SSTI Digest

Lawmakers and technology industry leaders in Georgia and Kentucky are hoping to establish capital programs during the 2012 legislative sessions in an effort to support new business creation and remain competitive with states already offering lucrative incentives.A legislative subcommittee in Georgia recently proposed a $180 million public-private venture capital fund to invest in technology, life sciences, advanced manufacturing, logistics, aerospace, and other high-growth sectors, reports The Atlanta Business Chronicle. The fund would be financed through a combination of tax credits and private capital to attract high-growth jobs and retain existing companies. Under the proposal, a state agency or authority would administer the fund, but a third-party fiduciary would select the venture capital and private equity funds that participate in the program. The state would receive 80 percent of the profits when portfolio companies are sold or go public, according to the article. Additional proposals and recommendations on how the state can best support science and technology jobs are expected from the Science and Technology Strategic Initiative Joint Study Commission…

State fiscal conditions are likely to remain constrained in the coming year due to a weak national economic recovery and loss of federal stimulus funds, according to the latest Fiscal Survey of States. The survey points to some improvement in state finances in 2011 with 38 states reporting higher general fund spending in 2011 compared to FY10. However, 29 states still have lower general fund spending in FY12 compared to pre-recession levels in FY08 and total state revenues in 2012 remain below their 2008 levels by nearly $20.8 billion.The survey finds some states are experiencing a slight improvement in conditions, but warns that FY12 continues to present significant financial management challenges. In FY11, revenues from all sources, which include sales, personal income, corporate and other taxes and fees, exceeded forecasts in 32 states. Earlier this year, three big states — New York, Massachusetts and Virginia — reported improved revenues following years of decline. While it may appear from the numbers that states have emerged from their fiscal crisis, the surpluses are more likely a result of spending cuts from previous years, according to the survey. A Stateline…

"Fast-growing economies in emerging markets are outpacing more developed countries with respect to investment in innovation," according to Encouraging and Protecting Innovation — a new report from PricewaterhouseCoopers (PwC). A PwC researcher compiled the report utilizing survey data collected from over 200 global executives who attended the annual meeting of The Wall Street Journal CEO Council. The report points out that Asia's emerging markets, mostly due to China, already invest more on R&D than the EU and Japan, respectively. In the near future, respondents believe U.S. companies and companies from other advanced economies will face a competitive challenge from aggressive, cash-rich firms from emerging economies due to sustained commitments to national R&D spending. Twenty percent of global executives also report finding China and India as the most attractive countries for their businesses to invest in innovation. The Wall Street Journal CEO Council commissioned the report, where respondents were also asked to select the biggest threat to the U.S. as the global leader of innovation. The results of factors that impede…

TBED organizations in Massachusetts and Rhode Island recently published comprehensive reviews of their respective state innovation economies. Both studies employ metrics of the general economy, as well as indicators of STEM education, research, venture investment and technology industry activity. They also use data from other state economies to track their progress in creating a vibrant and sustainable innovation ecosystem. The reports provide a useful set of innovation metrics that can be applied in other regions. Massachusetts The 13th annual Index of the Massachusetts Innovation Economy from the Massachusetts Technology Collaborative suggests that almost 40 percent the state's employment fell within innovative sectors in 2010. Eleven sectors are included in this group, including: healthcare delivery, financial services, postsecondary education, business services, software and communications services, bio-pharma and medical devices, "scientific, technical and management services," diversified industrial manufacturing, defense manufacturing & instrumentation, computer & communications hardware and advanced materials. Though these eleven…

With increasing pressures from state and local policymakers to show a return on investment, universities and colleges across the country are stepping up their efforts to transform innovative ideas into ready-for-market products and develop a new generation of entrepreneurs that will spur regional and state economic growth. Recently, several universities announced new initiatives to foster innovation and build entrepreneurial capacity including: Auburn breaking ground on a new $28.8 million science center; Harvard's Innovation Lab opening its doors; and, The LaunchPad Ohio announcement at four universities in Northeast Ohio. Auburn Science Center The University of Auburn broke ground on the $28.8 million Auburn University Center for Advanced Science, Innovation and Commerce (CASIC). Funded in part by a $14.4 million grant from the U.S. Department of Commerce's National Institute of Standards and Technology (NIST), the 84,000-square-foot center will feature 20 laboratories, shared support spaces and specialized equipment areas for scientific research in bioenergy, water quality, food safety, genomics, information science and ecosystem health. The university…

Louisiana and Texas voters approved measures to provide funding sources for student loans while voters in Colorado rejected a measure that would have temporarily increased taxes to offset cuts for public schools and colleges. Meanwhile, Ohio voters repealed a bill passed earlier this year limiting collective-bargaining rights of state employees. Official results are outlined below:Colorado Proposition 103 was defeated 64 percent to 36 percent, reports The Denver Post. The measure would have increased the state income tax to 5 percent from 4.63 percent and the sales tax to 3 percent from 2.9 percent. Revenue generated from the increase would have been used to help fund education in the state.Louisiana Voters passed Amendment 1 with 67 percent approval. The measure re-directs tobacco settlement proceeds to the Taylor Opportunity Program for Students (TOPS) scholarship program once the balance in the state's Millennium Trust Fund reaches $1.38 billion. The scholarship program is available for state residents who attend public colleges or universities.Ohio Voters approved a referendum to repeal SB 5 by a margin of 61-39 percent. The measure would have limited collective…

Just three months after unveiling a statewide regional economic development plan, Gov. John Hickenlooper released a new version of the document that speeds up timelines and adds more specific measurable outcomes to the plan's 24 job creation strategies. The governor also submitted a budget proposal for FY13 that calls for additional funds to help the Economic Development Commission attract high-wage jobs and support initiatives that address distinct market barriers in the energy sector. The Colorado Blueprint: A Bottom-up Approach to Economic Development, was developed with input from all of the state's 64 counties and provides benchmarks to measure achievement of the 24 action items, which are focused around six areas, including cultivating innovation and technology (see the July 27, 2011 issue of the Digest). In the newest version, the plan calls for development of a comprehensive statewide industry cluster strategy in the next three months, rather than the next nine months. Revisions also include an increased focus on local and regional infrastructure development and a structure for engaging industry partners in promoting the Colorado brand through the…

President Obama announced the Health Care Innovation Challenge — a $1 billion initiative to support the most compelling new ideas to deliver better health, improve care and lower costs to people enrolled in Medicare, Medicaid and/or the Children's Health Insurance Program (CHIP). The objectives of this initiative are to: Engage a broad set of innovation partners to identify and test new care delivery and payment models that originate in the field and that produce better care, better health and reduced cost through improvement for identified target populations; Identify new models of workforce development and deployment that support new models through new infrastructure activities; and, Support organizations who can rapidly deploy care improvement models (within six months of award) through new ventures or expansion of existing efforts to new populations of patients, in conjunction (where possible) with other public and private sector partners. Administered by the U.S. Department of Health and Human Services, the challenge also will give preference to projects that rapidly hire, train and deploy health care worker. Applications are open to providers, payers,…

Gov. Chris Gregoire outlined a series of proposals to boost Washington's competitiveness in the aerospace sector, including support for university research and funding to expand high school workforce curriculum and enroll more university students in engineering fields. By investing in education, research, and expanding tax incentives, Gov. Gregoire hopes Boeing will select the state to build and manufacture its 737 MAX, which the governor calls a once-in-a-generation opportunity expected to support up to 20,000 jobs. The $9.8 million plan centers on enhancements to the state's education system to ensure a prepared and skilled workforce. Proposals include: $7.6 million to expand capacity at the University of Washington (UW) and Washington State University (WSU) to enroll 775 more engineering students; $1.5 million to create a Center for Aerospace Technology Innovation at UW and WSU to support research that will grow the aerospace sector, with additional funds from companies, foundations and supporters; $450,000 to expand the governor's Launch Year program and provide 12 high schools with aerospace curriculum support to prepare high school students to enter the…

This week (Nov. 14-20, 2011), more than 25,000 organizations in 123 countries will host events celebrating entrepreneurship and connecting entrepreneurs to potential mentors, inventors, collaborators and peers. Global Entrepreneurship Week (GEW) activities include Startup Weekends, in which groups come together to create a new business in three days, startup competitions and showcases, social entrepreneurship forums and venture capital summits. First organized in 2008 with support from the Kauffman Foundation, GEW activities have spread around the globe and will this year include the participation or support of U.S. President Barack Obama, UK Prime Minister David Cameron, Israeli Prime Minister Benjamin Netanyahu, Canadian Prime Minister Stephen Harper, and many other international heads of state. GEW features several worldwide competitions related to entrepreneurship that will make awards or hold final rounds this week. These include: Startup Open — Each year GEW recognized 50 startups judged to have the strongest concepts and growth potential. The list of this year's winners is available at: http://startupopen.com/gew50for2011. Your Big Year — The Smaller…

To leverage the state's opportunities, Nevada needs to upgrade its diffuse economic development system to empower its regions more fully and set a statewide platform for new growth, finds a report commissioned by the state. Building on legislation passed earlier this year to reorganize and elevate the importance of the state's economic development activities, the report calls on the state to unify its operating system for 21st century economic development, support smart sector strategies in the regions, and set a platform for higher-value growth through innovation and global engagement. Seven major industries poised for economic growth also are identified, including clean energy and aerospace and defense.Read the press release...

The Center for Regional Economic Competitiveness (CREC) released a new report that uses real-time labor market information data (web-based job advertisements) to analyze the U.S. manufacturing sector for the first half of 2011. Using Labor Insight, a web tool that aggregates data about web-advertised job openings, co-authors Lauren Gilchrist, Ken Poole and Mark White highlighted several important characteristics of anticipated manufacturing hiring: Manufacturers posted nearly 669,000 web-advertised job postings over the first six months of 2011; An overwhelming number of manufacturing jobs advertised online (91 percent) are not directly related to production activities; Manufacturing job openings were concentrated in major metropolitan areas; Almost one in four manufacturing job openings was in just three industries (computer and peripheral equipment manufacturing; aerospace product and parts manufacturing; and pharmaceutical and medicine manufacturing); Over half of the openings within manufacturing required more than a high school diploma; Twenty-five percent of production-related jobs required educational attainment beyond a high school diploma; Many of the…