SSTI Digest

In his inaugural address last week, Vermont Gov. Jim Douglas announced a four-part plan to bolster research and high-tech economic development. The governor’s Vermont Way Forward strategy would promote high-tech business, particularly in the state’s emerging environmental engineering industry. In addition, the strategy includes a plan to make Vermont what the governor says would be the country’s first “e-state,” one in which universal access to broadband and wireless technology are available anywhere within the state’s borders.   To capitalize on the growing demand for environmentally-conscious technology solutions, the Vermont Way Forward plan calls for the creation of an Environmental Engineering Advisory Council to coordinate state efforts to support research and innovation in developing environmental technologies and services. The council would be composed of engineering, math, science and technology experts appointed by both the state legislature and the governor’s office. Its members would help guide the state toward becoming a world leader in environmental engineering research and business.   The plan also…

This past fall, Vermont released what may be the nation's first statewide effort to lay out an economic development strategy based on the creative economy theories advanced most prominently by George Mason professor Richard Florida. Advancing Vermont's Creative Economy, prepared by the Vermont Council on Culture and Innovation (VCCI), offers recommendations that include collaboration among government entities, cultural organizations, and the private sector that utilizes cultural resources. Developers, venture capitalists, policymakers, and educators recognize the tremendous growth potential in the emerging creative economy, according to VCCI, and Vermont can capitalize on its strengths and systematic support in this sector. The report offers examples of social and economic benefits to investing in the arts and culture, and makes specific recommendations on how to grow the state's creative economy. In tracking the creative economy and assessing its value to the state, VCCI held six public forums around the state, participated in panel discussions and workshops, and administered…

The city of Montpelier, Vt., will soon join the ranks of other high-tech cities as it prepares to implement its first Wi-Fi “hotzone” in the central downtown area. With support from Senator Patrick Leahy (D-Vt), city officials and local businesses, the Vermont Broadband Council recently launched MontpelierNet, a high-speed Internet network that will bring wireless broadband Internet access to the city. The network is designed to expand and improve high-speed telecommunications services, reduce costs for the city, and provide faster transmission at a lower cost to businesses in the area. MontpelierNet is comprised of three phases, which include: Phase One, completed this month, consisting of a wireless network linking City Hall to other facilities, including the waterplant, wastewater treatment plant and town garage; Phase Two, providing high-speed, high-capacity Internet connection to the city and to local businesses; and, Phase Three, creating the Wi-Fi “hotzone” in central downtown. Wi-Fi zones, or “hotspots,” enable anyone with a laptop or handheld device access…

Robin Siss, Vermont's first commissioner for the Department of Information and Innovation, has announced her resignation. Siss began the position in August. Denise Fehr will serve as acting commissioner.

The launch of a targeted small business development program designed to foster the success of new high growth, high-tech firms in Vermont was announced last month at a press conference by Sen. Patrick Leahy, Gov. James Douglas and University of Vermont (UVM) President Daniel Fogel. The Vermont Center for Emerging Technologies (VCET) is a key component of Gov. Douglas’ strategy to support business innovation and growth in Vermont. Since the governor has taken office, $500,000 in state funding has been appropriated to support incubator initiatives and an additional $125,000 in the fiscal year 2005 budget has been requested specifically for VCET. VCET is intended to bring together the resources of existing and planned business incubators in Vermont. The center will tap the technology potential in Vermont and transform that into jobs, Sen. Leahy said. Also benefiting from the initiative is UVM’s research and development department, which has experienced a steep rise in federal funding in recent years. With the VCET structure in place, research at the university could present significant…

The University of Vermont announced that Janice St. Onge has joined the Vermont Business Center as the director of business education.

Janice St. Onge has resigned from the Vermont Department of Economic Development to pursue career opportunities at the University of Vermont. St. Onge, whose resignation is effective Jan. 30, served for four years as the state's technology business development director.

Building on the his first economic plan, Vermont Governor James Douglas has announced a second set of proposals to retain and create jobs in the state. The governor's eight-page Creating Jobs for the 21st Century embodies several tech-based economic development elements within the four primary goals outlined below. Some of the highlights include: Campaign to Retain: Providing a Competitive Environment for Vermont Businesses to Prosper and Grow Create a training curriculum and network of expertise in entrepreneurial education on seed investing and commercialization; and, Organize a Vermont venture capital consortium. Thinking Ahead: Empowering the Next Generation of Manufacturing Establish the Vermont Center for Emerging Technologies as an incubator facility to commercialize University of Vermont research; Support development of a statewide incubator strategy, led by a newly established Vermont Incubator Investment Advisory Board and the Department of Economic Development, to include grants, low interest loans, networking and business service assistance…

Capital for start-up and early-stage business ventures should become more plentiful in Vermont based on legislation, S. 178, passed in late May. A spokesperson for Governor Jim Douglas appraised the act's total impact as representing a $105 million investment into the state's economy. Injecting more higher risk investment capital into the state's economy had been one of the key economic development priorities for Gov. Douglas during his first legislative cycle. The cornerstone of the Douglas Plan for Prosperity was to recapitalize and expand the financing mechanisms offered by the Vermont Economic Development Authority, the state's commercial and agricultural low-interest lending agency. S. 178 raises the state's commitment to the fund from $25 million to $70 million. The legislation also enacts new tax credits and amendments to encourage angel investment and development of sustainable energy technologies, including: a sustainable technology R&D tax credit against a small corporation's income tax liability of up to 30 percent of qualified sustainable energy R&D expenditures…

Kevin Dorn has been named secretary of the Vermont Agency of Commerce and Community Development by Gov.-elect Jim Douglas.

Vermont’s high-tech businesses now can take advantage of new tax credits with Governor Howard Dean, M.D.’s signature on H. 239. The bill creates a set of five incentives for high-tech businesses in industries including computer hardware or software, information and communications, microelectronics, semiconductors, digital communications, medical devices, energy technologies and electric vehicles. The high tech credits are applied to investments in machinery and equipment, renovations to provide cable, fiber or telecommunications access, workforce development, and a sales and use tax exemption for personal computers and software. Applying to investments made on or after July 1, 2002, the High Tech Tax Credit effects taxable years beginning on or after January 1, 2002. All of the incentives will be administered by the Vermont Economic Progress Council (VEPC) and are subject to the same approval process, cost/benefit model and guidelines as current law provides for tax credits. High Tech Important for State The Vermont Department of Economic Development also recently…

Molly Lambert, secretary of the Vermont Agency of Commerce and Community Development since 1998, is resigning July 1 to become head of the Vermont Captive Insurance Association. The Agency is comprised of the Departments of Economic Development, Tourism and Marketing, and Housing and Community Affairs.