SSTI Digest

Efforts to make university funding dependent on performance outputs have done little to increase degree completion rates, according to researchers from the Wisconsin Center for the Advancement of Postsecondary Education (WISCAPE). A WISCAPE study finds that state initaitives to make university funding dependent on number of degree completions, student retention, job placement and other factors have had little to no effect on associate or baccalaureate degree completions. The researchers recommend further investigation into alternative evidence-based methods to improve public-university performance. Download the brief...

Follow-on funding, access to technology, talent and resources all can be barriers to commercialization and successfully spinning off sustainable companies. Always seeking a quicker, more viable path to market for technologies and products, university-based programs and public-private partnerships try to tackle these hurdles, which often times are region-specific. Such is the case in Long Island, NY, where a recent partnership between a nonprofit organization and venture capital firm is working to address access to capital concerns. Other recent initiatives addressing region-specific barriers have launched in Indiana and Wisconsin. New-York based Accelerate Long Island (LI) will partner with the area's largest venture capital firm to fund local startups through access to a $213 million fund. A shared interest in advancing research-based startup companies through commercialization helped bring about the alliance. The goal is to move beyond seed funding to give the startups coming through the Accelerate LI pipeline an avenue to potentially access the type of cash to get them going, reports Xconomy. Referring to the area as "capital starved," Accelerate LI…

A measure to amend the state securities laws in order to permit equity crowdfunding won approval in the Wisconsin Legislature following swift and unanimous passage in the Senate this week. The bill, called the Wisconsin Crowdfunding and Securities Exemptions (CASE) for Jobs Act, is aimed at providing better access to small business capital by connecting Wisconsin-based investors with startups through crowdfunding websites. Wisconsin now joins three other states, Georgia, Kansas and North Carolina, that have enacted similar securities exemptions. Lawmakers across several states, including in New Jersey, have cited frustrations regarding the delay in full implementation of the federal JOBS Act as a reason for creating the state-level exemptions. Under The CASE for Jobs Act, a new category of certified investor is established to include individuals with an income of $100,000 or a joint income of $150,000 in each of the most recent two years. The original bill would have reduced the threshold for accredited investors in the state from $200,000 in annual income to $100,000. Instead, the amendment adopted by the legislature creates the new certified investor status, which also…

The agenda for the upcoming legislative session unveiled by Gov. Scott Walker promotes investment in technical schools to provide skill development and quickly fill critical needs of employers. The governor outlined a package of eight workforce development bills, which include funding for youth apprenticeships, tuition reimbursement for apprentices and employers, technical education incentive grants, and scholarships for students to attend technical schools. Much of the new investment would augment funding for existing programs. Gov. Walker’s plan invests $8.5 million in new state funds and would secure another $14 million in federal funds for vocational rehabilitation programs. Some of the bills are outlined below. LRB 2949 – Increases funding for youth apprenticeship by $500,000 annually to meet demand. Under the program, enrollees receive on the job training and technical, college-level instruction at local high schools. LRB 2976 – Provides funding to reimburse students or employers 25 percent of the apprenticeship tuition and fee cost of up to $1,000 per apprentice. The program provides on the job training with classroom instruction to meet…

As many state legislative sessions wind down, a clearer picture of the current direction of state innovation policies is emerging. This week’s SSTI Weekly Digest presents a few of the major trends in technology-based economic development initiatives approved by state legislatures during their most recent sessions. While this review is not meant to be comprehensive, it should illuminate the shifts states are making to refine their investments in the high-tech economy by providing smarter, more targeted support. Over the past few months, the Digest has reported on several major capital access initiatives, transparency efforts and agency reorganizations that have made headlines amid a slow economic recovery and renewed attention to accountability in economic development. While other stories in this issue will examine some of the trends in legislation that previously have gone unreported in the Digest, several major legislative efforts have appeared in earlier issues, but represent other intriguing developments in state innovation policy. States Launch Venture Capital Funds for High-Tech GrowthThis week in Wisconsin, Gov. Scott Walker signed…

Over the last week, several states have announced/passed new programs focused on increasing the capital available to spur small business growth and innovation. Officials from New Jersey announced the state's new angel tax credit will take effect July 1. In Arizona and Wisconsin two bills await gubernatorial approval that would rework the Arizona R&D tax credit program and establish a $75 million venture capital fund in Wisconsin. Meanwhile, the Minnesota state legislature did not approve an additional $5 million for its popular Small Business Investment Tax Credit. ArizonaIn Arizona, a bill (House Bill 2342) seeking to expand the state's research and development (R&D) tax credit awaits the signature of Gov. Jan Brewer. Administered by the Arizona Commerce Authority, the reform is intended to help small, innovative companies with little to no cash flow by providing a refund for R&D activities. To be eligible for the R&D credit, the company would have 150 or less employees and perform research and development in one of several target industries. In exchange for the refund, the state gets to discount its research and tax obligation by…

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…

Rebecca Blank, the acting U.S. secretary of Commerce, is expected to be the next chancellor of the University of Wisconsin at Madison. The Board of Regents is scheduled to vote on the recommendation April 5. President Obama announced he has chosen Thomas Perez, the head of the U.S. Justice Department's Civil Rights Division, to be the next secretary of Labor. The nomination, announced Monday, will require Senate confirmation. Lars Hasselblad Torres has been named the director of the Vermont Department of Economic, Housing and Community Development's Office of the Creative Economy. David Goodman was appointed director of the Ohio Development Services Agency by Governor John R. Kasich. Previously, Chris Schmenk held the position. Vincent Mikolay has been hired as managing director of business outreach and international trade for the Utah Governor's Office of Economic Development. Tim Priest has been hired as Innovate Washington's chief marketing and development officer. Aram Nerpouni has been named president and chief executive officer of BioEnterprise. Last Sept., Nerpouni was named interim president of BioEnterprise in…

Pramod Khargonekar has been selected to serve as the National Science Foundation's assistant director for the Directorate of Engineering. Dan Blake will join the Wisconsin Technology Council as the director of its Wisconsin Angel Network in mid-March. Blake succeeds Zach Brandon, who recently became president of the Greater Madison Chamber of Commerce. Robert Sternberg, who currently serves as provost and senior vice president at Oklahoma State University, has been named president of the University of Wyoming. Susan Froshauer has accepted the position of chief executive officer and president of CURE (Connecticut United for Research Excellence), effective April 1. Dan Hasler, former secretary of Commerce for the state of Indiana and CEO of the Indiana Economic Development Corporation, will become the president of the Purdue Research Foundation and chief entrepreneurial officer.

Over the last month, Gov. Scott Walker has slowly rolled out a series of ambitious proposals ranging from $25 million for venture capital investment to $100 million for worker training and nearly $500 million in new state funds for public education. Together, these and other broad-ranging initiatives make up the $68 billion 2013-15 biennial budget unveiled in its entirety yesterday. Seeding startups and encouraging an entrepreneurial climate is a major focus of the governor's economic development budget, which in addition to the venture capital initiative provides nearly $6 million for two interrelated programs where entrepreneurs can participate in an accelerator program and apply for early stage capital. Managed by the Wisconsin Economic Development Corporation (WEDC), the seed accelerator program provides matching funds to communities and partners to establish accelerators that offer services such as mentoring, business planning and networking. Under the capital catalyst program, entrepreneurs can apply for financing to start or grow their venture. The $25 million venture capital investment proposal aims to attract private funding and create a large pool of…

Leslie Guice officially was approved by the University of Louisiana System Board of Supervisors to become the 14th president of Louisiana Tech University. Guice will take office July 1, 2013. Camille Saltman has joined MD Revolution as president. Saltman was previously president of CONNECT and continues to be a member of CONNECT's board of directors. Ted Ford has been named president & CEO of Advanced Energy Economy Ohio. Previously, he was the president & CEO of TechColumbus from 2005-2011. David Karpinski has joined the Lake Erie Energy Development Corporation as vice president of operations. As NorTech vice president and director of its Energy Enterprise initiative, Karpinski has worked closely with LEEDCo since its inception in 2009. Gov. Jay Inslee announced Brian Bonlender will serve as director of the Washington Department of Commerce. Previously, Bonlender served as Inslee's chief of staff and legislative director. Gov. Scott Walker announced Reed Hall will be the Wisconsin Economic Development Corporation's chief executive officer. Hall has served as the interim secretary/CEO since November 2012.