SSTI Digest

California-based companies received about 56 percent of all U.S. venture capital dollars in 2014, the state's highest share of venture activity since the dot com boom of the early 2000s. Over the past 15 years, investment activity has steadily become more concentrated in California and a few other states. In 2009, about 67 percent of all deals and 74 percent of venture capital dollars flowed to the top five states. By 2014, those states' share of venture dollars grew to 80 percent, according to NVCA/Pricewaterhouse Coopers data. A recent Harvard Business Review article, however, suggests that startups are receiving first-round funding in more metropolitan areas than ever. The NVCA/PwC data indicate that California's dominance over the U.S. venture capital industry appears to be holding steady, but its high percentage of national venture capital dollars is due to larger deals rather than larger number of funded companies. Over the past 10 years, California's share of the nation's venture capital dollars has grown from about 47 percent to 56 percent. The state's share of deals, however, has remained fairly steady. In 2005, California's…

Over the past decade stem cell research has been touted as a game-changer in the life sciences and a potential fount of new biomedical innovations. As a result, several states have launched targeted programs to support stem cell research, despite the controversy that tends to surround the field. New research suggests that these programs have been effective at increasing the output of researchers in their respective states. State investments in California and Connecticut have helped researchers outperform their colleagues around the country, according to a recent paper published in Cell Stem Cell. Programs in New York and Maryland did not have quite the same impact, but helped research output in those states keep pace with other states. Authors Hillary B. Alberta, Albert Cheng, Emily L. Jackson, Matthew Pjecha and Aaron D. Levine examine the impact of stem cell programs in California, Connecticut, New York and Maryland, though the study also acknowledges efforts in Illinois and New Jersey. Over the past 10 years, each of these states has invested in basic and translational stem cell research for the stated purpose of advancing the science and creating jobs. The programs…

As governors around the country begin their newest terms, their proposed budgets are beginning to take shape. Although few governors specifically target technology based economic development, after the first wave of budgets a variety of initiatives related to workforce development and higher education have garnered support.    California Gov. Jerry Brown released his proposal for a $164.7 billion budget for FY 2015-16 with a $113.3 billion general fund. As budget deliberations continue until June 15th, it is expected that resistance will come from both the University of California (UC) system and Democratic policymakers hoping to restore the health and social services programs that were reduced during the most recent recession.  Of the general fund, 12.4 percent is projected to go toward higher education, with the UC and the California State University (CSU) system each receiving about $3.1 billion, and the California Community College (CCC) system receiving $8.1 billion. By providing an increase of $119.5 million to both, both the UC system and the CSU system will be able to hold tuition flat. The budget also provides $25 million for…

Now in its 15th 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 California, Kentucky, and Vermont.  This year, several governors have combined their inaugural addresses with the traditional address to the state legislature. Remarks from these speeches related to technology, innovation and economic development will be included in the roundups. CaliforniaGov. Jerry Brown, Inaugural Address, Jan. 5, 2015 “… I propose three ambitious goals to be accomplished within the next 15 years: increase from one-third to 50 percent our electricity derived from renewable sources; reduce today's petroleum use in cars and trucks by up to 50 percent; and, double the efficiency of existing buildings and make heating fuels cleaner. “We must also reduce the relentless release of methane, black carbon and other potent pollutants across industries. And we must…

Over the last several years, universities have been forced to reimagine ways that they engage with alumni beyond the traditional method of fundraising via alumni donations. These universities and their alumni associations want to increase alumni involvement and facilitate interactions between their high-achieving alumni, faculty, and students. Over this same time span, many universities have increased the size and scope of their entrepreneurship curricula and degree programs. These two trends have started to merge as there has been a rise in the number of alumni angel networks that connect the talents and capital of alumni with faculty and students looking to launch an entrepreneurial venture. In 2012, approximately 40 alumni angel networks were affiliated directly with a university or alumni association. The number continues to grow as groups affiliated with Boston College, Dartmouth College, and Virginia Tech University recently launched angel networks that connect high-worth alumni with student-led startups.  University of Southern California (USC) alumni recently founded GenYrator, a for-profit equity crowdfunding platform to spur investment by accredited…

On the heels of a recent memo from the President’s Council of Advisors on Science and Technology (PCAST) highlighting the difficulty middle-skill workers are having finding a route into the modern economy, reports from two tech hotspots suggest that local action is needed to ensure that tech success translates into widespread economic prosperity. San Francisco and Austin are leaders in the nation’s innovation economy and fared better than most of their peer cities through the Great Recession. However, rising housing prices and a lack of resources for middle- and low- wage workers have led to rising inequality and less robust economies in both cities. A recent MIT Technology Review article explores the phenomenon of tech prosperity fueling, rather than reducing, regional inequality. Author David Rotman uses the writings of Erik Brynjolfsson to explain why new technologies and increased productivity aggravated the divisions between the wealthy elite and everyone else. Brynjolfsson argues that tech-based economies amplify the winner-take-all characteristics of capitalism, with the majority of benefits reaped by small groups of people. Much of the work that would…

On September 28, California Gov. Jerry Brown signed SB 850 into law, which establishes a pilot-program that will allow 15 of the state’s community colleges to launch low-cost bachelor’s degree programs in vocational fields of high demand by state industries. This bill makes California the 22nd state to offer state residents the opportunity to earn a low-cost bachelor’s degree at a local community college. Community colleges from across the state will compete for one of the 15 spots in the pilot program. The community college will need to propose one bachelor’s degree program that trains students for high-demand jobs that are not already offered through the University of California or California State University (CSU) systems. The programs will be a mixture of both traditional classroom and online courses. All 15 of the pilot degree programs will launch before the 2017-18 academic year with some launching as soon as fall of 2015. The pilot program is set to end in 2024. The program is intended to address two problems plaguing the California: The growing demand by industry for workers who hold a bachelor’s degree; and, The sky-…

Within the past month, two of America’s major research universities – the University of California system (first in total R&D expenditures, according to the NSF) and the University of Minnesota-Twin Cities (eleventh in total R&D expenditures) announced new funds to increase the rate at which their students, faculties, and researchers are able to commercialize their ideas into new businesses. While the UC system announced the establishment of a $250 million venture fund, Minnesota announced that it was scrapping a plan for a $70 million investment fund and was pursuing programs that provide early stage seed funding instead. Universities are likely to continue to play a role in providing financial assistance as a means of commercializing university technologies; however, as can be seen in the Minnesota case and in several others throughout the country, a traditional venture capital fund is not the only method to do so. Seeded with money from the University of California endowment, the $250 million venture capital fund within the UC system will be one of the largest in the nation of its kind. The new funding entity, called UC Ventures, will focus…

The Los Angeles-Long Beach-Santa Ana metropolitan area is home to the largest number of manufacturing jobs in the country, according to data from the U.S. Bureau of Labor Statistics (BLS). Approximately 510,900 people are employed by manufacturing firms in the Los Angeles metro, about 100,000 more than in the Chicago-Joliet-Naperville area, which is ranked second for manufacturing employment. Other top metros include New York-Northern New Jersey-Long Island, Houston-Sugar Land-Baytown and Dallas-Fort Worth-Arlington. Of the top 10 metros in which manufacturing jobs represent the highest percentage of total employment, seven are in the Great Lakes region, with several in both Indiana and Wisconsin. Read the release…

This article is part of SSTI's series on trends in state technology-based economic development legislation in 2014. Read our other entries covering legislative action on patent reform, research capacity, technology commercialization & infrastructure, tax credits & STEM and manufacturing & clusters. Addressing accessibility, affordability and ensuring workforce preparedness topped legislators’ agendas in many states during the 2014 sessions. States and regions are increasingly competing for talent as the trend toward growing and nurturing innovation ecosystems continues. Attracting and retaining high-tech companies also requires states to have a steady stream of tech-savvy workers. Specifically, policymakers are interested in matching worker skills with industry sectors important to their communities, and many of the efforts put into place during the legislative sessions focus on building long-term relationships between industry and higher education. Three states, Louisiana, Utah and Wisconsin, dedicated notably large sums of money toward workforce training with a STEM focus. One of the largest investments was made in Louisiana, where…

Corporate-sponsored research resulted in licenses and patents much more frequently than federally sponsored projects at the campuses of the University of California system between 1990 and 2010, according to findings published in Nature. While federally funded research produced licenses in 22 percent of cases, 29 percent of industry-supported projects led to licenses. Federally supported projects led to licenses 26 percent of the time, while corporate research did so in 29 percent of cases.  Corporate sponsorship also led to more citations in future patents. This was true across technology fields. Authors Brian D. Wright, Kyriakos Drivas, Zhen Lei and Stephen A. Merrill found that inventions with both types of support were even more likely to commercialize technologies. While the authors anticipated that corporations were more likely to fund applied research that could be quickly brought to market, they also hypothesized that industry research would more often lead to discoveries that were locked down with exclusive licenses or be so narrow as to limit their number of future citations. The latter two predictions turned out to be false. Though the study is…

In an effort to help spur economic prosperity, several universities have unveiled new initiatives to connect potential entrepreneurs with university resources and help integrate the entrepreneurs into their region’s innovation ecosystem. In partnership with other organizations, these programs are intended to position each respective university as a driver of regional economic development through the provision of education, training initiatives and other support services. The initiatives include new programs at Clarion University in Pennsylvania, Carroll University in Wisconsin and New York University (NYU).  The Blackstone Charitable Foundation also announced it will expand LaunchPad, a university-led entrepreneurship program, to a partnership that includes three universities in Southern California. As part of the Make It in PA initiative, Gov. Tom Corbett committed $300,000 to support the Clarion Regional Innovation Support Program (CRISP), an initiative aimed at supporting entrepreneurship through a collaborative regional support system. CRISP will be comprised of the Clarion University Center for Applied Research & Intellectual Property Development, the…