SSTI Digest

Colin Scanes is the new vice chancellor for research and economic development at the University of Wisconsin-Milwaukee. Scanes formerly was the chief economic development strategist at Mississippi State University.

John Weete, president and executive director of the West Virginia University Research Corp., was named executive director of the Auburn Research and Technology Foundation. Weete starts his new position Sept. 1.

Oregon lawmakers haveagreed to fund nearly all of Gov. Ted Kulongoski’s innovation proposals, including investments in seven new industry initiatives and the creation of two new signature research centers. The innovation plan passed by lawmakers falls $10 million short of the original $38 million proposal introduced by the Oregon Innovation Council and included in Gov. Kulongoski’s fiscal year 2007-09 budget released in December 2006 (see the Dec. 18, 2006 issue of the Digest).   Gov. Kulongoski signed four bills encompassing the initiative, Senate Bills 5508, 579 and 582 and House Bill 5035. SB 5508 includes $9 million over the biennium for Oregon’s first signature research center, the Oregon Nanoscience and Microtechnologies Institute (ONAMI) - $1 million less than the governor’s recommendation - and $2.5 million for a new signature research center, the Bio-Economy and Sustainable Technologies (BEST) Center. Research conducted by the BEST Center will focus on clean energy, bio-based products and green building.   Additionally, SB 5508 includes $2.9 million to support manufacturing competitiveness, such as advanced training…

After running on a month-long stopgap budget, North Carolina lawmakers reached a $20.7 billion budget agreement for fiscal year 2007-08 earlier this week that includes funding for major research initiatives, public and higher education, and TBED-related items.   Under the budget agreement signed Tuesday by Gov. Mike Easley, University of North Carolina (UNC)-Chapel Hill is slated to receive $25 million this year, $40 million next year and a recurring $50 million in future years to expand cancer research. Funding for the initiative comes from a 10 percent increase on tobacco products other than cigarettes, $21.2 million in general fund revenue over the biennium, and $8 million from the Tobacco Trust Fund each year.   In keeping with a legislative mandated study enacted last year, the budget appropriates $5 million to establish the North Carolina Biofuels Center. The action plan, Fueling North Carolina’s Future: North Carolina’s Strategic Plan for Biofuels Leadership, outlines nine strategies for the coming decade to strengthen the state’s future in biofuels development and use.   The budget…

A majority of angel investment groups report that the quality and quantity of their deal flow increased last year, according to a recent national survey of angel investors. Roughly 54 percent reported an increase in activity in 2006, and almost 58 percent expect even more investments and higher quality deals throughout 2007.   The Angel Group Confidence Report, conducted by the Angel Capital Association, is a first-of-its-kind overview of the U.S. angel market. The list of respondents includes angel investment groups of all stripes, from Southern California’s 300-member TechCoast Angels to groups with fewer than 10 accredited investors. The average group invested $1.78 million last year (with a median of $1.06 million). Groups invested an average of $240,000 per round.   Much of this newfound optimism appears to be tied to growth within high-tech industries. Almost 60 percent of respondents reported investments in software, biotechnology and medical devices in 2006. Over 75 percent of angel groups expressed an interest in investing in medical devices or software.   The vast majority of these…

The venture capital industry appears to have rebounded from the post-tech bust slump, according to Ernst & Young’s latest Global Venture Insights Report. In the past year, venture investment has climbed to its highest point since 2001. Much of this growth has taken place in emerging markets like India, Russia and particularly China, where the venture industry is a relatively recent phenomenon. After three years of consecutive growth, China has outpaced the United Kingdom, Israel and Canada to assume the rank of second most active target market for venture investment. The report observes that this rapid growth has finally allowed China to make the leap from a promising new market to an important player in the industry.   Around the world, almost 20 percent of all venture deals took place across national boundaries. Ernst and Young notes that this is an increase of 250 percent over the preceding five-year period. They observe that this trend has been accelerated by the practice of “venture licensing," the replication of proven business models in new markets. Though the U.S., Europe and Israel remain key in the industry, practices like this are…

With the goal of improving the competitiveness of their workforces, many states and regions are searching for the best policies to encourage participation in educational opportunities beyond high school. Dual enrollment plans are one type of such policies that enable students to enroll in postsecondary level courses while still in high school.   According to a recently released study that examines Ohio’s dual enrollment plan, 47 states have enacted policies related to dual enrollment as of August 2006. A joint publication by the KnowledgeWorks Foundation and the Western Interstate Commission for Higher Education (WICHE), The Promise of Dual Enrollment: Assessing Ohio’s Early College Access Policy is the first report that collects and analyzes available data on the state’s program since its inception 18 years ago. The report provides insight into the participation rates, accessibility, levels of success, and costs of the policy to the state.   Initially, the Ohio Post Secondary Enrollment Options (PSEO) Policy was intended to allow high school juniors and seniors the opportunity to enroll in college courses and receive…

The Maryland Technology Development Corporation has awarded more than $500,000 to seven start-up technology companies. The program, TEDCO’s Maryland Technology Transfer Fund (MTTF), is designed to help businesses transfer technology from Maryland universities and federal laboratories into the marketplace. The grants range between $70,000 and $75,000.   TEDCO reports that MTTF has provided funding to 71 companies. With a total investment of $4,078,793, these companies have gone on to receive downstream funding from angel and venture investors, federal awards and other resources exceeding $152.4 million.   You can learn firsthand about this program and other TEDCO initiatives underway at SSTI’s 11th Annual Conference, Transforming Regional Economies, Oct. 18-19, 2007. Register and learn more about the conference at http://www.ssticonference.org/conference07.htm.

Like many states, Wisconsin has struggled to attract consistent attention from the national venture capital industry. Capital can be especially difficult to obtain in the state, since entrepreneurs with limited resources are often unable to participate in the expensive and complicated process of presenting their cases to venture capital firms based on the coasts. To address this market failure, Wisconsin has established several programs to encourage the formation of local venture and angel capital groups and incentives for in-state equity investment. A recent report from NorthStar Economics, in cooperation with the Wisconsin Technology Council and the Wisconsin Angel Network, suggests that these equity programs are working well. In 2006, early-stage risk capital activity reached $102.9 million, a 54 percent increase over the previous year. This early-stage activity includes investments by angel networks, individual angels, informal angel groups and early-stage fund investments. To put that in perspective, the Center for Venture Research at the University of New Hampshire reports that angel investing in the U.S. increased only 11 percent last year…

With the rapidly rising cost of health insurance, entrepreneurs frequently find themselves unable to pay their premium in the early stages of business ownership. Often, this means going without health insurance or abandoning plans to launch a new firm. The North Central Iowa Alliance (NCIA) has announced a new initiative to lower this barrier facing new business owners. The Helping Entrepreneurs Launch Program at North Central Iowa (HELP @ NCI) will make health insurance available to qualified entrepreneurs in the region during the first three years of their business' existence.   The program will be launched in partnership with the North Iowa Area Community College John Pappajohn Entrepreneurial Center, which will offer a regional feeder system for HELP @ NCI along with its other services for entrepreneurs. Though the program is offered at no cost to participants, business owners will be made aware of the expenses so that they can incorporate health insurance into the business planning.   HELP @ NCI will be funded through a $50,000 grant from the Iowa Department of Economic Development and through $15,000 in matching…

Innovation and technology, two key components of NGA Chair Arizona Gov. Janet Napolitano's Innovation America initiative, were the subject of much discussion during the National Governors Association's (NGA) recently concluded annual meeting. The two components are given even more attention in three new reports released by NGA during the meeting. With the reports' release, NGA has completed its series of publications - seven in all - that were produced as part of Innovation America, an initiative that places science, technology, engineering and mathematics education at its center. The first publication, A Compact for Postsecondary Education, focuses on how states can better align postsecondary education with their economic needs. Investing in Innovation, the second publication, provides a snapshot of state investment in R&D and offers guidance on how to design successful R&D investments. The final publication, titled Innovation America: A Final Report, summarizes lessons learned over the course of Gov. Napolitano's initiative, paying special attention to the role of governors in establishing best practices. Investing…

Business incubators, known for the business support services they provide entrepreneurs, have shown themselves through the years to be a valuable resource in the process of starting and growing companies. Office and laboratory space provided at a reduced cost to tenants is just one of the benefits. Many incubators also offer access to university research, mentoring and seed and venture capital in order to encourage entrepreneurship and ensure the success of new high-technology start-up companies. According to a recent study by the National Business Incubation Association (NBIA), the business incubation industry has grown steadily in recent years, with the number of incubation programs in North America nearly doubling between 1998 and 2006. The study indicates 1,100 business incubation programs were operating in North America in early 2006 - up from 587 in 1998 and 950 in 2001 - and more than half (54 percent) of these programs were mixed-use incubators that accepted a variety of clients. Another 39 percent focused on assisting technology companies. Based on extrapolations from survey data, NBIA estimates that in 2005 alone, North American incubators…