SSTI Digest

On June 11, Gov. Donald L. Carcieri signed the Job Creation Guaranty Program. Sponsored by House Finance Chairman Steven M. Costantino and Senate Finance Chairman Daniel Da Ponte, the legislation establishes a $125 million dollar loan-guarantee program for the knowledge and technology-based sectors. Under this program, the state will not directly issue any loans. Instead, it will provide state backing to facilitate private loans. The Rhode Island Economic Development Corporation (RIEDC) will administer the program.

Under the program, 75 to 90 percent of each loan made by private lending institutions to qualified businesses will be guaranteed by the RIEDC. Responsibility of the loan only would be assumed by the state if the company defaulted. In cases of default, the RIEDC would request appropriate funding from the state's General Assembly. They also would seize assets from the defaulting business to cover the loss.

Last week the Rhode Island Economic Development Corporation (RIEDC) released its strategic agenda for accelerating the growth of the state's green economy, distributing action items among four topical groupings: advanced manufacturing, energy efficiency, innovation cultivation, and wind power. A Roadmap for Advancing the Green Economy in Rhode Island was produced from a series of roundtables over the past year with 120 representatives from state government, universities, industry, labor, and other economic development nonprofit entities. Some of the specific initiatives in the report include:

The third installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Delaware, Maine, Missouri, New Hampshire, Ohio, Rhode Island, South Dakota, Utah and Wisconsin. The first and second installments are available in the Jan 13 Digest and Jan. 20 Digest, respectively.

Delaware Gov. Jack Markell, State of the State Address, Jan. 21, 2010 “We have a proud legacy of technology innovation that we will build on. Together, we will create a Delaware where entrepreneurs and inventors imagine the new products and services that make life better, more productive and more enjoyable for millions, and workers make good livings delivering these wonders to the world.

Lee Cheatham announced he is leaving his position as executive director of the Washington Technology Center and has accepted the position of operations director at the Biodesign Institute at Arizona State University. Chris Coleman, WTC's current CFO and director of business operations, has been selected to serve as interim executive director for the organization.

Gov. Donald Carcieri signed legislation last week expanding the Rhode Island Economic Development Corporation (EDC) board and allowing the state to offer the incoming EDC director a three-year contract that extends past the governor’s term, which ends next January. The changes are expected to boost the agency’s effectiveness and attract better candidates for the state’s top economic development position.

Under the new law, the governor will serve as chairperson of the board and will appoint four additional board members for a total of 12. The measure also includes new requirements that the “membership of the board shall reflect the geographic diversity of the state,” and include one member that represents higher education.

Legislation to overhaul the agency was introduced earlier this year by Senate President M. Teresa Paiva- Weed following a report criticizing the agency’s effectiveness and calling for fresh leadership, according to The Providence Journal. Initial plans called for the creation of an oversight committee to monitor EDC’s work. That provision was not included in the final bill.

Over the past few months, several states have enacted spending plans for the upcoming fiscal year and passed legislation to support renewable energy initiatives and tax credits for R&D. While some TBED programs will face dramatic cuts in FY10, others are slated for slight decreases or will receive level funding. The following synopsis provides an overview of the 2009 legislative sessions across the following states:

Massachusetts Lawmakers rejected Gov. Deval Patrick's amendment to the state budget aimed at securing funding for the Massachusetts Life Sciences Center (MLSC) in the upcoming year.

As companies across the nation continue to announce massive layoffs during the economic recession, states, localities and private foundations are encouraging entrepreneurial training and providing support services to help create new jobs and assist struggling businesses.

Last month, the Kauffman Foundation announced an intensive effort to quickly train entrepreneurs and bolster the nation's economy. The $1 million FastTrac LaunchPad program is a combination of two existing initiatives - the FastTrac NewVenture and FastTrac GrowthVenture - offered in shorter lengths than the normal ten-week courses. The Kauffman Foundation points to U.S. Census Bureau Business Dynamic Statistics data, which indicates that while business startups decline slightly in most of the cyclical downturns, startups remain robust even in the most severe recession over the sample period (in the early 1980s).

Using the state’s regional advantage, the Rhode Island Economic Development Corporation (RIEDC) wants to create high-wage jobs in targeted industry sectors and establish new equity and financing programs that provide growth capital to sustain the ventures, the agency announced last week.   RIEDC released an economic growth plan with the goal of increasing the percentage of jobs that pay above the national average from its current 40 percent to 60 percent over the next 10 years. The average private sector wage in Rhode Island is $38,700 -- $4,600 less than the national average and much lower than neighboring states Connecticut and Massachusetts.  

Thomas Rainey was named the new president and CEO of the Northern Arizona Center for Emerging Technologies.

Starting next year, every Rhode Island high school student will be able to participate in the Vex Challenge, an international robotics competition that gives students firsthand experience with project management and engineering. A coalition of education and science and technology advocates, led by the nonprofit Business Innovation Factory, will cover the costs to schools and funding for an annual statewide tournament beginning in 2007. Rhode Island Gov. Donald Carcieri has endorsed the program, which he calls an important part of our plan for educating Rhode Islands next generation of science, technology, and engineering leaders.  

John Cronin was named state director of the new Rhode Island Small Business Development Center at Johnson and Wales University in Providence. Cronin is CEO of the Rhode Island Manufacturing Extension Partnership.

Rhode Island Gov. Donald Carcieri promoted Saul Kaplan to serve as the new director of the Rhode Island Economic Development Corp. Kaplan replaces three-year veteran Michael McMahon, who left to launch a new equity firm.