SSTI Digest

Two weeks ago, Idaho Gov. C.L. “Butch” Otter vetoed legislation to repeal state R&D income tax credits for Idaho companies. Among his reasons for the veto, Gov. Otter claimed removing the credits would put Idaho at a competitive disadvantage because surrounding states over similar incentives. Was he right? It is true most states offer R&D tax credits to their corporate residents at this point. Little has been known about the credits’ impacts or effectiveness on recruitment, however. Most of the academic research on the topic has focused on the federal R&D tax credits and competition among nations.   On the state level, in theory at least, a rationally acting, research-intensive firm can be expected to select a location within a state that has an R&D tax credit over another state without one – all other things being equal. Note: The italicized phrase is a critical but impossible one that is required for these kinds of conclusive statements.    A recent research paper published in Economic Development Quarterly begins to shed some light on the effectiveness of state R&D tax credit…

Aiming to resolve the state’s projected $935 million deficit in its current two-year budget, Gov. Tim Pawlenty introduced a plan that closes Minnesota's budget gap and invests additional funding in rural entrepreneurship and teacher training initiatives for K-12 math and science educators.    Under the governor’s plan, state spending would be cut by $341 million and the state would tap into the budget reserve and surplus funds within the Health Care Access Fund for another $500 million.   The fiscal year 2008 supplemental budget recommends $12 million in FY09 for the Strategic Entrepreneurial Economic Development (SEED) initiative, focusing on rural areas of the state by facilitating business development through support of new and existing programs (see the Oct. 3, 2007 issue of the Digest). The following are among the governor’s recommendations for the SEED initiative: $2 million for the Minnesota Investment Fund to assist companies in Targeted Rural Opportunity Communities with R&D and technology upgrade expenditures; $1.5 million for the Job Skills Partnership initiative reallocating existing surplus funds for…

Minnesota Gov. Tim Pawlenty recently unveiled four energy initiatives to promote clean energy R&D and the use of renewable energy technologies in the state. Through a combination of executive orders and legislative proposals, the programs are intended to push Minnesota towards its goals of having 25 percent of the state’s energy come from renewable sources by 2025 and reducing the state’s greenhouse emissions 80 percent by 2050. These new initiatives are: The Clean Energy Technology Collaborative – Created by Executive Order 08-04, the Collaborative is a 15-member group appointed by the governor that will develop a roadmap identifying the most promising R&D steps Minnesota should take to advance the use of green technologies. Committee members will be comprised of representatives from Minnesota’s universities, business members, and other individuals who have significant knowledge and experience in clean energy R&D. The Minnesota Office of Energy Security – Executive Order 08-03 establishes this Office within the state’s Department of Commerce, which will function as the entity within Minnesota state government that coordinates state policy,…

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm. The BioBusiness Alliance of Minnesota, a nonprofit organization that represents Minnesota companies, academia and government, is seeking a bio-network specialist. This position will report to the BioBusiness Alliance CEO but will work in close partnership with the Southern Minnesota Initiative Foundation and other statewide constituents to support the growth of biobusiness in greater Minnesota. A bachelor’s degree is required; a master’s or Ph.D. degree is preferred. The University of Missouri-Columbia (MU) is seeking an innovative, energetic and experienced individual to serve as director of its Office of Technology Management and Industry Relations. The director will report to the vice chancellor for research at MU and will be responsible for stimulating the development and commercialization of advanced technology, protecting university intellectual property, and transforming technology into successful enterprises. The university is looking for an individual with a Ph.D. in science or engineering or a master’s degree…

Steve Lehmkuhle was named the first chancellor of the University of Minnesota-Rochester, effective Sept. 7. Lehmkuhle previously was the vice president for academic affairs at the University of Missouri.

Funding for energy and TBED initiatives were highlighted in the fiscal year 2007-09 biennial budget at the close of the legislative session in Minnesota late last month. Winning nearly unanimous approval from the legislature was Gov. Tim Pawlenty’s Next Generation Initiative announced during his State-of-the-State Address (see the Jan. 15, 2007 issue of the Digest).   The $170 million Agriculture and Veterans Omnibus Bill, which provides funding for the initiative, creates the Next Generation Energy Board to research and recommend how the state can most efficiently achieve energy independence. The bill also focuses on Minnesota’s 25x'25 goal, similar to the national 25x'25 initiative. Minnesota energy companies are required under the bill to provide 25 percent of electricity from renewable sources by 2025. The goal also aims for agriculture, forestry and working lands to produce 25 percent of the total energy consumed in Minnesota and expand the Fuel Replacement Goal to 25 percent by 2025. Other major components include: $4.25 million for a renewable energy research pool that includes $1.25 million to continue Clean Energy Resource Teams and $2…

Gov. Tim Pawlenty shifted Ward Einess from his position as acting director of the Minnesota Department of Employment and Economic Development to commissioner of the state Department of Revenue. No replacement has been named for Einess.

If the most important jobs of the future will be connected to science and engineering disciplines, then, the current thinking goes, the U.S. needs to have more scientists and engineers in its future workforce. To achieve this, more emphasis needs to be placed on science, technology, engineering and mathematics (STEM) curricula, beginning with math and science education in the K-12 experience. Improving career interest and test scores in math and science is taking on greater priority in a number of states. The Minnesota Department of Education and the Minnesota High Tech Association, for example, is in the middle of convening a dozen STEM forums around the state in October to explore several strategies for advancing STEM education. Titled Fueling the Pipeline: A Regional Forum for STEM Education, each three-hour meeting is intended to introduce participants to Minnesota's Plan for High School Redesign, hear from STEM local community leaders and engage in conversations to create new partnerships, and establish a pipeline of STEM activities around the state. More information is available at http://www.mhta.org. STEM…

American K-12 students are becoming less and less interested in math, science and technology fields. Recent studies reveal that students are increasingly dropping science and math classes and pursuing careers in the arts and social services. Since national and regional competitiveness in high-tech fields depends on a skilled labor market, fueled by college graduates in STEM (science, technology, engineering and math) fields, many areas are attempting to generate more interest in these subjects. Several recent efforts are doing so by giving students access to more advanced technologies. According tto the Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future, the report issued earlier this year by the National Academy of Sciences (NAS) on the country's science and technology prospects, K-12 students are abandoning difficult STEM coursework, in favor of other subjects and less advanced STEM classes. NAS recommends public-private partnerships, greater cooperation between educational institutions, more rigorous requirements, and the creation of specialty high schools. The findings, however, focus more on…

Medical Alley and MNBIO, two organizations that merged in 2005 to promote medical sciences in Minnesota, have changed their name LifeScience Alley.

Matt Kramer stepped down from the Minnesota Department of Employment and Economic Development (DEED) to become vice president of sales and marketing with a Plymouth health care provider. Kramer served three years with DEED.

For 20 years, small tech firms and researchers in Minnesota called on Minnesota Project Innovation (MPI) for assistance in developing competitive proposals for the federal Small Business Innovation Research or Small Business Technology Transfer (SBIR/STTR) programs. On Feb. 28, the MPI Board of Directors voted to officially transfer program operations to the state Department of Employment and Economic Development (DEED). Betsy Lulfs, who joined DEED in early February, will coordinate and expand the SBIR/STTR programs, according to DEED. The program will tap into DEED’s statewide network of Small Business Development Centers, regional business development representatives and business service specialists – as well as through partnerships with organizations such as Medical Alley/MNBIO, the University of Minnesota and Minnesota State Colleges and Universities. Lulfs formerly worked with a similar program in Ohio. Since its creation in 1984, MPI helped its client Minnesota firms to identify funding opportunities and obtain high-risk capital for start-up, early-stage and existing companies to…