SSTI Digest

The national recession that began at the end of 2007 is "very likely over," according to Federal Reserve Chairman Ben Bernanke. Recovery, however, may be a long way off. Because states were affected differently by the economic downturn in both timing and impact, recovery for state and local economies is likely to occur at different times. Moody's Economy.com predicts, according to an MSNBC article, that job growth will return first in five states: Colorado, Idaho, Oregon, Texas, and Washington. Four of those states benefit from high-tech industries, and the fifth, Texas, has a strong base of energy industries, the article notes. Re-examining policy and priorities in the early aftermath of the national recession, governors and business leaders in three states that are likely to be at the tail end of the recovery recently unveiled long-term economic development plans to position their respective states for sustained growth in the new economy. Following is an overview of strategic plans and recommendations unveiled in Connecticut, Michigan and Wisconsin. Connecticut Gov. Jodi Rell outlined last week a comprehensive strategic plan for Connecticut…

The newly-created Clean Energy Leadership Council, convened by the Washington governor's office and a state-wide public-private clean energy alliance, held its first meeting. The council will deliver a clean energy strategy and recommendations by December 1, 2010. Vicki Gaddy has been appointed director of workforce development for BioNJ. Kentucky Gov. Steve Beshear shuffled two top positions in his administration. Larry Hayes will be secretary of the state Economic Development Cabinet and budget director Mary Lassiter will replace Hayes as Executive Cabinet secretary. Hayes has been interim Economic Development Cabinet secretary since last September. Lassiter will keep her position as budget director. Cecil Burge is retiring as the University of Southern Mississippi , vice president for research and economic development after leading the university's research enterprise for the past five-and-one-half years. His retirement is effective Dec. 31. A national search for a successor will begin later this fall. The Burnham Institute for Medical Research and the University of California, Santa Barbara have named biomedical researcher Jamey Marth director…

Gov. Jim Doyle signed the 2009-11 biennial budget last month, providing funding for university-based research and enhancing tax credits for angel and venture investors supporting high-tech R&D. Several of the governor's priorities outlined earlier this year in the Digest as part of the state's stimulus plan were funded this session, including the following provisions to enhance the Angel Investment and Venture Capital Tax Credit programs, known as Act 255: Tripling the Acceleration Wisconsin tax credit from $1 million to $4 million for angel and venture investors in support of startup technology companies, beginning retroactively for the 2008 tax year; Tripling the annual pool of credits available from $5.5 million to $18.25 million per year for angel credits and from $6 million a year to $18.75 million a year for venture credits, beginning Jan. 1, 2011; Raising the aggregate creditable investment from $8 million per year from any combination of angel or venture sources, beginning Jan. 1, 2011; Allowing angel investors to claim the entire 25 percent credit on their investment in the first taxable year; and, Permitting insurance companies to claim the venture…

The role of a technology incubator or accelerator for supporting nascent firms generally is regarded with the utmost importance by the tech-based economic development community. Tech incubators provide essential resources for startup companies to develop and commercialize new technologies, leading to the creation of high-quality jobs. With estimates suggesting there could be as many as 5,000 incubators of all shapes and sizes worldwide, finding the latest and best practices for tech business incubation could be a challenge. Fortunately, award programs, such as the currently open SSTI's 3rd Annual Excellence in TBED Award, can help call attention to some of the most successful approaches. The longest running award program for incubation is offered by the National Business Incubation Association (NBIA), which recently announced its top incubation programs, clients and graduates as part of its 2009 awards competition. San Jose BioCenter was named the 2009 Randall M. Whaley Incubator of the Year, the organization's most prestigious honor for technology incubators. The BioCenter and the six other award recipients were recognized at a ceremony during NBIA's 23rd annual…

Gov. Jim Doyle unveiled last week several proposals to boost university-based research and commercialization efforts in emerging fields and encourage private industry R&D and job growth through the creation of several new tax credits. The governor's 2009-11 biennial budget dedicates $8.2 million in FY11 to the Wisconsin Institute for Discovery for research in biotechnology, nanotechnology and information technology. First proposed by Gov. Doyle in 2004 as part of the Grow Wisconsin plan, the Institute was established to strengthen the state's position in science and technology (see the Nov. 22, 2004 issue of the Digest). A private donation of $50 million in 2006 launched the project, which was followed by a $50 million donation from the Wisconsin Alumni Research Foundation and matched by $50 million from the state. Construction is estimated to be completed in 2010. The budget also includes $8 million over the biennium to establish University of Wisconsin (UW) Bioenergy Initiatives at the Madison, Stevens Point and River Falls campuses. These initiatives will explore the potential of bioenergy through biomass process, converting biomass into energy products,…

Kentucky Highlands Investment Corporation has named Jim Carroll as director of its Center for Entrepreneurial Growth. Catapult Bio, a nonprofit organization designed to help transform emerging research discoveries into business opportunities, accelerating the commercialization of life sciences in Arizona, announced its official launch with a grant of up to $14 million from Abraxis Bioscience. Ohio Lt. Gov. Lee Fisher resigned as the state's development director to run for the U.S. Senate. Gov. Ted Strickland has named Mark Barbash, who had been the state's chief economic development officer and was the former Columbus development director, as interim state director. Fisher will continue in the position of lieutenant governor. The Michigan Economic Development Corporation announced, pending formal approval by the board of directors on Feb. 26, D. Gregory Main will replace James Epolito as president and CEO of the economic development organization effective April 1. Troy Runge has been named director of the Wisconsin Bioenergy Initiative, a public-private partnership in bioenergy research, outreach, training and economic development based in the…

Gov. Jim Doyle unveiled today an economic stimulus plan for Wisconsin that includes a proposal to enhance tax credits for angel and venture investors in support of start-up technology companies. A coalition assembled to improve Wisconsin's existing investor tax credits law applauded the governor's announcement to refine the four-year-old program. The Wisconsin Growth Capital Coalition, which is comprised of nearly 30 public/private TBED organizations and investment funds, have suggested specific improvements in Wisconsin's investor tax credits law to encourage angel and venture capitalists to invest in qualified early-stage deals. Wisconsin's investor tax credits law, sometimes known as the Act 255 tax credit law, currently grants 25 percent credits spread over two years. The program is credited with helping to nearly triple early-stage investments by angel investors and venture capitalists in Wisconsin companies since its enactment. In 2007, early-stage investments in Wisconsin reached $147 million, according to a report by the Wisconsin Angel Network, which found the dollars spread over scores of deals in high-growth businesses ranging from advanced…

Southern Growth hired Ted Abernathy, Jr., former Executive Vice President & COO of the Research Triangle Regional Partnership, to serve as its Executive Director, filling the vacancy created by Jim Clinton's resignation in September. The Minnesota Center for Engineering & Manufacturing Excellence has hired Ronald Bennett as executive director. The City of Virginia Beach Economic Development Department has hired Scott Hall to fill their newly created position of Business Development Coordinator. Marquette University has named Keith Osterhage as executive director for its office of research and sponsored programs. Mary Jo Waits is the new Director for NGA Center for Best Practices' Social, Economic & Workforce Programs Division within the National Governors Association. Dennis Yablonsky, secretary of the Pennsylvania Dept. of Community & Economic Development resigned effective Oct. 23. New Jersey Gov. Jon Corzine named Jerold Zaro as Chief of the Governor's Office of Economic Growth. Michigan Gov. Jennifer Granholm has reorganized the Department of Labor and Economic Growth and changed the department's name…

For several years governors across the country have announced life science and biotech initiatives that are as broad as they are large. The devil is in the details, and in most cases related to bio-based economic development, so are the opportunities. Participants in SSTI's 12th annual conference last week were reminded targeted investments in specialized areas related to merging existing life science and other technological strengths in a region are likely to have the greatest economic impact. Over the past few weeks, two new initiatives were announced - one in Northeast Ohio and one in Wisconsin - highlighting more focused approaches to building research and commercialization capabilities within multiple industries through advances in the life sciences. The partners forming the BioInnovation Institute at Akron have committed in aggregate more than $80 million to create various research, education, and commercialization projects based upon the intersections of materials science and biotechnology. These projects will include the Orthopedic Research Institute of Northeastern Ohio, the Center for Biomaterials and Medicine at the University of Akron, a medical…

Technology-focused incubators are an important component to fostering entrepreneurial development in a region by nurturing businesses in the earliest stages of development and helping them grow into larger companies that employ high-wage workers and bring new technologies to the market. The following select announcements provide an overview of new incubators from across the nation, illustrating the vital role of entrepreneurial development in growing high-tech regional economies. Ann Arbor Spark announced last month a new location for its proposed business incubator in downtown Ypsilanti, reports the Ann Arbor News. The 8,500-square-foot incubator, which is expected to open in December, will provide space for 10 start-up technology companies for two years, the article states. Battle Creek Unlimited announced in August they are developing a virtual incubator as a Web 2.0 network to match high-tech start-up companies with universities and public entities. With partial funding from the Michigan Economic Development Corporation, the virtual incubator will offer services including quick access to resources, business progress monitoring, and the ability…

John Hindman announced his resignation as secretary of the Kentucky Cabinet for Economic Development. Governor Rick Perry recently announced Alan Kirchhoff of Austin has been promoted to director of Texas Emerging Technology Fund (TETF). Kirchhoff replaces longtime Perry advisor and former TETF director Mark Ellison, who left the Governor's Office to become associate vice chancellor of economic development for the Texas A&M University System beginning Oct. 1, 2008. Governor Jim Doyle appointed Richard Leinenkugel of the Jacob Leinenkugel Brewing family as his Commerce secretary. Thomas Peterson, dean of the College of Engineering at the University of Arizona, has been selected as the new assistant director of the National Science Foundation's Directorate for Engineering. Elias Zerhouni, the director of the National Institutes of Health, announced his plans to step down at the end of October 2008.

As many stories in this issue of the Digest point out, academic institutions serve a critical role in performing R&D for the nation’s innovation pipeline. While most of the attention of national policymakers is directed toward the size of federal and industrial investments in R&D, the burden of financing the infrastructure to support much of that research activity falls on states and institutions of higher education. And that burden has a steep price tag. For instance, in late August, the School of Medicine and Public Health at the University of Wisconsin-Madison officially opened the first tower of the Wisconsin Institutes for Medical Research (WIMR), an estimated $600 million three-tower project which will house 1,500 lab workers by 2015. This first tower is devoted to interdisciplinary work studying cancer, with five floors dedicated to varying fields of cancer research, one floor for core laboratory equipment, one floor of outpatient radiotherapy, and one floor for the medical physics department which will concentrate on medical imaging. Now under construction, the second tower will concentrate its efforts on cardiovascular disease,…