Gov. Martin O'Malley last week unveiled details of his proposed $100 million venture fund announced last year during his re-election campaign as an initiative to grow the state's knowledge-based industries, particularly within the life sciences sector (see the June 9, 2010 issue of the Digest).
Funding for university-based research initiatives would be cut significantly under Gov. Nathan Deal's proposed FY12 budget as the governor aims to close a projected deficit of nearly $1 billion. The Georgia Research Alliance (GRA), a nationally recognized model for creating and sustaining tech-based economies, would receive $4.5 million in FY12, a 75 percent reduction from the current year. The governor's budget also would transfer GRA funds to the Department of Economic Development, a move that would align TBED with the state's more traditional economic development efforts.
While seeking to spur economic growth through new investments in university-based research, Gov. Sam Brownback also proposes to consolidate the efforts of a longstanding program recognized for creating high-wage jobs and diversifying the state's economy. Under the governor's FY12 budget proposal, many of the programs currently managed by the Kansas Technology Enterprise Corporation (KTEC), which provides dedicated support for researchers, entrepreneurs and technology companies, would be transferred to the Department of Commerce.
With no significant boost in funding for Michigan's economic development efforts proposed in the executive budget, Gov. Rick Snyder outlined steps to reform the way businesses are incentivized and modify the state's approach to job creation by better supporting local and regional initiatives as a means to transform the state's economy.
Governors in several states recently unveiled spending proposals for the upcoming fiscal year or biennium. While fiscal conditions in most states remain fragile, new or continuing investments focused on science, technology and innovation were introduced as pro-growth measures to aid in states' recovery efforts. With the exception of New York Gov. Andrew Cuomo's ambitious economic development plan (see the Jan. 9 issue of the Digest), most of the proposals were on the modest side.
Last week, the SSTI Weekly Digest offered an overview of the many TBED-focused tax incentives currently under consideration in a number of state legislatures. Tax credits for research and development and for angel capital investment, in particular, appear to be under consideration in many parts of the country. At the same time, there appears to be a renewed emphasis on transparency in the operation and effectiveness of these kinds of tax credits.
Voters in 37 states will decide on more than 170 ballot measures this year, many of which are related to tech-based economic development (TBED). Tax measures seem to be dominating ballots this year, with questions relating to both decreases and increases for sales, property and income taxes. Several states are counting on voters to agree to temporary increases to help fill budget deficits and ensure steady funding for education.
Maryland's Innovation Initiative (MII), launched earlier this year, unveiled two inaugural programs on Monday aimed at commercializing technologies at the state's universities. The new Innovation Discovery Program will help universities identify promising technologies and potential collaborations by reimbursing them for the costs of employing on-site, part-time "site miners." The Innovation Commercialization Program will provide cash awards to support research, commercialization planning and product development.
As evidenced in the recent presidential debates and on the campaign trails, STEM teaching and learning is a national priority for maintaining global competiveness. Several universities and foundations have taken the lead, working with partners to design innovative learning tools and create research-based, professional development support for new math and science teachers.
As the rate of foreign students earning doctorates from American universities increases — from 17 percent of the total science, engineering, and health doctoral degrees in the 1960s to nearly 40 percent in 2010 — the question is where do these foreign nationals seek work? Do they remain in the United States post-graduation or do they return to their country of origin or do they go elsewhere?
While election night's main focus was on the presidential race, the importance of ballot measures for states and metros is growing as public services and budgets are being severely trimmed. A recent article in The New Republic reports on a new trend where states are embracing ballot measures as a potential source of dedicated funds for targeted investments in regional economic growth and development.
Ahead of the 2013 legislative sessions, groups in Florida and Wisconsin unveiled reports on revamping higher education to better fulfill workforce needs and strengthening sectors most likely to produce jobs. In Florida, Gov. Rick Scott's Blue Ribbon Task Force on Higher Education urged differentiated tuition making it more affordable for students to pursue in-demand careers.
With $130 million in funding from the U.S. Agency for International Development (USAID), seven universities will establish development labs to address global development challenges through science and technology in partnership with agency experts and policymakers.
Performance-based funding for higher education has emerged as a top policy recommendation for addressing concerns ranging from accountability and affordability to helping keep states economically competitive. In states that already have performance-based funding in place, such as Pennsylvania and Ohio, efforts to revise and expand the programs are underway.
In FY11, the top 30 U.S. research universities accounted for over 40 percent (approximately $26.1 billion) of total academic R&D spending in 2011, according to survey data collected by the National Science Foundation. The other 882 universities surveyed accounted for approximately $39 billion of the total academic R&D spending for the 2011 fiscal year (approximately $65.1B billion). The Higher Education Research and Development Survey population also increased from 742 universities in 2010 to 912 in 2011.
Undergraduate alumni from the top 10 universities for venture capital-backed (VC-backed) entrepreneurs launched over 3,000 companies that were able to attract $33.5 billion in VC funding from 2010 to 2015, according to the third edition of PitchBook’s Universities Report 2015-2016 Edition. Four public research institutions, UC-Berkeley, University of Michigan, University of Texas, and University of Illinois, finished in the top 10.
North Carolina Gov. Pat McCrory recently signed an economic development bill (HB 117) that would expand the operations of the state’s Job Development Investment Grant (JDIG) fund. The fund, which offers grants to companies for job creation and expansion, will have a higher annual cap, and a contingency to offer even more funds in years in which a “high-yield project” is supported.
Despite the important role that small- and medium-sized businesses play in job creation and economic growth, economic development incentives are consistently awarded to large companies, according to a report by Good Jobs First with support from both the Surdna Foundation and the Ewing Marion Kauffman Foundation.
Findings suggest that – in certain market segments – investors might not need to expect lower returns as a tradeoff for impact, according to a new study from the Wharton School of the University of Pennsylvania – Great Expectations: Mission Preservation and Financial Performance in Impact Investments. In the study, researchers look at two of the most important aspects of impact investing: financial returns and long-term impact.
On December 4, the Canadian government revealed their national Science and Technology (S&T) Strategy – Seizing Canada's Moment: Moving Forward in Science, Technology and Innovation 2014. An update to the original report released in 2007, the S&T strategy identifies five priority research areas for federal support over the next seven years: environment and agriculture; health and life sciences; natural resources and energy; information and communications technology; and, advanced manufacturing.
Last week, the U.S. Small Business Administration (SBA) released a combined synopsis/solicitation with the intention of awarding up to three contracts for entities to head regional innovation cluster initiatives. SBA intends to make three awards including one to an entity that will provide cluster initiative services to a community affected by changes in the coal economy.
In FY13, federal agencies obligated $29 billion to 995 academic institutions for science and engineering (S&E) activities, according to a recent National Science Foundation (NSF) InfoBrief. The FY13 federal obligation represented a 6 percent decrease in current dollars from the $31 billion that federal agencies obligated to 1,073 academic institutions in FY12 – the third year in a row of declining S&E funding to academic institutions.
Although every state delivers tax incentives for economic development, there are numerous inconsistencies in how these incentives are evaluated.
The Signature Report, an annual report on college completion conducted by researchers at the National Student Clearinghouse Research Center and Indiana University’s Project on Academic Success, identifies six-year student success outcomes and college completion rates by state for the cohort that began post-secondary education in fall 2008.