SSTI Digest

Akron Mayor Don Plusquellic announced the plans to form the "Akron Development Corporation Seed Fund" in his State of the City address on Tuesday. The fund, with backing from corporate sponsors, aims to attract biomedical companies to the region. Companies receiving investment would locate in the Akron Global Business Accelerator. Read the announcement...

Recent announcements of new and emerging technology incubators range from Google's selection of Cape Town, South Africa to launch a pilot incubator supporting technology entrepreneurs that it hopes to replicate globally to Alabama Gov. Robert Bentley's plan to create a statewide business incubator focusing on workforce training. Select announcements from across the globe are highlighted below.

Google will set up a new technology incubator called Umbono in Cape Town, South Africa, reports Memeburn. Startup companies selected for inclusion will receive six months of free office space and bandwidth, in addition to $25,000 to $50,000 in funding from a panel of angel investors and Google. The goal is to replicate the model in other parts of the globe. The name means "vision," "sight" or "idea" in Zulu, the article states.

Innovative firms rely on global pipelines and communication more than local interactions to increase their innovative capacity, according to a working paper by Rune Dahl Fitjar and Andres Rodriguez-Pose. The authors examine the practices of 1604 firms in the five largest urban regions of Norway, and find that international cooperation is the main source of product and process innovation. While other studies have emphasized the complementary nature of global and local innovation pipelines, the authors find little evidence that local interactions lead to radical or incremental technological advancement. This conclusion comes with several caveats, but suggests that the roots of innovative capacity lie in factors that drive a firm to establish links to more distant institutions and resources.

After declining last year for the first time since 1949, U.S. personal income rose three percent in 2010 to more than $12.5 trillion, according to a release from the Bureau of Economic Analysis (BEA). U.S. per capital personal income, which had also dipped in 2009, rose 14.6 percent to $40,584 last year. Both U.S. total and per capita personal income, however, remained below their peak levels in 2008. The largest percentage increases in personal income came in the Southwest region (Arizona, New Mexico, Oklahoma and Texas) and the Mideast region (Delaware, District of Columbia, Maryland, New Jersey, New York and Pennsylvania.

Only ten states posted income levels in 2010 that exceeded the pre-recession level in 2008. That group includes Arkansas, Kentucky, Louisiana, Maryland, New Mexico, North Dakota, Pennsylvania, Vermont, Virginia and West Virginia. Alaska also surpassed its 2008 level, though the BEA report notes that Alaska experienced only a marginal decline in 2009, unlike most of the rest of the country. New Mexico's personal income grew by 4.2 percent over the previous year, the largest percentage increase in the country.

The National Heart, Lung, and Blood Institute, National Institutes of Health in Bethesda, Maryland is seeking a dynamic and innovative biomedical/biotechnology expert to provide strategic leadership as the director of the newly created Office of Translational Alliances and Coordination (OTAC). The OTAC is charged with accelerating the translation of basic discoveries and innovations into new diagnostics, devices, and therapeutics, and facilitating the development of new technologies via SBIR initiatives. The job announcement will be posted on www.usajobs.gov in late March/early April for 10 days and open to all U.S. citizens. Applicants must possess a Ph.D.

The FY12 Business, Economic Development and Labor budget approved by lawmakers includes $25.7 million for USTAR, the state-funded initiative to grow a knowledge-based economy. This is the same amount recommended by Gov. Gary Herbert, but down from FY11 projected spending of $35.4 million. That amount included some ARRA funding from previous years, however. Research Teams will receive $23 million and $1.9 million is slated for Technology Outreach.

USTAR's recent annual report points to impressive returns for the state, especially over the last six months, during which time USTAR researchers increased grant funding by 50 percent. Since its inception in 2007, USTAR researchers have received $66 million in out-of-state funding. In the last two years, the outreach team helped Utah companies secure $35 million in outside investment, the majority coming from angel and venture capital investors.

Leasing the state's wholesale liquor distribution system to JobsOhio to provide a dedicated funding source of about $100 million annually for job creation is a key component to reforming Ohio's economic development efforts under Gov. John Kasich. The governor unveiled the plan last week as part of the 2012-13 biennial budget. The proposed budget also sets aside $33 million in the second year of the biennium to facilitate the transfer of economic development initiatives from the Ohio Department of Development (ODOD) to the newly established nonprofit corporation.

Much like Travelocity's Roaming Gnome, SSTI's Excellence in TBED vase is known to get around. Recently, it was spotted on the campus of the University of Maryland, posing with Kermit the Frog and UM grad Jim Henson, at the Maine State House in Augusta, proudly on display in the offices of JumpStart in Northeast Ohio, and posing with the staff of the Washington Technology Center. Where will it turn up next? Follow us on facebook to find out! http://www.facebook.com/ssti.org. The 2011 awards kick off May 17. Learn more: http://www.ssti.org/Awards

With the Senate in recess, debate over SBIR/STTR reauthorization has been temporarily put on hold for the week. The reauthorization act has landed at the center of a larger congressional debate over federal spending, due to the more than 80 amendments that have been submitted for consideration. Most of these amendments propose spending cuts unrelated to SBIR. The main text of the bill would extend the SBIR and STTR programs through 2019 and increase award levels for Phase I and Phase II awards. It would also allow companies that are majority-owned by venture capital firms to receive some awards.

The SBIR/STTR Reauthorization Act of 2011 would be the first long-term reauthorization of the program since 2000. Temporary extensions have been used since 2008, the latest of which is set to expire on May 31, 2011. By authorizing SBIR through 2019, potential SBIR recipients, as well as others in the innovation and commercialization community, would have a more reliable source of support for early stage technology development.

"The new frontier of effective worker education lies in combining classroom and workplace education to produce a hybrid of technical knowledge and hands-on skills," according to a report from the Center for American Progress — Delivering Innovation Economy Skills While Wisely Using Public Funds. The report contends that the U.S. not only needs highly-skilled scientists and engineers to increase national competitiveness, but also individuals with postsecondary education and relevant experience to perform frontline jobs (e.g., energy efficiency technicians, social media communication assistants and advanced manufacturing floor workers). To develop this cohort of frontline workers, the authors believe we must develop a "hybrid system" to engage working learners — individuals who face particular challenges in pursuing postsecondary credential because they must combine work, life and educational responsibilities. The hybrid system must consist of flexible education programs, courses of study relevant to employer needs, career guidance and "easy-to-use" financial aid.

Science Foundation Arizona (SFAz) has stimulated the state's job creation and increased the amount of additional funds leveraged, according to a report by Battelle. In 2010, SFAz-funded programs led to over 1,150 new jobs, 84 patents and 16 new companies. For every $1.00 awarded by SFAz, an additional $3.06 was matched by an outside source (e.g., federal grants, industry, and venture capital). SFAz's leveraging has increased progressively over the last three years. The report also looked at the state's position in technology development and found several positives including: higher than average salaries for technology workers; lower unemployment in these sectors; and, strong gains in university R&D expenditures. However, according to the report, SFAz and the state should focus on developing a talented workforce and increasing the state's digital infrastructure. In comparison to national averages and 12 other benchmark states averages — including Colorado, Utah and Washington — Arizona lags behind national and benchmark state averages in access to school technology and STEM education.

Ohio Gov. John Kasich named James Leftwich as the director of the Ohio Department of Development, effective March 25. Leftwich has worked at the Dayton Development Coalition for six years, including three years as president and CEO. Leftwich will take the post previously held by Mark Kvamme, a California venture capitalist named the state's development director in January. Kvamme was appointed director of Job Creation within the governor's office, effective immediately.

Mississippi Gov. Haley Barbour announced that Jackson businessman Leland Speed will return as executive director of the Mississippi Development Authority for the remainder of the governor's term that ends at the end of this year. Speed, who served as executive director from 2004 to 2006, will succeed Gray Swoope. Swoope recently announced his resignation at MDA to lead Enterprise Florida, that state's economic development organization.