SSTI Digest

In the midst of a national economic recession contributing to a record number of job losses in traditional industries, forward thinking states are exploring ideas and committing funds to help grow and diversify their economies and strengthen their renewable energy portfolios.

Over the past several months, governors, legislators and economic development groups have announced new initiatives aimed at job growth and energy independence in the new economy. The following overview provides a sampling of green energy initiatives and investments from numerous proposals and announcements across the nation.

One of the biggest challenges for green technologies and products is breaking into the market. Achieving the critical mass that allows production volume to drive down prices is difficult, particularly when the commodity being sold is, at least initially, more expensive to make because more of the actual cost of production is captured in the green company's business model.

Successful state, university and local TBED strategies to grow green(er) companies help fund product demonstrations and early adoption strategies to help with market penetration.  In Toronto, a broad group of CEOs took matters into their own hands. 

On March 12 from 1:00-5:00 p.m. in San Francisco, SSTI is co-hosting a meeting with officials from the Technology Innovation Program (TIP) and the Manufacturing Extension Partnership (MEP) that we would encourage you or one of your colleagues to attend. TIP and MEP are two of the most market-driven programs operated by the federal government. Both programs have launched new investments and innovative services in the last year.

Registration and additional information is available at: http://www.ssti.org/tipreg/tipreg.htm.

On March 12 from 1:00-5:00 p.m. in San Francisco, SSTI is co-hosting a meeting with officials from the Technology Innovation Program (TIP) and the Manufacturing Extension Partnership (MEP) that we would encourage you or one of your colleagues to attend. TIP and MEP are two of the most market-driven programs operated by the federal government. Both programs have launched new investments and innovative services in the last year. The meeting will give you a chance to learn about:

New federal funding opportunities; New resources to support early-stage research; New products and services to expand manufacturing; New tools to help foster growth and innovation in companies you work with; New models to accelerate technology commercialization and translation; and New ideas about ways to integrate state, local,and federal investments.

Who should attend?

Massachusetts Gov. Deval Patrick's secretary of Housing and Economic Development, Daniel O'Connell, resigned for personal reasons and was replaced by Greg Bialecki, an undersecretary who has been responsible for business development

SRI International announced that Stephen Ciesinski has been appointed Vice President of Strategic Business Development.

John Fremstad has left his post at the Metro Orlando Economic Development Commission to join the BE&K Building Group.

Gov. Jim Douglas plans to merge the Vermont Departments of Economic Development and Housing and Community Affairs.

Oregon Oregon Governor Ted Kulongoski has unveiled a suite of policies to address global climate change and support the state's renewable energy and clean technology industries. His proposals include instituting a cap and trade system for carbon emissions, improving the energy efficiency of commercial and residential construction, and tax credits for energy-conscious investments. The governor hopes to see the climate plan passed by the legislature in the coming year.

The outcome of Tuesday's election resulted in several wins and some defeats for TBED among the more than 150 ballot measures presented to voters across the nation. Outlined below are the unofficial election results of select ballot measures from each state's respective election office and local media reports as of Wednesday, Nov. 5. More detailed information on the measures is provided in last week's issue of the Digest, which is available at: http://www.ssti.org/Digest/2008/102908.htm#election.

Arkansas Voters approved 63 percent to 37 percent a constitutional amendment authorizing the General Assembly to establish, operate and regulate state lotteries to fund scholarships and grants for residents enrolled in two- and four-year colleges and universities in the state. Voters also approved a measure to shift the state's budgeting from a two-year cycle to an annual cycle.

While the Presidential election takes center stage on November 4, voters in several states also will cast their votes on statewide ballot issues affecting the TBED community. In addition to the 11 gubernatorial races and more than 5,800 state legislative seats up for grabs, voters across the nation will consider measures to provide funding for public education, expand investment in alternative and renewable energy, lift restrictions on stem-cell research, and eliminate income tax and state spending caps. Following is a summary of selected ballot issues from across the nation.

Funding Public Education

Florida Florida voters will be asked to amend the state constitution to require that the legislature authorize counties to levy a local option sales tax to supplement funding for public community colleges. Ballot question 8 requires voter approval to levy the tax.

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.

Even in the venture capital-rich state of California during a boom period for clean energy investment, some clean energy entrepreneurs still have a hard time finding the capital resources they desire. As a result, one non-profit venture capital group, with a unique history of its own, is launching a new effort to support early-stage businesses. The California Clean Energy Fund (CalCEF) is currently helping to raise a $20 million angel fund to bridge a perceived gap in seed and start-up stage capital availability. Despite the rapid growth of clean energy investment in the past two years, CalCEF believes that early-stage investment is not yet sufficient to ensure a steady stream of high-quality investments at later stage of development.

According to National Science Foundation (NSF) data released two weeks ago, companies spent in aggregate $247.7 billion on R&D expenditures performed in the U.S. in 2006. Leading the nation was California, with $58.4 billion in industrial R&D, followed by Michigan ($16.5 billion), Massachusetts ($15.6 billion), New Jersey ($14.6 billion), and Texas ($13.3 billion).   SSTI has prepared a table presenting the state rankings for industrial R&D performed in 2006, the per-state gross state product in 2006, and each state's industrial R&D intensity. The industrial R&D intensity is the ratio of industry-based R&D to the gross state product.   Using these calculations, Massachusetts experienced the largest industrial R&D intensity in 2006, at 4.64 percent. This was followed by Michigan (4.38 percent), Connecticut (4.04 percent), Washington (3.89 percent), and California (3.35 percent). The industrial R&D intensity for the U.S. as a whole was calculated to be 1.89 percent.