While the U.S. venture capital (VC) industry struggles to recover from the last year’s sudden collapse in fundraising and investment, several regions are successfully rebuilding their venture environment. Venture investment remained far below 2008 levels in the second quarter of 2009, with venture centers such as Silicon Valley, Los Angeles, New York City and Texas falling farther from their lackluster numbers in the first quarter.
On a per capita basis, federal R&D obligations to U.S. universities and colleges increased by 7 percent from FY 2003 to 2007, rising to $83.80 per person in FY07, according to the National Science Foundation. Total U.S. federal R&D obligations to academia increased by 11.1 percent over the same five years to $25.3 billion in FY07.
SSTI has prepared a table listing the academic obligations per capita from FY 2003 to 2007, the percent change of these obligations per capita over this period, and the relative rank of this change.
Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.
During the upcoming legislative session in Missouri, lawmakers will consider a proposal by Gov. Jay Nixon to create a funding source aimed at attracting top scientists, commercializing research, recruiting and building science infrastructure, and creating capital programs for early-stage technology companies. The Missouri Science and Reinvestment Act (MOSIRA) would dedicate an annual portion of new tax revenues generated by biotechnology companies to a newly-created state fund administered by the Missouri Technology Corporation.
Gov. Gary Herbert unveiled last month an $11.3 billion spending plan for FY11 that maintains level funding for higher education and slightly reduces funding for the Utah Science Technology and Research initiative (USTAR). The governor's FY11 budget plan addresses a $693 million shortfall, which is spread across FY10-11 and anticipates $34 million in state revenue growth during the next year. Read more ...
Government intervention in the venture capital industry might be the key to boosting the performance of venture-backed businesses, according to a recent report published by the World Economic Forum. A review of 28,800 venture-backed firms from 126 countries found that enterprises receiving moderate levels of government venture capital support outperformed other firms in terms of value creation and patent creation. Read more ...
There is no simple answer to a frequently asked question that SSTI receives: what should we expect to be a good return on public investment in research? A new working paper available from the National Bureau of Economic Research helps clarify the range of possible answers, though, and strongly suggests the investment is worthwhile.
Arizona's state, regional and university leaders already have made efforts to stimulate elements of a high-tech economy; however, missing are key fundamentals necessary for the state to compete on a national level, finds a report on Arizona's tech economy.
The third installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Delaware, Maine, Missouri, New Hampshire, Ohio, Rhode Island, South Dakota, Utah and Wisconsin. The first and second installments are available in the Jan 13 Digest and Jan. 20 Digest, respectively.
The New York State Foundation for Science, Technology and Innovation (NYSTAR), the state’s lead tech-based economic development agency, would see a significant boost in funding under a proposal unveiled by Gov. David Paterson to distribute $100 million in new Innovation Economy Matching Grants.
“Minnesota faces a crisis of competitiveness.” It didn’t take Minnesota’s leaders long to recognize the state’s precipitous fall in the standings for many major indicators over the past two decades paralleled the state’s prolonged diinvestment from a proactive TBED strategy.
Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA). A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals.
The second installment of SSTI’s Tech Talkin’ Govs’ series includes excerpts from speeches delivered in Colorado, Virginia and West Virginia. Our first installment was in the Jan 13 Digest.
Describing the nation’s innovation system as broken, U.S. Secretary of Commerce Gary Locke yesterday said the Department of Commerce will be “working hard to find solutions” that move more federally funded R&D into the commercial market.
“Even in areas where we are allocating enough funding for R&D, we’re not doing a good enough job getting these ideas into the marketplace, particularly through entrepreneurs.
Gov. Sonny Perdue last week outlined an $18.2 billion budget for FY11 that reduces spending across several state agencies, including a $9.6 million reduction for R&D activities through the Research Consortium. The governor’s budget also would eliminate two science, technology, engineering and mathematics (STEM) programs within the Department of Education.
Gov. Mark Parkinson last week unveiled his FY11 budget proposal, which includes $5.9 million from the Economic Development Initiatives Fund (EDIF) for the Kansas Technology Enterprise Corporation (KTEC), down $1.8 million from the FY10 governor’s estimate of $7.75 million. Many of the governor’s budget recommendations, including funding for KTEC and university research initiatives, may hinge on a tax increase proposal, however.
Enterprise Florida released its latest five-year strategic plan for the state, calling for increased investment in STEM education, university research, commercialization assistance and early-stage capital access programs. Florida must diversify its economy and strengthen its high-tech industries in order to reduce the state’s reliance on population-based growth, according to the report. Enterprise Florida also endorses a cluster-based strategy to promote high-tech industries based on their relative levels of development in the state.
Current trends presented in the 2010 edition of the National Science Board’s biennial Science & Engineering Indicators suggest as early as the 2012 edition, the U.S. will no longer leads the world for a key indicator: total R&D expenditures – unless corrective action is taken.
Entering its tenth year covering governors’ State of the State, Budget and Inaugural Addresses, SSTI’s Tech Talkin’ Govs series highlights new and expanded TBED proposals from across the nation. The first edition includes excerpts from speeches delivered in the following states:
Arizona
Gov. Janice Brewer, State of the State Address, Jan. 11, 2010
The Baton Rouge Area Chamber (BRAC) has released the second and final component of its strategy advocating the need to advance a tech-based economy throughout Louisiana. The white paper focuses on the topics of entrepreneurship, workforce development, risk capital, and coordinating TBED efforts at the state level. For example, BRAC calls for all returns from state funds invested in venture capital firms to be reinvested, for regional angel networks to be supported, and for the state’s angel investor tax credit to be reinstated.
Providing strong evidence for how public investments in research and TBED pay off even on a short time horizon, a recent impact analysis calculated the total impact from the first $19.9 million North Dakota spent over the past four years for the establishment of 20 Centers of Excellence across the state. The analysts from North Dakota State University reported a combined cumulative impact of $329.5 million for the 30 months ending June 2009. The total includes both direct reported results and estimates for indirect impacts.
U.S. venture capital fundraising and venture-backed exits improved marginally in the fourth quarter of 2009, despite having a very slow year overall, according to the National Venture Capital Association (NVCA). Venture fundraising increased to $3.8 billion in the last quarter, an 82.6 percent increase over the previous quarter but still far short of fundraising levels in recent years. While investors expect activity to grow in 2010, most predict that the industry will remain smaller than its scale in the 1990s and 2000s, with fewer firms and increasing focus on late-stage deals.
The fourth installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alaska, Connecticut, Maryland, Michigan, Nevada, and Oklahoma. The first three installments are available in the Jan 13, Jan. 20 and Jan. 27 Digests.
The Oklahoma Center for the Advancement of Science and Technology (OCAST) is among a list of 16 state agencies slated for consolidation in Gov. Brad Henry's budget proposal, which he says will result in cost savings of $5.3 million. Under the proposal, OCAST would be moved to the Department of Commerce, along with Aeronautics, Indian Affairs and the Oklahoma Space Industry Development Authority. Funding for OCAST would be reduced by 3 percent, for a total $19.8 million in FY11. OCAST provides funding and resources to help businesses develop and commercialize technologies.
Gov. Jodi Rell last week unveiled her FY11 midterm budget adjustments, eliminating or reducing funding for several TBED initiatives in the second year of the biennium. At the same time, the governor proposed an economic recovery package that includes a lending program for small businesses, a student loan forgiveness program to retain green collar workers, and a sales tax exemption for green energy industries.
