SSTI Digest

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.

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.

President Bush announced he will nominate Assistant Secretary of Commerce Sandy Baruah to serve as the administrator of the Small Business Administration.

The Rensselaer County Regional Chamber of Commerce has created the Economic Development Partnership to help businesses relocate to or expand in the county.

Barbara Fleisner has been hired as executive director of Centergy, the Central Wisconsin Alliance for Economic Development.

Dr. Lee Herron has joined the Georgia Research Alliance (GRA) as vice president of commercialization. Herron previously was general manager, Biosciences, for the Advanced Technology Development Center.

Linden Rhoads was named vice provost of the University of Washington's TechTransfer department. Rhoads replace Jim Severson, who left to join a start-up company.

Lori Broyles was appointed coordinator of the Women's Business Center in Oklahoma City.

Gov. Jim Doyle announced two new initiatives focusing on investments in manufacturing R&D and increasing angel and venture capital investment to grow new businesses.   With the goal of remaining globally competitive, the governor’s new Innovate Wisconsin initiative offers tax incentives to encourage manufacturers to increase R&D. Specifically, the plan calls for new ‘Innovate’ tax credits that are given to companies who increase spending on R&D by 25 percent over their three-year average. Companies would receive a $1 tax credit for every $1 spent above this threshold, which is capped at 50 percent of its tax liability, according to the governor’s office. Additionally, the plan calls for machines and equipment used in manufacturing R&D to be exempt from sales and property tax.  

Nearly four months into the current fiscal year, Wisconsin Gov. Jim Doyle signed into law the biennial 2007-09 budget last week, investing in renewable energy, university R&D and expanding tax credits to attract angel and venture capital investment.   The enacted budget includes $15 million in fiscal year 2008-09 for a renewable energy grant and loan program -- about half of the governor’s recommendation (see the Feb. 19, 2007 issue of the Digest). The program authorizes the Department of Commerce to award a grant or loan to a business or researcher to fund R&D, including demonstration projects into renewable energy technologies, development of renewable energy sources and infrastructure, the commercial application of renewable energy technology sources, and construction of one or more cellulosic ethanol production plants.  

Colin Scanes is the new vice chancellor for research and economic development at the University of Wisconsin-Milwaukee. Scanes formerly was the chief economic development strategist at Mississippi State University.

Like many states, Wisconsin has struggled to attract consistent attention from the national venture capital industry. Capital can be especially difficult to obtain in the state, since entrepreneurs with limited resources are often unable to participate in the expensive and complicated process of presenting their cases to venture capital firms based on the coasts. To address this market failure, Wisconsin has established several programs to encourage the formation of local venture and angel capital groups and incentives for in-state equity investment.

Craig Heim was named licensing manager for start-up companies at the Wisconsin Alumni Research Foundation.

John Gee was named president and CEO of the Information Technology Association of Wisconsin.

Jim Rice, with the Information Technology Association of Wisconsin, announced his departure as the organization’s first president.