Two private venture firms have committed to raising a total of $125 million to invest in rural, early stage startups under the Department of Agriculture's Rural Business Investment Program. The program was launched last April, when Advantage Capital Partners launched the first $150 million Rural Business Investment Company (RBIC) fund.
Georgia lawmakers have approved a $40 billion FY16 state budget (HB 76), which is now awaiting the signature of Gov. Nathan Deal. The governor has line-item veto authority over the final document, but most appropriations related to innovation and economic development are consistent with the governor's proposed levels.
The National Telecommunications and Information Administration (NTIA), located within the U.S. Department of Commerce, announced that their closing deadline to submit nominations for the Digital Economy Board of Advisors has been extended to January 12, 2016.
As recently reported in the SSTI Digest, Congressional leaders were able to reach an agreement on federal spending that averted a government shutdown. The FY16 omnibus appropriations legislation and an accompanying bill related to tax provisions were signed by President Obama on December 18.
The U.S. Department of Commerce's National Institute of Standards and Technology (NIST) plans to fund up to two new institutes within the National Network for Manufacturing Innovation (NNMI). NIST's solicitation will be the first in which the funding agency has not predetermined the industry of focus for the institute, however, the agency is particularly interested in topics deemed critical by the President's Council of Advisors on Science and Technology (PCAST) Advanced Manufacturing Partnership. These include manufacturing robotics and biopharmaceutical manufacturing.
While many states have begun negotiations on budget plans for FY17 and beyond, Pennsylvania has made some progress on FY16 spending. Gov. Tom Wolf signed a partial budget that funded many agencies and programs related to economic development, but that did not include higher education funding and other operations. In the coming months, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Hawaii, New Mexico, Pennsylvania and Virginia.
Angel group valuations and deals continued to rise through the third quarter of 2015, according to the most recent HALO Report, a publication of the Angel Resource Institute at Willamette University in Oregon. While median angel-only round sizes were $500,000 in both the first and second quarters of 2015, the third quarter saw this amount increase 45 percent to $725,000.
Around the world, entrepreneurship education continues to permeate schools, nonprofits, economic development organizations, and college campuses. At the root of this momentum is a belief that entrepreneurship can be taught to anybody, regardless of their innate skills. This Recent Research article presents new conclusions that suggest individuals can learn entrepreneurship by being exposed to other entrepreneurs. In other words, both nature and nurture contribute to the likelihood one becomes an entrepreneur.
The Indianapolis-based Lilly Endowment announced three grants totaling $42 million to boost regional development efforts in 11 counties located in Southwest-Central Indiana with a focus on research and development, workforce and education, and efforts to enhance quality of life.
In late 2015, the U.S. Securities and Exchange Commission (SEC) released two rule changes that may shape the future of equity investments in startups and small businesses. The two new rules directly address issues related to the accreditation of investors – an important element of the angel investment ecosystem that has long driven early stage investments in startups. In December, the SEC released a report on proposed changes to the definition of accredited investors.
As top tech-hubs like California’s Bay Area become increasingly unaffordable, a new Jones Lang LaSalle report finds evidence that secondary markets will continue to experience accelerated industry growth.
In the days leading up to his final State of the Union Address, President Obama hinted that in lieu of the usual wishlist of policy proposals he would lay out his take on the issues that will define American public life over the next few decades. These issues took the form of four big questions, the first two of which directly relate to the work of tech-based economic development professionals.
Even though the total amount invested by venture capitalists (VCs) grew for the fourth straight year to nearly $77.3 invested, Pitchbook analysts contend that 2014/2015 was the peak of the VC industry for the foreseeable future. While high valuations drove up the total amount invested, the number of deals plummeted during the second half of 2015 according to new data from Pitchbook. In addition to insights from Pitchbook, other analysts contend that the declining trends of 2015 should remain through 2016.
Throughout the Great Recession, numerous stories from sources like The Wall Street Journal pointed to the idea of the overeducated and underemployed recent college graduate as a symbol of the economic times. While some recent graduates were able to find work in their respective fields, many did indeed struggle.
With the start of the new year, many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Idaho, Iowa and New York.
AT&T has announced a new partnership with three U.S. metros to establish a Smart Cities Framework using Internet of Things (IoT) innovations to create solutions for cities. In the first stage of the effort, Atlanta, Chicago, and Dallas will showcase the potential use of sensors and other Internet-connected technologies to improve municipal services. In addition to existing services offered by AT&T, the new framework adds several new services in four categories: infrastructure; citizen engagement; transportation; and, public safety.
In "Advantage: How American Innovation can Overcome the Asian Challenge," Adam Segal contends the U.S. will continue to maintain a comparative advantage in innovation over Asia due to the "software" of innovation. The "software" of innovation revolves around the political social and institutional factors that move ideas from the lab to the market place. America's cultural values of individualism, social mobility, entrepreneurship, limited barriers to market access and low risk-aversion provide it a significant advantage over our Asian competitors.
SSTI Board member Phillip Singerman has been named as the Associate Director for Innovation and Industry Services for the National Institute of Standards and Technology. He will assume this position on January 31.
Alabama Gov.-elect Robert Bentley named former house speaker Seth Hammett as the director of the Alabama Development Office.
The second installment of SSTI's Tech Talkin' Govs' series includes excerpts from speeches delivered in Arkansas, Connecticut, Idaho, Kansas, New Hampshire, Virginia, Washington, and Wyoming. Our first installment was in the Jan. 5 Digest.
New Jersey lawmakers last week approved several bills as part of the "Back to Work NJ" economic development and jobs plan proposed by Democratic legislative leaders. Among the measures approved is The New Jersey Angel Investor Tax Credit Act (S.2454) providing incentives to taxpayers who invest in emerging technology companies. Gov. Chris Christie has yet to take action on the package of the bills, which could cost the state up to $805 million in business subsidies and lost corporate tax revenue in the coming fiscal year, reports New Jersey Newsroom.
A recent Brookings Institution report looks at the nearly 30-year impact of manufacturing's global realignment on US metropolitan areas, finding those with the highest dependence on manufacturing were impacted in several negative ways in addition to the losses in manufacturing. In particular, the resilience of the most manufacturing-centered economies — their ability to transition employment into other sectors — was particularly poor, many experiencing below national average growth in jobs and wages.
The State of Wisconsin Investment Board (SWIB), on of the largest public pension funds in the country, plans to invest $80 million in a new "Catalyst Portfolio", intended to create profitable returns from venture investments and to attract the attention of coastal venture firms. SWIB intends to use to funds to invest in one or more venture funds, likely through a firm on the East or West coast. That investment would allow the board to act as a matchmaker between large investors in other states and Wisconsin's investor community.
Communities that are well-loved by their residents are more likely to experience strong economic growth and long-term prosperity , according to a new Gallup and Knight Foundation study noted by C2ER. Researchers have hypothesized that the relationship is causal, since community attachment can drive residents to make long-term, local investments and pursue other activities that bolster economic growth, such as entrepreneurship.
Ann Arbor SPARK is seeking qualified applicants to become their next CEO. The CEO will be responsible for continuing the momentum and positioning SPARK as a key leader in economic development. The ideal candidate has demonstrated P&L experience, preferably as a CEO; can build and manage a high performance team; has outstanding communication skills; has a strong financial and fundraising skillset and experience base; is able to quickly and effectively develop strong partnerships and relationships.
Maine Governor Paul LePage named Phillip Congdon as the new commissioner of the Department of Economic and Community Development. Cogndon is a licensed professional engineer who spent more than 20 years with Texas Instruments in Dallas. He replaces Acting Commissioner Thaxter Trafton.