SSTI Digest

The fourth installment to Walkin' the Tech Talkin' Gov Walk (see the April 17 , May 8 and June 5 issues of the Digest) covers the outcomes of the 2006 legislative sessions within Colorado, Iowa, Minnesota and Vermont. Following is a synopsis of bills passed and budget appropriations relevant to tech-based economic development and the priorities outlined in respective gubernatorial addresses at the beginning of 2006.



Colorado

Gov. Bill Owens signed into law a $26.5 million economic development package, which includes investments in bioscience and job creation. While the bulk of the funds are slated for increasing tourism ($19 million), two of the bills include funds aimed at increasing science and technology research and creating better jobs in the state.

Does increasing a university or community college's involvement in tech-based economic development - through technology incubators or early-stage capital programs - detract from the nonprofit, educational purpose of the institution? Fortunately, for many state and regional TBED strategies, the Internal Revenue Service (IRS) says no. The IRS recently released a ruling affirming the nonprofit status of a college foundation planning to unveil a new high-tech incubator and pre-seed capital fund. The potential benefit of this investment to the college protects the organization's 501(c)(3) status, and the deductibility of its outside contributions, the ruling states.

Promoting the policies and harnessing the habits that will make innovation central to a Southern way of life requires a fundamental shift in the approach to knowledge itself, says the latest report by the Southern Growth Policies Board.



The report, Innovation with a Southern Accent: The 2006 Report on the Future of the South, offers recommendations for 13 states and Puerto Rico to transition the region into a more knowledgeable, innovative and prosperous South.



In preparing the report, Southern Growth hosted retreats, community forums, policy dialogues and surveys involving about 4,000 southern residents. In a section titled, "Listening to the South", the report provides details on the concerns voiced by participants regarding technology and innovation. According to the report, six major themes emerged from the discussions, including:

[Editor's Note: SSTI is excited to welcome Phillip Battle to its staff as a policy analyst. The author of this article, Phil recently received his Master in Public Affairs degree from the LBJ School at the University of Texas at Austin. His area of research interest is technology policy and economic development.]



A forthcoming article from Regional Studies suggests that despite the rise of the Internet as a global medium for the distribution of knowledge, location still matters within the innovation community. Proximity and industry networks speed the transmission of new technologies, which in turn accelerates regional growth.

The U.S. Bureau of Economic Analysis (BEA) recently released advanced real gross state product (GSP) estimates for 2005. According to the data, real GSP grew in all 50 states and the District of Columbia from 2001-2005. Western states dominated the lead in U.S. economic growth, with Nevada incurring the largest increase in real GSP growing from $75.1 billion in 2001 to $96.6 billion in 2005 -- a 28.56 percent change. Along with Nevada, four other states experienced an increase of more than 20 percent in real GSP over the five years: Oregon, Idaho, Florida and Arizona.

 

Nationally, real U.S. GSP grew by 12.19 percent over the most recent five years, up 2.23 percent from the period 2000-2004. Twenty-four states experienced real GSP growth less than the national average, including Louisiana with the lowest in the nation at 4.74 percent, followed by Michigan (4.83 percent), Connecticut (7.36 percent), Illinois (7.43 percent), and Ohio (7.98 percent). The minimal increase in real GSP for Louisiana was directly related to the effects of Hurricanes Katrina and Rita, according to the BEA.

Stuart Arnett announced he will step down as the director of economic development in the New Hampshire Department of Economic Development and Resources, effective Aug. 1, to pursue work in private sector.



Connecticut Innovations has named Kevin Crowley as its director of investments.



The South Dakota Board of Regents announced that Scott Meyer will become system vice president of research, effective June 26.



Jeff Nesbit was appointed director of the National Science Foundation's Office of Legislative and Public Affairs.