SSTI Digest

Two weeks ago, Idaho Gov. C.L. “Butch” Otter vetoed legislation to repeal state R&D income tax credits for Idaho companies. Among his reasons for the veto, Gov. Otter claimed removing the credits would put Idaho at a competitive disadvantage because surrounding states over similar incentives. Was he right?

Urban universities often have to cope with issues of land scarcity unique to their high density settings. In many cases, it’s because of their own success as an attractive magnet for other activities. The result? Major expansions can take years of negotiation and planning – and top dollar – to accomplish. In addition, tensions with neighbors and community sometimes arise over new development or incompatible land use. Some municipalities may struggle in a love-hate relationship with the colleges, welcoming the above-average wages of academic employment and accompanying economic growth, yet fretting over losing tax base as schools acquire more land.

As Massachusetts legislators are in the process of crafting a compromise bill for the statewide Life Sciences Initiative, one new issue to emerge would have the state taking an equity position in the life sciences companies in which the state provides financial support.

With just about two weeks left to apply for the 2008 Excellence in TBED Awards, applications are already coming in, and while there is no prize for early birds, we’ll gladly accept your entry at any time. No need to worry though; there is no penalty for procrastinators, other than the risk of a too hastily prepared proposal.   New to this year’s application brochure is a one-page set of application guidelines that was developed from the suggestions submitted by judges on last year’s award committees. This resource serves as a useful tool when crafting your narrative. Be sure to check it out at http://www.ssti.org/awards.htm.   The deadline to apply is May 16, 2008.   To learn more about last year’s winners, please visit: http://www.ssti.org/Awards/07winners.htm

Excitement already is building for SSTI's 12th annual conference, Encouraging Regional Innovation, and we only published the "save the date" postcards last week! Past participants know SSTI's annual conference is the only event of the year to bring together so many thought leaders and practitioners from all aspects of TBED from every corner of the country and every type of organization, with such varied angles and perspectives on every issue. The Oct. 14-16 event at the Intercontinental Hotel in Cleveland promises to help professionally advance the tech-based economic development community through a series of fully interactive plenary sessions and discussion based breakouts. 

A complete description of this opportunity is available at http://www.ssti.org/posting.htm.

Ben Franklin Technology Partners of Southeastern Pennsylvania, a nonprofit economic development organization created to stimulate economic growth through technological innovation, is seeking a vice president to lead its Technology Commercialization group in the Physical Sciences. This position will be responsible for developing strategic and operational plans and cultivating regional partnerships and initiatives with key personnel at universities, companies, government and private research institutions, and other key institutions. A Bachelor of Science degree in engineering or science related to the physical sciences is required. Candidates also should have at least 10 years of private sector experience in a related field.

To paraphrase an old automobile ad campaign, the SBIR program reauthorized for two years by the U.S. House of Representatives on Wednesday is not your father’s SBIR program as it was created and sustained for the past 25 years. Nor would it be the same, smaller STTR program if the bill becomes law.   H.R. 5819 means bigger awards, but fewer awards. It means more flexibility as to when research projects can enter the SBIR/STTR process. It clarifies and expands eligibility to include companies owned by venture capital firms. It opens up significant subcontracting opportunities. It has, for the first time, requirements to give preferences in SBIR/STTR awards to companies based on geographic and demographic considerations.  

With the goal of helping frame innovation policy for the next Administration, the Brookings Institution and the Information Technology and Innovation Foundation (ITIF) released two reports today calling on the federal government to respond to America’s slipping leadership in commercial innovation. Together, the reports argue that without fundamentally new and different federal interventions, the U.S. lead in innovation will continue to shrink.   In Boosting Productivity, Innovation, and Growth through a National Innovation Foundation, Brookings and ITIF researchers recommend that the federal government reorganize and augment its diffuse current activities by establishing a National Innovation Foundation (NIF) – a lean, nimble and collaborative organization designed to work with businesses and other organizations in support of their innovation activities. Optimally, the report suggests NIF would have an annual appropriation of $1 billion to $2 billion annually.   NIF is proposed to engage in the following activities:

Lawmakers in Georgia and Maryland approved action earlier this month on several TBED-related measures for the upcoming fiscal year. Highlights of the approved budgets are outlined below.   Georgia Lawmakers committed $2.5 million, half of Gov. Sonny Perdue’s recommendation, to create the Georgia Research Alliance venture capital initiative to speed commercialization of university derived technologies to the marketplace. Earlier this year, Gov. Perdue asked legislators to provide $5 million to the Advanced Technology Development Center (ATDC) in FY09 that would be matched with $5 million in existing funds and pooled with $30 million in private funds (see the Jan. 30, 2008 issue of the Digest).   Lawmakers reduced by half funding for the Georgia Youth Science and Technology program, which aims to increase interest and enthusiasm in science and technology among elementary and middle school teachers and students. The program is slated to receive $250,000 in FY09.  

Last year, Congress authorized $5.9 billion in new spending on research, education and entrepreneurship as part of the Bush Administration’s decade-long $50 billion American Competitiveness Initiative (ACI). Though Congress did not appropriate a significant amount of new funding to match this authorization, many remain committed to the goals of the ACI. This initiative would double federal funding over 10 years for research within agencies such as the National Science Foundation (NSF), the Department of Energy (DOE) Office of Science and the National Institute of Standards and Technology. A recent study, however, finds the speed proposed for reaching these goals, while well-intentioned, may be a mistake.  

The end of the space shuttle program in 2010 has many state and local governments uncertain about the future of the aerospace industry. A recent NASA report estimated that as many as 10,000 contractor jobs could be lost at spaceflight centers across the country by the time the program ceases operation. Florida's John F. Kennedy Space Center would be the hardest hit, with as many as 80 percent of its current workforce lost in the next 2-3 years. To prepare for that loss, the state has begun a campaign to reorient its aerospace industry by supporting companies focused on the next generation of spaceflight technologies. This will include leveraging Florida's significant presence in life sciences research to support the development of technologies that will be particularly vital with the rise of private, manned space launches and space tourism.  

A strong research base, a climate where entrepreneurs can thrive, access to risk capital, and a network of partner organizations have long been considered by policymakers and practitioners the formula for success and sustainability in technology-based economy. The Tennessee Technology Development Corporation (TTDC) unveiled its new strategic plan last week, leveraging these resources to build the state’s economic development portfolio by strengthening the science and technology sectors.   The new plan is TTDC’s solution to creating and implementing an innovation-based competitiveness agenda with a statewide scope – a task handed down by the Tennessee Department of Economic and Community Development this year with a $5 million investment.   The strategic plan calls for the creation of four new boards, each comprised of members of the TTDC board of directors and individuals recognized as experts in scientific research, entrepreneurship, and capital formation in rural and urban communities. They include: