SSTI Digest

A new state agency to promote innovation and job creation in New Jersey was established by Gov. Chris Christie earlier this year. Envisioned as a hub for all economic development activity, the New Jersey Partnership for Action consists of three interconnected organizations to promote the state's incentives and resources, develop pro-growth policies, and assist businesses in navigating government programs. The governor's promise of a more effective strategy for economic development activity comes at the same time of severe reductions to the state's technology-based initiatives, however. High-tech business tax credits are reduced by half in the upcoming year, and with no funding allocated for the New Jersey Commission on Science and Technology, the 25-year-old agency will close its doors this month.

The White House Office of Science and Technology Policy (OSTP) recently issued a request for information (RFI) to gain insight from stakeholders in developing the National Nanotechnology Initiative's (NNI) 2010 strategic plan. OSTP is seeking input about the initiative's goals and objectives, research priorities, investments, coordination and partnerships, evaluation, and policies. The NNI will use these responses to develop a federal common vision for the future use of nanotechnology and to advance the goals outlined in the 2007 under the original NNI strategic plan.

The NNI includes 25 federal agencies working together to discover, develop and deploy nanotechnology towards agency missions and broader national interests. Of the 25 agencies, 15 will have budgets for nanotechnology R&D in 2011. This R&D program is managed within the framework of the National Science and Technology Council (NSTC). The Nanoscale Science, Engineering, and Technology (NSET) Subcommittee coordinates the planning, budgeting, program implementation, and review of the program.

West Virginia Governor Joe Manchin became chair of the National Governors Association (NGA) this week and announced a year-long NGA initiative to increase the number of U.S. students who receive college degrees. The initiative was launched with a report on college completion metrics. NGA plans to release another report in the coming weeks that will provide states with a guide to policies that increase graduation rates. Read the announcement ...

In a study released by the Council on Competiveness, the researchers try to answer the complicated question: Why are some regions more successful than others in global competition? The traditional paradigm of regional development focuses the endowment of innovation assets (i.e. people institutions, capital and infrastructure). Regions abundant in these assets were built to succeed in the global knowledge economy. In contrast, less successful regions fail due to a lack of innovation assets. This study, however, argues that the ability to think, plan and act regionally is the real driving force behind developing a successful region.

The NY-BEST Board of Directors released a solicitation to acquire an Executive Director for NY-BEST and an organization to provide operational support.

The Executive Director is expected to work full-time on NY-BEST activities to: accelerate the commercial introduction of energy storage technology in New York, build the human capital and expertise to sustain a vibrant commercial energy storage industry in New York, and leverage seed resources of approximately $25 million to create a sustainable organization that provides value to its members and to New York State. Individuals may apply directly for this position or as part of a broader application with an organization to provide operational support.

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Andre Pettigrew, the director of the Denver Office of Economic Development, will become the first executive director of Climate Prosperity Inc., a Washington, D.C., climate-change think tank. LaCharles Keesee, the city's deputy chief financial officer, will assume an interim role as head of the city's economic development department until a final replacement is named.

The Ohio Development of Department has named Karen Shauri director of the Small Business Development Centers of Ohio.

Terri Shelton, director of the University of North Carolina Greensboro Center for Youth, Family, and Community Partnerships has been named the vice chancellor for research and economic development.

Over the past few months, several states have announced efforts aimed at reducing the nation's dependence on oil. While the importance and urgency of such efforts is perhaps magnified in the wake of one of the worst U.S. environmental disasters, the shift to a renewable energy-focused economy also brings with it the expectation of job creation, new product development, and increased revenue for states struggling in the aftermath of the Great Recession.

Governors in Arizona and Rhode Island recently signed legislation supporting renewable energy R&D and offshore wind development, respectively. In California, a measure requiring electric utilities to generate one-third of the state's power from renewable sources is being floated, and in Utah, Gov. Gary Herbert announced a formal planning process to create a 10-year clean energy initiative for the state.

The $68.2 million FY 11 budget approved last week for the New York State Foundation for Science, Technology and Innovation (NYSTAR), allows the foundation to continue to provide 10 percent matching funds for research institutions and businesses in order to attract federal, private and industry funds. The budget allocates $29.5 million in FY11 for a matching grants program started with ARRA stimulus funding and $5.2 million for the state's six Centers of Excellence.

The appropriation is scaled down from Gov. David Paterson's original budget recommendation that would have provided $100 million for the program (see the issue of the Jan. 27, 2010 issue of the Digest). The NYSTAR budget also includes $1.5 million for state matching funds for the Manufacturing Extension Program and $343,000 for the Research Development Program.

A. 9705, providing the budget detail, is available at: http://public.leginfo.state.ny.us.

Illinois Gov. Pat Quinn recently signed legislation approving a new tax credit to encourage angel investment and extending the state's R&D tax credit one more year. The Innovation Development and Economy Act (SB 2093) allows eligible angel and early-stage institutional investors to take a 25 percent tax credit on investments in small, technology firms. Up to $2 million may be claimed on an individual investment for a $500,000 tax credit. The program is capped at $10 million and will be effective on Jan 1, 2011.

Passed unanimously by the Illinois General Assembly, SB 3655 extends the state's R&D tax credit for one more year. The provision allows for a tax credit equal to 6.5 percent of qualifying expenditures that increase R&D activities in Illinois. These expenditures include, for example, technological and experimental research whose purpose is to develop new or improved components, functions, performance, reliability or quality.

SB 2093 is available at: http://ilga.gov/legislation/publicacts/96/PDF/096-0939.pdf.

Touted as a tool to help the state attract and retain jobs, South Carolina Gov. Mark Sanford last week signed into law H. 4478, the Economic Development Competitiveness Act. The new law directs one-third of the state's endowed chairs money be administered by the Coordinating Council on Economic Development — a reform measure that the governor says will help shift its focus to job creation and allow private sector investment to lead public sector investment. Funding previously was administered by an academic panel. The Act also provides several incentives for manufacturing, including renewable energy tax incentives.

To support the state's manufacturers and attract new facilities, the Act includes the following incentives:

A national space agenda based on competition and national pride — the space race as it has been called — fits bygone times, according to the new National Space Policy statement released by the Obama administration on June 28. The new era outlined in the 14-page document calls for space-venturing nations to embrace shared principles of responsibility, peace, transparency, no claims of national sovereignty, and recognizing "purposeful interference" with another nation's space systems is an infringement of that nation's rights and grounds for self-defense or deterrence.

U.S. leadership in space is expected to be maintained through space-related research, assured access to space (e.g., using American-manufactured vehicles for payload launches), enhanced spaced-based global positioning, navigation satellite and timing systems, quality of space professional workforce and interagency cooperation.

U.S. manufacturing competitiveness will continue to decline, according to the 2010 Global Manufacturing Competitiveness Index (GMCI). Index projections suggest, by 2015, Brazil will have overtaken the U.S. for fourth in the global rankings behind China, India and the Republic of Korea. The report concludes the increasing talent pools worldwide, coupled with higher U.S. wages, have placed U.S. manufacturing at a disadvantage in the global markets. However, the U.S. should remain at the forefront of manufacturing innovation due to a focus on strengthening science and technology research, the strong intellectual property rights (IPR), technology transfer policy, and STEM initiatives.

The report was created through a partnership between Deloitte's Global Manufacturing Industry group and the U.S. Council on Competitiveness. Based on survey responses from more than 400 senior global manufacturing executives and key government decision makers, researchers developed an index that ranked the "10 drivers of global manufacturing competitiveness." Respondents also were asked to rate the overall manufacturing competiveness of 26 countries for 2010 and 2015.