SSTI Digest

The South Carolina Technology Alliance calls it the most significant victory for South Carolina's research universities and tech entrepreneurs in the last 50 years. An idle exaggeration? Probably not. Senate Bill 0560 creates a $50 million venture capital (VC) fund for the state and offers tax credits and other incentives to attract large life science and pharmaceutical businesses. It also facilitates borrowing up to $250 million for university construction and improvement projects encouraging research and tech-based economic development (TBED). The bill, which passed overwhelmingly in both the state senate and house, includes three sections: The South Carolina Life Sciences Act provides multiple tax credits for recruitment and expansion of large life science facilities. To receive the credits, the business must invest more than $100 million in the new facility and create a minimum of 200 full time jobs that pay at least one-and-a-half to two times the annual per capita income for the state or county in which the facility is located. The Act also allows the state to issue up to $…

With the recent passage of much economic development legislation in South Dakota, Gov. Mike Rounds' 2010 Initiative would seem to be moving along as planned. The 2010 Initiative, an economic stimulus plan introduced last fall, outlines a series of goals for growth in South Dakota by the year 2010 (see the Oct. 31, 2003, issue of the Digest). Gov. Rounds signed House Bill 1145 on March 3, setting up a $3 million loan program for entrepreneurs and start-up companies wanting to do business in their home state. Under the bill, any entrepreneur or start-up company located in South Dakota can apply for low interest loans. Start-up companies are defined as new technology, communications, service or manufacturing businesses. Some stipulations on HB 1145 apply. Loan applicants are required to provide matching funds equal to the amount of their loan, which could range from $30,000 to $50,000. Applicants also will be responsible for developing a three-year strategic plan for their innovative business concept. They must prove to a state economic development board "with a reasonable probability" their…

The Indiana General Assembly recently passed legislation that would make permanent a 10 percent research and development (R&D) tax credit, if signed by Gov. Joe Kernan. Indiana's Research Expense Tax Credit provides for a credit based upon a taxpayer's increased research activities conducted in Indiana. The credit is 10 percent of the increase in qualified research expenses paid or incurred in a taxable year over a taxpayer's base amount of research expenses. Last month's action taken by the Indiana General Assembly is the latest development with the state's R&D tax credit. During the 2003 Legislative Session, the expiration date for the credit was extended from Dec. 31, 2004, to Dec. 31, 2013. The General Assembly also has doubled the credit from 5 percent to 10 percent. Proponents of the R&D tax credit are hopeful it will lead businesses to invest in new products, ultimately creating new jobs. Such products are expected to include computers or laboratory equipment. Other supporters believe the credit will enable more high-tech firms to be spun out of Indiana's…

The creation and subsidization of CAPCOs, certified capital corporations intended to encourage venture capital (VC) investment, is one of the more controversial policies some states have adopted to encourage the growth of tech-based economies. With substantial revisions to Colorado's short CAPCO experiment this month, questions are raised once again for other states that either have passed or are considering various approaches to increasing the availability of risk capital for new tech firms. Colorado Governor Bill Owens signed two bills on March 4 effectively ending the state's two-year-old CAPCO program -- and blocking an additional $100 million in tax credits scheduled for distribution in April. Instead, the $100 million will be split equally between a new Colorado Venture Capital Authority (see Colorado Senate Bill 04-106) to provide capital to businesses throughout the state and CoverColorado, a program designed to provide health benefits to the chronically ill. Colorado state lawmakers originally enacted CAPCO to stimulate economic growth, giving tax credits to insurance companies…

Legislators in Utah have passed a constitutional amendment that, with approval by voters, would allow the state's universities to take ownership in private businesses in exchange for intellectual property. The proposed amendment cleared the Utah State Legislature with relative ease, despite some concerns it will thwart the incentive of researchers wanting to commercialize their results. Approved on March 3 with a unanimous vote by the senate, the amendment states that Utah and any of its schools may "acquire an equity interest in a private business entity as consideration for the sale, license, or other transfer to the private business entity of intellectual property developed in whole or in part" by state agencies or schools. The Utah Constitution would retain a ban on state investment in railroad, telegraph or other companies. Supporters of the amendment pointed to the success of the University of Florida's Gatorade, which has generated more than $80 million in royalties, according to the Associated Press. Critics, however, suggested the amendment would allow universities too much control…

With the goal of encouraging interdisciplinary and collaborative research, the Research Business Models Subcommittee of the National Science and Technology Council (NSTC) has issued a list of initiatives to improve management of academic research grants made by various agencies of the federal government. The recommendations are also expected to result in greater consistency across agencies in award policies and reporting requirements. The selected initiatives are the result of a series of workshops held last fall involving academic officials, researchers and federal grant administrators. The Association of American Universities (AAU) has noted that cost issues of concern for the academic research community, such as reimbursement rates for facilities and administrative costs, are not addressed by the initiatives. In its e-newsletter, AAU identifies the NSTC initiatives as being: Alignment of Funding Mechanisms with Scientific Opportunities Develop consistent methods to acknowledge and distribute credit for co-investigators in the application process and in agency systems. Consider…

With contributions of nearly $64 billion annually to the gross state product, manufacturing remains the largest of all industry sectors in Pennsylvania, according to a new report sponsored by the Team Pennsylvania Foundation. Data released by the nonprofit public-private partnership documents the role of manufacturing in Pennsylvania and analyzes the forces shaping the future of the industry. Manufacturing Pennsylvania’s Future: Regional Strategies that Build from Current Strengths and Address Competitive Challenges shows Pennsylvania's manufacturing sector remains the primary economic driver in the state. Sixteen industries that collectively produce nearly half of the state's manufacturing output have grown and concentrated in Pennsylvania over the past 10 years, the report states. Small and medium-sized manufacturing firms are identified as providing the broad foundation for manufacturing in Pennsylvania. Despite some high rankings, manufacturing employment in Pennsylvania has declined by 133,000 jobs since 1998, the report finds. Recessionary issues, foreign competition, offshore…

The Massachusetts Technology Collaborative (MTC) announces the creation of the Innovation Systems Division and a unique economic development initiative, the John Adams Innovation Institute, a vehicle for the state to make strategic investments in its knowledge economy. The Manager, Grants and Business Administration will be a hands-on business professional, responsible for managing the day-to-day operations of the John Adams Innovation Institute and serving as the internal expert for grant-making procedures and best practices. The "candidate of choice" will have a demonstrated passion and ability to run a successful grant making enterprise and understand the challenges associated with achieving successful projects in the field. He or she also will have 8-10 years of experience in positions of increasing responsibility that involve management of business activity in the public or non-profit sectors, with significant exposure to the issues surrounding business practice in the management of grant making and monitoring systems. Qualified candidates are encouraged to forward resume and salary…

George Bald, Commissioner of the New Hampshire Department of Resources and Economic Development, has announced his resignation to become executive director of the Pease Development Authority. Janice Bourque, president and chief executive officer of the Massachusetts Biotechnology Council, plans to step down once a replacement has been found. Cynthia Helphingstine is the new vice president for business development for Inproteo (formerly the Indiana Proteomics Consortium). Andrea Lohneiss, community development director for Riverhead, N.Y., is leaving to become Suffolk County's commissioner of economic development. The Georgia Department of Industry, Trade and Tourism, in partnership with the University System of Georgia, has appointed Page Siplon and Michael Hale as directors of the Maritime Logistics Innovation Center and the Middle Georgia Innovation Center for Aircraft Lifecycle Support, respectively. SSTI welcomes Rhiannon Mehring to its staff as a research associate. Doros Platika is the new chief executive officer for the Pittsburgh Life…

George Bald, Commissioner of the New Hampshire Department of Resources and Economic Development, has announced his resignation to become executive director of the Pease Development Authority.

Janice Bourque, president and chief executive officer of the Massachusetts Biotechnology Council, plans to step down once a replacement has been found.

Cynthia Helphingstine is the new vice president for business development for Inproteo (formerly the Indiana Proteomics Consortium).