SSTI Digest

The Brookings Institute, in partnership with the Information Technology and Innovation Foundation (ITIF), released three bold policy proposals intended to bolster the competitiveness of the U.S. manufacturing and advanced industries sector by improving innovation, workforce, and higher education connections. Each proposal paper provides a compelling argument for the federal government to make a strategic investment that will help to renew the national, state and local manufacturing bases to address poor U.S. economic performance since the Great Recession including sagging gross domestic product (less than 2 percent annually growth), skyrocketing numbers of individuals living in/near poverty and wage stagnation. Proposals include 20 U.S. manufacturing universities, a network of advanced industries innovation HUBs and a competition for states and a Race to the Shop competition.

Four have made it to the final round of the EU's Future and Emerging Technologies Flagships program in which 26 projects submitted proposals for funding. Each project is set to receive approximately $72 million from the EU's research budget that will be matched by national governments and other sources. If milestones are met within the first 30 months, the awards could total upwards of $1.33 billion each over the next decade. Inspired by the success of the CERN laboratories on the Swiss-French border, EU leaders hope that these long term investments in potentially “disruptive technologies” will give Europe a competitive edge in technology. The two winners will be announced by the EU's executive branch in Brussels on January 28, 2013. Read the announcement...

In Connecticut, Governor Daniel P. Malloy has proposed a Bioscience Innovation Act, which would create a 10-year $200 million fund to invest in the state's bioscience sector. The proposed fund would be administered by Connecticut Innovations, a quasi-public venture development organization. Governor Malloy's announcement was presented at the headquarters of Jackson Lab, a research and development institute that is being developed with assistance from the state of Connecticut. The Bioscience Innovation Act officially will be released as part of Governor Malloy's legislative package on February 6th.

The second installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Colorado, Nebraska, Nevada, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin. Our first installment was in the Jan. 9 Digest.

ColoradoGov. John Hickenlooper, State of the State Address, Jan. 10, 2013

“We also ask that you pass House Bill 1 ... bipartisan legislation that will support ‘advanced industries’ in Colorado. ...

“... The second annual COIN Summit, hosted by the Colorado Innovation Network, will take place in August. We will convene national and international stakeholders to discuss technology, workforce development, higher education and our state's brand”

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.

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.

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.

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.”

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:

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.