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What TBED Approaches are Successful in the Current Economy?

This year as states were wrestling with significant deficits, several proposals to consolidate TBED initiatives with other units of government emerged. The most recently decided was in Connecticut, where the General Assembly did not move forward with a plan to merge the state's two primary financing agencies, Connecticut Innovations and the Connecticut Development Authority to form a new Connecticut Economic Innovations Authority. Gov. Jodi Rell had proposed the consolidation.

Earlier this month, the Inter-American Development Bank (IDB) approved $750 million in financing over the next five years to Argentina's federal government for the country's Technology Innovation Program.

Argentina's R&D intensity as gauged by the ratio of R&D expenditures to GDP has increased in recent years, from 0.4 in 2003 to 0.51 in 2007. However, compared to a R&D intensity of 2.3 percent of GDP for OCED countries, Argentina lags considerably behind.

The current fiscal pressures on regional technology-based economic development initiatives have been never greater than they are now. And, as the article above points out, things are going to get worse over 2010 and 2011 before they get better.

Additionally, since local communities became proactive partners with their universities, businesses, tech councils, civic organizations, and states to support economic growth through innovation, the need for local TBED never has been greater. Economists and policy wonks agree: the next economy is being built on innovation and technology.

For the 11th time in the last 32-months, Congress approved a continuing resolution to extend authorization of the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program. The House version of the Small Business Additional Temporary Extension Act of 2011 (S.990) would extend small business programs "as is" through the end of Fiscal Year 2011. The Senate version would extend the program through May 31, 2012.

The Montana Department of Commerce has announced that it will provide $2.5 million in grants to support bio-medical research. Montana-based, private nonprofit research institutions are eligible to apply for the funding, which may be used to expand, renovate and purchase equipment for biomedical research. The grants also may be used to expand infrastructure that will enhance scientific collaborations within the Montana University System.

In 2008, the U.S. ranked 17th in R&D tax generosity out of the 21 OECD countries that offered some form of R&D tax credits to businesses, according to a recent brief put out by the Information Technology & Innovation Foundation (ITIF). In U.S. Continues to Tread Water in Global R&D Tax Incentives, authors Rob Atkinson and Scott Andes state even though the U.S.

Outlining his Colorado Promise three years ago as a newly-elected governor, Gov. Bill Ritter envisioned an economy that supports high-wage jobs and offers an environment for businesses to expand and thrive. Educational programs would be synched with industry needs to produce a skilled workforce, workers would be trained in the high-demand fields relevant to each of the state's diverse regions, and enough businesses would be operating to employ them.

To establish Maryland as a global leader in science, technology, engineering and mathematics (STEM) workforce and STEM-based R&D infrastructure, a task force convened last year by Gov. Martin O'Malley urges the state to adopt a set of initiatives to reach higher performance standards in teaching and learning in addition to greater productivity in transforming the state's high volume of R&D activity into economic growth and job creation.

A larger number of states are positioned to capitalize on rising employment due to high-growth industries, according to a new report from Wells Fargo's Economic Group — Employment Dynamics and State Competitiveness. These states (i.e., Georgia, North Carolina, Arizona, Virginia and Texas) have been able to couple several high-growth industries with a skilled workforce to build their competitive advantage.

Over the past few months, several states have enacted spending plans for the upcoming fiscal year and passed legislation to support renewable energy initiatives and tax credits for R&D. While some TBED programs will face dramatic cuts in FY10, others are slated for slight decreases or will receive level funding. The following synopsis provides an overview of the 2009 legislative sessions across the following states:

The growing need for a skilled workforce in the U.S. has prompted policymakers, educators and industry leaders alike to explore a wide range of options for ensuring a pipeline of qualified workers with specialized skills to fill both new economy jobs and those that will be vacated by the aging population. Two recent examples include grants awarded to states to help re-train older generation workers for jobs in high-growth industries and legislation introduced in the U.S. Senate to provide resources for high-school students to secure high-wage careers in their regions.

The West Virginia Higher Education Policy Commission is seeking a highly talented and experienced individual for the position of Executive Director and Chief Executive Officer for the West Virginia Regional Technology Park located in South Charleston. The selected individual will have the opportunity to help refine and implement the vision for this property and its role in technology development, economic development, education, research and innovation in West Virginia and the surrounding region.

The U.S. venture capital industry showed signs of growth during the second quarter of 2009, according to the most recent update from the National Venture Capital Association and PricewaterhouseCoopers Moneytree Report. While the total number of deals remained flat, total dollars invested increased by 15 percent over the first quarter of the year. Much of the growth is the result of increased investment in seed and early-stage companies, which grew 67 percent over the previous quarter in an encouraging sign for entrepreneurs.

Funding for higher education initiatives fell victim to Ohio's budget woes as legislators worked to fill a projected $3.2 billion deficit. The enacted budget signed into law earlier this month by Gov. Ted Strickland cuts spending by $2.5 billion and leverages $5 billion in federal stimulus funds, according to the governor's office.

The legislature approved a budget agreement for the 2009-11 biennium last month, preserving partial funding for Oregon innovation efforts and passing legislation aimed at green job creation. A major component of Gov. Ted Kulongoski's climate change agenda did not survive the legislative session, however.

Gov. Pat Quinn recently signed into law a six-year, $31 billion Jobs Now plan and smaller capital bill supporting science and technology research and commercialization and broadband deployment. The Illinois Department of Commerce and Economic Opportunity (DCEO) will administer several of the grants.

Rebecca Bagley, who left her position as deputy secretary for the Technology Investment Office within the Pennsylvania Department of Community and Economic Development, was appointed president-elect of NorTech. Bagley will succeed Dorothy Baunach, the founding staff director of NorTech, as president and chief executive officer. Baunach will become president emeritus, serving as an adviser until December 2010.

The National Institutes of Health (NIH) last week published the final version of its guidelines regarding human stem cell research, in part determining which human embryonic stem cells (hESCs) are eligible for research with NIH funding. The final guidelines contain adjustments from the draft version of the guidelines released on April 23 for public comment, from which the NIH received approximately 49,000 statements from advocacy groups, scientists, medical organizations, religious groups, members of Congress, and private citizens.

Three metropolitan areas dominate the U.S. venture capital landscape: San Francisco, Boston and New York. These cities are home to about half of all U.S. venture firms and about half of all U.S. venture-backed companies. Though venture firms have sprung up around the country over the past 25 years, the three cities have maintained, and even expanded, their share of national firms and investment.

SSTI has prepared a table displaying the amount companies spent on R&D in each state from 2003 to 2007, the state's rank in 2007, the percent change over this five-year period, and the rank of that percent change. For the U.S. as a whole, industry-funded R&D was $204 billion in 2003 and rose to $269.3 billion in 2007 - a five-year jump of 32 percent. Note, the amounts in the chart are not indexed to a single year, but reflect values from when the data was released.

Gov. Jim Doyle signed the 2009-11 biennial budget last month, providing funding for university-based research and enhancing tax credits for angel and venture investors supporting high-tech R&D.

While maintaining a $1 billion reserve over the next biennium, the 2009-11 budget signed into law by Gov. Mitch Daniels reduces by half funding for the state's 21st Century Research and Technology Fund and appropriates only a fraction of the requested $70 million for the Indiana Innovation Alliance, an initiative to grow the state's life science industries.

The Natural Energy Laboratory of Hawaii Authority, a semi-autonomous Hawaii State agency that developed and manages a globally unique and innovative technology incubation and commercial park in Kailua-Kona on the island of Hawaii, currently is seeking an Executive Director.

Hosted by TechColumbus, SSTI's 15th Annual Conference will be held at the Hyatt on Capital Square in Columbus, Ohio on November 8-9, 2011. Past attendees know SSTI's conference is the premier event for sharing ideas on the best ways to encourage technology-based economic development and foster regional prosperity in a global economy. And 2011 will be no exception.