his week Chicago mayor Rahm Emanuel released the first draft of a long-term plan for the city's economic growth and job creation. The plan provides ten over-arching strategies to guide Chicago's economic development efforts, the first of which is a focus on advanced manufacturing. The plan also calls on the city to support entrepreneurship and innovation in emerging technology sectors.
By reducing legal and regulatory barriers to startups, states can harness the power to encourage the formation and growth of new companies, find two recent reports from the Kauffman Foundation. The reports were issued in conjunction with Kaufmann's third annual State of the Entrepreneurship address and call for state level initiatives and policy recommendations that have shown preliminary success but have yet to be widely adopted.
A technically skilled workforce is one the key elements found in thriving, tech-based economies, and nurturing a pipeline of individuals that match employers' high-tech needs has become a priority for several states focused on competitiveness. Lawmakers in Utah recently threw their support behind an ambitious statewide educational attainment goal and dedicated new funds for targeted investments in science, technology, engineering and math (STEM).
To help meet the goals of Virginia's Top Jobs Act enacted earlier this year, Gov. Bob McDonnell proposed $200 million in additional higher education funding over the next two years. A large portion of the new funds would support cancer and high-tech research, competitive research grant awards, and efforts to graduate more science, technology, engineering, mathematics and healthcare (STEM-H) majors.
After 14 short-term continuing resolutions and years of negotiations, the federal Small Business Innovation Research (SBIR) and Small Business Technology Tranfer (STTR) programs have been reauthorized through 2017. The legislation changes a number of features of SBIR/STTR, including making it possible for companies that are majority-owned by venture capital firms to receive awards. President Obama is expected to sign the bill in the near future.
This week, the National Institute of Standards and Technology (NIST) established a new office to coordinate the Advanced Manufacturing Partnership (AMP), an initiative created by the White House in June 2011 to facilitate advanced manufacturing collaborations among industry, academia and government partners. The National Program Office for AMP involves all federal agencies related to manufacturing, including the new Office of Manufacturing Policy of the National Economic Council.
RIAN, the Regional Innovation Acceleration Network, is launching a webinar series beginning in January. These webinars will be presented by experts and practitioners in the field on a range of topics that will help to connect the Venture Development Organization community and exchange best practices and new ideas. The January schedule includes presentations on integrity, accelerators, and the EB-5 program. See the RIAN Events page or the News page for more information.
Ownership of intellectual property (IP) rights has become central to the strategies of innovating firms worldwide, according to The Changing Face of Innovation, a new report from the World Intellectual Property Organization (WIPO). Researchers contend that rapidly growing global investments in innovation and the globalization of economic activities are key drivers of this trend. Between 1980 and 2009, global patents rose from 800,000 applications to 1.8 million.
A new report from the Milken Institute, Best-Performing Cities 2011, finds cities that saw significant improvements to their economic performance between 2010 and 2011 were able to:
Finding new and creative ways for high-tech companies to succeed is an important component in business incubation. A recent study examining best practices for supporting new company formation finds it is the synergy among multiple practices, policies and services that produces optimal outcomes. At the same time, collecting standardized measures, reporting on progress annually, conducting external independent evaluations, tracking programs, and continuing to enhance practices are singled out as important policy implications.
The White House announced two initiatives intended to help entrepreneurs grow their businesses and create jobs by increasing their access to capital and resources. The first initiative focuses on providing up to $1 billion in new capital to help early-stage small businesses. The other will attempt to provide entrepreneurs with free resources and services needed to help startups grow their businesses and create jobs. Read the press release...
Innovative companies involved in commercializing research with universities and federal agencies often cite complicated contracts and uncertainty surrounding the process as a barrier to bringing more technologies to the marketplace. In an effort to remove some of those hurdles, two new initiatives recently were announced from the University of Minnesota (UM) and the Department of Energy (DOE).
To bring more tech-related companies and jobs to Wyoming, Gov. Matt Mead's budget request for the new biennium adds $15 million to broaden an existing fund established last year for the recruitment of mega data centers. If approved by the legislature, the state would make available $30 million for both large-scale recruitment and to attract smaller technology companies. Anticipating flat growth over the next two years, the budget for 2013-14 proposes a slight reduction in ongoing spending from last biennium.
A new Office of Manufacturing Policy within the National Economic Council (NEC) will work across agency lines to coordinate the federal government's manufacturing programs and help develop manufacturing policy. On Monday, President Obama named Commerce Secretary John Bryson and NEC Chair Gene Sperling as co-chairs of the office, which will convene cabinet-level meetings on the administration's manufacturing initiatives.
To rebound from the global recession, the United Kingdom will focus on transforming their cities in to powerful, innovative 21st century cities according to a new economic growth plan from its coalition government. The government already has taken several steps towards making their cities "engines of growth" including:
West Virginia coal-mining and farming businessman James C. Justice II confirmed a $10 million donation to Cleveland Clinic Innovations this week, according to an article in the Cleveland Plain Dealer. The gift will be used to establish a chair in medical innovation, to fund patent applications and to provide space and seed funding to early stage businesses. Inspired by the move, Cleveland Clinic Innovations Chairman Thomas Graham announced that he will contribute an additional $1 million for patent applications.
Most state economic development programs employ quantifiable metrics, but too few report metrics related to job creation and job quality, according to a study and report card released by Good Jobs First. The authors examined 238 economic development subsidy programs in all 50 states and Washington D.C., including corporate income tax credits, cash grants, loans, enterprise zones, worker training grants and other types of programs. Though none of the states scored an "A" in the report ratings, Nevada, North Carolina and Vermont took the top spots.
The Idaho Department of Commerce has named Gynii Gilliam as its new chief economic development officer. Gilliam brings more than 20 years of experience to the position. Most recently, she served as executive director of Bannock Development Corporation.
David Kerr, director of the Missouri Department of Economic Development, will step down from the position Dec. 31.
On Thursday, New York Governor Andrew Cuomo's administration announced the winners of a six-month competition to secure funding for regional job creation projects. Over the summer, ten regional economic councils were created by executive order to develop plans that would improve local economies using grants, tax breaks and other state resources. The councils then pitched their plan to state government leaders (presentations and applications are available online).
The state of Washington's Governor Chris Gregoire announced the state will contribute $5 million to the W Fund, a new $25 million investment fund intended to spin more startups out of research labs at the University of Washington, Washington State University and other state research institutions. Administered by the Washington State Department of Commerce, key growth sectors targeted by the W Fund include biotech and clean tech. The fund intends to start considering investments in early 2012.
The European Union has implemented 30 of the 40 Innovation Union commitments according to State of the Innovation Union, a comprehensive progress report on the Innovation Union, the European Union's (EU) flagship initiative under the Europe 2020 growth strategy for the decade. By the end of 2011, the European Commission will have passed all six Innovation Union legislative proposals.
U.S. policy prescriptions for manufacturing are in disarray according to Make: an American Manufacturing Movement, a new report from the Council on Competitiveness. Policymakers, the report's authors contend, are bombarded with widely available reports and analysis that support one of three conflicting views (it is on steep decline, doing reasonably well or it is poised for growth) on the health and importance of U.S. manufacturing.
Lawmakers and technology industry leaders in Georgia and Kentucky are hoping to establish capital programs during the 2012 legislative sessions in an effort to support new business creation and remain competitive with states already offering lucrative incentives.
State fiscal conditions are likely to remain constrained in the coming year due to a weak national economic recovery and loss of federal stimulus funds, according to the latest Fiscal Survey of States. The survey points to some improvement in state finances in 2011 with 38 states reporting higher general fund spending in 2011 compared to FY10. However, 29 states still have lower general fund spending in FY12 compared to pre-recession levels in FY08 and total state revenues in 2012 remain below their 2008 levels by nearly $20.8 billion.
"Fast-growing economies in emerging markets are outpacing more developed countries with respect to investment in innovation," according to Encouraging and Protecting Innovation — a new report from PricewaterhouseCoopers (PwC). A PwC researcher compiled the report utilizing survey data collected from over 200 global executives who attended the annual meeting of The Wall Street Journal CEO Council. The report points out that Asia's emerging markets, mostly due to China, already invest more on R&D than the EU and Japan, respectively.