SSTI Digest

A long-delayed equity capital program in Montana is on its way to becoming a reality. Montana, which received no venture capital investment in 2006 according to the PricewaterhouseCoopers Moneytree survey, has struggled to attract the interest of venture capital firms. The Montana Equity Capital Investment Act, sponsored by State Sen. Jeff Mangan and signed by Gov. Brian Schweitzer in 2005, was intended to make the state more attractive to outside investors, but never seemed to get off the ground.   As reported in the April 18, 2005 issue of the SSTI Weekly Digest, Senate Bill 133 called for the creation of a $60 million Montana Equity Fund to attract out-of-state investment and increase in-state venture activity. A governor-appointed board was to contract with an outside investor group to capitalize and manage the Equity Fund and a subfund targeted toward investments in strategic industries. The $60 million would be issued in tax credits to investors to offset any shortfalls in scheduled returns on their investments.  

Policymakers and practitioners continually seek new ideas to integrate into their overall TBED strategies in order to capitalize on innovative approaches and remain a competitive force in the global marketplace. Over the last few months, two new concepts in TBED aimed at supporting higher education have surfaced in New York and Wisconsin with two distinct goals: achieving the status of a world-renowned research capital and increasing college graduates to raise per capita income.   NY Considers $3B for Research, Star Faculty, Education Zones In New York, Gov. Eliot Spitzer will consider a multi-billion investment in the State University of New York (SUNY) and the City University of New York (CUNY) intended to boost the state’s higher education system and enhance university research centers.  

Earlier this year, the Organization for Economic Co-operation and Development (OECD) reported that the U.S. had fallen from fourth to 15th in broadband penetration among OECD countries (see the June 13, 2007 issue). This report came as little surprise to states that have been struggling to extend and improve high-speed Internet service, particularly in rural areas. Recognizing the need to accelerate the expansion of broadband networks, both the Federal Communications Commission and the U.S. Senate are now considering actions that would help assess broadband deficiencies and build these networks with the assistance of the states.  

By creating Ontario’s Regional Innovation Networks (ORIN) three years ago, the provincial government experimented with how to establish customized systems-specific, but network-integrated approaches to strengthening and supporting regional innovation. The early successes of the 12 Regional Innovation Networks (RIN) scattered across the vast province are described in a November report, The Critical Role of Regional Innovation Networks in Ontario’s Economy, and the result of the $13 million initiative of the Ontario Minstry of Economic Development is a potential model for other states and provinces to consider. A longer explanation is required, however, to substantiate that conclusion.   First is to identify the problem of plenty. One now can walk into nearly every major city in the U.S. or Canada and find a vast collection of organizations, programs and tools designed to support employment growth and business competitiveness.  

In the quest for a region to become more innovative or attain higher levels of degree attainment, expanding the size of existing education institutions or increasing the number of community colleges and universities seems to be a somewhat practical strategy. But how long after these institutions are created or expanded do they produce a measurable impact on a region’s innovation environment?  

Patent activity is a commonly used indicator of a state or region’s innovation capacity. SSTI has prepared a table illustrating the number of patents issued from the U.S. Patent and Trademark Office (USPTO) per 100,000 employees for every state and the District of Columbia for each of the five years from 2002 to 2006. Additionally, the percent change in patents per employee over the five-year period was calculated. For the U.S. as a whole, including Puerto Rico and Guam, the per-employee number of patents rose 0.89 percent, from 75.7 patents per 100,000 workers in 2002 to 76.4 patents per worker in 2006. The location of origin for each patent was determined by identifying the residence of the first-named inventor on the patent. In 2006, Idaho led the nation with 266.8 patents per 100,000 workers employed in the state. This was followed by California (161.5), Vermont (160.3), Oregon (149.2), and Massachusetts (136.7). The District of Columbia had the lowest number (10.3 patents), along with Mississippi, Alaska, West Virginia and Arkansas.

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm. The U.S. Civilian Research & Development Foundation, a nonprofit organization that promotes international scientific and technical collaboration, is seeking a program manager for its Partner Development Program. The ideal candidate for this position is a highly motivated individual with a background in business development, marketing or international business who can network with U.S. industry and pursue new U.S. and Russian partner development opportunities. A bachelor's degree or equivalent work experience is required; a master's degree is preferred. Candidates also must have 2-4 years of prior work experience managing projects, with specific expertise in one or more of three fields: business development, marketing or international business.

Jeffrey Boyce was named the assistant vice president of the Research Foundation of the State University of New York. Boyce had been the deputy commissioner for manufacturing services at Empire State Development. Steve Crawford has joined the Brookings Institution; he was with the National Governors Association most recently. The Southeastern Universities Research Association (SURA) selected Marc Oettinger as its new technology commercialization manager.

Jeffrey Boyce was named the assistant vice president of the Research Foundation of the State University of New York. Boyce had been the deputy commissioner for manufacturing services at Empire State Development.

Steve Crawford has joined the Brookings Institution; he was with the National Governors Association most recently.

The Southeastern Universities Research Association (SURA) selected Marc Oettinger as its new technology commercialization manager.

RiverVest Venture Partners, a life science venture capital firm headquartered in St. Louis, announced it will be opening an office at the BioEnterprise facility in Cleveland. The office will be managed by Karen Spilizewski, who is joining RiverVest on a part-time basis as a vice president on Jan. 1.