SSTI Digest

The sixth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Connecticut, Illinois, New Hampshire, New Jersey and North Carolina. The first five installments are available in the Jan. 5, Jan. 12, Jan. 19, Jan. 26 and Feb. 9 issues of the Digest. Connecticut Gov. Dan Malloy, Budget Address, Feb. 16, 2011 “We are combining our economic development efforts under one agency so we can have a single powerful voice when it comes to attracting, retaining, and growing jobs in Connecticut...like our new First Five initiative that will offer powerful incentives to the first five companies that bring hundreds of new jobs to Connecticut. “This program takes our best job creation tools, like the Reinvestment Tax Credit, the Manufacturing Assistance Act and the Job Creation Tax Credit, and allows them to be combined and the benefits increased for companies that bring more than 200 new jobs to the state.” Illinois Gov. Pat Quinn, Budget Address, Feb. 16, 2011 “We must support a vibrant entrepreneurial culture that capitalizes on Illinois' strengths: our strong work…

Gov. John Kitzhaber recently unveiled a two-year spending plan that includes an additional $3 million for the Oregon Innovation Council's (Oregon InC) efforts to facilitate research and technology transfer. The governor's budget also recommends enhancements to the Strategic Reserve Fund used to expand and retain businesses and attract new companies and additional funding for the Industry Competitiveness Fund, a resource for industry clusters, statewide and regional economic development groups, and international trade-oriented businesses. The proposed budget would provide $19 million (a $3 million increase) in lottery funds for the following Oregon InC signature research centers and programs in 2011-13: Oregon Nanoscience and Microtechnologies Institue — Oregon's first signature research center established to foster nanoscience and microtechnology R&D. Oregon Translational Research and Drug Institute — A signature research center that provides resources for university researchers and biotech or pharmaceutical companies to fuel drug discovery and commercialization. Oregon Built Environment and Sustainable Technologies Center — A program connecting…

With no significant boost in funding for Michigan's economic development efforts proposed in the executive budget, Gov. Rick Snyder outlined steps to reform the way businesses are incentivized and modify the state's approach to job creation by better supporting local and regional initiatives as a means to transform the state's economy. The governor's budget includes $199.3 million in FY12 and $199.8 million in FY13 in total funds for the Michigan Strategic Fund within the Department of Treasury. Of that amount, $75 million (the same as last year) is slated each year for the 21st Century Jobs Fund, administered by the Michigan Economic Development Corporation (MEDC) to invest in high-tech industries and university research. Most of the funding ($50 million) would be used for business attraction, economic gardening, innovation and entrepreneurship. The remaining $25 million would support Michigan tourism programs. Budget documents note that business attraction and retention efforts would be augmented with an additional $25 million in general funds. Another $5 million is proposed for “quality of place and talent enhancement,” an effort…

SSTI recently reported on two important bills passed by lawmakers in Michigan late last year and in New Jersey earlier this year that would provide incentives for taxpayers who invest in emerging technology companies. As an update to the Dec. 8, 2010 and Jan. 12, 2011 stories, both former Michigan Gov. Jennifer Granholm and New Jersey Gov. Chris Christie have taken action on the bills with opposing outcomes. Gov. Granholm signed HB 5921 into law on December 14, enacting a measure to provide a 25 percent personal tax credit for individuals who invest at least $20,000 in qualified seed and early stage companies. Gov. Chris Christie on Friday vetoed S.2454, the New Jersey Angel Investor Tax Credit Act, along with 13 other bills approved by lawmakers in January as part of a jobs package. The bill would have provided a tax credit of 10 percent of a taxpayer's qualified investment in emerging technology companies with less than 225 employees, capped at $25 million annually. Gov. Christie criticized lawmakers for not providing a funding source and unveiled this week a somewhat similar package of tax cuts for business alongside the FY12 executive budget proposal. Read the governor…

In the “2011 Global R&D Funding Forecast,” researchers from Battelle and R&D Magazine project consistent and positive global R&D spending in 2011. Global R&D (including public, private and nonprofit spending) is projected to increase by 3.6 percent from $1.15 trillion to almost $1.2 trillion. However, 2011 R&D as a percentage of global GDP will remain constant at 1.9 percent. This increase is attributed to a shift in the geographic distribution of investment. Asian countries continue to rapidly increase their investments in R&D spending (China has over taken Japan as the second largest investor in R&D spending to the U.S.) and the U.S. and Europe should maintain nearly flat levels of spending. The U.S. should maintain slow, consistent growth in R&D spending over the next few years, according to the report. However, Battelle researchers project that the limited, flat growth R&D spending seen in 2010 will continue through 2011. In 2011, R&D spending should increase slightly from $446.7 billion in 2010 to $458 billion, but R&D as a percentage of GDP will remain constant at 2.7 percent. Researchers attribute the limited…

U.S. states must develop an export strategy as a component of the state's “competitiveness agenda,” according to a new report from the Brookings Institute. In “Boosting Exports, Delivering Jobs and Economic Growth,” the authors point towards the rapid growth of American exports in comparison to the overall economy's economic growth to highlight the need for effective and efficient state export strategies. Between the third quarter of 2009 and the third quarter of 2011, U.S. exports grew by 12.7 percent almost four times the overall economic growth (3.2 percent). States, the authors contend, fail to export efficiently and effectively for several reasons including lack of data to understand strengths and weaknesses; efforts are reactive, fragmented and inconsistently funded; or states ignore exporting efforts by the federal government and other institutions leading to duplication of and failure to leverage those programs. The report provides three policy prescriptions to remedy those issues. They include: “Get smart about assessing exports and the performance of their export promotion activities;” “Create an export strategy as…

Alabama then-Governor-elect Robert Bentley on January 3 named former House Speaker Seth Hammett as director of the Alabama Development Office, replacing Interim Director Linda Swann. He also appointed the president of the Birmingham-based Economic Development Partnership of Alabama, Bill Taylor, to lead efforts to grow and retain existing Alabama industries, while at the same time recruiting new businesses to the state. Colorado Gov. John Hickenlooper nominated Dwayne Romero, president of Related Snowmass, to be the new director of the Colorado Office of Economic Development and International Trade. Florida Governor Rick Scott fired John Adams, the current president of Enterprise Florida, so that he can choose a new leader to help promote his job creation and economic development agenda. Minnesota Gov. Mark Dayton chose Mark Phillips, director of development at Kraus Anderson Construction, as his commissioner of the Department of Employment and Economic Development. New York Gov. Andrew Cuomo announced the nomination of Kenneth Adams as president and CEO of the Empire State Development Corporation. Gov. Cuomo said the appointment is part of his plan to…

Hosted by TechColumbus, SSTI's 15th Annual Conference will be held at the Hyatt on Capital Square in Columbus, Ohio on November 8-9, 2011. Past attendees know SSTI's conference is the premier event for sharing ideas on the best ways to encourage technology-based economic development and foster regional prosperity in a global economy. And 2011 will be no exception. Central Ohio provides an excellent backdrop to celebrate SSTI's 15th Annual Conference. The state has made science and technology a central focus for its economic development investments, making Columbus a perfect choice to showcase successful technology-based economic development practices and strategies. Keeping with years past, the agenda will be set by SSTI member recommendations to ensure the conference will be jam packed with the most timely and relevant sessions. Look for more information on SSTI's conference website soon. Sponsorship opportunities are available; contact Noelle Sheets at sheets@ssti.org for more information. We look forward to seeing you in Columbus this November! About SSTISSTI is a national nonprofit organization that leads, supports and…

President Barack Obama's FY12 budget request includes fewer ambitious proposals related to TBED than his previous budgets, but his new request offers increases for many R&D programs and several new efforts to promote high-tech development at the regional level. The proposed budget eschews most of the savings measures proposed by the National Commission on Fiscal Responsibility and Reform last November (see the November 17, 2010 issue of the Digest), which would have eliminated several agencies and reduced research funding. Instead, the Administration has proposed increases for research, particularly clean energy and renewable fuels research, and focused on reorganizing existing programs to achieve savings through efficiencies. SSTI's full report is available for download in pdf format. *** A Note on Comparisons ***Since the federal government is currently operating under a continuing resolution and no budget has been enacted for FY11, this year's Federal Budget Special Issue will not compare funding levels to the previous year's enacted budget. Instead, FY10 actual funding will be used as the basis for these comparisons. Where FY10 actual…

The fifth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Maryland, Montana, Oklahoma, Texas, and Utah. The first four installments are available in the Jan. 5, Jan. 12, Jan. 19 and Jan. 26 issues of the Digest. MarylandGov. Martin O'Malley, State of the State Address, Feb. 3, 2011"To create more jobs, we must leverage the power of our diversity... we must leverage the power of our geography... And we must harness the potential of Maryland's Innovation Economy: bio-tech, green-tech, clean-tech, cyber security, information technology, aerospace, global trade, and next generation manufacturing. ... "... Through InvestMaryland, you and I have the opportunity to unlock $100 million in venture capital. Why does this matter? Because seed and early stage money have all but dried up in the national recession. Passing this legislation can be the difference between running ahead or running in place. ... "... I need your support for the Maryland Offshore Wind Energy Act, not only to create more renewable energy in Maryland, not only to reduce greenhouse gas emissions from Maryland,…

Following last week's announcement of the Startup America initiative, the National Economic Council, the Council of Economic Advisors and the Office of Science and Technology Policy have released the details of its innovation strategy. The strategy emphasizes the private sector's essential role in building next-generation companies, with the government serving as an "innovation facilitator." It includes recommendations on how the federal government can invest in the necessary building blocks for research and entrepreneurship, promote market-based innovation and catalyze strategic industries. SSTI will examine these recommendations in greater detail in next week's federal budget issue. The Department of Commerce (DOC) has released a request for information (RFI) regarding the measures that could achieve its innovation goals. The announcement includes ten questions to help guide the discussion. DOC also will accept electronic versions of reports, articles and analysis. Comments must be submitted by April 1, 2011.

Gov. Andrew Cuomo announced plans to direct $200 million in existing funds to establish 10 regional economic development councils to allocate funds and provide business assistance programs across the state. At the same time, the governor would consolidate programs supporting high-tech companies currently administered by the New York State Foundation for Science, Technology and Innovation (NYSTAR) with the Empire State Development Corporation (ESDC) — a move he says will eliminate duplicative functions and save the state $1.9 million in the coming year. A majority of the funds slated for the councils ($130.6 million) would come from reprioritizing and redirecting existing economic development funds for competitively determined project grants, according to budget documents. The councils, made up of state government, business, community, and academic leaders, would compete for the funds based on economic development plans. Another $70 million would be provided in tax credits through the enhanced Excelsior Jobs Program. The FY12 executive budget recommends $310.8 million for ESDC, which includes funding for programs currently administered by NYSTAR. The High…