SSTI Digest

State governments are poised to play a vital role in the economic recovery through their use of federally-appropriated funds and through their internal policy responses to the global crisis. Several states are focusing on innovation as a means of recovery. Massachusetts and Maine both recently released the latest editions of their annual innovation indices. These annual publications have long helped to clarify trends in the innovation economy and provided assessment of their performance relative to other states. This year these indices take on new significance as state governments search for potential paths out of the economic crisis. Massachusetts In the seventh edition of the Index of the Massachusetts Innovation Economy, Gov. Deval Patrick, MIT professor Richard K. Lester and six other prominent industry and academic leaders argue for the necessity of increased investments in research and high-tech industry to propel the state through the difficult times ahead. Lester suggests that the state should follow an innovation strategy that focuses on "sustaining the flows of capital, knowledge and people" that are vital to competitiveness but can suffer…

Steve Bazinet has been hired as executive director of the Maine Center for Enterprise Development. Rahindra Bose is Ohio University's new vice president for research and creative activity and dean of the graduate college. David Fouts was selected as the next president and chief executive of MAGNET, the Manufacturing Advocacy & Growth Network. Fouts replaces Fatima Weathers, who served for a year as acting president. Denichiro Otsuga was named the first director of technology transfer at South Dakota State University. Harris Pastides was selected to replace Andrew Sorensen as University of South Carolina system president. Sorenson retired after six years at the helm. Linden Rhoads was appointed as vice provost of the University of Washington's TechTransfer unit. Rhoads starts her new position Aug. 14. Hunter Roberts, South Dakota's interim state energy director, was appointed to the post of energy policy director. Brent Tolman is the new executive director of the Workforce Development Alliance in Idaho. Sterling Wharton was hired as program director for Georgia's Centers of Innovation program.

Although the U.S. broadband infrastructure has expanded rapidly over the past decade, 45 percent of rural areas still lack access to high-speed Internet services. A recent issue brief from the National Governors Association (NGA) Center for Best Practices provides a number of strategies that have proven effective in expanding broadband access, particularly in underserved rural areas.   The brief highlights a number of state efforts that have been successful in expanding and improving service in recent years. These include the California Broadband Initiative, ConnectKentucky, Maine's ConnectME Authority and the New York State Council for Universal Broadband. Together, these profiles offer an overview of how states are approaching the digital divide.   NGA also presents a number of specific strategies that can be implemented in states with high-speed Internet gaps to create a comprehensive broadband access initiative. For example, the report provides a guide to 14 state tax credit programs that have been used to increase demand for broadband services or to encourage the development of new broadband infrastructure.   Other…

“I recognize the importance of attracting venture capital and new investments to Maine,” Gov. John E. Baldacci said. The governor later added, “However, as it is currently written the bill carries enormous risk. This bill would guarantee a rate of return for venture capital investors while Maine would shoulder all the risk. The potential liability for the State is too great for me to sign this bill.”   By not signing the bill, Gov. Baldacci pocket vetoed LD 2320, entitled "An Act To Stimulate Capital Investment for Innovative Businesses in Maine.” The act would have created a Maine Fund of Funds program within the state’s Small Enterprise Growth Board to increase availability of venture capital.   Modeled on statutes in Arkansas, Iowa, Michigan, Montana and Utah, LD 2320 authorized up to $80 million in refundable tax credits to capitalize the fund. No more than $10 million in tax credits could be redeemed in a single year; however, the fiscal note for the legislation determined the maximum potential loss in revenue to the state for any one fiscal year could reach $18.96 million.   The…

A recent study prepared for the Maine Technology Institute and the Office of Innovation within Maine’s Department of Economic and Community Development examines and ranks 16 identified technology clusters in Maine - defining eight as sustainable clusters, five as potential clusters, and three as emerging clusters. These labels are based upon an extended view of clusters, namely that successful clusters depend on knowledge generation and knowledge spillovers and not just specification within certain industries. Along with measures of entrepreneurship and product production and distribution, Maine’s Technology Sectors and Clusters: Status and Strategy examines 7,300 records of patents, grants and publications in the state to determine potential research strengths and opportunities within the state’s clusters. This report follows up and expands on a previous cluster analysis by the Maine Science and Technology Foundation (see the June 28, 2002 issue of the Digest), which identified seven broad technology sectors in the state. The 16 clusters analyzed in this report are comparatively narrower in scope, yet align with the seven technology sectors. For…

A growing number of state governments face revenue uncertainties in the near future. More than half now expect budget deficits and shortfalls in the upcoming fiscal year and beyond. Despite the bleak outlook, however, legislators nationwide are continuing to invest in science and technology with many lawmakers projecting high returns to their state in the coming years. Following are highlights of TBED investments and reductions in recently approved budgets in Kentucky, Maine and Nebraska.   Kentucky Recognizing the statewide economic benefits of strategic investments in university research, Kentucky legislators concurred with Gov. Steve Beshear’s proposal to continue support for the Bucks for Brains initiative. Lawmakers approved $60 million in bonds under the fiscal year 2008-10 biennial budget agreement to expand the state’s endowment matching program used to attract high-quality researchers.    The total funds appropriation under the budget agreement for the Economic Development Cabinet is $29.3 million in FY 2008-09 and $31.8 million in FY 2009-10. The budget agreement also includes language directing interest…

Measuring the strength of a state or region’s economy, particularly the elements related to tech-based economic development, is a tricky but vital tool for developing and updating TBED policies. Several challenges present themselves when deciding what information to present on the elements of the innovation system and assessing the region’s health and performance relative to appropriate surrogates.   Fortunately for the field, two states that have been leaders in using an index as a policy development tool, released reports last week which display an array of methods to analyze their own state’s relative TBED performance. Each report provides a unique perspective and can provide models for emulation and customization by other states.   Massachusetts One of the forefathers and continual innovators in design and delivery of innovation indices is the Massachusetts Technology Collaborative (MTC), which released on Feb. 1 the 11th edition of its Index of the Massachusetts Innovation Economy. The report continues to benchmark Massachusetts in 20 indicators against selected states – California, Connecticut,…

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm. The Maine Technology Institute (MTI) is seeking someone to serve as manager of cluster and commercialization support programs. This position is primarily responsible for managing MTI's programs supporting the development of vibrant technology-intensive clusters and its activities supporting awardee commercialization and capital access.

Sally Bilancia was selected to replace Sally Bates as the development director in the City of Bangor, Maine.

Voters in four states will consider several TBED-related measures at the polls next week, including a $3 billion cancer research proposal, state funding for stem cell research, and an R&D bond proposal to spark job creation in emerging technology sectors.   Texas Texas voters will consider 16 separate ballot items this year, including Proposition 15, a bond proposal to authorize the state to issue $300 million a year in bonds over 10 years for grants to fund scientific research at the newly created Cancer Prevention and Research Institute. Gov. Rick Perry signed HB 14 earlier this year, establishing the institute and dedicating funding of up to $3 billion, pending a voter approved constitutional amendment (see the June 27, 2007 issue of the Digest).   Opponents of the proposition argue the proposal is an unfair burden on taxpayers, citing $1.6 billion in interest that could accrue over the 10-year period, according to an article in the Austin American-Statesman.   Also appearing on the 2007 ballot is Proposition 2, a measure to allow the Texas Higher Education Coordinating…

A bill designed to keep new Maine graduates living and working in the state after college became law last week with Gov. John Baldacci’s signature. The Opportunity Maine bill, LD 1856, creates a tax credit to assist graduates with their student loan payments and enables employers of graduates to pay off the student loans.   Under the bill, tax credits of up to $2,100 per year or $8,400 total are provided for graduates who spend all four years in the University of Maine System or Maine Community College System. The credits can only be claimed while the person resides and works in the state. The legislation also allows for employers of Maine graduates to assume the student loan debt and collect the tax credits.   Program goals are to ensure access to training and higher education, bring higher paying jobs to the state, offer educational opportunity and retraining, and retain a workforce of young, educated individuals.   The fiscal impact to the state will rise substantially over time and require a commitment by future legislatures. Unused credits may be carried over for up to 10 years and…

As July 1 approaches, the beginning of the 2008 fiscal year for most states, several state legislatures are still working to wrap up their appropriation bills. Maine and Tennessee are two of the most recent to close their books on next year’s budgets, and each has included increased funds to support TBED initiatives. Highlights for both states are provided below. MaineIn light of the $50 million R&D bond referendum passed by the legislature earlier this year, additional funds were included in the FY 2008-09 biennial budget for the Maine Technology Institute (MTI). MTI will receive $750,000 each year of the biennium to administer the bond that will be voted on in November (see the April 9, 2007 issue of the Digest). In addition, $2.5 million was appropriated for a new Cluster Enhancement Fund. Lawmakers cut $55,000 from MTI’s Applied Technology Development Centers, and no new funds were included for the Maine Economic Improvement Fund, which supports university research. The much-larger bond, if passed, will provide competitive awards to continue to fund university R&D activities. Manufacturing…