SSTI Digest

Tech entrepreneurs in Kansas would lose a long-time independent friend and ally in their efforts to expand the state's economy if the FY10 budget proposed by Gov. Kathleen Sebelius passed the state legislature. The governor has proposed many of the functions of KTEC, a program spanning more than two decades as a quasi-public agency developing Kansas' technology-based economic development efforts, would be cut substantially and absorbed by the state Department of Commerce (DOC).

The proposed American Recovery and Reinvestment Act, released last week by the House Appropriations Committee, would dramatically increase federal funding for research in several agencies required to participate in the Small Business Innovation Research (SBIR) Program.  The National Science Foundation alone, for example, would receive an additional $3 billion - equal to 50 percent of its FY08 appropriations.  The Department of Energy would get a $2 billion research injection; the National Institutes of Health, a cool $1.5 billion for R&D.  The SBIR program requires the research agencies to award 2.5 percent of their extramural R&D funds to small businesses. So it would seem small tech firms fighting for funds in the highly competitive SBIR arena could see a windfall in the coming months as a result of a Recovery Act.

The South Carolina Centers of Economic Excellence (CoEE) Program, an initiative to recruit star scientists into distinct research clusters at the state's three research universities, has gained $205 million in competitive research awards and non-state matching funds over the program's lifetime - three times the state's distributed investment to date of $66 million. This finding and others regarding the fiscal and employment impact of the initiative was included in a recent outside evaluation of the first five years of the CoEE Program.

Successful small technology businesses serve as integral components of a robust innovation-based economy. The novel products and services brought to market are often the result of these companies' R&D efforts. As a result, nearly every state has programs and policies in place to support the growth of small tech firms.

Several years of virtually flat and occasionally declining federal funds for the nation's research and economic development communities could end abruptly with passage of an economic recovery plan resembling either proposal released by President-elect Obama or Congressional Democrats. Both call for unprecedented public investments to stimulate the economy out of its worst recession since the Great Depression, while at the same time moving the country dramatically toward a national innovation strategy mirroring the priorities of most state and regional technology-based economic development programs across the country.

Democrats control both chambers of Congress and the White House, however, opposition to the size and the nature of some components crosses both sides of the political aisle and as a result changes in the package are likely before passage.

The House Appropriations Committee version of the American Recovery & Reinvestment Act released this morning includes support for improvement to the U.S. digital infrastructure. The proposal calls for significant spending to boost the economy through science and technology. That figure, along with additional spending on energy, small business, and healthcare improvements, includes significant investment in the country's information technology and networking assets.

The second installment of the Tech Talkin' Govs series includes highlights from state of the state, budget and inaugural addresses delivered by the governors of Arizona, Colorado, Georgia, Idaho, Kansas, Mississippi, New Hampshire, Oregon and Vermont. 

Arizona 

Gov. Janet Napolitano, State of the State Address, Jan. 9, 2009

During his presentation of the fiscal year 2009-11 budget last week, Gov. Mitch Daniels said the state's weakening economy will require the suspension of funds for some initiatives supported by his administration. For the TBED community, the governor's proposal delays funds for research aimed at building the state's life sciences portfolio, including elimination of a $20 million Life Sciences Fund at the Indiana School of Medicine and Purdue University and $3 million for the High Growth Business Incentive Fund to encourage high-wage companies to locate or expand in the state.

Facing a $2.3 billion deficit in FY 2010, Florida Gov. Charlie Crist has proposed a new financing program to promote small business growth through the current financial crisis. Calling it an Economic Stimulus Plan, the governors.'s proposal will target small Florida-based companies with high-growth potential through direct loans and other support services. By focusing on small businesses, the state can target companies with good prospects for growth with a modest investment of taxpayer dollars, according to the press release accompanying the announcement. The price tag? Only $10 million.

Since the SSTI Funding Supplement became a members-only publication in 2006 more than 4,250 funding opportunities have been distributed. In 2008 only, there were more than 1,400 different opportunities for your client companies and university research faculties to secure funding -- if you were an SSTI member. Competition for federal research funding is growing, particularly as program budgets have been relatively flat or declining in recent federal budget cycles. But your tech companies and faculty researchers are at the greatest disadvantage if they aren't even aware of all the opportunities available to them! Don't remain in the dark for 2009. Sign up your organization as one of SSTI's members today to begin your subscription to the Funding Supplement.

A few of the more than 100 opportunities provided in December include:

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.

SSTI's ninth annual Tech Talkin' Govs series highlights new and expanded TBED proposals from governors' state of the state, budget and inaugural addresses. The first installment of the series includes excerpts from New York and North Dakota.

New York Gov. David Paterson, State-of-the-State Address, Jan. 7, 2009 "We should also understand that our current Empire Zone program does not work and we need to reform it. ....  That's why we set an aggressive target to have Empire Zone participants produce 20 dollars of benefits for every dollar of state money. With the savings generated by reforming Empire Zones, we will make strategic investments in the job-creating industries of tomorrow, such as biotechnology and manufacturing, and we will offer R&D tax credits to foster innovation. .