SSTI Digest

House and Senate appropriators have released details of the almost $40 billion in spending reductions that were agreed upon over the weekend in order to avoid a federal government shutdown. The six-month continuing resolution (CR) would set FY11 spending levels at $1.049 trillion, $78.5 billion less than President Obama's FY11 budget request (see the February 16, 2011 Special Federal Budget Issue) and $39.9 billion less than the FY10 spending bill as enacted. More than half of the total spending reductions relate to health, labor and education, including the elimination of over 55 programs in those areas. The CR would allow the federal government to continue to operate until September 30, 2001, the end of the fiscal year. Another high-stakes debate over federal spending is expected next month, when Congress must vote to raise the federal debt ceiling to avoid a default.

Proposals that promise job creation and economic growth have taken center stage in several state legislatures. Lawmakers who recognize the importance of R&D, tech commercialization, access to risk capital, and investment in higher education are fighting for passage of TBED-focused bills in the final months of their states' 2011 legislative sessions. A bill to revive the Missouri Science and Innovation Reinvestment Act, which failed in the legislature last year, recently passed the House with broad, bi-partisan support, restoring hope for the program that aims to grow science and technology companies. Meanwhile, two bills in Connecticut seek to boost technology transfer and lawmakers in Alaska and Florida are pushing for statewide R&D tax credits. An overview of select bills relating to TBED is included below.

SSTI is introducing a new category in our awards program to recognize the Most Promising TBED Initiative. Through strategic partnerships, leveraged resources, and diversified funding, these initiatives have "all the pieces of the puzzle," they just haven't been around long enough to demonstrate the impact SSTI generally seeks in an Excellence in TBED award winner. Proposals submitted in this category should address a specific need in a community geared toward improving overall economic conditions. This is a great opportunity to capture national recognition and secure support for your program. Scoring will be heavily weighted on innovativeness, transferability and partnerships. Look for more details in the coming weeks! http://www.ssti.org/Awards.

Steven Chu, the Secretary of Energy, announced nearly $170 million in available funding over the next three years to support the advancement of Solar Photovoltaic (PV) technologies in four areas:

Foundational Program to Advance Cell Efficiency (F-PACE) — approximately $39 million to improve PV cell performance and reduce the costs of modules for grid-scale commercial applications; PV Balance of Systems — approximately $60 million for research, development and demonstration of balance of system hardware components; Solar Energy Grid Integration Systems (SEGIS)-Advanced Concepts — approximately $40 million to increase the integration of solar energy onto the electrical grid; and, PV Next Generation — approximately $30 million for early stage applied research on new Solar Photovoltaic (PV) technologies.

 

Governor Jay Nixon has released the final report from a year-long effort to design a five-year economic strategy for Missouri. The report identifies seven target clusters for development, including advanced manufacturing, energy solutions, biosciences, health sciences and services, information technology, financial and professional services, and transportation and logistics. Recommendations include a new science and technology/innovation fund, an R&D tax credit, an angel investment tax credit and cluster-based career training. Read the plan...

Federal Grants are almost twice as effective as tax credits in spurring clean energy innovation, according to Reassessing Renewable Energy Subsidies — a recent report by the Bipartisan Policy Center. From 2005 to 2008, the federal government incurred a liability of almost $10.3 billion due to tax credits given to wind projects totaling almost 19 gigawatts of new generation capacity. However, researchers calculated that direct grants issued at the time of commission could have achieved similar gigawatt production at a cost of only $5 billion. The report also found that state and federal policies have been a significant driver of clean energy's rapid growth over the last decade. However, uncertainty and intermittent incentives have discouraged long-term planning (e.g., infrastructure, transmission and manufacturing), slowed R&D investments from the private sector and hindered the growth of clean sector jobs. Read the report...

Manufacturers face a growing talent deficit due to an outdated education system based on 19th and 20th century principles, according to the Roadmap to Education Reform for Manufacturing. The report, coauthored by the Manufacturing institute and the National Association of Manufacturers (NAM), is a compilation of books and research related to education reform and manufacturing topics available on NAM's website. Two broad recommendations are outlined that may address systemic educational deficits and reduce long-term education costs while developing a skilled workforce able to handle the increasing complexities of 21st century advanced manufacturing. The recommendations include the adoption of competency-based curriculums and increasing industry's role in developing and refining learning standards and assessments.

Using figures provided by the 12 participating federal agencies of the Small Business Innovation Research (SBIR) program, SSTI has prepared a table showing FY09 Phase II award data for all 50 states, Puerto Rico, and the District of Columbia. Statistics include award data and state rankings based on total awards. SSTI finds the top 10 states receiving Phase II SBIR awards in FY09 are: California (423), Massachusetts (291), New York (138), Virginia (128), Colorado (115), Maryland (112), Texas (87), Ohio (77), Pennsylvania (72), and New Jersey (66). The table is available here

Looking for more data? SSTI members can receive an expanded table showing additional statistics covering five years of Phase II SBIR award data (FY05-09). For more information, contact Noelle Sheets at sheets@ssti.org. Learn more about the benefits of becoming an SSTI member: http://www.ssti.org/benefits.htm.

The Kentucky Cabinet for Economic Development is looking for an executive director who is an ambitious, successful professional that will provide leadership in Kentucky's efforts to develop a knowledge-based economy. The executive director will work in partnership with all levels of government, academia, and the private sector to help create a supportive high-technology environment. The executive director will leverage his or her executive expertise, entrepreneurial background, policy knowledge, and resources to strengthen Kentucky's technology industry-focused business attraction and expansion initiatives.

Steve Biggers, deputy director, Oklahoma Center for the Advancement of Science and Technology has retired after 31 years of service to the state. He has served at OCAST for the last 19 years.

Alex Lawrence has been named vice provost for Innovation & Economic Development at Weber State University. In this role, he will lead the Technology Outreach Center on campus that supports the Utah Science Technology and Research (USTAR) technology economic development initiative. Lawrence succeeds Curt Roberts, who recently accepted a position at Utah State University as associate vice president of regional development and commercialization.

A budget agreement reached last week between Gov. Andrew Cuomo and legislative leaders adopts the economic development reforms set forth by the governor to establish a regional strategy for job creation. The approved budget allocates about $200 million in existing capital funds and tax credits to support 10 regional economic development councils and merges the New York State Foundation for Science, Technology and Innovation (NYSTAR), the state's tech-based economic development initiative, into the Department of Economic Development.

Oklahoma Governor Mary Fallin signed the Oklahoma Aerospace Engineer Tax Credit — reestablishing a tax incentive that was put on moratorium during last year's legislative session. The legislation extends tax credits of $5,000 a year for up to five years to engineers who are hired in Oklahoma. Under the law, companies receive a tax credit equal to 10 percent of the compensation paid to an engineering graduate from an Oklahoma institution of higher education. If the individual did not graduate from an Oklahoma institution of higher education, the company receives a five percent tax credit. The law also grants a tax credit of up to 50% of the tuition reimbursed to a new engineer graduate for the first four years of employment. Oklahoma's aerospace industry is a $12 billion a year industry that employs over 145,000 people. Read the press release...