SSTI Digest

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.

Gov. Bill Haslam is the latest governor to unveil a broad-based proposal to grow the state's economy and create jobs through investments in S&T by asking lawmakers to dedicate $10 million for a research consortium that would recruit senior scientists to advance scientific discoveries into commercial applications and spur high-growth companies. Similar TBED efforts focused on investing in university research, tech commercialization, and increasing access to capital were announced earlier this year in Kansas, Maryland, Nebraska and Virginia (see the Jan. 5, Jan. 19 and Jan. 26 issues of the Digest). The governor's budget also provides funding to continue the state's investment in biofuels and aerospace engineering and recommends new funding to recruit businesses.

Gov. Tom Corbett's budget proposal for the upcoming fiscal year funds many of Pennsylvania's longstanding efforts to grow a technology-based economy, but at a reduced level. At the same time, the governor outlined new initiatives and investments centered on a restructured Department of Community and Economic Development (DCED) that he says will eliminate duplicative programs and better position the state to attract businesses for job creation.

DCED's budget would be cut by 32 percent, or $114 million, and the number of programs would be reduced to 56 from 127 under the governor's proposal to streamline the state's economic development efforts. The Ben Franklin Technology Development Authority would receive $14.6 million in FY12, down from $16.8 million in FY11 available funds. The authority funds the Ben Franklin Technology Partners (BFTP), one of the nation's longest running and most successful TBED programs. Through its four regional networks, BFTP provides access to capital and entrepreneurial support services to promising tech-based companies throughout the state.

The Department of Commerce's Economic Development Administration announced it is accepting applications for the $12 million i6 Green Challenge. EDA, in partnership with the departments of Agriculture and Energy, the Environmental Protection Agency, the National Science Foundation, Commerce's National Institute of Standards and Technology and U.S. Patent and Trademark Office, will select six teams from around the country that present the most innovative ideas to drive technology commercialization and entrepreneurship in support of a green innovation economy. EDA will award up to $1 million to each of the six awardees. Its partner agencies will award more than $6 million in additional funding to i6 Green winners.

This year's competition will focus on the promotion of Proof of Concept Centers — these centers support all aspects of the entrepreneurship process. Assistant Secretary of Commerce John Fernandez said, "The i6 Green Challenge will help catalyze American ingenuity by leveraging the proven benefits that these centers offer to promote green growth, advance cluster development and strengthen the economic ecosystems of America's regions."

The Department of Commerce (DOC) is interested in receiving nominations for a 15-member innovation advisory board comprised of business leaders, policy experts and state/local government officials. Board members will contribute in the development of a study on U.S. economic competitiveness and innovation capacity. The board's primary responsibilities will include development of an extended outline of the report and review of the final report's draft. Individual members also may be asked to participate in events across the country related to economic competitiveness and innovation. Nominations are due by March 22, 2011. Membership applications must include:

Name, title, and personal resume; A brief statement of why the person should be considered for membership on the board; and, A brief biography.

Board members will not receive compensation for travel or other expenses. Read the release

The latest annual report on state higher education finance by the State Higher Education Executive Officers finds that state and local per student spending fell to its lowest point in 25 years last year. Rising enrollment and stagnant appropriations contributed to the decrease in per student spending. Between 2008 and 2010, state appropriations for higher education remained level, mostly due to federal stimulus funding directed to colleges, according to The Chronicle of Higher Education. An enrollment increase of six percent from 2009, however, lead to a seven percent drop in per student spending in 2010. Read the report...

A new prototype website allows users to track R&D grants and awards from federal agencies. The current version provides publicly reported federal agency data from the National Science Foundation and the National Institutes of Health from 2001 to 2010. It also provides output data on patents, patent application and publication. Future updates will integrate the site with all federal agency databases and additional output data. Visit the site...

Metropolitan areas with population densities of about 4,000 people per square mile tend to produce the highest rate of patenting, according to a recent article in the American Journal of Economics and Sociology. In a study of U.S. metro areas over a ten-year period, the authors found that metro population density has a significant positive correlation with patenting rates. At about 4,000 people per square mile, the benefits of agglomeration, such as knowledge spillovers and diverse labor pools, are at their highest, compared to negative effects of congestion, such as increasing costs of real estate and other scarce resources. Few U.S. cities, however, approach this level of population density. The authors advise against taking the averaged optimal density level as a basis for policy, but use their data to suggest that cities play a vital role in the innovation economy and that increasing urban density could lead to higher innovation rates in some U.S. urban areas.

Connecticut Gov. Dannel Malloy named ING executive Catherine Smith to lead the Department of Economic and Community Development.

New York Gov. Andrew Cuomo nominated Julie Shimer, the president and CEO of Welch Allyn, a medical diagnostics equipment manufacturer, to chair the Empire State Development Corp. She would join Kenneth Adams, ESCD's president, at the agency.

Jeffrey Anderson, president and CEO of the Virginia Economic Development Partnership, has announced he will resign as soon as a successor can be found. He has led the VEDP since October 2005.

Howard Gobstein, APLU executive officer and vice president, research, innovation and STEM policy, has been named executive vice president.