SSTI Digest

Package Isn't All Governor Expected; Veto Possible Changing mindsets within a state to embrace making significant public investments toward building an innovation economy can be a daunting task, particularly with the fiscal environment all state goverments are currently facing. With an aggressive series of town meetings and web forums, and strong vision and top-level leadership, Iowa succeeded to make its first big steps toward that goal with late-night votes by the State Legislature this week during a special session. Iowa Governor Tom Vilsack began his second term in January with a call for the state to spend a record $500 million over five years for economic development <see http://www.ssti.org/Digest/2003/011703.htm#Govs>. With the passage of two bills at 2:00 a.m. Wednesday morning, the Republican-controled state legislature gave the Democratic Governor what he asked for — intertwined with several tax changes that he was much less inclined to support. Calling for creation of a five-year, $503 million Iowa Values Fund to support economic development opportunities in the specific…

A recent study by Iowa State University researcher David Swenson suggests the ISU Research Park's substantial and diverse economic activity bolsters Iowa's economy. Focusing on current tenants, Swenson's research shows that the park links directly to almost $88 million in total industrial output. Businesses that provide goods and services to park customers and employees are said to generate an additional $46.3 million in economic activity. Park administrators commissioned the Iowa State Department of Economics to complete the analysis to measure current economic value created by the park's companies and centers. The park has tracked growth by employment and new business starts for more than 10 years; however, it has never studied its overall economic impact. Wages paid by park companies exceeds $36 million annually, according to the data. An additional $16.9 million in wages are generated by businesses providing goods and services to park firms. Park tenants employ more than 900 Iowans. Another 639 central Iowa jobs are generated by businesses providing goods and support services to the…

U.S. Senator Olympia Snow (R-Maine) recently introduced a bill to boost the flow of venture capital to small businesses by allowing tax-exempt entities, such as pension funds and university endowment funds, to invest in Small Business Investment Companies (SBIC) without incurring unrelated business taxable income. S. 855, or the Small Business Investment Company Capital Access Act of 2003, is an approach to inject needed investment money into the economy while providing a stable, diversified and secure investment vehicle for tax-exempt pension and endowment funds. Industry experts believe the bill could boost capital available for SBICs by $200 million in the first year alone, according to the National Association of Small Business Investment Companies. "Passage of this bill will dramatically increase the amount of investment capital available to America's Main Street — the sector that creates approximately two-thirds of net new jobs," said Snowe, Chair of the Senate Committee on Small Business and Entrepreneurship. Senator Kit Bond (R-Mo.), the Committee's former Chairman, and Senator…

Governor Tom Vilsack has announced a plan to invest $50 million into the creation of a life sciences initiative to help establish Iowa as a leader in the life sciences. Developed with the Regents Universities, Iowa Business Council and leaders in Iowa's biotechnology industry, the biotech plan's success hinges on a three-part strategy: A New Mindset: creating a stronger and coordinated state approach for entrepreneurial ventures in biotechnology-related industries in Iowa. This will also include better coordination among the Iowa Department of Economic Development (IDED), Iowa Regents institutions, and private sector business leaders to attract economic opportunity that will help transform Iowa's economy. A Regulatory Framework: establishing a state regulatory framework that minimizes risks associated with bioengineered products, ensures safety, and maintains public confidence. This includes adopting a clear framework for crop producers who choose to invest in the production of transgenic crops aimed at pharmaceutical and enzyme development. Innovative Support for Start-…

Iowa Governor Tom Vilsack announced that the Director of the Iowa Department of Economic Development, C.J. Niles, will be stepping down effective December 31.  Mary Lawyer, the department's chief of staff, will serve as interim director.

Economic development leaders within the Cedar Rapids/Iowa City Technology Corridor have joined other areas of the U.S. in marketing the area as one unified region. Elected representatives from 10 cities and two counties located in the Cedar Rapids/Iowa City Technology Corridor recently signed a joint proclamation as a statement of support for the Corridor’s targeted industry cluster development regional efforts. This effort, focusing on the strength of the regional economy, is designed to attract prospective businesses and industry to the Corridor.  For planning and marketing purposes, the Cedar Rapids/Iowa City Technology Corridor is defined as a region including the metropolitan areas of Cedar Rapids and Iowa City and adjacent communities represented by Priority One and Iowa City Area Development (ICAD). Representatives of Priority One — an economic development division of the Cedar Rapids Area Chamber of Commerce — and the nonprofit ICAD worked to define the regional economy and to determine both short- and long-term development prospects. The approach utilized…

The NASVF Net News reports Alexa Heffernan has been named Executive Director of the Iowa Business Council. Myrt Levin retired in December.

The Rural Policy Research Institute, a consortium of Iowa State University, the University of Missouri, and the University of Nebraska, has published a Directory of State Assisted Venture Capital Programs on-line. The 17-page directory includes five sections listing: 16 publicly funded and publicly managed venture capital funds; 31 state-assisted private venture capital funds and quasi-public venture capital funds; 22 state tax credits or incentives for individuals or businesses making venture capital investments; 58 state sponsored or assisted angel networks; and 27 state-sponsored or assisted venture capital fairs. Each list is organized by state and includes contact information. The Directory can be downloaded from: http://www.rupri.org/front.html (Editor's Note: our thanks to NASVF for uncovering this story) Return to the top of this page

Governor Tom Vilsack has unveiled a plan to enhance Iowa’s science and technology base. In his 2001 budget proposal, the governor has proposed $10 million in state funds to create Centers of Excellence in the life sciences, information solutions, and advanced manufacturing areas. Iowa's Regent’s Universities and the Iowa Department of Economic Development will inventory current assets, evaluate the potential for critical mass commercialization of new products and processing methods, and develop a continuous cycle for Iowa's advancement in these areas. In addition, Governor Vilsack has appointed a technology advisor and three industry-specific technology advisors in the areas of life sciences, information solutions, and advanced manufacturing. The four advisors will be responsible for formulating industry-driven technology strategies designed to further the life science, advanced manufacturing, and information solutions areas. In addition, a three-year economic development investment plan is to be designed to strengthen Iowa’s technological presence in each of these three focus areas. …