SSTI Digest

At the close of the 2011 legislative session in Louisiana last week, lawmakers approved three measures to encourage investment in high-tech economic endeavors. This includes renewing and enhancing the R&D tax credit and the Technology Commercialization credit and reinstating an angel investor tax credit for investment in emerging startups.

Lawmakers last week passed a measure establishing the Innovate NY Fund to invest $25 million of federal funds in technology development organizations, research universities, and seed-stage investment funds. The Empire State Development Corporation will administer the fund and establish a competitive process for evaluating applicants. Investment priority is given to companies involved in commercialization of R&D or high-tech manufacturing.

Funding comes from the State Small Business Credit Initiative, which is part of the Small Business Jobs Act of 2010 signed into law by President Obama in September. All states are eligible to apply for the funds meant to spur lending to small businesses and manufacturers. New York was awarded $55.4 million. The legislation requires funds to be invested in New York-based, seed-stage companies with substantial potential growth and job development in emerging technology fields. The bill (A. 8452) awaits action by Gov. Andrew Cuomo and is available at: http://public.leginfo.state.ny.us

Last week, the House of Representatives passed the largest overhaul of U.S. patent law in 60 years. Under the new legislation, patent decisions would favor inventors who file for patents first, rather the the current "first-to-invent" system. The change would bring U.S. patent law more in line with the patent systems of Europe and Japan. A similar bill was passed by the Senate in March, which will be reconciled with the House bill in the near future. Read the full text of H.R. 1249...

Europe needs increased and "smarter" investments in both public and private research and development (R&D) to address the European Union's (EU) "Innovation Emergency," according to the European Commission's 2011 Innovation Union Competitiveness Report. The commission contends it is necessary to accelerate investments into R&D to achieve the EU's target of 3 percent of GDP being spent on R&D. EU members currently invest approximately 2 percent of GDP on R&D spending. The increased R&D spending will not only boost economic growth in the medium-term, it will also have a counter-cyclical effect on the current crisis according to the commission. However, due to the current debt crisis faced by several member states, public and private investments must strategically target sectors that the EU maintains a competitive advantage in including the climate change technologies. In 2007, EU researchers and companies filed approximately 40 percent of all patents related to climate change technologies. These are two of the several recommendations outlined in the report to deliver smart sustainable growth across the union.

Whether you are new to the tech-based economic development (TBED) field or a seasoned practitioner, SSTI's podcast interviews with experts in all areas of TBED serves as a useful learning tool. These short and "to the point" interviews delve into questions such as:

How do you ensure that stakeholders and leaders know about the successes of the program? How do you prepare your portfolio companies to grow and pursue additional investment? What has made your organization successful in working with regional organizations and philanthropic institutions? If an organization were trying to emulate your success, what advice would you give them?

 

Interviews with all 20 Excellence in TBED award winners are available at: http://www.ssti.org/Awards/podcasts. Or, you can subscribe to the podcast in iTunes, your RSS reader or any podcast client. Look for new interviews with the 2010 winners in the coming months! Learn more about the 2011 awards: http://www.ssti.org/Awards

Job CornerNorTech, a regional nonprofit technology-based economic development organization, is seeking applications for the position of vice president. The individual will be responsible for managing multiple internal and external special projects, developing and managing fundraising strategy, operations and government engagement program activities. It is critical for the candidate to be able to represent the CEO at various meetings and for execution of projects. This position requires the ability to multitask and continue to shift and prioritize projects as new opportunities emerge.

The Idaho National Laboratory is seeking applications for a senior economic development manager to leverage INL's scientific and technical capabilities, build local and state relationships, identify the science and technology needs of state and regional entities, work with commercialization managers and make funding recommendations to technology deployment management.

One is a proposed tech corridor focused on energy and environment in southeastern Louisiana and the other is being called a "knowledge district" meant to capitalize on the life sciences sector in Providence, but both have the same goal: growing high-tech industry sectors and creating high-wage jobs. Though the concept has been around for decades and is successful in many areas of the country, some states and regions are just now finding their niche and gaining support to establish tech hubs.

Officials from the University of Louisiana (UL) and business leaders unveiled this week a proposed Regional Innovation Corridor to be located in the southeastern part of the state. The area is home to scientists, engineers, state and federal agencies, UL, and other research groups, reports The Advertiser. Officials will focus on industry sectors that make the most sense for the region, including energy, environment, water management, and health care, the article states.

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced that $67 million will be available for a second round of the Sustainable Communities Regional Planning Grant program. These grants support planning efforts that help create sustainable communities that "connect housing to jobs while fostering local innovation and building a clean energy economy." While many of the program's goals are centered on increasing housing and transportation options, HUD also intends the grants to contribute to regional economic development plans that take into account current and emerging economic clusters.

HUD plans to make awards in two categories: one to support communities in the initial development of a regional plan, and another for communities to fine-tune their existing plan. Applicants in the latter category may apply to help to bring their regional plans in accordance with the six "livability principles" established by HUD's Partnership for Sustainable Communities. These principles include:

A sluggish economic recovery, mostly due to no sustained upturn in housing activity, combined with pressures from rising commodity costs, supply-chain disruptions, and extreme domestic weather means most U.S. metros can expect only minimal job growth by the end of this year, according to a new report prepared for the United States Conference of Mayors. Job growth in 2011 is expected to reach 1.2 percent and unemployment will not fall below 8 percent until late 2013. Only in the first half of 2014 will unemployment in the U.S. match its previous peak level of early 2008, the study finds.

A recent report from the Intellectual Property Association revealed the top 300 organizations granted U.S. patents in 2010. IBM, Samsung and Microsoft led this year's list. Fourteen universities, including 13 U.S. institutions and one from China, made the top 300, according to The Chronicle of Higher Education. Leading universities include the University of California Regents, the Massachusetts Institute of Technology and Stanford University. Read the full list...

In a report published by United for Medical Research, a consortium of science and research medical organizations, Dr. Everett Ehrlich found that extramural research supported by the National Institutes of Health in fiscal year 2010 (FY10) led to the creation of 487,900 quality public and private sector jobs and produced over $68 billion in new activity across the country. According to the report, An Economic Engine: NIH Research, Employment and the Future of the Medical Innovation Sector, the $68 billion in new economic activity would represent over a 150 percent single-year return on public investment (approximately $26.6 billion was awarded by NIH in FY10), counting total economic output from the research as revenue. Ehrlich also found that NIH supported research is an "important source of income and employment" for all 50 states and the District of Columbia.

Using data from the Small Business Administration's Office of Advocacy, SSTI has prepared a table showing how each state (and the District of Columbia) has ranked in business churning from 2004 to 2009. Business churning is a measure of the creation of new companies and the death of existing companies as share of total firms. Churning increases as the number of new start-ups and existing business failures per year increase. A high level of business churning can be linked to the presence of innovation and growth in a state, since it may indicate the presence of entrepreneurial activity and the transition to new industries.

Over this period, Arizona, Florida, Georgia, Nevada and Utah have consistently been among the top performers. Connecticut, Iowa, Louisiana, Nebraska and Wisconsin, on the other hand, have continued to occupy the bottom tier.