SSTI Digest

Climbing back from a deep recession without over burdening taxpayers is a main focus of this year's legislative session for many states, leaving little room for bold initiatives needed to position state and regional economies for future growth. Nebraska Gov. Dave Heineman, however, is asking lawmakers to look beyond the state's current conditions and invest in economic sectors he says are likely to create high-quality jobs and enhance the state's "economic momentum." The governor unveiled this week a series of legislative proposals to fund a four-part Talent & Innovation Initiative based on recommendations from a 2010 review of Nebraska's economy by the Battelle Technology Partnership Practice. The plan calls for providing competitive grants for private sector research, technical assistance in new product development and testing, and helping to expand small business and entrepreneur outreach efforts. SBIR programs also would be expanded to offer grants for application development and funding for prototype development, commercialization and applied research at Nebraska institutions. A combination of $5.5 million in new funds and $1.5 million in redirected funds…

The Iowa Innovation Council, a 29-member state advisory board, released a strategic plan focused on entrepreneurship and targeted industries (e.g., advanced manufacturing, biosciences and information technology) to grow the state's innovation economy. The council believes this plan will create high-skilled, high-wage jobs through several new initiatives including: A private seed capital investment fund; New strategies to accelerate technology transfer and commercialization; and, Expansion of services available to businesses including a source for best practices and standardized due diligence processes.   Ted Crosbie, chairperson of the council stated, "The strategic plan signals the start of an integrated effort to move Iowa's innovation economy forward. Innovation is what will help Iowa's economy stay competitive in the global marketplace." The council also is asking the state Legislature for permission to become a nonprofit organization. The council contends this transformation would be beneficial because it allows them to have more "operational flexibility and the ability to raise private funds". Read the press release ...

In April, University of Hawaii's President M.R.C. Greenwood appointed an eight-member council to develop a strategy that would increase innovation and technology transfers throughout the university system. The council recently announced a drafted of four recommendations that would help the university system to "achieve a high-value economy in Hawaii." The recommendations build and approve upon the system's existing research capacity. The recommendation also focuses heavily on creating an innovation ecosystem built upon entrepreneurship and university-private partnerships. The four recommendations include: 1) Identifying Research as an Industry in Hawaii The Council recommends that the university system put forth a strong recruiting effort to attract world-class talent in strategic advantage areas (e.g., astronomy, oceanography and volcanology). The university already attracts over $400 million in research dollars annually. With additional world-class talent in these areas, the council contends that the university could see significant increases in research funding. Developing formal relationships with non-university research entities also will "increase…

Minnesota needs additional support for science and technology commercialization, manufacturing and entrepreneurship in order to remain competitive, according to a new strategic plan released by the Minnesota Science and Technology Authority. The plan recommends an initial appropriation of $10 million annually, ramping up over ten years, to invest in the state's R&D capacity, talent development and capital and business development. The group estimates that the plan could create up to 30,000 to 45,000 direct jobs and leverage up to 30 times the state's investment in the form of federal and private sector funding. Read the report ...

Thomson Reuters has updated their 2008 report on the Chinese boom in patenting. In 2006, the 11th Chinese Five-Year Plan for national economic and social development made innovation a priority, with the goal of creating an "innovation-oriented" society by 2020. Over the past few years, China's increase in overseas patent filings has outpaced other leading countries. The report examines the approaches used by the China government to boost patent activity, including increased R&D expenditures, tax deductions for R&D investments and grants to patent registrants. Read the report ...

U.S. real gross domestic domestic product (GDP) and per capita personal income fell in 2009 as the economic crisis spread across the country, according to data from the Bureau of Economic Analysis (BEA). Most states experienced the same declines, particularly in the Great Lakes region. In 2009, real GDP fell in every state, except Alaska, Louisiana, Oklahoma, South Dakota, West Virginia. West Virginia was the only state to increase its per capita income (current dollars, unadjusted) in 2009. The 2008 and 2009 crisis ended the period of steady growth in most states since 2001. Real GDP declined in 38 states and all eight of the U.S. regions tracked by the BEA in 2009. The breakdown by industry indicates that durable goods manufacturing and construction were hardest hit by the recession, while the mining sector and the agriculture, forestry, fishing and hunting sector grew significantly. Losses in durable goods manufacturing hit hardest in the Great Lakes region where real GDP fell by 3.4 percent, the largest decline in the country. Michigan, which experienced the greatest losses in the region, saw its GDP reduced by 5.2 percent in 2009. Nevada, however, experienced an…

The second installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Arkansas, Connecticut, Idaho, Kansas, New Hampshire, Virginia, Washington, and Wyoming. Our first installment was in the Jan. 5 Digest. ArkansasGov. Mike Beebe, State of the State Address, Jan. 11, 2011"I want to tie funding for higher-education institutions more closely to coursework completion and graduation rates, not simply to enrollment. These tax dollars must produce college graduates, not just fill up seats. We can and must double the number of college graduates in Arkansas by 2025 if we are to stay competitive. This is a lofty goal aimed at the future, but we must begin implementing it today." ConnecticutGov. Dan Malloy, Inaugural Address, Jan. 5, 2011"We will put in place an economic development strategy that makes sense for the 21st century economy, aggressively competing with other states and nations for lucrative biotech, nanotech, fuel cell technology and stem cell research jobs. "We will join Connecticut to the Energy Economy, attracting companies that reduce our…

New Jersey lawmakers last week approved several bills as part of the "Back to Work NJ" economic development and jobs plan proposed by Democratic legislative leaders. Among the measures approved is The New Jersey Angel Investor Tax Credit Act (S.2454) providing incentives to taxpayers who invest in emerging technology companies. Gov. Chris Christie has yet to take action on the package of the bills, which could cost the state up to $805 million in business subsidies and lost corporate tax revenue in the coming fiscal year, reports New Jersey Newsroom. The angel tax credit bill approved by lawmakers provides a tax credit of 10 percent of a taxpayer's qualified investment in emerging technology companies with less than 225 employees. The credit is capped at $25 million annually. It is unclear as to whether or not the governor supports the measure. In his State of the State Address earlier this week, Gov. Christie said he would not support any tax breaks the state could not afford, reports The Philadelphia Inquirer. Last year, Gov. Christie established a new state agency for all the state's economic development activity — the New Jersey Partnership…

A recent Brookings Institution report looks at the nearly 30-year impact of manufacturing's global realignment on US metropolitan areas, finding those with the highest dependence on manufacturing were impacted in several negative ways in addition to the losses in manufacturing. In particular, the resilience of the most manufacturing-centered economies — their ability to transition employment into other sectors — was particularly poor, many experiencing below national average growth in jobs and wages. Brookings reports only 3 of the 114 metro areas in the study exceeded the national averages for both jobs and wages: Charlotte, Manchester and Portland, ME. Diversity, rather than clustering, appears to have been more closely related to growth during the period, Brookings finds, albeit a modest relationship. The inflation-adjusted average wage grew by 16.9 percent between 1980 and 2005 in the 38 metropolitan areas that were most industrially diverse in 1980, but by only 9.5 percent in the 38 areas that were least industrially diverse. In addition, the metropolitan areas that lost the fewest manufacturing jobs gained the most non-manufacturing and advanced…

The State of Wisconsin Investment Board (SWIB), on of the largest public pension funds in the country, plans to invest $80 million in a new "Catalyst Portfolio", intended to create profitable returns from venture investments and to attract the attention of coastal venture firms. SWIB intends to use to funds to invest in one or more venture funds, likely through a firm on the East or West coast. That investment would allow the board to act as a matchmaker between large investors in other states and Wisconsin's investor community. SWIB decided to create the fund following a 2010 analysis that found ample opportunities for profitable venture investment in the Midwest, but a lack of capital to support emerging companies. Read the announcement ...

Communities that are well-loved by their residents are more likely to experience strong economic growth and long-term prosperity , according to a new Gallup and Knight Foundation study noted by C2ER. Researchers have hypothesized that the relationship is causal, since community attachment can drive residents to make long-term, local investments and pursue other activities that bolster economic growth, such as entrepreneurship. Three qualities emerged in the study as the most important in increasing community attachment: social offerings, openness and beauty. Read the report ...

Ann Arbor SPARK is seeking qualified applicants to become their next CEO. The CEO will be responsible for continuing the momentum and positioning SPARK as a key leader in economic development. The ideal candidate has demonstrated P&L experience, preferably as a CEO; can build and manage a high performance team; has outstanding communication skills; has a strong financial and fundraising skillset and experience base; is able to quickly and effectively develop strong partnerships and relationships.