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A budget agreement reached last week between Gov. Andrew Cuomo and legislative leaders adopts the economic development reforms set forth by the governor to establish a regional strategy for job creation. The approved budget allocates about $200 million in existing capital funds and tax credits to support 10 regional economic development councils and merges the New York State Foundation for Science, Technology and Innovation (NYSTAR), the state's tech-based economic development initiative, into the Department of Economic Development.

Oklahoma Governor Mary Fallin signed the Oklahoma Aerospace Engineer Tax Credit — reestablishing a tax incentive that was put on moratorium during last year's legislative session. The legislation extends tax credits of $5,000 a year for up to five years to engineers who are hired in Oklahoma. Under the law, companies receive a tax credit equal to 10 percent of the compensation paid to an engineering graduate from an Oklahoma institution of higher education.

Expanding the federal research tax credit and making it permanent could help generate $10 billion per year in research activity, according to a report from the U.S. Department of Treasury's Office of Tax Policy. Treasury also suggests that the enhanced credit could expand use of the credits, which already generate a one-to-one match in research spending and help support almost one million jobs. The current credit, which has been reauthorized temporarily 14 times since its introduction in 1981, is set to expire at the end of the year.

Recruiting bioscience faculty to universities and investing in R&D infrastructure tops the list of strategies recommended for Iowa to capitalize on a growing bioscience economy. A report commissioned by Innovate Iowa also finds that while significant progress has been made in growing the state's bioscience industry over the last 10 years, declining state funds to build research capacity and provide seed and venture capital remains a challenge for bioscience companies and entrepreneurs to compete regionally and globally.

Since 2000, two-thirds of the nation's 51 largest cities have seen on average a 26 percent increase in the number of young, college-educated adults choosing to live within three miles of the urban center — compared to an average increase of 13 percent in the rest of the metropolitan area. In Young and Restless 2011, a new report by Impresa and CEOs for Cities, researchers utilized 2010 Census data to examine the migration of young individuals (between the ages of 25 to 34 year olds).

Three recent reports from Maine provide insight into the challenges of fostering an innovative economy in a rural state. Overall, the research suggests that Maine has done well in its efforts to support startups, but could do more to help those startups expand and find new markets. By encouraging innovation-based businesses to expand to markets outside of Maine and by offering mentoring services, the state could overcome the stagnation that can occur when companies and states focus on local markets.

Proposals that promise job creation and economic growth have taken center stage in several state legislatures. Lawmakers who recognize the importance of R&D, tech commercialization, access to risk capital, and investment in higher education are fighting for passage of TBED-focused bills in the final months of their states' 2011 legislative sessions.

SSTI is introducing a new category in our awards program to recognize the Most Promising TBED Initiative. Through strategic partnerships, leveraged resources, and diversified funding, these initiatives have "all the pieces of the puzzle," they just haven't been around long enough to demonstrate the impact SSTI generally seeks in an Excellence in TBED award winner. Proposals submitted in this category should address a specific need in a community geared toward improving overall economic conditions.

Steven Chu, the Secretary of Energy, announced nearly $170 million in available funding over the next three years to support the advancement of Solar Photovoltaic (PV) technologies in four areas:

Governor Jay Nixon has released the final report from a year-long effort to design a five-year economic strategy for Missouri. The report identifies seven target clusters for development, including advanced manufacturing, energy solutions, biosciences, health sciences and services, information technology, financial and professional services, and transportation and logistics. Recommendations include a new science and technology/innovation fund, an R&D tax credit, an angel investment tax credit and cluster-based career training.

Manufacturers face a growing talent deficit due to an outdated education system based on 19th and 20th century principles, according to the Roadmap to Education Reform for Manufacturing. The report, coauthored by the Manufacturing institute and the National Association of Manufacturers (NAM), is a compilation of books and research related to education reform and manufacturing topics available on NAM's website.

Using figures provided by the 12 participating federal agencies of the Small Business Innovation Research (SBIR) program, SSTI has prepared a table showing FY09 Phase II award data for all 50 states, Puerto Rico, and the District of Columbia. Statistics include award data and state rankings based on total awards. SSTI finds the top 10 states receiving Phase II SBIR awards in FY09 are: California (423), Massachusetts (291), New York (138), Virginia (128), Colorado (115), Maryland (112), Texas (87), Ohio (77), Pennsylvania (72), and New Jersey (66).

The Kentucky Cabinet for Economic Development is looking for an executive director who is an ambitious, successful professional that will provide leadership in Kentucky's efforts to develop a knowledge-based economy. The executive director will work in partnership with all levels of government, academia, and the private sector to help create a supportive high-technology environment.

Steve Biggers, deputy director, Oklahoma Center for the Advancement of Science and Technology has retired after 31 years of service to the state. He has served at OCAST for the last 19 years.

The Department of Agriculture (USDA) and the Department of Energy (DOE) announced the Biomass Research and Development Initiative (BRDI) — a $30 million initiative to support up to 10 research and development (R&D) projects focused on advanced biofuels, bioenergy and high-value biobased products. Projects should propose integrated science and engineering research in three technical areas of interest:

Last week, Maryland Gov. Martin O'Malley released the results of 18 months of work by the Maryland Economic Development Commission (MEDC), laying out the state's strategy for economic growth over the next five years. MEDC's five-year plan provides many economic development policy recommendations, but lists innovation, commercialization and entrepreneurship as the first three foundations for growth. Part of this strategy includes the implementation of InvestMaryland, a recently passed initiative that would generate more than $70 million for seed and growth stage companies.

The U.S. Government Accountability Office (GAO) released their annual State and Local Governments' Fiscal Outlook and long-term projections paint a bleak picture. Even though both state and local government near-term fiscal outlooks have improved slightly since 2010, these sectors face long-term revenue declines that will necessitate "substantial policy changes" to stimulate revenue growth.

International collaboration in science and technology (S&T) research has risen over the past 15 years from approximately 25 percent to over 35 percent, according to Knowledge, Networks and Nations: Global Scientific Collaboration in the 21st Century — a new report from the Royal Society Science Policy Center.

Though U.S. venture capital (VC) investment grew in 2010 after a disastrous 2009, overall venture activity remains well below 2006-2008 levels. Last year, U.S. venture firms invested $21.8 billion in American companies, 27 percent less than in 2007 (the last peak year before the current economic downturn). Most U.S. states experienced a similar pattern over the past five years, peaking in 2007, hitting a decade low in 2009, and recovering a bit last year.

Tom Thornton, president and CEO of the Kansas Bioscience Authority, submitted his letter of resignation to the board effective immediately. David Vranicar, president of the authority's Heartland BioVentures division, was named interim president and CEO.

The Economic Development Administration (EDA) in partnership with 15 other federal agencies and bureaus intends to commit $33 million in direct federal funding and provide technical assistance resources for the Jobs and Innovation Accelerator Challenge — a new public-private initiative focused on supporting and accelerating the growth of regional innovation clusters that exhibit high-growth development potential. Approximately 20 industry clusters will be selected through a nationwide competitive process that includes all industry sectors.

Generous individuals and foundations are stepping up to support university-based initiatives designed to expand research and encourage young people to create high-growth jobs at a time when operating budgets for higher education are facing drastic funding cuts across the U.S. Colleges in Michigan and Ontario will establish endowed chairs in medical research and entrepreneurship with funding from individual donors, and a 23-year-old former student of the University of Waterloo is launching a $1 million seed fund for student startups.

U.S. venture capital investment per capita grew almost 19 percent in 2010 over the previous year, reaching $11.16. That increase, however, only represented a partial rebound from the plunging investment levels of 2008 and 2009. Last year's U.S. per capita figure was 28.7 percent lower than 2007 and 7.2 percent lower than 2005. The largest increases in per capita investment over the past five years occurred in the District of Columbia, Illinois, Delaware, Kansas and Iowa.

Gov John Hickenlooper recently signed legislation expanding eligibility for Colorado's Innovation Investment Tax Credit (CIITC). The program provides angel investors with an income tax credit equal to 15 percent of their investment in Colorado small businesses that are less than five years old and are involved in research and development. Originally, the program allowed investors to claim the credits for investments made during the 2010 tax year.

From 2000 to 2008, the U.S. ranked 18th out of 30 countries in the growth of government-funded university research, according to a new report by the Information Technology & Innovation Foundation (ITIF). In University Research Funding: the United States is Behind and Falling, Robert Atkinson and Luke Stewart compared the U.S. government and business funding for public university research against 29 other developed countries.