SSTI Digest

Encouraged by promising commercialization efforts, new companies created and an impressive leverage of outside funding, Gov. John Kitzhaber has proposed a more than 50 percent increase in Oregon innovation efforts through the state's signature research centers. The governor's budget proposal for 2013-15 also includes funding to address small business capital needs and to better align workforce programs with employer needs. Calling his two-year spending plan an “education investment budget,” Gov. Kitzhaber also wants $8 billion to reverse the trend of cuts and layoffs in schools and proposed creating a Department of Postsecondary Education. The governor's budget for economy and jobs is $7.2 billion in total funds with $611 million in general and lottery funds, a 13 percent increase over last biennium. OregonInC would receive $25 million in lottery funds, up from $16 million approved in the 2011-13 biennium, to fund signature research centers and proposals aimed at creating new industry clusters. This includes the Oregon Nanoscience and Microtechnologies Institute (ONAMI), Oregon Translational Research and Drug Institute (OTRADI), Oregon Built…

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…

The Obama administration announced winners of the Advanced Manufacturing Jobs and Innovation Accelerator Challenge on Tuesday. The challenge — publicized earlier this year — is one of the key initiatives of the interagency Taskforce for the Advancement of Regional Innovation Clusters and is sponsored by a partnership between the U.S. Department of Commerce, the National Institute of Standards and Technology, the Departments of Energy and Labor, and the Small Business Administration. Winners include programs in AZ, CA, MI, OK, TN, NY, PA, and a WA and OR bi-state partnership, each receiving approximately $2 million in grants. See the complete list of challenge winners and their reward amounts here. This is the third in a series of multiagency Jobs and Innovation Accelerator challenges administered since 2011. Learn more...

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…

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…

Spending time at a technology or business incubator may be the key to learning about entrepreneurship. Some universities, seeking to ramp up entrepreneurship programs, are turning to incubators as real-world teachers. A recent Washington Post article points to several business schools pairing traditional education, such as courses and lectures, with less-conventional approaches, including incubators and business competitions to prepare students for opportunities outside the classroom. Recent announcements of new and emerging technology incubators from across the U.S. and Canada are included below. The city of Livermore, CA, celebrated the grand opening of i-GATE National Energy Systems Technology incubator last month, created to stimulate large-scale, high-tech business development around the region's two national labs. In addition to physical workspace, the 15,000-square-foot hub also will coordinate public-private collaboration with academia and the Department of Energy, reports The Mercury News. The region around the national labs was selected in 2010 as one of six future iHubs, a statewide initiative to improve competitiveness by stimulating partnerships,…

The 2011-13 biennial budget for the Oregon Business Development Department recently approved by lawmakers allocates $16 million for the Oregon Innovation Council (Oregon InC), the same amount as last biennium, but short of the $19 million requested by Gov. John Kitzhaber to broaden research and technology transfer programs. Funding for Oregon InC is provided through lottery revenues and is divided among six signature centers and programs dedicated to growing the state's innovation economy. Funding in 2011-13 will be distributed as follows: $5.2 million for the Oregon Nanoscience and Microtechnologies Institute (ONAMI) $3.8 million for the Built Environment and Sustainable Technologies Center (BEST) $2.8 million for the Oregon Translational Research and Drug Development Institute (OTRADI) $2.5 million for the Oregon Wave Energy Trust (OWET) $1.2 million for Drive Oregon $0.5 million for the Northwest Food Processors Innovation Productivity Center   The approved budget adds $8.95 million in lottery funds to the Strategic Reserve Funds (SRF) within the Oregon Business Development Department. This brings total support for new SRF commitments to $15…

As the cost of a college education continues to rise and good paying jobs are seemingly scarcer than ever before, many Americans are questioning the value of a college degree. A recent survey from the Pew Research Center found 57 percent of Americans believe the U.S. fails to provide good value for the money students and their families spend, and about four in ten college presidents say the system is headed in the wrong direction. At the same time, however, studies find the lifetime earnings of college graduates to be much higher than those of high school graduates. Further, students majoring in engineering, computers and mathematics can expect to make more money than any other undergraduate major. The Pew report, Is College Worth It? is based on findings from two surveys conducted this spring — one with the general public and the other an online survey among college presidents. Among survey respondents who graduated from a four-year college, 74 percent said their college education was useful in helping them grow intellectually, but only 55 percent said it was very useful in helping them prepare for a job or career. Additionally, a record number of students are…

Gov. John Kitzhaber recently unveiled a two-year spending plan that includes an additional $3 million for the Oregon Innovation Council's (Oregon InC) efforts to facilitate research and technology transfer. The governor's budget also recommends enhancements to the Strategic Reserve Fund used to expand and retain businesses and attract new companies and additional funding for the Industry Competitiveness Fund, a resource for industry clusters, statewide and regional economic development groups, and international trade-oriented businesses. The proposed budget would provide $19 million (a $3 million increase) in lottery funds for the following Oregon InC signature research centers and programs in 2011-13: Oregon Nanoscience and Microtechnologies Institue — Oregon's first signature research center established to foster nanoscience and microtechnology R&D. Oregon Translational Research and Drug Institute — A signature research center that provides resources for university researchers and biotech or pharmaceutical companies to fuel drug discovery and commercialization. Oregon Built Environment and Sustainable Technologies Center — A program connecting…

The legislature approved a budget agreement for the 2009-11 biennium last month, preserving partial funding for Oregon innovation efforts and passing legislation aimed at green job creation. A major component of Gov. Ted Kulongoski's climate change agenda did not survive the legislative session, however. Along with $2 billion in cuts, the approved budget relies on federal stimulus funds and taps into state reserve funds, reports the Portland Business Journal. To generate additional revenue for the state, Gov. Kulongoski signed legislation last week raising both personal income taxes for top earners and corporate income taxes. Although lawmakers typically meet every other year, the legislature likely will convene early next year to address any further budget gaps, the article states. The Oregon Innovation Council (Oregon Inc.) will receive $16 million over the biennium to continue R&D and commercialization efforts in nanoscience and renewable energy through the state's signature research centers. This is scaled back from the governor's recommendation of $20.5 million and $12 million less than the 2007-09 biennial appropriation. Funding is distributed among the…

President Obama nominated Francis Collins, a physician and scientist who helped guide the Human Genome Project to completion, as the next director of the National Institutes of Health. Stephen Fleming has been named vice provost of Georgia Tech's Enterprise Innovation Institute. Since 2005, Fleming has served as chief commercialization officer and led the Enterprise Innovation Institute's Commercialization Services Division. Fleming succeeds Wayne Hodges, who retired recently after a 40-year career at Georgia Tech. Larry Irving will step down as co-chairman of the Internet Innovation Alliance in September. Irving will join Hewlett Packard, the world's leading technology company, as vice president of Global Government Affairs. The Oregon Legislature approved legislation renaming and refocusing the Oregon Economic and Community Development Department. When Governor Kulongoski signs the bill, the department will be renamed the Oregon Business Development Department and will do business under the name Business Oregon. Sandra Watson has been promoted to assistant deputy director, Innovation & Global Business Development within the Arizona Department…

One of the biggest challenges for green technologies and products is breaking into the market. Achieving the critical mass that allows production volume to drive down prices is difficult, particularly when the commodity being sold is, at least initially, more expensive to make because more of the actual cost of production is captured in the green company's business model. Successful state, university and local TBED strategies to grow green(er) companies help fund product demonstrations and early adoption strategies to help with market penetration.  In Toronto, a broad group of CEOs took matters into their own hands.  Greening Greater Toronto has announced the creation of a working group comprised of more than 25 senior executives who will encourage and lead other organizations to buy products and services that minimize environmental impact and create green jobs. The working group, called the Green Procurement Leadership Council, represents approximately $40 billion in annual buying power. In addition to creating the Green Procurement Leadership Council, Greening Greater Toronto plans to: Host the Green Procurements Marketplace event…