California

According to National Science Foundation (NSF) data released two weeks ago, companies spent in aggregate $247.7 billion on R&D expenditures performed in the U.S. in 2006. Leading the nation was California, with $58.4 billion in industrial R&D, followed by Michigan ($16.5 billion), Massachusetts ($15.6 billion), New Jersey ($14.6 billion), and Texas ($13.3 billion).
 

Even in the venture capital-rich state of California during a boom period for clean energy investment, some clean energy entrepreneurs still have a hard time finding the capital resources they desire. As a result, one non-profit venture capital group, with a unique history of its own, is launching a new effort to support early-stage businesses. The California Clean Energy Fund (CalCEF) is currently helping to raise a $20 million angel fund to bridge a perceived gap in seed and start-up stage capital availability.

• Tony Armstrong, Indiana University executive director for engagement, has been chosen as the Indiana University Research and Technology Corporations new president and CEO.
• Jeff Costantine will retire this fiscal year as president of the Nashville Technology Council. The board of directors has begun the search for a new president.

Technology-focused incubators are an important component to fostering entrepreneurial development in a region by nurturing businesses in the earliest stages of development and helping them grow into larger companies that employ high-wage workers and bring new technologies to the market. The following select announcements provide an overview of new incubators from across the nation, illustrating the vital role of entrepreneurial development in growing high-tech regional economies.

John Hindman announced his resignation as secretary of the Kentucky Cabinet for Economic Development.

Governor Rick Perry recently announced Alan Kirchhoff of Austin has been promoted to director of Texas Emerging Technology Fund (TETF). Kirchhoff replaces longtime Perry advisor and former TETF director Mark Ellison, who left the Governor's Office to become associate vice chancellor of economic development for the Texas A&M University System beginning Oct. 1, 2008.

In 2006, three Arizona CEO groups joined forces to create Science Foundation Arizona (SFAz), a nonprofit public-private partnership charged with making strategic investments to support university research, new high-tech businesses, K-12 STEM education and to leverage outside investment. The state provided public support for these efforts through the 21st Century Fund, which in its first year included $35 million for SFAz's grant programs.

In the midst of a national economic recession contributing to a record number of job losses in traditional industries, forward thinking states are exploring ideas and committing funds to help grow and diversify their economies and strengthen their renewable energy portfolios.

One of the biggest challenges for green technologies and products is breaking into the market. Achieving the critical mass that allows production volume to drive down prices is difficult, particularly when the commodity being sold is, at least initially, more expensive to make because more of the actual cost of production is captured in the green company's business model.

The role of a technology incubator or accelerator for supporting nascent firms generally is regarded with the utmost importance by the tech-based economic development community. Tech incubators provide essential resources for startup companies to develop and commercialize new technologies, leading to the creation of high-quality jobs.

Much emphasis has been placed on the importance of green jobs in the next economy as the nation continues to shed jobs in traditional industries. Creating these specialized jobs is a major priority for states across the nation that will compete for renewable energy industries. Two recent announcements in California and Michigan illustrate efforts underway to recruit and prepare a workforce capable of meeting critical industry needs.

The newly-created Clean Energy Leadership Council, convened by the Washington governor's office and a state-wide public-private clean energy alliance, held its first meeting. The council will deliver a clean energy strategy and recommendations by December 1, 2010.

W. Steven Burke is the new president of Biofuels Center of North Carolina.

Despite the global growth of the industry over the past few decades, U.S. venture capital remains as concentrated as ever in the Silicon Valley region, and to a lesser extent, Massachusetts.

J. Mike Books is leaving his post with the Indiana Health Industry Forum to become the first economic development director for the city of Columbia, Missouri. He also will serve as president of the Regional Economic Development Inc. Brooks will assume his new responsibilities on July 15.

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.

President Obama nominated Francis Collins, a physician and scientist who helped guide the Human Genome Project to completion, as the next director of the National Institutes of Health.

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.

Silicon Valley, a region often looked to for trends in the technology field, is expected to see a rise in the number of new high-tech incubators and the expansion of existing incubators in the coming months. A recent Wall Street Journal article points to these openings as a sign of revival for technology startup companies amid a relatively slow period last year as startup investment plunged during the recession.

Adding to a growing number of states seeking to increase their percentage of power from renewable sources, Gov. Jack Markell last week introduced the Delaware Clean Energy Jobs Act.  A key component of the legislation is increasing the state's Renewable Portfolio Standard (RPS), which governors often say generates job growth.

The overarching goal of the Delaware bill is to create a competitive climate for the clean energy market, which is addressed under four main goals, including:

Arizona Center for Innovation is currently seeking an experienced candidate to fill the position of director. The director is responsible for the daily operations of the incubator that include: administration, budgeting, financial management, fundraising, client recruitment and services, marketing and outreach activities.

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Gov. Arnold Schwarzenegger last week signed a bill creating a sales tax exemption for equipment used by clean-tech manufacturers — a measure the governor hopes will attract entrepreneurs investing in the clean energy sector. SB 71 is part of the governor's $500 million jobs initiative announced during his State of the State address that aims to train up to 140,000 workers create 100,000 jobs.

Bryan Allinson has joined Ohio University as director of technology transfer.

California Governor Arnold Schwarzenegger has signed an executive order establishing the Governor's Office of Economic Development. The new office will offer assistance to businesses, connect entrepreneurs to state and regional organizations and encourage collaboration among research institutions and the private sector to promote emerging sectors. Read the announcement at: http://gov.ca.gov/press-release/14844/.

California Gov. Arnold Schwarzenegger signed an executive order establishing the Governor's Office of Economic Development and appointed Joel Ayala as the director of the new office.