SSTI Digest

The secret is out – and it’s fairly simple. All you need is an outstanding TBED initiative with proven success that stands out among the crowd.   SSTI often receives news and updates on programs that are improving our nation’s competitiveness through science, technology and innovation. Now, we are calling upon the TBED community to share these success stories – and we’ll reward you for your efforts. All you have to do is put it in writing, and we promise it will be well worth your time. As an award winner, you will: Receive accolades and honors on SSTI's website and in the SSTI Weekly Digest; Bask in the glory of being a featured presenter during SSTI’s annual conference in Cleveland, Oct. 15-16, 2008; and, Take home an elegant vase embossed with your organization’s name – more a work of art than a trophy!

Send us your story by May 16!

The Beaver County (Pa.) CO-OP announced it will change its name to StartingGate. The incubator will continue to assist entrepreneurs and new business start-ups and help expand existing businesses.

Joe Dedman was chosen as the first executive director of the Southeast Indiana WIRED.

Brian DuBoff was named the director of Maryland's southern region Small Business Development Center, which is hosted by the College of Southern Maryland.

Barbara Goodman has joined the Illinois Biotechnology Industry Organization as its executive director.

Mark Long has stepped down as the CEO of the Indiana University Research and Technology Corp.

Last week, SSTI reported the draft SBIR Reauthorization bill circulated by the House Small Business Committee in mid-March included language that would reauthorize the Federal & State Technology Partnership (FAST) for two years at its current $10 million level. FAST was created with the 2000 SBIR reauthorization and received appropriations through the Small Business Administration (SBA) for three of the next four years.   In its first iteration between 2000-2004, FAST received mixed reviews. It could be made better through the present reauthorization process. Before that, however, an important and often overlooked point must be made: there is little to no criticism with the underlying concept or mission of FAST to provide financial support to state and local efforts to promote the federal SBIR program and improve the quality of small business participation in SBIR across the country.  

On March 25, U.S. Department of Agriculture (USDA) Rural Development Under Secretary Thomas Dorr announced that Open Range Communications, headquartered in Denver, Colo., will receive a $267 million loan from USDA Rural Development to provide broadband service to 518 rural communities in 17 states. The commitment represents one of the largest public-private investments for broadband service by the federal government, the USDA reports. It is also the first USDA Rural Development investment to support Wi-Max technology.   The Open Range project is intended to cover more than six million people and serve more than 447,000 households within five years. In addition, the services are expected to help create jobs and business opportunities in the project's 17 states, including: Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Nebraska, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina and Wisconsin.  

Adjourning from the 2008 legislative session on March 13, Virginia legislators passed the fiscal year 2008-10 biennial budget but immediately called for a special session to resolve differences in the proposed capital outlay plan that supports university R&D and commercialization efforts.    Gov. Tim Kaine unveiled the bond package in December, which includes funding to upgrade university research buildings and laboratories and purchase new research equipment. The bond package also targets construction projects focused on developing a skilled workforce (see the Dec. 19, 2007 issue of the Digest). Lawmakers will reconvene April 23 to act on the bond package and to consider the governor’s amendments and vetoes to the state budget.   Faced with a projected budget shortfall of $339 million for the remaining fiscal year and more than $1 billion in FY09-10, Gov. Kaine announced last month a revised budget revenue proposal to his original recommendations unveiled late last year.  

Idaho’s entrepreneurial support centers managed to survive the legislative session with half of their annual appropriation intact in the fiscal year 2009 state budget, despite being zeroed out in Gov. Butch Otter’s budget recommendation earlier this year.   Lawmakers allocated $150,000 for the TechConnect Centers within the Department of Commerce – down $150,000 from the previous two years. The legislation requires TechConnect to report to the Joint Finance Appropriations Committee at the interim spring meeting on all activity dating back to FY06, including detailed information on all interactions with businesses, the amount of time and money invested, and the outcome of the investments.   The Department of Commerce will receive $33.9 million, down from the estimated $54.9 million in FY08 expenditures. This includes $600,000 for the Business and Jobs Development Fund, $100,000 for the Rural Initiative Program and $100,000 for Small Business Assistance Grants. No funding was included for the Entrepreneurial Fund.  

Three of the major thrusts for the research investments of many states –  hydrogen energy technologies, nanomanufacturing, and intelligent and integrated manufacturing – are the focus of a new report by a federal Interagency Working Group on Manufacturing R&D. Manufacturing the Future: Federal Priorities for Manufacturing R&D describes the significance of each of the three critical manufacturing R&D areas, details the challenges essential for progress, discusses existing interagency collaborations and provides recommendations for future research.   The report provides academic and state policymakers the opportunity to compare how well their research investments in the critical sectors match the needs identified by the federal agencies. As the Interagency Working Group was comprised of 15 departments, agencies and organizations in the federal government, future federal research funding opportunities could be influenced by the report. The group worked under the auspices of the National Science and Technology Council’s Committee on Technology.  

By now, you've probably seen many of the articles covering the record number of earmarks academic institutions secured in the federal FY 2008 budget. The Chronicle of Higher Education identified more than 2,300 individual projects distributed across 920 institutions - mostly for research. The figure is 25 percent higher than the previous record and totals at least $2.25 billion. The wealth, though, is also more distributed this year than previously. The Chronicle released a table of the top 843 institutions at: http://chronicle.com/free/v54/i29/4529nonshared_earmarks.htm

As a service to the public, the esteemed publication has made available a free searchable database of all of the earmarks it identified. Records, searchable by state and agency, include the institution's name, the federal agency involved, the specific dollar amount of the noncompetitive award, a description of the project, and the congressional sponsors.

The database is available at http://chronicle.com/stats/pork/.

Every year, the Association of University Technology Managers (AUTM) releases its U.S. Licensing Activity Survey. The most recent version provides information on fiscal year 2006 (see the Dec. 5, 2007 issue of the Digest) and contains data for 189 universities, hospitals and research institutions. SSTI has prepared a table sorting the survey respondents by state and aggregating a number of key metrics such as the number of full-time employees in licensing staffs; research expenditures; number of patents or options executed; cumulative active licenses; startup companies; U.S. patents issued; new patent applications; and, licensing income.   Eight of this year's survey respondents were not identified by name, so SSTI was not able to align the data for these institutions with their respective states. As a result, while the table illustrates the relative amount of licensing activity in each state, it may not reflect the exact totals as self-reported by the responding institutions.  

A brief two-year reauthorization, bigger award sizes, VC eligibility clarification, and a $10 million grant program for state/local outreach assistance are included in the draft SBIR reauthorization bill circulated by the House Committee on Small Business Chairwoman Nydia Velazquez during the third hearing on the topic, held March 13.   The SBIR program will sunset Sept. 30, 2008, if reauthorization legislation is not passed by Congress and signed by the president before then.   Bigger Awards, Fewer Winners The draft legislation doubles the award sizes for both Phase I and Phase II, authorizing awards of $200,000 for Phase I and $1.5 million for Phase II. In addition, the committee draft authorizes agencies to award “sequential Phase II awards” for testing and evaluation of promising technologies. The award sizes have not been increased since 1992, although some agencies have exceeded the current limits, as needed, for particular projects.  

Witnessing the success experienced by its neighbor, West Virginia is creating a university R&D matching endowment program similar to Kentucky’s. The legislature approved $50 million for Gov. Joe Manchin’s “Bucks for Brains” initiative to be allocated from lottery surplus funds (see the Jan. 16, 2008 issue of the Digest). The West Virginia Research Trust Fund will receive $50 million to match research endowments at the state’s two research universities, West Virginia University (WVU) and Marshall University. Another $30 million will fund the “Training Bucks” program establishing two community-college affiliated training centers throughout the state.   Lawmakers appropriated more than $200 million in budget surplus funds during a special legislative session that adjourned Sunday, including $10 million for economic development loans and $7.1 million for expansion of allied health programs recommended by the governor.  

Aiming to resolve the state’s projected $935 million deficit in its current two-year budget, Gov. Tim Pawlenty introduced a plan that closes Minnesota's budget gap and invests additional funding in rural entrepreneurship and teacher training initiatives for K-12 math and science educators.    Under the governor’s plan, state spending would be cut by $341 million and the state would tap into the budget reserve and surplus funds within the Health Care Access Fund for another $500 million.   The fiscal year 2008 supplemental budget recommends $12 million in FY09 for the Strategic Entrepreneurial Economic Development (SEED) initiative, focusing on rural areas of the state by facilitating business development through support of new and existing programs (see the Oct. 3, 2007 issue of the Digest). The following are among the governor’s recommendations for the SEED initiative: