SSTI Digest

The National Economic Council and the Office of Science and Technology Policy (OSTP) are asking for public input for a new initiative intended to address the challenges of the 21st century. The initiative, which would be similar to the National Academy of Engineering's (NAE) Grand Challenges for Engineering program, would help catalyze innovations to spur economic growth, encourage multidisciplinary collaborations and improve STEM education. Responses are needed to help identify specific challenges, potential partners and models for the program.

President Obama originally announced that his administration would launch the Grand Challenges Initiative in his National Innovation Strategy, released last September (see the September 23, 2009 Digest). The strategy identified eight challenges of national importance, where the market was considered unlikely to produce optimal research and commercialization outcomes on its own. These sectors include:

A plan to provide loans and specialized training to foster entrepreneurship recently was announced by Gov. Jennifer Granholm. The two-pronged, $43 million strategy consists of a loan partnership between credit unions and Michigan Small Business and Technology Development Centers with specialized training provided through the Michigan Economic Development Corporation's FastTrac NewVenture Program.

The loan partnership is expected to make about $43 million available to help more than 2,000 small businesses with new or expanding operations. For the training component of the plan, the Michigan Economic Development Corporation has pledged $200,000 to expand the 10-week FastTrac NewVenture program, designed for entrepreneurs in the early stages of business development, reports the Associated Press.

Nearly all components of a comprehensive legislative package set forth by Gov. Bob McDonnell that would provide tax credits for green jobs, invest in renewable energy R&D, and support the biotechnology and life sciences industries have passed at least one chamber in the legislature at this point. The governor also introduced amendments to the 2010-12 budget proposed by former Gov. Tim Kaine that would provide an additional $50 million for economic development initiatives.

The "Jobs and Opportunity Agenda" was announced during the governor's first weeks in office and focuses on job creation and tax incentives to grow the state's economy. Last week, the governor's office announced that 30 of the 34 measures within the package received legislative approval. Highlights of the legislation as it relates to tech-based economic development are listed below:

Gov. Tim Pawlenty recently unveiled his 2010 supplemental budget recommendations, which includes new tax incentives to boost job creation and spending cuts across state agencies to help eliminate a projected $1.2 billion deficit. Announced during his State of the State Address earlier this month, the proposed Jobs Creation Bill is a six-part plan with components aimed at stimulating formation of early-stage capital in new emerging businesses and encouraging businesses to invest in R&D.

Under the proposal, a 25 percent tax credit for angel investments in qualified businesses would be established. The tax credits would be capped at $5 million a year in 2010 and $10 million in 2011, according to budget documents. Angel tax incentives are likely to be a topic of debate during the upcoming legislative session with competing bills introduced in both the House and Senate (Read the article).

Florida's efforts to boost it's biotechnology sector may not be paying off as quickly as originally hoped. A recent report finds that the $449 million invested through the Innovation Incentive Program has yet to result in industry growth in counties where the program's grantees have their facilities. The report, published by the Florida Office of Program Policy Analysis and Government Accountability (OPPAGA), suggests that the state's lack of early-stage capital for biotech startups may be contributing to the sluggish pace of development.

Academic, industrial and federal R&D spending is surveyed annually by the National Science Foundation (NSF). Similar information regarding state R&D investments, however, only is captured periodically. The latest survey results, for fiscal years 2006 and 2007 were released this past December and used to create an SSTI Useful Stats table on state R&D intensity (see the Dec. 9, 2009 Digest). Is this information useful for state and local TBED practitioners and policy makers? Should NSF and the Census Bureau, which conducts the survey for NSF, continue the effort?

The Census Bureau has asked OMB for reinstatement of the collection of state R&D expenditures. The Bureau requests public comments and recommendations, within 30 days, as to whether or not the survey in its present form is useful to its primary target audience.

Being located within an incubator can provide tech startups help beyond low-rent space. Networking opportunities and direct counseling and technical assistance can play important roles toward the firms' success. Or do they? A recent study published in the journal Technovation finds the interactions incubator managers have with their tenant firms may not be as helpful as the metrics would suggest.

Most incubators use a variety of measures for interactions with tenants as indicators of their contribution to the companies' success. Increasing the number of hours counseled, number of meetings held, types of assistance provided, etc., generally would suggest more value to the company. Joanne Scillitoe and Alok Chakrabarti, the authors of The Role of Incubator Interactions in Assisting New Ventures, say not so fast.

Increasing life science and health-related research remains a major component of many state, local and university TBED strategies. Change in federal R&D obligations from the Department of Health and Human Services (HHS), which includes the National Institutes of Health, the Centers for Disease Control & Prevention, and Agency for Healthcare Research and Quality among other agencies, could be a good indicator of progress — or an indicator of the need to expand or amend those strategies. This week's Useful Stats column presents five-year data on changes in HHS R&D obligations by state.

Tech Talkin' Govs, Part V The fifth installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Minnesota, New Jersey, and Tennessee. The first four installments are available in the Jan. 13, Jan. 20, Jan. 27, and Feb. 10 Digests.

Minnesota Gov. Tim Pawlenty, State of the State Address, Feb. 11, 2010 "So today, I urge the Legislature to pass my Jobs Creation Bill that has six vital parts: a 20 percent reduction in the corporate tax rate; a 20 percent exclusion from taxation for small businesses; an angel investment tax credit; a supercharged research and development tax credit; a capital gains exclusion for qualified investments; and, incentives for companies to invest in Minnesota small businesses. ...

Charged with developing a replicable and sustainable model for coordinated federal and regional efforts that foster and use regional innovation clusters, a group of federal agencies announced its first pilot project anchored around a Department of Energy (DOE)-funded Innovation Hub. The project, called the Energy Efficient Building Systems Regional Innovation Cluster Initiative, will develop, expand, and commercialize innovative energy efficient building systems technologies, designs, and best practices for national and international distribution. This initiative falls under the Interagency Regional Innovation Clusters Taskforce, which was created for job creation, worker training and education, increasing GDP, and promoting innovation in science & technology. Proposals to support this initiative are invited from a consortium of partners.

The fifth installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Minnesota, New Jersey, and Tennessee. The first four installments are available in the Jan. 13, Jan. 20, Jan. 27, and Feb. 10 Digests.

Minnesota Gov. Tim Pawlenty, State of the State Address, Feb. 11, 2010 "So today, I urge the Legislature to pass my Jobs Creation Bill that has six vital parts: a 20 percent reduction in the corporate tax rate; a 20 percent exclusion from taxation for small businesses; an angel investment tax credit; a supercharged research and development tax credit; a capital gains exclusion for qualified investments; and, incentives for companies to invest in Minnesota small businesses. ...

While nearly all of the economic indicators for the country were falling rapidly, the commercialization of university-generated technologies quietly continued to move into the market place at an increasing pace, according to the latest survey conducted by the Association of University Technology Managers (AUTM). Highlights from the AUTM U.S. Licensing Activity Survey Summary: FY2008 include:

648 new commercial products introduced 5,039 total license and options executed 595 new companies formed about 72 percent of new companies formed with the primary place of business in the institution's home state 3,381 startup companies still operating as of the end of FY2008 20,115 disclosures 12,072 new U.S. patent applications 848 non-U.S. patent applications 3,280 issued U.S. patents

The report is available for purchase at: http://www.autm.net/