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.
Via Executive Order, Arizona Gov. Jan Brewer established the Arizona Commerce Authority, a quasi-public authority, that eventually will replace the Arizona Department of Commerce. A 34-member board comprised mostly of C-level executives, chaired by the governor, will lead the transition from the old department to the new authority. Gov. Brewer earmarked $10 million in federal stimulus dollars to establish the authority.
West Virginia Governor Joe Manchin became chair of the National Governors Association (NGA) this week and announced a year-long NGA initiative to increase the number of U.S. students who receive college degrees. The initiative was launched with a report on college completion metrics.
A new report from the Center for American Progress contends that increasing globalization, connectivity, access and acceleration of technology has caused an urgent need for investment in innovation. To resolve this issue, the authors believe that the U.S.
The $68.2 million FY 11 budget approved last week for the New York State Foundation for Science, Technology and Innovation (NYSTAR), allows the foundation to continue to provide 10 percent matching funds for research institutions and businesses in order to attract federal, private and industry funds. The budget allocates $29.5 million in FY11 for a matching grants program started with ARRA stimulus funding and $5.2 million for the state's six Centers of Excellence.
Illinois Gov. Pat Quinn recently signed legislation approving a new tax credit to encourage angel investment and extending the state's R&D tax credit one more year. The Innovation Development and Economy Act (SB 2093) allows eligible angel and early-stage institutional investors to take a 25 percent tax credit on investments in small, technology firms. Up to $2 million may be claimed on an individual investment for a $500,000 tax credit. The program is capped at $10 million and will be effective on Jan 1, 2011.
In 2007, the federal government dedicated $111.4 billion to R&D, an amount roughly equal to 0.81 percent of the U.S. gross domestic product (GDP), according to a recent report from the National Science Foundation (NSF). While research-intensive states, such as California, Maryland, Massachusetts and Virginia are the leading targets for federal R&D spending, several other states attracted a comparable amount of federal funding relative to their economies between 2002 and 2007.
The vast majority of basic research performed in this country is funded by the federal government, so odds are most innovations also stem from our federal research investments, right? The generalization may seem logical but it could never be proven. Let alone following research through to any resulting technologies, it is currently impossible even to tell the number of jobs resulting from federal research investments–supporting people in positions ranging from top of the field faculty researchers to research assistants, lab technicians, and administrative/custodial support staff.
The United States Patent and Trademark Office (USPTO) invites public comment on a proposed new patent examination initiative that would provide applicants greater control over the speed with which their applications are examined and promote greater efficiency in the patent examination process. The new "Three-Track" program aims both to provide applicants with the timing of examination they need and to reduce pendency of patent applications.
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.
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.
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.
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.
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.
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 ...
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 ...