SSTI Digest

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, capital & tax credits, workforce & STEM and manufacturing & clusters. State legislators in many parts of the country took action this year to fund the construction of research infrastructure and provide financial support for commercialization. In Kansas, New York, Georgia, Maine and Wyoming, legislators funded the construction of laboratories and other innovative spaces at public universities to boost the high-tech economy. In Colorado, Maryland and a number of universities, new initiatives were rolled out to support public-private research collaborations and the commercialization of cutting-edge technology. Building the infrastructure for researchKansas’ Wichita State University received $2 million in funding for the Innovation Campus at Wichita State earlier this year. The launch of the campus is the first step in the university’s long-term plan to construct a five-building campus dedicated to the commercialization of university…

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, capital & tax credits, technology commercialization & infrastructure and  workforce & STEM. The recent uptick in U.S. manufacturing activity, along with the attention generated by additive manufacturing and the Makers movement, has led to an increase in state initiatives to help cash in on this growth. In recent months, New York, Connecticut, Maryland, and Arizona have all taken steps to build stronger manufacturing sectors through research collaborations, grants and tax credits. Leaders in Colorado and New Jersey have pursued their own cluster-specific efforts to build stronger high-tech industries. Among New York’s many TBED-focused efforts in the past year, the state has established a 20 percent property tax credit and eliminated the income tax for manufacturers. The FY15 budget also provides $680 million for the Buffalo Billion initiative. The funding fulfills Gov. Andrew Cuomo’s 2012 commitment to provide $1 billion to the…

The FY15 budget bill passed by Maryland lawmakers increases funding for three of the state’s high-tech tax credits and provides level funding for continued innovation-focused investments. Lawmakers also passed bills to fund endowed chairs, create zones to incentivize businesses, and establish a statewide internship program connecting students to small, technology businesses. Under the approved budget, $12 million is available for investors claiming the Biotech Tax Credit, a $2 million increase over last year. The program provides refundable income tax credits equal to 50 percent of an eligible investment in seed and early stage biotechnology companies. Lawmakers increased by $1 million each funding for the Cyber Tax Credit ($4 million total) and R&D Tax Credit ($9 million total). Level funding of $18.6 million was approved for the Maryland Technology Development Corporation (TEDCO), which includes $10.4 million for the Maryland Stem Cell Research Fund. Lawmakers also approved a bill establishing a new Cybersecurity Investment Fund to provide early stage seed funding for emerging companies focused on cybersecurity and technology product development. TEDCO…

Gov. Martin O’Malley’s FY15 budget includes increased funding for the state’s biotech tax credit, cyber tax credit and R&D tax credit, and provides level funds to continue longstanding tech-based and workforce initiatives. The budget recommendations submitted last week to the legislature would provide the following increases for tax incentives: $2 million increase for the Biotechnology Incentive Tax Credit, bringing the total funds to $12 million to assist life sciences companies in raising funds. The program provides refundable income tax credits equal to 50 percent of an eligible investment. $1 million increase for the newer Cybersecurity Investment Incentive Tax for a total $4 million. This incentive provides a refundable tax credit equal to 33 percent of an eligible investment up to $250,000. $1 million increase for the state’s R&D tax credit for a total $9 million. Funding for the Maryland Technology Development Corporation (TEDCO) would be held steady at $18.6 million with $10.4 million designated for the Maryland Stem Cell Research Fund, the same as last year. Another $5 million would continue commercialization activity at…

Ted McAleer has resigned as executive director of USTAR. Also Gary Herbert has announced the appointment of former Lt. Gov. Greg Bell as chair of the USTAR Governing Authority. Bell, now president and CEO of the Utah Hospital Association, takes the place of outgoing chair Dinesh Patel. Martha Connolly has been named director of bioentrepreneurship, a new program supported by the Maryland Technology Enterprise Institute (Mtech) and the A. James Clark School of Engineering. Matthew Nemerson, president of the Connecticut Technology Council for the past decade announced he has taken a new position as Mayor Toni Harps’ economic development director in New Haven. Iowa Gov. Terry Branstad and Nebraska Gov. Dave Heineman announced  the formation of a two-state, regional economic development organization, Advance Southwest Iowa. Mike Dellinger, who currently works with the Council Bluffs Area Chamber of Commerce, will lead Advance Southwest as its executive director. Dellinger will have an office at the Greater Omaha Chamber.

Oklahoma Gov. Mary Fallin announced that Jonna Kirschner, executive director of the Oklahoma Commerce Department, will serve on a transition team to establish a new workers’ compensation system. Vaughn Clark , the Commerce Department’s director of community development, was named as interim executive director. Colorado Gov. John Hickenlooper named Mark Sirangelo, who is head of Sierra Nevada Corp., as chair of the Colorado Innovation Network and the state's new chief innovation officer. John Rhodes has been appointed as president and CEO of NYSERDA. Brian Cummings is leaving as vice president for technology commercialization at Ohio State University to seek other professional opportunities. Ray Atilano, the executive director of technology commercialization, also has left his position. Christy Wyskiel has been named senior adviser to the president for enterprise development at Johns Hopkins University. Wyskiel will fill the role beginning Jan. 1, succeeding Aris Melissaratos who accepted a new position as executive-in-residence and senior adviser to Dean Bernard T. Ferrari at the Johns Hopkins Carey Business School. Michael…

A number of states recently have taken action to expand R&D tax credits and other legislation that would support innovation, commercialization and manufacturing. Hawaii, California, Maryland, Texas, and Florida have signed into law tax incentives and R&D tax credits and an R&D tax credit in New Hampshire went into effect.  The Maine legislature also passed a capital tax credit that will begin in 2014. In late June, the Maine Senate and House passed LD 743, which will extend the Maine Seed Capital Tax Credit. The original tax credit program was created in 1989 with a $30 million cap. This extension will provide an annual cap of $5 million in tax credits to qualifying investors, beginning in 2014. “A tax credit certificate may be issued to an investor other than a private venture fund in an amount not more than 50 percent of the amount of cash actually invested in an eligible Maine business in any calendar year,” according to the bill. The business invested in must be “a manufacturer or a producer of a value-added natural resource product.” The New Hampshire tax credit in SB 1 took effect in late May.  SB 1 increases the…

London's Mayor Boris Johnson has announced an initiative to transform Olympic Park into a creative and digital business hub for the city. According to an article from startups.uk, the proposed redevelopment promises to boost the United Kingdom's (UK) GDP by $450 million ($692.5 million US) and create more than 6,500 new jobs. In partnership with the London Legacy Development Corporation, the city will make major investments in the areas surrounding the Queen Elizabeth Olympic Park, including the construction of three feature buildings: A 300,000 square-foot innovation center; A 750 seat auditorium; and, A 650,000 square-foot building housing educational space, broadcast studios, office space and a state-of-the-art data center. The project, dubbed iCITY, also will include the creation of accelerator and incubator space for creative and digital business startups. They will be located in the building that was used for press and broadcasting during the 2012 Olympics. Visit iCITY's website... Over the last year, several U.S. cities have proposed similar adaptive re-use projects — the redevelopment of an old historical site or building for a new…

London's Mayor Boris Johnson has announced an initiative to transform Olympic Park into a creative and digital business hub for the city. According to an article from startups.uk, the proposed redevelopment promises to boost the United Kingdom's (UK) GDP by $450 million ($692.5 million US) and create more than 6,500 new jobs. In partnership with the London Legacy Development Corporation, the city will make major investments in the areas surrounding the Queen Elizabeth Olympic Park, including the construction of three feature buildings: A 300,000 square-foot innovation center; A 750 seat auditorium; and, A 650,000 square-foot building housing educational space, broadcast studios, office space and a state-of-the-art data center. The project, dubbed iCITY, also will include the creation of accelerator and incubator space for creative and digital business startups. They will be located in the building that was used for press and broadcasting during the 2012 Olympics. Visit iCITY's website... Over the last year, several U.S. cities have proposed similar adaptive re-use projects — the redevelopment of an old historical site or building for a new…

Threats to America's cybersecurity continue to make headlines, underscoring the growing importance of protecting our country's digital infrastructure. As national security experts continue to grapple with how to address the challenge, the federal government is stepping up to coordinate state cybersecurity efforts. In an effort to promote our country's economic security and boost innovation and competitiveness, the National Institute of Standards and Technology (NIST) is working with states and the private sector to develop a framework for national cybersecurity standards. States are capitalizing on the increased coordination to build public-private partnerships that seed industry growth. The impact of cyber crime on innovation is devastating. U.S. industry losses of intellectual property to data theft in 2008 alone amounted to as much as $1 trillion, according to the Department of Commerce. In May 2009, President Obama accepted the recommendations of the Department of Homeland Security's Cyberspace Policy Review, which included the appointment of a Cybersecurity Coordinator who can work with state and local governments as well as the private sector to…

Maryland often has been at the forefront of innovation with a longstanding reputation for investing in science and technology to capture new opportunities for economic growth. This year's legislative session was no different. Lawmakers backed Gov. Martin O'Malley's proposals to support the state's bioscience sector, expand the R&D tax credit, enhance workforce training, and promote measures to establish the state as a leader in cybersecurity. While level funding was approved for many of the state's current technology-based economic development initiatives, lawmakers dedicated additional money to establish or expand tax incentives focused on the governor's Jobs and Opportunity agenda. Maryland is one of several states hoping to attract private funding for early stage companies focused on cybersecurity technology. To this end, lawmakers passed HB 803, which establishes the Maryland Cybersecurity Investment Tax Credit Reserve Fund and provides a 33 percent refundable tax credit for qualified investors in seed and early stage cybersecurity companies. The approved FY14 budget includes $3 million for the tax credit program. Lawmakers also…

Measuring impact is critical to the success and sustainability of any economic development initiative, and as the national debate over fiscal austerity and taxpayer spending continues, TBED organizations can expect increased scrutiny and accountability for their investments. Amid growing skepticism from the public, lawmakers increasingly struggle with finding a balance for funding new efforts that may take awhile to pay off with more pressing state needs. This year, measures to encourage the creation or expansion of high-growth companies through the use of tax incentives have been unveiled in several states. At the same time, lawmakers in some states are pushing for greater disclosure requirements through transparency measures. SSTI has compiled pending and recently approved legislation below. Angel Tax CreditsTwo states, Kentucky and Missouri, will try again to pass angel investor tax credits that failed to garner enough support during last year's legislative sessions. Lawmakers in Kentucky want to extend an angel investor tax to individuals for investment in high-tech startups currently available only to companies (HB 280). The tax credit is capped at…