SSTI Digest

Recent announcements of new and emerging technology incubators range from Google's selection of Cape Town, South Africa to launch a pilot incubator supporting technology entrepreneurs that it hopes to replicate globally to Alabama Gov. Robert Bentley's plan to create a statewide business incubator focusing on workforce training. Select announcements from across the globe are highlighted below.

Google will set up a new technology incubator called Umbono in Cape Town, South Africa, reports Memeburn. Startup companies selected for inclusion will receive six months of free office space and bandwidth, in addition to $25,000 to $50,000 in funding from a panel of angel investors and Google. The goal is to replicate the model in other parts of the globe. The name means "vision," "sight" or "idea" in Zulu, the article states.

Science Foundation Arizona (SFAz) has stimulated the state's job creation and increased the amount of additional funds leveraged, according to a report by Battelle. In 2010, SFAz-funded programs led to over 1,150 new jobs, 84 patents and 16 new companies. For every $1.00 awarded by SFAz, an additional $3.06 was matched by an outside source (e.g., federal grants, industry, and venture capital). SFAz's leveraging has increased progressively over the last three years. The report also looked at the state's position in technology development and found several positives including: higher than average salaries for technology workers; lower unemployment in these sectors; and, strong gains in university R&D expenditures. However, according to the report, SFAz and the state should focus on developing a talented workforce and increasing the state's digital infrastructure. In comparison to national averages and 12 other benchmark states averages — including Colorado, Utah and Washington — Arizona lags behind national and benchmark state averages in access to school technology and STEM education.

Facing massive government deficits and stagnant regional economies, many states are exploring new options for their economic development activities. Three states recently have taken steps towards eliminating their primary economic development agencies, and replacing them with public-private partnerships, intended to reduce state spending and improve the responsiveness of state efforts.

ArizonaLast week, Arizona Governor Jan Brewer signed off on a comprehensive economic competitiveness package. The centerpiece of the legislation is the elimination of the Arizona Department of Commerce, and the creation of a new Arizona Commerce Authority (ACA). Brewer says that the restructuring is needed to streamline the responsibilities that had been accumulated by the Commerce Department and to clarify the state's focus on creating new jobs. Many of the programs currently associated with the department may be permanently eliminated, including the state's energy efficiency and renewable energy deployment office, the Rural Economic Development Initiative (REDI) program, the Arizona Main Street program and many of the state's technology programs.

Arizona Gov. Jan Brewer will convene a special session to focus on job creation proposals centered on her effort to replace the state's Department of Commerce with the public-private partnership she established through executive order last year (see the July 14, 2010 issue of the Digest). Along with legislative approval of the Arizona Commerce Authority (ACA), the governor is calling for $25 million to launch the Arizona Competes Fund, providing tax incentives for businesses locating in the state.

TBED People Anne Barth has been named the executive director of TechConnect West Virginia.

Joann Rockwell MacMaster has been appointed site director for the Arizona Center for Innovation at the UA Tech Park.

Catherine Renault resigned from her position as director of the Maine Office of Innovation effective December 3.

Sandra Watson, COO of the Arizona Commerce Authority, received the Chairman's Award during the 2010 Governor's Celebration of Innovation awards. The award is given by the Arizona Technology Council and Arizona Commerce Authority.

Renée Winsky, CEO of the Tech Council of Maryland, received the Technology Advocacy Award at the Howard Technology Council's 2010 Annual Technology Awards dinner. The award is presented to an individual who has made a significant difference in the technology business community in Maryland.

Gov. Jan Brewer is directing $10 million in federal stimulus funds to Science Foundation Arizona (SFAz) to support research and education initiatives. The bulk of the money ($6.5 million) will go toward research initiatives and the remaining $3.5 million will be directed toward education programs. SFAz was created in 2006 as a public-private organization to strengthen the state's economy through investments in science and technology. Arizona's neighbor to the north, Utah, also directed a portion of federal stimulus funds to enhance its technology-based economy. In 2009, legislators approved $33 million in stimulus funds for the state-funded USTAR initiative (see the March 25, 2009 issue of the Digest).  Read SFA's press release ...

Specialized and high-tech incubators provide crucial services and resources to promote and enhance Commercialization & Entrepreneurship, one of the six thematic tracks of this year's annual conference. Three sessions tied to this theme will be explored during SSTI's annual conference, focusing on direct lessons from successful and proven TBED programs, regional innovation clustering, and more. They include: Distributed, Non-University Models for Commercializing New Technologies Technology Entrepreneurship: Direct Contact Required Sustaining Entrepreneur-in-Residence & Mentoring Programs

Announcements of new incubators designed to hatch ideas, speed commercialization of university-based inventions, and grow technology-focused companies across the nation are detailed below.

Via Executive Order, Arizona Gov. Jan Brewer established the Arizona Commerce Authority, a quasi-public authority, that eventually will replace the Arizona Department of Commerce. A 34-member board comprised mostly of C-level executives, chaired by the governor, will lead the transition from the old department to the new authority. Gov. Brewer earmarked $10 million in federal stimulus dollars to establish the authority.

Gov. Brewer utilized an Executive Order to create the authority after her plan was unable to obtain approval in the recent legislative session. Even with strong legislative support, the legislature adjourned in mid-May without bringing the bill to a vote. Some details, including the dissolution of the Arizona Department of Commerce, will need legislative approval when the legislature reconvenes in January. However, due to Arizona's poor economic climate, Gov. Brewer believed it was imperative to establish the authority before January.

Over the past few months, several states have announced efforts aimed at reducing the nation's dependence on oil. While the importance and urgency of such efforts is perhaps magnified in the wake of one of the worst U.S. environmental disasters, the shift to a renewable energy-focused economy also brings with it the expectation of job creation, new product development, and increased revenue for states struggling in the aftermath of the Great Recession.

Governors in Arizona and Rhode Island recently signed legislation supporting renewable energy R&D and offshore wind development, respectively. In California, a measure requiring electric utilities to generate one-third of the state's power from renewable sources is being floated, and in Utah, Gov. Gary Herbert announced a formal planning process to create a 10-year clean energy initiative for the state.

Gov. Jan Brewer last week signed a measure modifying Arizona's existing R&D tax credit legislation to allow for small businesses to collect discounted refunds on R&D tax credits already earned. The measure is hailed as an important tool for providing small, tech-based companies with access to capital. Read the Arizona Technology Council press release ...

Having the tools and resources to develop innovative concepts and products and move discoveries from the lab to the marketplace is an essential component for building tech-based economies. Research parks, a place where innovative ideas are borne, partnerships between university and industry are created, and companies grow and create new jobs, provide a foundation for the kind of economic growth necessary to compete in a global economy. Over the past few months, development plans and groundbreaking announcements from research parks across the nation have been made.

Construction on the first building of Innovation Park, a Missouri University of Science & Technology Research Park, began in March on what used to be a 60-acre golf course. When completed, the building will provide 18,500 sq. ft. of office suites and shared office space for tenants. The concept for a research park on the Missouri S&T campus has been a topic of discussion for more than 10 years, according to the university. Innovation Park is slated to open in October 2010.

In response to dwindling state funding and concerns related to leadership, focus and productivity in the state's current economic development model, Arizona Gov. Jan Brewer announced the creation of a new quasi-public state agency to focus on targeted industries such as solar, science, technology, aerospace, and defense to help the state grow jobs and remain globally competitive. The Arizona Commerce Authority (ACA) would replace the Arizona Department of Commerce, but does not assume all of its current functions. In addition to an annual appropriation from the general fund or another dedicated state funding source, private sector funds would be used to support the marketing efforts of the ACA. These funds would come from a 1.5 percent fee charged to companies accessing certain state incentive programs. Read the press release or the full report from the Governor's Commerce Advisory Council: http://www.azgovernor.gov/dms/upload/PR_GovernorsCommerceAdvisoryCouncilReport.pdf