SSTI Digest

A new fund established to capitalize on Maryland's leadership in R&D seeks to move 40 new discoveries and innovations out of the lab and into the marketplace each year through a partnership between the state and five universities. The Innovate Maryland initiative is seeded with $5 million in the FY13 budget with additional funds from the participating universities to provide grants to researchers. The Maryland Technology Development Corporation (TEDCO) will administer the fund. The goal of the fund is to promote commercialization of university research, encourage universities to partner with federal labs, and facilitate tech transfer from universities to commercial industries. Participating universities are Johns Hopkins University, Morgan State University, University of Maryland Baltimore, University of Maryland Baltimore County, and University of Maryland College Park. Each university will contribute between $100,000 and $200,000 on an annual basis. The initiative was unveiled in January as part of Gov. Martin O'Malley's 2012 legislative agenda (see the Jan. 25, 2012 issue of the Digest).

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards.

Providing Access to Capital

The Arizona Senate approved last month a bill to empower the state to facilitate $250 million in loans to manufacturers and other businesses by allowing third parties to sell income and insurance premium tax credits to venture capital firms, banks and other lenders, reports The Arizona Capitol Times. Supporters say the program, which has been employed at the federal level over the last decade under the New Markets structure, has been adopted successfully by nine other states. The measure awaits action in the House.

The Abell Foundation and Maryland Technology Development Company (TEDCO) announced the Propel Baltimore Fund — a $3.3 million angel investment fund targeted at startups and entrepreneurs in Baltimore. The fund will invest in technology companies with innovation-focused business plans that are located in Baltimore or are willing to relocate to the city. Initial investments will be between $50,000 and $100,000 (maximum investment of $220,000 per company). Propel investments will require a 50 percent match from outside investors. Read the press release.

Building on the momentum of the InvestMaryland initiative passed last session, Gov. Martin O'Malley unveiled a joint venture between the state, federal research labs and academic institutions to accelerate technology commercialization. Under the Maryland Innovation Initiative, participating universities would pay a fee of $250,000 each year and, when leveraged with state funds and private donations, a pool of money would be used to award grants to startup companies seeking to advance research from Maryland labs. The program would be administered by the Maryland Technology Development Corporation (TEDCO). Legislation to establish the program was introduced as SB 239.

Finding new and creative ways for high-tech companies to succeed is an important component in business incubation. A recent study examining best practices for supporting new company formation finds it is the synergy among multiple practices, policies and services that produces optimal outcomes. At the same time, collecting standardized measures, reporting on progress annually, conducting external independent evaluations, tracking programs, and continuing to enhance practices are singled out as important policy implications. Over the past few months, several new incubator models have emerged — including a concept for a hybrid-accelerator and a startup incubator that floats. Select announcements are included below. 

As budgets for economic development tighten across all sectors, measuring and reporting impact becomes even more crucial for sustaining support. The Association of University Research Parks points to three impressive impact reports released this year from Indiana's Purdue Research Park, Nebraska Technology Park and North Dakota State University Research and Technology Park.

The Purdue study found the park network is responsible for a $1.3 billion annual impact for the state and more than 4,000 high-quality jobs paying an average annual salary that is 65 percent higher than the state's average. In Nebraska, researchers found the University of Nebraska Technology Park has an estimated $589.6 million annual impact on the state's economy, and North Dakota State University Research and Technology Park generates $10.9 million annually for local and state governments.

SSTI has compiled below recent announcements for development of tech parks from states including Alabama, Connecticut, Florida, Maryland, South Carolina, and West Virginia.

The National Science Foundation (NSF) has announced a $27.5 million, five-year grant to the University of Maryland for a multi-disciplinary research center focused on the interplay of human activity and healthy ecosystems. The grant is the largest ever received by the university and will provide funds for research in environmental sciences, public policy, engineering, computer science and economics. Additional funding will be provides by the University of Maryland, College Park, the university's Center for Environmental Science, Resources for the Future (a nonprofit research organization) and the state of Maryland. Read the announcement...

The Department of Commerce, National Institute of Standards and Technology is seeking applications for the director, Technology Innovation Program. This position is perfect for you if you are ready for a challenge and are committed to making significant improvements in the operations of one of the world's premier research and science organizations. NIST is located in Gaithersburg, Montgomery County, MD. This is a great opportunity to have a tremendous impact on an agency's programs and enjoy the benefits of working outside the Washington beltway.

The director of the Technology Innovation Program (TIP) serves as the executive responsible for managing and leading this critical program for NIST. The TIP was established as part of the America COMPETES Act (P.L. 110-69) to assist United States businesses and institutions of higher education or other organizations, such as national laboratories and nonprofit research institutions, to support, promote, and accelerate innovation in the United States through high-risk, high-reward research in areas of critical national need.

Pamela Goldberg has been appointed as the executive director of the Massachusetts Technology Collaborative. Currently, Goldberg serves as director of entrepreneurial leadership at Tufts University.

Alabama Gov. Robert Bentley announced the appointment of Greg Canfield as the new director of the Alabama Development Office. Current ADO director Seth Hammett is returning to his position with PowerSouth Energy. Canfield is expected to begin his duties on or before Aug. 1.

Ohio Gov. John Kasich announced that Jim Leftwich is resigning as director of the Development Department. Leftwich, former CEO of the Dayton Development Coalition, stepped in as former director Mark Kvamme moved to a different position within the administration.

In support of Gov. Martin O'Malley's Bio 2020 Initiative, lawmakers increased funding for stem cell research and provided $8 million in tax credits for biotechnology investments in the FY12 budget approved last month. Lawmakers also passed a bill providing a two-year eligibility extension for companies using the biotech tax credit and allocated $2.4 million to fund nanobiotechnology projects.

The Maryland Technology Development Corporation (TEDCO) will receive $15.7 million in FY12, up from $13.9 million approved last year. This includes $12.4 million to administer the state's stem cell research fund (a $2 million increase) and $3.3 million for technology development, transfer and commercialization.

Last week, Maryland Gov. Martin O'Malley released the results of 18 months of work by the Maryland Economic Development Commission (MEDC), laying out the state's strategy for economic growth over the next five years. MEDC's five-year plan provides many economic development policy recommendations, but lists innovation, commercialization and entrepreneurship as the first three foundations for growth. Part of this strategy includes the implementation of InvestMaryland, a recently passed initiative that would generate more than $70 million for seed and growth stage companies. Read more about the strategy at: http://www.governor.maryland.gov/pressreleases/110414.asp

The National Heart, Lung, and Blood Institute, National Institutes of Health in Bethesda, Maryland is seeking a dynamic and innovative biomedical/biotechnology expert to provide strategic leadership as the director of the newly created Office of Translational Alliances and Coordination (OTAC). The OTAC is charged with accelerating the translation of basic discoveries and innovations into new diagnostics, devices, and therapeutics, and facilitating the development of new technologies via SBIR initiatives. The job announcement will be posted on www.usajobs.gov in late March/early April for 10 days and open to all U.S. citizens. Applicants must possess a Ph.D.