Maine's 2010 legislative session wrapped up last week, ending on a relatively high note for tech-based economic development (TBED). Actions supporting TBED include a measure signed by Gov. John Baldacci to encourage venture capital investment in innovative companies and the legislature's approval of a bond package that includes $11 million for ocean wind energy demonstration sites through the University of Maine System.
Maryland legislators recently passed the FY11 budget, allocating $10.4 million for stem cell research and $8 million for tax credits for biotechnology companies. Many of the appropriations follow closely in line with Gov. Martin O'Malley's recommendations, which aim to support the Maryland BIO 2020 initiative, a statewide plan investing in biotechnology over 10 years.
Venture capital (VC) funds that invest in rural and low-income regions can be as successful as those in tech-oriented metropolitan regions if they are large enough to attract high-quality deals and provide follow-on funding, according to a recent report published through the Ford Foundation's Wealth Creation in Rural Communities project.
The Office of Science and Technology Policy and the National Economic Council have extended the comment deadline for their request for information (RFI) on the commercialization of university research and proof-of-concept centers (see the March 31, 2010 issue). The new deadline is May 26. Read the announcement and original RFI ...
On Tuesday, voters approved a four-year, $700 million bond to extend funding for the Ohio Third Frontier initiative through 2016. Established in 2002, the initiative offers programs for emerging and established high-tech companies, including grants for pre-seed funding, research initiatives, product development and commercialization. Read more about the program ...
A competition aimed at helping move innovative ideas from the lab into the marketplace was announced this week by the U.S. Department of Commerce's Office of Innovation and Entrepreneurship and Economic Development Administration (EDA). In partnership with the National Institutes of Health and the National Science Foundation, EDA will award $1 million each to six teams across the nation with the most innovative ideas to drive technology commercialization and entrepreneurship. NSF will award $6 million to SBIR grantees associated with the winning teams.
During the debates over the Patient Protection and Affordable Care Act, also known as the Health Care Reform Bill, there was much discussion of whether or not reform would hinder innovation in pharmaceuticals and medicine. As a result, the final legislation included some measures to support research and commercialization in the life science. One such measure, the Therapeutic Discovery Project Credit, offers a 50 percent tax credit or cash grant for qualifying research projects and small- and medium-sized companies.
CEOs and directors of some of the nation's most successful TBED organizations agree... SSTI's Excellence in TBED Award is great way to distinguish your initiative as a best practice and inform key stakeholders of your success. In today's economic climate, we know the importance of effectively communicating the value of your program, and having national recognition to back it up can give you a competitive edge. SSTI now is accepting applications for the 2010 Excellence in TBED Awards, and we want to hear your story. Deadline to apply is June 1.
A recent report from the National Science Foundation (NSF) shows that funding for general science and basic research grew by 17.5 percent between 2008 and 2010. The report divides federal R&D funding into 20 categories defined by their function. Basic research comprises 7.2 percent of the proposed FY10 budget, up from 6.2 percent in the actual FY08 budget. Meanwhile, national defense, the leading target of federal R&D funding, dropped from 59 percent of total funding to 57 percent. Read the report ...
At the close of the 2010 legislative session in Minnesota this week, several initiatives supporting the state's tech-based economic development agenda were enacted into law. To help make the state more competitive, the Minnesota Science and Technology Authority was established to develop and implement a comprehensive strategy for growing the state's economy through investments in science, technology and innovation.
Wisconsin Governor Jim Doyle recently signed several economic development bills intended to spur job creation and high-tech development. The new legislation authorizes additional job creation tax credits, expands the state's enterprise zones program and establishes new incentives for angel investors. Key among the bills is Wisconsin's CORE Jobs Act, which creates and expands a number of tax credits, loan and grant programs for manufacturing, R&D and venture capital investment.
Gov. Jan Brewer last week signed a measure modifying Arizona's existing R&D tax credit legislation to allow for small businesses to collect discounted refunds on R&D tax credits already earned. The measure is hailed as an important tool for providing small, tech-based companies with access to capital. Read the Arizona Technology Council press release ...
After a difficult 2008, venture capital returns improved slightly at the end of last year. Returns reached 3.3 percent in the fourth quarter of 2009 and 3 percent for the year, after falling 16.5 percent during 2008. Though the three-, five- and ten-year figures remain discouraging, the National Venture Capital Association reports that returns have continued to improve in 2010. Read the NVCA release ...
Wisconsin Governor Jim Doyle recently signed several economic development bills intended to spur job creation and high-tech development. The new legislation authorizes additional job creation tax credits, expands the state's enterprise zones program and establishes new incentives for angel investors. Key among the bills is Wisconsin's CORE Jobs Act, which creates and expands a number of tax credits, loan and grant programs for manufacturing, R&D and venture capital investment.
Lawmakers in Georgia and Kansas recently approved scaled-back funding for their states' respective tech-based economic development (TBED) programs in the coming fiscal year. Although many states are struggling to fill large deficits in the aftermath of a national economic downturn, funding for TBED initiatives, even at reduced levels, continues to be a priority for most states as a means to grow and diversify the economy.
Georgia
The Department of Health and Human Services, with the Department of Treasury, has released detailed guidelines for biotechnology companies interested in applying for the research tax credit introduced in the Health Care bill earlier this year. The Qualifying Therapeutic Discovery Project Credit provides a 50 percent income tax credit for investments in certified research projects made in 2009 and 2010. A total of $1 billion in credits will be available. Applications for certification must be submitted to the Internal Revenue Service (IRS) by July 21 for the primary allocation round.
The State of Washington led the country in 2007 in federal funding for industrial research and development (R&D), receiving $3.27 billion, according to the latest numbers from the National Science Foundation (NSF). While 42.3 percent of total federal R&D funding supported industrial R&D, 69.5 percent of federal funding in Washington went to private companies. Arizona, Maine, Connecticut, Nevada and Texas all received more than 65 percent of their federal R&D dollars in industrial support.
Maryland Governor Martin O'Malley recently announced a new effort to direct $100 million to public and private venture capital investors. The InvestMaryland program would offer insurance companies tax credits to generate the funds, which would either be invested directly in startup companies or in private venture firms. Governor O'Malley's current proposal would provide $50 million to the Maryland Venture Fund and the other $50 million to venture capital firms.
After at least 40 states made mid-year budget cuts in FY 2010 totaling $22 billion, the prospect for rosier times is after 2012, according to the latest biannual Fiscal Survey of the States conducted jointly by the National Governors Association and the National Association of State Budget Officers. The midterm cuts meant states' spending was reduced from $687.3 billion in FY 2008 to $612.9 billion in FY 2010 — at the same time mandatory spending continued to increase. The report indicates FY2011 will be challenging for many states, in spite of modest revenue growth.
The Oklahoma Center for Advancement of Science and Technology (OCAST) will remain a stand-alone entity after a proposal by Gov. Brad Henry to consolidate the agency within the Department of Commerce failed to win legislative approval. OCAST provides funding and resources to help businesses develop and commercialize technologies. The agency is slated to receive $19.15 million in FY11, a 6 percent reduction from the previous year.
Investments in innovation, research, education and other technology-based economic development priorities have been receiving considerable amplification since President Obama took office last year. For the past 18 months, the key agencies that support R&D and TBED initiatives have been promoting the need to move federal investments in economic development and research more toward innovation. The question is: will the White House Office of Management and Budget (OMB) let that happen?
Sponsorship opportunities are designed to help your organization build awareness and develop beneficial relationships with the nation's top state and regional tech-based economic development decisionmakers.
Several states recently enacted spending plans for the upcoming fiscal year, which started July 1 for most states. In Louisiana, Gov. Bobby Jindal signed into law the LA GRAD Act, granting universities more flexibility to raise tuition in return for meeting certain performance goals. Lawmakers in Massachusetts allocated $10 million to continue the state's investment in life sciences, Pennsylvania Gov.