SSTI Digest

Responding to a statewide economic downturn, Gov. Ted Strickland announced two major TBED initiatives, injecting more than $1 billion into job creation and offering a free year of tuition at Ohio public universities for high school seniors.   During his State of the State Address last week, Gov. Strickland outlined his Building Ohio Jobs proposal, a $1.7 billion stimulus package focusing on the creation of high-quality jobs in the fields of renewable energy and biomedicine. The plan would be financed through bonds, which requires legislative approval. Gov. Strickland asked lawmakers to put the initiative on the ballot for a fall vote, and if approved, funds would be allocated starting next year across the following sectors: $250 million in the advanced and renewable energy economy, including solar, wind and clean coal;

Gov. Jennifer Granholm unveiled her fiscal year 2009 budget last week, proposing to refinance a portion of the state’s general obligation and taxable tobacco bonds and reduce spending across nearly all state departments in order to finance new proposals without raising taxes.   In addition to the proposed use of $150 million in pension funds for Invest Michigan! (see related article in this issue), Gov. Granholm outlined several other TBED-focused during her State of the State Address (see the Jan. 30, 2008 issue of the Digest). One of those initiatives – the Michigan Job Creation Incentive – would be paid for by capitalizing on the sale of state bonds. Under the proposal, new businesses in the top 50 growing sectors are not required to pay any taxes the first year of the tax cut, and existing top 50 growth-sector businesses will get a triple tax credit on their Michigan Business tax.   To support the alternative energy industry throughout the state, Gov. Granholm recommends:

The fifth installment of the Tech Talkin’ Gov’s series includes highlights from State of the State Addresses delivered in Alabama, Connecticut, Minnesota and Wyoming.   Alabama Gov. Bob Riley, State of the State Address, Feb. 6, 2008 “We can and must accelerate the growth of broadband service, especially to the rural areas of our state. And so tonight I am announcing the Alabama Internet Initiative with a goal of ensuring that every home and every business in our state has high-speed Internet access and will have it within the next four years.”   Connecticut Gov. Jodi Rell, State of the State Address, Feb. 6, 2008

One of the continuing challenges for TBED organizations is successfully documenting how their investments and activities influence the economic landscape of their states and regions. SSTI has selected a few recent state reports as examples of impact assessment, each identifying and utilizing certain measurements to help them tell their story. Their approaches may be of interest to other TBED organizations looking to gauge and share their impact with others.

State venture capital programs are an integral part of many state’s technology-based economic development portfolio. These programs can strategically target state investments towards promising high-tech companies at the critical early stages of business development and in areas where private capital is scarce. Venture programs, however, are not always easy to implement. By definition, they require a large fund of investment capital and sufficient manpower to assist and monitor their portfolio companies. Facing these difficulties, some states have turned to other methods of making state investment capital available to entrepreneurs.   

Included within the NSF’s National Patterns of R&D Resources series is data detailing the amount of each state’s total R&D expenditures and gross state product (GSP). Total R&D is calculated by combining a state’s R&D expenditures from federal sources, colleges and universities, federally funded research and development centers, industry and other nonprofit institutions.   SSTI has prepared a table showing the total R&D expenditures divided by the GSP, the percentage of which is often called the R&D intensity, for each state and the District of Columbia from 2000 to 2004. Additionally, the chart illustrates the rank of each state’s 2004 R&D intensity, the percent change of R&D intensity over the five-year period, and the ranking of this percent change.   Leading the pack in 2004 was New Mexico, whose R&D intensity was 8.04 percent. This was followed by Maryland (6.22 percent), Massachusetts (5.11 percent), Michigan (4.56 percent) and Rhode Island (4.4 percent). For the U.S. as a whole, the percentage was 2.56 in 2004.

It only seems natural that SSTI celebrate the premiere professional development event for the nation's tech-based economic development community in 2009 in a state that, for 20 years, has pioneered innovative approaches to transform regional economies -­ Kansas. SSTI's 13th annual conference and pre-conference workshops will be held at the Sheraton Overland Park Hotel on Oct. 20-22, 2009. Overland Park provides the perfect backdrop for SSTI's 13th annual conference for many reasons. Kansas has a vibrant technology and bioscience community that boasts innovative programs, such as KTEC, KTEC PIPELEINE, Kansas Bioscience Authority, and Heartland BioVentures. KTEC is in the midst of celebrating 20 years as the state’s leading technology economic development organization and has positive relationships with both the state’s universities and private sector. KTEC brings $13 million in technology entrepreneurship to the region, in addition to the $40 million in funding from the Kansas Bioscience Authority.

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm. South Dakota State University is creating a new office of technology transfer and is hiring a director to lead this new office. Some of the responsibilities for this position include working with inventors to file invention disclosures and to determine commercial potential; marketing intellectual property and managing the intellectual property protection process; developing training programs; ensuring compliance with policies and procedures relative to technology transfer and commercialization; and drafting and reviewing agreements to advance research opportunities. An MBA, MS, MA or PSM degree in an appropriate field is required.

Analysts Say Request Going NowhereThe last budget request of a lame duck administration rarely musters much attention from Congress as its focus is turned toward the next administration and, for entire the House of Representatives, its own re-election. Not one of the previous seven budgets of the Bush years has been passed on time, so no one in Washington expects this one to be the exception. Nevertheless, the fiscal year 2009 request provides the Bush Administration one final opportunity to outline how it would like to see the federal government spend its money. As in every previous budget request from the Bush White House, that doesn’t include much for economic development programs. “Highlights” for economic development programs include:

Four years ago, President Bush launched a nationwide initiative to increase the availability of affordable, high-speed Internet access. The Administration's Broadband Initiative, which included efforts to expand the wireless spectrum available for commercial use and new funding to support broadband research, sought to eliminate the gaps in service that existed in many areas of the country and to improve U.S. competitiveness through its broadband infrastructure. Networked Nation: Broadband in America 2007, a new report from the U.S. Department of Commerce's National Telecommunication and Information Administration (NTIA), states this initiative has "to a very great degree" accomplished this mission.   External groups tracking broadband policy and use disagree with that conclusion.  

Gov. Charlie Crist outlined several new alternative and renewable energy initiatives aimed at diversifying the state’s economy and creating high-wage jobs in his fiscal year 2008-09 budget recommendation. Many of the new proposals would be financed by tapping into the state’s budget reserves and relying on casino and lottery revenues.   The governor’s proposal invests $200 million in energy-related research and commercialization projects, along with rebates and tax credits for consumers, that build on the policy framework of the Serve to Preserve Climate Change Summit held last summer. Funding is directed to implement new research priorities for the state, including:

Gov. Brad Henry unveiled the details of his fiscal year 2009 budget recommendation earlier this week, providing a substantial increase in funding to the state’s lead TBED agency and proposing a permanent funding mechanism for cutting-edge research through the EDGE Endowment.   Citing a sizable return on investment from the Oklahoma Center for the Advancement of Science and Technology (OCAST), the governor is recommending $34.5 million for FY09 – a 54 percent increase over last year’s appropriation. OCAST is slated to receive $6 million to replace one-time funding for the Bioenergy Center – established in 2007 – and $5 million to replace seed capital funds that were diverted last year for the center (see the June 6, 2007 issue of the Digest). An additional $4 million from OCAST seed funds appropriated last year would be allocated to the Bioenergy Center in FY09 for a total of $10 million. Gov. Henry also recommends $1 million to enhance existing OCAST programs.