SSTI Digest

Incubators provide an integral and flexible component of many communities' tech-based economic development efforts. When successful, business incubators can provide a focal point for encouraging entrepreneurship in even the smallest cities and metropolitan areas. Ample evidence is presented in the latest survey of incubators supported through the multifaceted $35 million Entrepreneurship Initiative of the Appalachian Regional Commission (ARC).

Since 1978, ARC has made 108 grants totalling more than $17 million for business incubation projects. Using 2004 data gathered from 76 of the 85 known incubators in the region, the report summary yields:

For the second year in a row, the Maryland Technology Development Corporation (TEDCO) was the most active source of early-stage or angel capital, according to the July issue of Entrepreneur magazine. The list of the top 100 funds, based on number of deals made during 2004, is based on the results of the quarterly MoneyTree survey published by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association (NVCA).

Forty-six of the venture capital sources on the list are from California; 17 are from Massachusetts. Some of the well-known angel organizations, such as Tech Coast Angels, Band of Angels and the Angels Forum and the Halow Fund (all from California), were in the top firms with 7-8 deals.

In signing the state budget last Thursday, Wisconsin Gov. Jim Doyle approved spending $5 million for two new programs supporting agricultural and forestry bio-based industrial development. Bio-based industries convert the carbohydrates in plants into fuels, polymers, fabrics, and other chemicals. Advocates for bio-based fuels industries argue every function now served by petro-chemicals also can be more simply, safely and sustainably served by bio-chemicals.

As part of the governor's new biobased initiative announced in June, the two newly funded programs include:

As a precursor to a report expected next month from the President's Commission on Tax Reform, the National League of Cities (NLC) recently issued its findings from a survey citing disapproval of how state and federal tax issues are being handled by the Administration, Congress, and state governors and legislatures. NLC outlined recommendations and called on the federal government to convene a national economic summit to address the issues.

According to a research brief summarizing the report, Local Budget and Tax Policy in the U.S.: Perceptions of City Officials, 84 percent of responding city officials said the federal deficit, in particular, poses a problem for cities. The report points to several governmental challenges that are negatively impacting fiscal policy. Among those challenges are federal and state unfunded mandates, cuts or limits in federal and state support, and federal or state preemption of local authority.

Can patent insurance protect innovations from predators? Yes, particularly if innovators insure their innovation before rivals enter the market, according to Financing and the Protection of Innovators, a discussion paper by Gerard Llobet and Javier Suarez from the Centre for Economic Policy Research.

According to Llobet and Suarez, patents offer limited protection if the innovators cannot demonstrate a willingness and ability to litigate patent predation. Competitors appear to avoid preying upon innovations from large companies that have litigated past patent infractions. However, rivals may view innovators without a history of legal action as easy prey unless they can demonstrate additional protection for their intellectual property.

Ronnie Bryant, president and chief operating officer for the Pittsburgh Regional Alliance, is leaving to become president and CEO of the 16-county Charlotte Regional Partnership in North Carolina.

Albert Clough is the new Commissioner of the Alaska Department of Commerce, Community and Economic Development, following the resignation of Edgar Blatchford last week.

Pat Dillon has taken a position with the Wisconsin Entrepreneurs’ Network, an initiative to support high tech, high growth companies in Wisconsin.

Ronnie Bryant, president and chief operating officer for the Pittsburgh Regional Alliance, is leaving to become president and CEO of the 16-county Charlotte Regional Partnership in North Carolina.

Albert Clough is the new Commissioner of the Alaska Department of Commerce, Community and Economic Development, following the resignation of Edgar Blatchford last week.

Pat Dillon has taken a position with the Wisconsin Entrepreneurs’ Network, an initiative to support high tech, high growth companies in Wisconsin.

The new chairman for the Georgia Medical Center Authority is former State Senator Randy Hall.

Carrie Hines, presently with the Manufacturing Extension Partnership, will serve as the first executive director of the American Small Manufacturing Coalition.

The U.S. Senate has confirmed William Alan Jeffrey as the new director of the National Institute of Standards and Technology in the U.S. Department of Commerce.