SSTI Digest

The state of Washington's Governor Chris Gregoire announced the state will contribute $5 million to the W Fund, a new $25 million investment fund intended to spin more startups out of research labs at the University of Washington, Washington State University and other state research institutions. Administered by the Washington State Department of Commerce, key growth sectors targeted by the W Fund include biotech and clean tech. The fund intends to start considering investments in early 2012. Read the Governor's press release...

The European Union has implemented 30 of the 40 Innovation Union commitments according to State of the Innovation Union, a comprehensive progress report on the Innovation Union, the European Union's (EU) flagship initiative under the Europe 2020 growth strategy for the decade. By the end of 2011, the European Commission will have passed all six Innovation Union legislative proposals. The report highlights several of the new initiatives including the first Innovation Partnership in Active and Healthy Aging; the European Institute of Innovation and Technology; and the Smart Specialization Platform. However, the EU still has more to achieve including strengthening efforts at a national level to prioritize investments in research and innovation and set aside dedicated budgets to public procurement of innovative products and services.

U.S. policy prescriptions for manufacturing are in disarray according to Make: an American Manufacturing Movement, a new report from the Council on Competitiveness. Policymakers, the report's authors contend, are bombarded with widely available reports and analysis that support one of three conflicting views (it is on steep decline, doing reasonably well or it is poised for growth) on the health and importance of U.S. manufacturing.

"In reality, elements of all three perspectives are likely true," according to the authors. U.S. manufacturing remains the world's top producer and an important part of the U.S. economy — employing more than 11 million and contributing more than $1.7 trillion to the economy. However, emerging economies are increasingly becoming a threat to U.S. competitiveness. Going forward, the U.S has the potential to capitalize on emerging marketplaces, but to achieve this the U.S. must find solutions to the challenges it faces.

After its first year of work, India's National Innovation Council has released a report on development of a long-term innovation roadmap. The keystone of this strategy is a Rs 5000 crores ($968,615,000 U.S.) India Inclusive Innovation Fund to support small businesses, paired with an Industry Innovation Cluster Initiative. The report provides background on other Indian initiatives, such as the pilot University Innovation Cluster at the University of Delhi, the country's twenty Design Innovation Centres and the new State Innovation Councils.

Read the report here: http://indiamicrofinance.com/wp-content/uploads/2011/11/report-to-the-p…

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.

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.

"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.

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

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

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:

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.

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: