Recent court decisions regarding high-speed Internet competition and net neutrality have put U.S. broadband competitiveness on uncertain terrain. Despite two decades of publically supported high-speed data infrastructure efforts, many rural areas still lack access and even densely populated areas remain underserved.  New statewide efforts in Kentucky, Minnesota and Iowa have been announced to improve broadband services and boost economic competitiveness. In addition, Google has announced that it will expand its ultra-fast fiber services to nine more cities across the country.

University-focused initiatives that help bring new technologies and products to market help drive regional economic development and encourage an entrepreneurial culture on campuses. SSTI’s latest Trends in TBED report featured a number of commercialization efforts launched in 2013, including university-based funds to support ideas from faculty, staff and alumni. So far, 2014 also has proven active in this area with the announcement of several new initiatives to support university technology startups.

Over the last week, several states have announced/passed new programs focused on increasing the capital available to spur small business growth and innovation. Officials from New Jersey announced the state's new angel tax credit will take effect July 1. In Arizona and Wisconsin two bills await gubernatorial approval that would rework the Arizona R&D tax credit program and establish a $75 million venture capital fund in Wisconsin. Meanwhile, the Minnesota state legislature did not approve an additional $5 million for its popular Small Business Investment Tax Credit.

With veteran unemployment rates exceeding the already-high national unemployment rate, organizations and agencies around the country are seeking ways to plug veterans into the innovation economy. These efforts capitalize on the leadership skills and technical knowledge of military veterans by helping them become entrepreneurs. Operation Boots to Business is a new nationwide initiative, backed by the U.S. Small Business Administration (SBA), that will provide entrepreneurship training courses at military bases to help veterans transition into business ownership.

Businesses that received Kentucky incentives reported creating 55,173 jobs between 2001 and 2010, according to a report from the Anderson Economic Group (AEG). In addition, each year approximately 33,000 jobs were maintained due to the incentives. In 2010, the gross cost to the commonwealth was $140 million and averaged $3,330 per job per year between 2001 and 2010.

With a sharp decline in state funding available for higher education over the past several years, performance- and outcome-based funding has garnered a great deal of attention in several states seeking to maximize education funds and support economic growth. Governors in Arizona and New Mexico recently proposed significant reforms in higher education funding so that universities with greater R&D expenditures and those that graduate more students in science, technology, engineering and mathematics (STEM) fields would receive a bigger share of state funds. Arizona Gov.

Across the U.S. and Canada, universities continue to forge public-private partnerships focused on creating a formalized approach to turn university research into market-ready products and startup companies. Three universities and their respective partners recently have announced efforts to bring inventors, the community and investors closer together. They also intended to provide potential entrepreneurs with the skills, mentorship and resources need to launch a startup company.

With the goal of integrating STEM learning into schools and strengthening teacher effectiveness in STEM areas, Science Foundation Arizona (SFAz) is launching the Arizona STEM Network, which will be implemented over the next five years in school districts throughout the state. In Texas, officials are counting on a new $30 million fund to produce more STEM graduates by recruiting top-notch research faculty to the University of Houston (UH). The Arizona STEM Network builds on Gov. Jan Brewer's plan for STEM education announced in 2010.

As many states near the mid-point of their 2012 legislative sessions, we thought it would be a good time to take a look at some of the bills advancing in statehouses that could impact states' efforts to improve economic conditions. Several states are seeking to advance access to capital initiatives as they continue to struggle with declining revenue and tight credit restrictions. The following overview provides a sampling of TBED bills supporting access to capital, R&D enhancements and higher education standards.

Providing Access to Capital

Now in its 14th year, SSTI's Tech Talkin' Govs series has returned as governors across the country formally convene the 2014 legislative sessions. The series highlights new and expanded TBED proposals from governors' State of the State, Budget and Inaugural addresses. The first edition includes excerpts from speeches delivered in Idaho, Kentucky, New York, Virginia, and West Virginia.

Angel capital has long played a vital role in state and regional innovation economies, but recent trends in investment capital have pushed angel investment to the fore. As the supply of seed stage venture capital declines in many parts of the country, angels have stepped in to bridge early stage funding gaps for technology startups. Many states have stepped up their efforts to attract and incentivize angel investment. Recent initiatives in Minnesota, Florida, Kentucky and West Virginia seek to book seed and early stage capital by working with angel investors.

The second installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Alabama, Arizona, Georgia, Iowa, Kansas, Rhode Island, South Dakota, Vermont and Virginia.

The National Science Foundation (NSF) has announced that it will award $74 million total for the creation of four interdisciplinary research and education centers as part of the third generation of NSF Engineering Research Centers. In addition to their primary focus on commercialization and education, these centers will emphasize innovation, entrepreneurship, small business collaboration, and international partnerships. For the first time, two of the ERCs will be co-funded by the Department of Energy.

From undertaking a joint regional initiative to improve two cities' competitiveness in advanced manufacturing to launching an effort for engaging venture capital companies and bringing in top university students to showcase area opportunities, mayors in Lexington and Louisville, Boston and Chicago recognize the value in promoting their cities as top destinations for growing tech-based economies. While each of the three recent announcements detailed below target different sectors of the innovation economy, they share the same mission of making their region more desirable for startups.

Several common themes surrounding higher education have emerged as governors across the country unveil investment priorities for the upcoming fiscal year or biennium. In many states, governors have proposed more funding to increase affordability by freezing tuition or creating new scholarship funds. Support for expanding research capacity, technology-related infrastructure and job training in high-demand industries are some of the proposed measures aimed at competitiveness.