SSTI Digest

As the U.S. Congress is ironing out the details of the stimulus package, the final share of science and technology investments within the bill is not known at this time. However outside of the U.S., other countries have recently announced their own proposals to improve the research and innovation infrastructure of their countries.

Gov. Jim Doyle unveiled today an economic stimulus plan for Wisconsin that includes a proposal to enhance tax credits for angel and venture investors in support of start-up technology companies. A coalition assembled to improve Wisconsin's existing investor tax credits law applauded the governor's announcement to refine the four-year-old program.

The Wisconsin Growth Capital Coalition, which is comprised of nearly 30 public/private TBED organizations and investment funds, have suggested specific improvements in Wisconsin's investor tax credits law to encourage angel and venture capitalists to invest in qualified early-stage deals.

Wisconsin's investor tax credits law, sometimes known as the Act 255 tax credit law, currently grants 25 percent credits spread over two years. The program is credited with helping to nearly triple early-stage investments by angel investors and venture capitalists in Wisconsin companies since its enactment.

Adding to a growing number of governors proposing to consolidate state economic development agencies, Gov. Jodi Rell last week announced in her budget request her intention to overhaul Connecticut's job creation infrastructure by merging several state agencies into the Department of Economic and Community Development (DECD). In recent months, governors in New York and Kansas, for example, have touted cost savings, streamlining government services, and creating a more efficient system to assist in business development and job creation as reasons for the proposed mergers. However, in two cases, critics have argued the consolidations would lead to a loss of key programs serving the TBED community (see the Jan. 21, 2009 and the Dec. 17, 2008 issues of the Digest).

According to the most recent release of gross domestic product (GDP) by metro area, 23 of the nation's 363 metro areas experienced a decrease in inflation-adjusted GDP from 2002 to 2006. Benchmarking against the aggregate U.S. metro GDP growth rate over those five years - which increased 12.8 percent - 167 of the nation's metros grew at a faster rate.

On a per-capita GDP basis however, the wealth was more concentrated as only 61 (about one-sixth) of metros had an average per-capita GDP higher than the U.S. metro average of $41,510. Topping the list of metros in per-capita GDP were the regions concentrated around Bridgeport, CT ($78,944 per person); San Jose, CA ($76,290); Charlotte, NC ($63,668); San Francisco/Oakland, CA ($61,895); and the District of Columbia ($60,757).

From 2002 to 2006, the per-capita GDP across all U.S. metros increased by 8.2 percent. Of the 363 metros, 157 bested this increase. Only 40 of the metros witnessed a per-capita GDP decrease over this period.

The complete description of this opportunity and others are available at http://www.ssti.org/posting.htm.

LEESBURG -- Lake County commissioners agreed to partner with the city and the University of Central Florida to beef up a business incubator in hopes of attracting more start-up companies.

The partnership includes $85,000 in county funds for the UCF Research Foundation to support the incubator's staffing. The incubator, which was created last year, is at the Leesburg Business & Technology Center on Market Street.

This is UCF's first incubator in Lake. It is designed to provide training and infrastructure to upcoming companies. Through an incubator program, businesses have a better chance of thriving, county officials say.

The partnership also includes the combined efforts of the Lake-Sumter Community College Business Resources Center and the Leesburg Chamber of Commerce.

Status of some of the major legislation in the 2009 session of the 52nd Oklahoma Legislature as of Feb. 6:

SB 1 by Gumm NICK'S LAW: Would mandate coverage by private health insurers of the diagnosis and treatment of autism. Referred to Senate Retirement and Insurance Committee.

SB 59 by Rice VETERANS INSURANCE: Would make some uninsured veterans eligible for a state premium assistance insurance program. Passed by the Senate Appropriations Subcommittee on Health and Human Services, sent to full Senate.

SB 255 by Ivester VETERANS TUITION: Would waive tuition expenses for Oklahoma veterans attending Oklahoma colleges and universities. Passed by the Senate Appropriations Subcommittee on Education, sent to full Senate.

SB 291 by TEACHER SALARIES: Would give state teachers pay raises of $9,000 over a three-year period. Passed by the Senate Appropriations Subcommittee on Education, sent to full Senate.

DATELINE: OLYMPIA, Wash.

Gov. Christine Gregoire, D-Wash., issued the following press release:

Gov. Chris Gregoire today praised the state's Economic Development Commission, which just released its strategic plan to help guide Washington as it develops a stronger, 21st century economy.

"This report confirms that Washington is on the right track to build a more sustainable economy," Gregoire said. "I applaud the commission for its tireless work to review our programs and ensure that Washington will continue to support and strengthen our local businesses."

In 2007, the state Legislature charged the commission with creating a statewide economic development strategy to guide the operation of the state's economic development programs, infrastructure investments, work force training and small business assistance. The commission's economic development strategy was formulated by business, education, research and government leaders from across the state.

DATELINE: PARIS

France Biotech, the professional association for French life science companies and their partners ( www.france-biotech.org ), has reported a major drop in equity investments in French biotech companies: funding fell by 79% in 2008, relative to 2007 ((EURO)143 million in 2008 versus (EURO)694 million in 2007). Investment in listed companies collapsed (only (EURO)12 million in 2008 - a fall of 98%). Venture capital investments in private companies ((EURO)132 million in 2008) fell by 27%. The trend for early 2009 appears to show continued degradation.

Philippe Pouletty MD, France Biotech's Chairman, commented that "in order to underpin the optimism of our entrepreneurs, we must adopt an aggressive stimulus plan for young, innovative companies. Assuming that they can access finance, today's innovative SMBs will become tomorrow's multinationals and thus constitute an essential driver of strong, sustainable economic growth".

DATELINE: CONCORD, N.H.

The New Hampshire Business Resource Center issued the following news release:

New Hampshire Manufacturing Extension Partnership (NH MEP) announced today that it has partnered with the New Hampshire Division of Economic Development to launch a research study to assess the progress of state manufacturers in adopting strategies to win in the global economy. The Next Generation Manufacturing Study is the first step in a long-term effort to help state manufacturers weather today's recession and improve manufacturing competitiveness over the next decade.

The web-based study, which starts February 10 and ends March 15, is confidential and takes approximately 30 minutes to complete. Manufacturing participants will receive a customized benchmarking report comparing their progress to the overall results as well as to other respondents of similar revenue and number of employees.

DATELINE: Washington

The following information was released by the National Association of State Universities and Land-Grant Colleges:

The lack of highly qualified science and mathematics teachers in middle and high school classrooms across America is a crisis that is well-established. If the U.S. is to remain a leader in engineering, technology and innovation in the global market place, the state of science and mathematics education must be reversed.

The presidents of 74 public universities and 11 university systems representing an additional 33 campuses have taken a bold step toward reversing the crisis by formally committing to the Science and Mathematics Teacher Imperative (SMTI) developed by NASULGC, A Public University Association (To see a complete list of institutions, click here).

Spectrum Bridge Inc. has become the first graduate of the University of Central Florida's Incubation Program Seminole County/Winter Springs office.

According to a release, the Lake Mary-based Internet marketplace and mapping technologies company joined the program in February 2008.

The company has begun generating revenue and completed rounds in venture capital funding totaling $8.1 million, said Esther Vargas-Davis, site manager at the Seminole County incubator office, in a release.

UCF's incubator program includes courses related to company growth, market growth and investment/funding strategy sessions for start-up businesses.

The program, which opened in 2008, is partnered with UCF, the city of Winter Springs, Seminole County and the Florida High Tech Corridor Council.