Lawmakers in Idaho, Iowa and South Dakota recently passed budgets for the upcoming fiscal year providing funds to help stabilize higher education funding, support research projects related to renewable energy R&D, and provide temporary operational support for an underground deep science laboratory.
Idaho
Nine national organizations, including SSTI, have joined the Angel Capital Association in seeking revisions to the Financial Reform Bill, which will be debated soon in the U.S. Senate. In its current form, the bill could shrink the pool of accredited U.S. investor and complicate cross-state investment (see the March 31, 2010 issue). The petitioning organizations ask that two small sections pertaining to accredited investors be removed or modified to prevent unnecessary obstacles to angel investing and entrepreneurship.
Gov. Bev Perdue last week announced a number of proposals designed to grow the state's economy and create jobs by focusing on the small business sector. The JobsNOW Small Business Assistance Package involves three areas of assistance, including tax incentives, statewide support for small businesses, and expanding the N.C. business preference to help small businesses compete for state contracts.
Saving the state an estimated $93 million a year, Hawaii House and Senate negotiators agreed to suspend the High-Tech Tax Credit, known as Act 221, for three years, reports the Honolulu Advertiser. Lawmakers also agreed to repeal the tax credits in May rather than at the end of December, the article states.
On March 30, the Small Business Administration (SBA) issued a Notice of Final Amendments to the Small Business Innovation Research Program (SBIR) Policy Directive increasing the SBIR Program award threshold to $150,000 for Phase I, up from $100,000, and $1 million for Phase II, up from $750,000. The current award threshold has not been adjusted since 1992 when Congress reauthorized the program's legislation. SBA received only two public comments, both supporting the proposed amendments, between August and September 2008.
The Federal Communications Commission suffered a setback recently when a federal court ruled that the commission lacked the authority to regulate telecommunication companies' interference with customers' communications over the Internet. Without that authority, the FCC will not be able to enforce net neutrality, a concept that was to play a major role in the commission's National Broadband Plan. That plan set the goal of connecting 100 million homes to high-speed broadband by 2010 (see the March 17, 2010 issue).
California Gov. Arnold Schwarzenegger signed an executive order establishing the Governor's Office of Economic Development and appointed Joel Ayala as the director of the new office.
A growing number of state governments face revenue uncertainties in the near future. More than half now expect budget deficits and shortfalls in the upcoming fiscal year and beyond. Despite the bleak outlook, however, legislators nationwide are continuing to invest in science and technology with many lawmakers projecting high returns to their state in the coming years. Following are highlights of TBED investments and reductions in recently approved budgets in Kentucky, Maine and Nebraska.
Kentucky
Legislators passed the fiscal year 2008-09 budget last week, increasing spending by 4.9 percent over last year and investing in New York’s Upstate economy despite projected shortfalls for several years to come.
In a deal ironed out earlier this month by Gov. Ted Strickland and legislative leaders, the state will move forward with an economic stimulus plan that borrows far less than the governor’s original proposal while using existing state revenue such as tobacco settlement funds to supplement the plan – a move that has prompted legislative action to secure control of the tobacco funds.
Many state and regional TBED organizations see federal laboratories as an integral partner in their efforts to promote technology development and commercialization. At least 22 of the leading state TBED organizations across the country have established partnerships with at least one federal laboratory to address a broad range of goals, according to a recent SSTI survey.
SSTI Gives Readers Closer Look at the Data
The U.S. lags behind many of its G-20 partners in clean energy finance and investment, according to a new study by the Pew Charitable Trusts. Many factors, including a tight credit market and the lack of a strong national framework for clean energy funding, are cited as contributing to the U.S.'s declining position in the ranks for total investment and investment intensity. As of 2009, China has taken the U.S.'s former top spot in overall clean energy investment, dedicating $34.6 billion to the sector. Spain leads the G-20 nation's in investment intensity, while the U.S. ranks 11th.
Sweden replaced Denmark as the world's most networked economy and the U.S. fell two spots to fifth place in the Global Information Technology Report 2009-10 rankings. The report, released last week by the World Economic Forum, finds that the U.S. boasts a very conducive information and communication technologies (ICT) environment because of intensive competition, excellent infrastructure and top-notch education. Aspects of the U.S. performance which show margins for improvement include high tax rates, excessive red tape, and a poor general regulatory framework.
Gov. Arnold Schwarzenegger last week signed a bill creating a sales tax exemption for equipment used by clean-tech manufacturers — a measure the governor hopes will attract entrepreneurs investing in the clean energy sector. SB 71 is part of the governor's $500 million jobs initiative announced during his State of the State address that aims to train up to 140,000 workers create 100,000 jobs.
David Onley, Ontario's Lieutenant Governor, announced earlier this month a plan to add space in colleges and universities for 20,000 students this year with the goal of raising Ontario's postsecondary enrollment rate to 70 percent. The plan also includes the creation of a new Ontario Online Institute and the development of a strategy to improve the quality of Ontario's postsecondary education system with input from leaders in education and business.
The United Kingdom's new space agency will begin operations on April 1. The UK Space Agency will consolidate the U.K.'s civil space efforts and spur activity within the aerospace technology sector. A new $60.3 million International Space Innovation Centre within the European Space Agency facility also was announced. More information is available at: http://www.bnsc.gov.uk
The Minnesota legislature has passed a 25 percent tax credit for individuals and pooled funds that invest in early-stage high-tech businesses as part of a new jobs bill. Up to $17 million in tax credits will be available in FY11, with $12 million a year available in FY12 and afterward. The credits apply to investments in companies with fewer than 25 employees and less than $2 million in private capital.
SSTI's interview with Bob Starzynski of Innovation Works' Innovation Adoption Grant Fund, 2009 recipient of the Excellence in TBED Award in the category Improving Competitiveness of Existing Industries, provides an honest, in-depth account of best practices and lessons learned that earned this program national recognition. Click here to listen to the interview and learn more about the program.
Bryan Allinson has joined Ohio University as director of technology transfer.
The $29.3 billion total spending plan for FY11 outlined last week by Gov. Chris Christie eliminates or significantly reduces funding for business incentive programs, including InvestNJ and funding for high-tech business tax credits. In place of the programs, the New Jersey Partnership for Action would be established as a new one-stop-shop to assist businesses in relocation, retention and incentive development.
Gov. Chet Culver last week signed legislation creating the Iowa Innovation Council to advise the state's Department of Economic Development on policies that enhance innovation and entrepreneurship in high-growth industries such as advanced manufacturing, bioscience, and information technology. The council will be led by a group of volunteer private business leaders with expertise in the targeted industry sectors and charged with creating a strategic plan for implementing specific policies and coordinating state government applications for federal funds related to R&D.
The Governors' Wind Energy Coalition, a group of 29 U.S. governors, recently released a list of recommendations for Congressional action to spur the development of the wind energy industry. Recommendations include a renewable electricity standard, funding for an interstate electric transmission system and an expansion of the Department of Energy's support for state programs. The group notes that these goals line up closely with the American Clean Energy and Security Act of 2009, which passed in the House of Representatives last year and is now under review in the Senate.
A group of inventors, academics and researchers presented an aspirational list of inventors' rights at the Association of University Technology Managers (AUTM) Annual Meeting held last week. The Academic Inventors' Bill of Rights includes protections for researchers and students to prevent onerous university intellectual property policies and lack of transparency from preventing successful commercialization. The full document will be available later this week at: http://www.ipadvocate.org/
SSTI, a growing nonprofit organization serving the nation's tech-based economic development (TBED) community, seeks an entry-level policy analyst to research and prepare reports, articles and papers on TBED and assist with SSTI events. Excellent research abilities, strong writing and verbal skills and solid understanding of government are required. Candidates must have the ability to work independently or as part of a committed team and be dedicated to creating a quality product.