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.
Canada's innovation economy is at a critical junction, one that will require policymakers to choose what they want out of their science and technology (S&T) investments, according to a new study. The Toronto Region Research Alliance recently published a report that provides an analysis of S&T strategies in 10 countries, including the United States, the United Kingdom, China, South Korea, Israel, the Netherlands, India, various African initiatives, Germany and Finland.
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.
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.
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.
U.S. Department of Energy (DOE) Secretary Steven Chu announced that DOE intends to commit up to $130 million to support advanced research projects on rare earth alternatives and breakthroughs in biofuels, thermal storage, grid controls and solar power electronics. The five new program areas supported through the Advanced Research Projects Agency-Energy's (ARPA-E) fourth round of funding include:
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.
Gov. Rick Snyder signed into law a measure expanding the scope of the state's 21st Century Jobs Fund allowing more industries involved in research and advanced technology to compete for funds through the program. Although many tech-focused industries such as life sciences and alternative energy companies can already apply for funding under the program, the new legislation expands eligibility to include an even wider range of companies — information technology and agricultural processing.
State business climate indices are a common tool in economic development policymaking and marketing. These indices allow analysts to bundle sets of business-friendly policies, quantitative metrics and subjective rankings into a single index to compare one state's business environment to another's. A recent paper by Jed Kolko, David Neumark and Marisol Cuellar Mejia suggests that many of the factors that are sometimes included in business climate indices have little or no predictive power.
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.
The Michigan Economic Development Corporation (MEDC) will be armed with $100 million for efforts to attract new businesses and help existing businesses grow in the coming year — an additional $50 million above Gov. Rick Snyder's request. Another $25 million was approved for a new innovation and entrepreneurship program.
New Jersey's Economic Development Authority announced the Edison Innovation Green Growth Fund (EIGGF), a new loan program with a performance grant component to grow the state's energy efficiency and Class 1 renewable energy technology companies. The fund offers five-year fixed term loans of up to $1 million to eligible companies that have begun generating commercial revenues and are seeking matching funds (1:1 by the time of loan closing).
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.
Editor's Note: Last week, the Digest erroneously reported that Congress had approved the extension of SBIR/STTR. This mistake was due to the substitution described in the article below. The actual SBIR extension was approved on May 31, 2011. We regret the error.
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.
Compiling SBIR Phase I awards and proposal statistics by state for FY10, SSTI finds the 10 states with the most awards in FY10 were California (851), Massachusetts (517), Virginia (250), Colorado (218), New York (212), Maryland (196), Texas (185), Pennsylvania (184), Ohio (179), and Michigan (125). Colorado moved up two positions to fourth place, dropping New York to fifth place while Maryland fell to sixth place from fifth last year. Pennsylvania edged out Ohio to move up one spot into eighth position, pushing Ohio down one spot from last year to ninth place.
The Obama administration announced a Federal Funding Opportunity (FFO) for a new $33 million public-private initiative focused on supporting and accelerating the growth of regional innovation clusters (RICs) that exhibit high-growth development potential — the Jobs and Innovation Accelerator Challenge. The Obama administration intends for these investments to serve as catalysts for leveraging private capital (e.g., foundations, financial institutions, corporations and other partners) in the selected regions.
Created as the successor to two longstanding and accomplished tech-based economic development organizations — the Washington Technology Center (WTC) and the Spokane Intercollegiate Research and Technology Institute (SIRTI) — Innovate Washington will serve as the state's primary agency responding to tech transfer needs and strengthening university-industry partnerships. Innovate Washington also will coordinate the state's clean energy initiatives.
To more closely align Georgia's efforts to market and promote strategic industries to existing and potential companies, Georgia's Centers of Innovation (COI) program will be integrated with the programs of the Georgia Research Alliance (GRA). The move follows the legislature's decision to transfer funding for GRA's strategic economic development initiatives from the Board of Regents' Research Consortium program to the Department of Economic Development Innovation and Technology Division.
Gov. Pat Quinn and the Illinois Innovation Council launched a new initiative to facilitate business and research collaboration and to provide services to the state's high-tech entrepreneurs. The Illinois Innovation Network (IIN) will be connected to Startup Illinois, the first Startup Region to be introduced by the national Startup America Partnership. Read the announcement...
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 budget approved by lawmakers for FY12 includes $15 million in research grant money for three Kansas universities to expand programs in emerging industry sectors as proposed by Gov. Sam Brownback and allocates $10.5 million annually for an initiative to enhance engineering education and increase the number of qualified engineers in the state.
The Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program reauthorizations may face a bleak future due to a recent vote on the Senate floor. Senator Mary L. Landrieu (D-LA) said, "Today was our last chance to reauthorize these important programs and provide some continuity to the small businesses that depend on them.