SSTI Digest

Innovative companies involved in commercializing research with universities and federal agencies often cite complicated contracts and uncertainty surrounding the process as a barrier to bringing more technologies to the marketplace. In an effort to remove some of those hurdles, two new initiatives recently were announced from the University of Minnesota (UM) and the Department of Energy (DOE).

Hoping to provide companies with a stronger incentive to commercialize university-based technologies, UM has developed a new approach to intellectual property (IP) allowing companies to pre-pay a fee and receive an exclusive worldwide license with royalties taking effect only in case of significant commercial success. Agreements established under the new Minnesota Innovation Partnerships (MN-IP) allow a pre-paid option fee that amounts to 10 percent of a sponsored research contract or $15,000, whichever is greater. It includes an option to exclusive license with pre-set terms, no annual minimums or fees, and no time limits or milestones. In exchange, the university would collect a 1 percent royalty fee if annual sales involving licensed intellectual property exceed $20 million.

Recent legislative actions supporting technology-based economic development include level funding for the Massachusetts Life Sciences Center, funding to support programs of the Minnesota Science and Technology Authority and the expansion of two state programs in support of technology and life sciences companies in New Jersey.

MassachusettsThe Massachusetts Life Sciences Center, a quasi-public agency charged with implementing the state's 10-year, $1 billion Life Sciences Initiative, will receive $10 million in FY12, the same as last year. The appropriation is contingent upon a consolidated net surplus for FY11. The center has so far committed $217 million in state funds, leveraged more than $710 million in additional outside investment, and created a projected 7,000 jobs, according to the agency.

The full budget can be viewed at www.mass.gov/gaa.

Pamela Goldberg has been appointed as the executive director of the Massachusetts Technology Collaborative. Currently, Goldberg serves as director of entrepreneurial leadership at Tufts University.

Alabama Gov. Robert Bentley announced the appointment of Greg Canfield as the new director of the Alabama Development Office. Current ADO director Seth Hammett is returning to his position with PowerSouth Energy. Canfield is expected to begin his duties on or before Aug. 1.

Ohio Gov. John Kasich announced that Jim Leftwich is resigning as director of the Development Department. Leftwich, former CEO of the Dayton Development Coalition, stepped in as former director Mark Kvamme moved to a different position within the administration.

Alabama then-Governor-elect Robert Bentley on January 3 named former House Speaker Seth Hammett as director of the Alabama Development Office, replacing Interim Director Linda Swann. He also appointed the president of the Birmingham-based Economic Development Partnership of Alabama, Bill Taylor, to lead efforts to grow and retain existing Alabama industries, while at the same time recruiting new businesses to the state.

Colorado Gov. John Hickenlooper nominated Dwayne Romero, president of Related Snowmass, to be the new director of the Colorado Office of Economic Development and International Trade.

Florida Governor Rick Scott fired John Adams, the current president of Enterprise Florida, so that he can choose a new leader to help promote his job creation and economic development agenda.

Minnesota needs additional support for science and technology commercialization, manufacturing and entrepreneurship in order to remain competitive, according to a new strategic plan released by the Minnesota Science and Technology Authority. The plan recommends an initial appropriation of $10 million annually, ramping up over ten years, to invest in the state's R&D capacity, talent development and capital and business development. The group estimates that the plan could create up to 30,000 to 45,000 direct jobs and leverage up to 30 times the state's investment in the form of federal and private sector funding. Read the report ...

Often credited with contributing significant revenue to states' economies, research parks also house facilities for workforce training and provide resources for tech-based industries, which is especially important as the nation's employment begins to pick up steam. In West Virginia, officials are building a $15 million advanced technology-training center at the state-owned research and technology park, and in Utah, officials recently broke ground on a building that will house engineers and analysts working on the nation's Intercontinental Ballistic Missile program.

The Small Business Administration (SBA) announced the selection of 10 regional economic development and job creation efforts through a new pilot program, Innovative Economies, that supports small business participation in regional economic clusters. SBA's funding is designed to expand the opportunities and the role small businesses play in these regional collaborations. The awardees were selected from among 173 applicants. Awards went to organizations in: Alabama, California, Connecticut, Illinois, Michigan, Minnesota, Mississippi, North Carolina, Ohio and South Carolina. Read the full release

Craig Dye was named director of the Mtech VentureAccelerator Program, a fast-track, early admission program tied to Mtech's Technology Advancement Program.

The Minnesota High Tech Association announced Margaret Anderson Kelliher, speaker of the Minnesota House, will assume the role of president of the Association beginning in January after she leaves public office.

Matthew Portnoy of the National Institute of General Medical Sciences will serve as acting SBIR/STTR coordinator for the National Institutes of Health.

Sheri Stickley is president & CEO of the Oklahoma Bioscience Association. Ms. Stickley previously served as Deputy Director for Strategic Planning & Initiatives at Oklahoma Department of Commerce.

Former Kentucky Commerce Cabinet Secretary George Ward was named executive director of the University of Kentucky Coldstream Research Campus.

At the close of the 2010 legislative session in Minnesota this week, several initiatives supporting the state's tech-based economic development agenda were enacted into law. To help make the state more competitive, the Minnesota Science and Technology Authority was established to develop and implement a comprehensive strategy for growing the state's economy through investments in science, technology and innovation.

The 18-member S&T Authority will coordinate public and private efforts to procure federal funding for collaborative R&D projects, work with nonprofit institutions in promoting collaborative efforts to respond to federal funding opportunities, and provide commercialization assistance to Minnesota businesses. A comprehensive science and technology economic development plan will be presented to lawmakers by Jan. 15, 2011. SF 2510 establishing the S&T Authority is available at: https://www.revisor.mn.gov/bin/getbill.php?session=ls86&number=SF2510&version=list.

Having the tools and resources to develop innovative concepts and products and move discoveries from the lab to the marketplace is an essential component for building tech-based economies. Research parks, a place where innovative ideas are borne, partnerships between university and industry are created, and companies grow and create new jobs, provide a foundation for the kind of economic growth necessary to compete in a global economy. Over the past few months, development plans and groundbreaking announcements from research parks across the nation have been made.

Construction on the first building of Innovation Park, a Missouri University of Science & Technology Research Park, began in March on what used to be a 60-acre golf course. When completed, the building will provide 18,500 sq. ft. of office suites and shared office space for tenants. The concept for a research park on the Missouri S&T campus has been a topic of discussion for more than 10 years, according to the university. Innovation Park is slated to open in October 2010.

The Minnesota legislature has passed a 25 percent tax credit for individuals and pooled funds that invest in early-stage high-tech businesses as part of a new jobs bill. Up to $17 million in tax credits will be available in FY11, with $12 million a year available in FY12 and afterward. The credits apply to investments in companies with fewer than 25 employees and less than $2 million in private capital.  Read the complete bill.

Gov. Tim Pawlenty recently unveiled his 2010 supplemental budget recommendations, which includes new tax incentives to boost job creation and spending cuts across state agencies to help eliminate a projected $1.2 billion deficit. Announced during his State of the State Address earlier this month, the proposed Jobs Creation Bill is a six-part plan with components aimed at stimulating formation of early-stage capital in new emerging businesses and encouraging businesses to invest in R&D.

Under the proposal, a 25 percent tax credit for angel investments in qualified businesses would be established. The tax credits would be capped at $5 million a year in 2010 and $10 million in 2011, according to budget documents. Angel tax incentives are likely to be a topic of debate during the upcoming legislative session with competing bills introduced in both the House and Senate (Read the article).