SSTI Digest

Recently, the Maine Technology Institute (MTI) announced a new outreach effort to connect the state's community banks with promising technology and innovation-based businesses. These businesses often have capital needs that differ from other small firms and less collateral to secure loans. As a result, it can be difficult for high-tech firms to secure bank loans. The initiative will kick off with a series of workshops, held in partnership with community banks, on the funding options available to tech companies. Learn more... Learn more about financing company growthAre you curious about how the capital needs of growing tech businesses and manufacturers differ from other firms? Interested in learning about the funding resources already available? Join us on Dec. 20 for an hour-long webinar on securing capital for expanding tech firms and manufacturers. Read more...

While election night's main focus was on the presidential race, the importance of ballot measures for states and metros is growing as public services and budgets are being severely trimmed. A recent article in The New Republic reports on a new trend where states are embracing ballot measures as a potential source of dedicated funds for targeted investments in regional economic growth and development. Aside from California Gov. Jerry Brown's victory in raising taxes on top earners to help fund education and balance the budget, most state measures to increase taxes were defeated by voters. This includes extending a one-cent sales tax increase in Arizona, a cigarette tax increase in Missouri and implementing a 1 percent sales tax increase in South Dakota — all of which were slated to fund education. Voters were more supportive of borrowing to invest in higher education infrastructure, but rejected measures to improve teacher standards and build new revenue streams for universities. The only energy issue on the ballot appeared in Michigan and failed to garner enough voter support. Measures to provide more state authority for providing economic…

Voters in 37 states will decide on more than 170 ballot measures this year, many of which are related to tech-based economic development (TBED). Tax measures seem to be dominating ballots this year, with questions relating to both decreases and increases for sales, property and income taxes. Several states are counting on voters to agree to temporary increases to help fill budget deficits and ensure steady funding for education. SSTI has broken the ballot measures down by topic area, including Economic Development Incentives, Energy, Higher Education and Capital Bonds, Statehood and Taxes. Economic Development IncentivesTwo states, Alabama and South Dakota, will pose to voters a question regarding more state authority to dole out economic development incentives for job creation by recruiting larger projects or encouraging businesses to expand. Gov. Robert Bentley recently told a state road-building group that approval of Amendment 2 in Alabama is essential to the state's efforts to create new jobs, reports the Ventura County Star. Approval of the amendment would allow the state to refinance bonds for industrial development projects, making $150…

Tony Grindberg, executive director at the NDSU Research and Technology Park, has announced his resignation effective Sept. 30. He has accepted a position as the business unit manager for the Aerospace Business Unit of Appareo Systems, LLC. Appareo Systems is headquartered in the NDSU Research Park on the NDSU campus. Grindberg has been with the NDSU Research Park for the past 10 years. Harold Bradley has retired from the Kauffman Foundation after serving as chief investment officer since 2007. Bradley's departure follows that of Bob Litan, Kauffman's vice president for research and policy, who joined Bloomberg Government in Washington as director of research earlier this month. Mary McLean, the foundation's managing director of investments, will take on day-to-day responsibilities tied to the supervision of the investment staff. George Bald, New Hampshire's commissioner of the Department of Resources and Economic Development, is retiring effective Nov. 1. Thomas Rainey has been named director of the new Bioinspire medical device focused incubator program in Peoria, AZ. Maine Gov. Paul LePage has nominated Robert Martin to serve as…

Betsy Biemann, who has served as president of the Maine Technology Institute since 2005 has resigned. Joe Migliaccio, manager of MTI's Business Innovation Program, is serving as interim president. Indiana Gov. Mitch Daniels has been named the next president of Purdue University. Daniels will become the 12th president in Purdue's 143-year history in January at the end of his second term as governor. David Brukardt has been named the associate vice president for economic development for the University of Wisconsin System. The Missouri Economic Development Council has named Ryan Mooney as its president for the coming year. Mooney is senior vice president for the Springfield Area Chamber of Commerce and will maintain that position while he serves his term with the EDC.

House lawmakers fell short of overriding Gov. Paul LePage's veto of a $20 million bond for R&D projects that would have gone to voters in November following passage in the legislature earlier this month. The money would have been used by the Maine Technology Institute to provide competitive grants to businesses, nonprofit organizations, university research labs and others for R&D and commercialization projects through the Maine Technology Asset Fund (MTAF). MTAF was formed in response to the voter-approved $50 million bond to help grow the state's economy through high-tech investments in 2007. Another $3 million was approved in 2010. MTAF has achieved significant results through its $53 million investment. Since 2008, MTAF has invested in 35 R&D projects across Maine and leveraged $82 million in private and federal funds to create new jobs and support new product development. Gov. LePage vetoed the bond measure last week despite widespread support in the legislature. In his veto message, the governor listed two specific concerns. First, he did not want to use debt to pay operational costs, and second, he felt a majority of the funds from the…

While many state programs provide periodic reports on their activities and impacts, a few states provide regular data on their innovation economy as a whole. These reports can be useful in assessing a state's overall approach to TBED and in finding new areas for strategic intervention. Recently, groups in Massachusetts, Maine and Illinois separately released innovation indices that provide quantitative guides to their state's progress in fostering innovation. Massachusetts The Massachusetts Technology Collaborative's John Adams Innovation Institute has released its 2011 Index of the Massachusetts Innovation Economy, an annual review of the Commonwealth's high-tech economy through 25 indicators. Each year, the index tracks Massachusetts' progress in these indicators, along with comparisons to other U.S. states and national economies. In addition to Massachusetts, the 2011 edition provides indicator data for comparison from seven leading technology states, including California, Connecticut, Maryland, Minnesota, New Jersey, New York, North Carolina, Pennsylvania and Virginia. Highlights from the 25 indicators include Industry cluster employment and wages, patenting activity, R…

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards. Providing Access to Capital The Arizona Senate approved last month a bill to empower the state to facilitate $250 million in loans to manufacturers and other businesses by allowing third parties to sell income and insurance premium tax credits to venture capital firms, banks and other lenders, reports The Arizona Capitol Times. Supporters say the program, which has been employed at the federal level over the last decade under the New Markets structure, has been adopted successfully by nine other states. The measure awaits action in the House. Hoping to stimulate venture capital investment in Colorado, the Senate passed SB 58, the Colorado…

Lawmakers in several states wrapped up their 2011 sessions in time for the new fiscal year, which begins on July 1 for most states, allocating funds and passing bills in support of tech-based economic development. Read more... Delaware lawmakers established a new Job Creation Tax Credit and extended the scope to include clean energy technologies. Read more... Maine Gov. Paul LePage signed a bill expanding the state's Seed Capital Tax Credit. Read more... Nevada legislators passed a bill reorganizing the state's economic development efforts. The bill also establishes a Catalyst Fund and creates a Knowledge Fund to encourage technology commercialization. Read more... North Carolina's recently enacted budget continues to support the state's life sciences industry, but at a reduced level. Overall, appropriations for life science activities are reduced 3.9 percent in the coming year. Read more... Texas Gov. Rick Perry signed the 2012-13 biennial budget, which includes funding for the state's two major economic development funds — the Emerging Technology Fund and the Texas Enterprise Fund. Another bill passed during the…

Maine Gov. Paul LePage has nominated George Gervais, the acting commissioner of the Maine Department of Economic and Community Development as commissioner. His nomination must be reviewed by the Joint Standing Committee on Labor, Commerce, Research and Economic Development and confirmed by the Senate. Ned Staebler, former vice president of entrepreneurial services of the Michigan Economic Development Corporation, has taken the position of vice president of economic development at Wayne State. Ann Arbor Spark announced the hiring of several new executives as well as the promotion for former interim CEO Skip Simms. The Spark hires are Brittany Affolter-Caine, director of talent; Lukas Bonner, vice president of business development; and Donna Doleman, vice president of marketing, communications and talent. Simms was promoted to senior vice president from vice president. He will continue his role as the nonprofit's head of entrepreneurial business development. Terry Osborn, director of commercialization with the Kansas Bioscience Authority Heartland Bioventures program, announced that he has accepted a position as CEO of KCAS, LLC. Missoula Economic…

Three recent reports from Maine provide insight into the challenges of fostering an innovative economy in a rural state. Overall, the research suggests that Maine has done well in its efforts to support startups, but could do more to help those startups expand and find new markets. By encouraging innovation-based businesses to expand to markets outside of Maine and by offering mentoring services, the state could overcome the stagnation that can occur when companies and states focus on local markets. Over the past decade, Maine has increased its level of university research and development (R&D) from 35 percent to 70 percent of the U.S. average, according to a report from Maine's Office of Innovation. This growth in academic R&D investment reflects the state's focus on the University of Maine System, which received almost 70 percent of Maine's total investment in R&D in FY09/10. In 2010, Maine's universities increased their number of spin-off companies and their total number of research investments. The number of patents and licenses generated by university research, however, continued to fall well below the U.S. average. The authors…

Maine Governor Paul LePage named Phillip Congdon as the new commissioner of the Department of Economic and Community Development. Cogndon is a licensed professional engineer who spent more than 20 years with Texas Instruments in Dallas. He replaces Acting Commissioner Thaxter Trafton. Ohio Governor John Kasich announced Mark Kvamme, a partner at Sequoia Capital, will serve as the interim state development director. The Silicon Valley venture capitalist has agreed to do the job for a dollar. Former NorTech CEO Dorothy Baunach will be Cuyahoga County's interim economic development director. Ken Bloemer, executive director of the U.S.A. National Innovation Marketplace, will replace Phil Doepker as director of the University of Dayton, Innovation Center. Richard Chapas has been appointed the state project director for Delaware EPSCoR. He will succeed Steve Borleske, who has retired after more than eight years of service. Choose New Jersey has selected Tracye McDaniel as its first chief executive officer. Previously, McDaniel served as executive vice president and chief operating officer of the Greater Houston Partnership. Battelle…