SSTI Digest

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.

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. ...

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.

Citing the need to ensure a competitive edge in the weak economic climate, Texas Gov. Rick Perry is asking lawmakers to continue investing in the state's economic development tools by providing an additional $15 million for the Texas Emerging Technology Fund (ETF) and retaining funding for the Texas Enterprise Fund in the coming biennium. The governor also is proposing $50 million for science, technology, engineering and mathematics (STEM) scholarships and $32 million to increase STEM academies.

Gov. Perry is seeking $219.2 million for his priorities and initiatives over the next two years, which includes the additional funds for the ETF and STEM incentives as well as $20 million for the Film and Video Game Incentive program and $11.3 million for Economic Development & Tourism. House and Senate committee budget recommendations unveiled last month would provide $21.3 million for the ETF in unexpended balances not obligated in the current biennium, but add no new funding. The governor's budget would add an additional $15 million to foster emerging technologies, enhance university-industry collaboration, and promote technology commercialization.

Vermont Gov. Pete Shumlin has released a jobs package that includes a number of initiatives that could enhance the state's innovation economy. The jobs bill calls for a new creative economy office that would focus on technology efforts, a mentoring program for entrepreneurs, a statewide internship program, and a tax credit for companies that hire STEM graduates. Gov. Shumlin also has renewed his predecessor's pledge to extend full wireless voice and data coverage across the state.

The governor, announcing the jobs bill last week, said that the legislation is intended to help stimulate every sector of Vermont's economy. Accordingly, most of the bill's provisions benefit the state's agriculture and food industries. Several initiatives, however, specifically target manufacturing, high-tech businesses and entrepreneurship.

A revamped version of the $8 billion Universal Service Fund (USF) could be used to expand broadband access in underserved areas. On Tuesday, the Federal Communications Commission (FCC) proposed a plan to redirect the portion of the USF that provides incentives to extend phone service to high-cost areas to instead support high-speed data networks. A new program, the Connect America Fund, would consolidate several USF programs, eliminate some of the programs' inefficiencies and increase the availability of affordable broadband service. The proposal is the latest step in a series of changes planned by the FCC to implement its National Broadband Plan.

Starting in the spring, a new Small Business Association (SBA) loan program — the Community Advantage loan program— will increase the availability of loans (up to $250,000) to: 1) small businesses, 2) firms that are less than two-years old or 3) those owned by veterans. The program specifically will target businesses in low- to moderate-income communities. Currently, small businesses face difficulty receiving loans of this size due to perceived risk involved (historically high default rates). Nonprofit institutions and banks that participate in the SBA's Preferred Lender Program will be the providers of these SBA guaranteed loans. To incentivize lenders, loans will guarantee up to 85 percent. SBA will accept applications from interested lending institutions starting March 15. Read about the program ...

Sixteen percent of all high-impact, high-tech companies include at least one immigrant, according to a new report by the Center for Technology Innovation at Brookings. They survey and consequent case studies found significant trends among immigrant entrepreneurs in the high-tech field. Respondents were found to be heavily rooted in the U.S. — 77 percent of them have become American citizens and almost 75 percent have lived in the U.S. for more than 15 years. In comparison to their domestic peers, immigrant entrepreneurs have much higher educational achievement (almost twice as likely to hold a doctoral degree). These individuals have a similar amount of work experience to their successful domestic counterparts (roughly 10 years). Finally, the number of immigrant entrepreneurs is roughly equal to the total immigrant population (13 percent). However, since 1990 the number of immigrants with a bachelors degree or above in a STEM related field has increased significantly.

With support from the Greater Cleveland Partnership, NorTech (the Northeast Ohio Technology Coalition) is accepting applications for the two positions below:

The Energy Enterprise Senior Consultant, reporting to the vice president and director, Energy Enterprise, is a key member of the NorTech Energy Enterprise team. NorTech Energy Enterprise is leading a collaborative regional effort to drive growth across all sectors in advanced energy and develop a thriving advanced energy industry cluster in which public, private and academic partners create and grow new technologies. The FlexMatters Senior Consultant is a key member of the NorTech FlexMatters team. NorTech FlexMatters is the regional innovation cluster emerging around the flexible electronics industry in Northeast Ohio. Flexible electronics is a new science and manufacturing opportunity for printing electronic devices on flexible plastic materials.

Following up on President Barack Obama's State of the Union pledge to focus on American competitiveness and innovation, the White House announced the Startup America initiative, a program to support and celebrate U.S. entrepreneurs. On Monday, a panel of cabinet members, White House officials, executives and economic development leaders provided an outline of the public/private effort, which has already generated $400 million in private commitments. Startup America aims to expand a number of federal programs to provide capital and mentoring services to entrepreneurs, and to create a nationwide partnership that will leverage private sector partners to provide entrepreneurial support resources. The initiative also will support the expansion of several existing TBED-related initiatives across the country.

Focusing on job growth and promoting the state for new business development, Gov. Brian Sandoval announced his plans to reorganize the Commission on Economic Development into a public-private partnership and increase funding for the state's economic development efforts by an additional $2.2 million in general fund appropriations each year. The governor also included in his 2011-13 biennial budget $10 million in FY12 for a proposed Nevada Catalyst Fund designed as a closing fund to bring new businesses to the state.

Although details on the proposed public-private partnership called Jobs Unlimited have yet to emerge, the governor said in his State of the State address that collaboration and tighter performance indicators would be the metrics of the new system. Many of the economic development proposals touted by the governor build on recommendations from the New Nevada Task Force, convened last year by the lieutenant governor.