March 1, 2013, AFTA averted steep, across-the-board spending cuts and tax hikes set to take place at the beginning of the year. A number of tax credits due to expire were preserved in the fiscal deal. Of particular interest to the innovation community, the act extends the R&D tax credit through the end of 2013. A number of tech industry groups, including the Information Technology Industry Council, praised the extension of the credit as a beneficial and cost-effective way to increase research, although many would like to see it made permanent. Despite being one of the first countries to introduce such a credit in 1981, the U.S. is now 27th in the generosity of its credit out of 42 countries studied by the Information Technology & Innovation Foundation (ITIF). Read the ITIF's survey on R&D Tax Incentives here... Other extensions in…

In 2012, the tech industry lobby substantially ramped up their efforts to influence the federal legislative agenda. In the coming year, they are poised to grow their influence in Washington as debates rage over the future of technology investment programs and regulatory policies. Over the past year, the American tech industry has publicly conceded it must begin actively shaping the policy agenda in Washington in response to attempts by Congress and the Obama administration to pursue regulatory policies that can have long-term consequences for their industry. In response, the tech lobby massively has ramped up efforts to influence the federal policy debate. The Center for Responsive Politics, a non-partisan organization dedicated to promoting government transparency, provides insight into the growing power of the tech lobby industry via public records available on their Open Secrets website. For instance, by the end of the third quarter in 2012, the internet and computer industry lobby had spent nearly $100 million, the sixth most among all U.S. industry lobbies. According to Open Secrets, the growth of the tech industry lobby stands in sharp contrast to the…