States scramble to negotiate final budgets; DE, LA, ME, MO, NH, VT and WA reviewed for innovation funding
With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below.
Breaking into the Market: End of the Green Pipeline
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.
Vermont Jobs Plan Tags $8.7M of Federal Stimulus Funds
Earlier this month, Gov. Jim Douglas announced a plan to use $8.7 million in federal stimulus funds for job creation programs, including broadband infrastructure, low-interest loans and workforce training. Many of the proposals mirror last year’s SmartVermont plan, a proposal rejected by lawmakers that would have leveraged federal funds to provide $17.2 million for statewide economic development. (see the June 3, 2009 issue of the Digest).
Tech Talkin' Govs, Part I
Entering its tenth year covering governors’ State of the State, Budget and Inaugural Addresses, SSTI’s Tech Talkin’ Govs series highlights new and expanded TBED proposals from across the nation. The first edition includes excerpts from speeches delivered in the following states:
Arizona
Gov. Janice Brewer, State of the State Address, Jan. 11, 2010
Competing Massachusetts Bills Have Similar Goals: Consolidating TBED, Econ. Dev.
Two bills aiming to consolidate state agencies and establish incentives for job creation were introduced last week by Gov. Deval Patrick and Senate President Therese Murray. Gov. Patrick's bill would merge the Massachusetts Technology Development Corporation with the Massachusetts Community Development Finance Corporation and the Economic Stabilization Trust to form a new Massachusetts Growth Capital Corporation funded by a $25 million capital bond authorization and $15 million from the Emerging Technology Fund.
Massachusetts Leads in STEM Degrees, But Students Losing Interest
Massachusetts ranks first in the country in patents per capita, SBIR awards and in R&D spending as a percent of gross domestic product (GDP), according to the latest version of the Index of the Massachusetts Innovation Economy. Though the report finds that the state's innovation economy is growing and, in many ways, suffered less than others during the economic crisis, it recommends taking action to increase student interest in STEM careers and to help launch new businesses.
New Initiative to Help MA CEOs and Entrepreneurs Launch New Companies
A group of Massachusetts CEOs, venture capitalists (VC) and entrepreneurs recently launched a new initiative to create new, successful companies. The 12x12 Initiative will allow successful CEOs to collaborate with entrepreneurs to develop their ideas into new businesses. The resulting "team" also would include an experienced VC and would help the companies connect to mentoring services, capital and other opportunities.
Advanced Manufacturing Initiative Unveiled in MA
Enlisting support from industry, policymakers and academics, Gov. Deval Patrick unveiled an initiative to help the state's manufacturers evolve with changing technology, adopt new innovations, and grow their operations through a new multi-tiered loan program. The Advanced Manufacturing Initiative is a public-private collaboration designed to maximize job creation within the manufacturing sector, which added more than 19,000 jobs last month, according to the governor's office.
TBED Components Included in Final Vermont Jobs Bill
Gov. Jim Douglas last week signed a jobs bill that distributes $8.7 million in federal stimulus funds to help seed high-tech entrepreneurial ventures, increase broadband access across rural areas of the state, train workers for careers in emerging sectors, and provide low-interest rate subsidies on loans approved under the Vermont Jobs Fund.
Input Sought on Green TBED Initiatives
MIT's Department of Urban Studies and Planning is researching how economic development organizations are working with small businesses to address market opportunities or needs related to global climate change and the "green economy." The department currently is looking for economic development organizations to complete a brief, voluntary survey (10 minutes) relating to "green" programs and activities. Results will be shared with the economic development community and be made publicly available.
Tech Talkin’ Govs: Part IV
The fourth installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Illinois, Massachusetts and Utah.
People on the Move & TBED Organization Updates
Patrick Gallagher has been named the 18th chancellor and chief executive officer of the University of Pittsburgh. Gallagher currently serves as acting deputy secretary of the U.S. Department of Commerce and director of the National Institute of Standards and Technology.
Highly Educated Workers Gravitate To, Between New York, Los Angeles and Chicago
Los Angeles County (CA), New York County (NY) and Cook County (IL) topped the list of places where people older than 25 with graduate or professional degrees moved to between 2007 and 2011, according to the latest data from the U.S. Census Bureau’s County-to-County Migration Flows Tables. Middlesex County (MA) and Fairfax County (VA) also ranked among the top destinations for highly educated transplants. The Census report provides data on domestic migration at the county level, including data on income and educational attainment.
Useful Stats: Higher Education R&D Expenditures by State, FY07-12
Between FY2007-12, research and development (R&D) spending at U.S. universities grew 27.5 percent, from about $51.6 billion to $65.8 billion, according to the latest edition of the National Science Foundation’s (NSF) Higher Education Research and Development (HERD) survey. The survey provides a look at R&D spending at U.S. universities, with data broken down by state, institution, research area and funding sources.
MA Group Crafts Strategy to Confront National Decline of Early Stage Bio Capital
Massachusetts’ continuing success in the biopharmaceutical sector depends on finding new ways to fund startup and early stage research activities, according to a new strategic plan released by the Massachusetts Biotechnology Council (MassBio). The report cites recent data showing that life sciences venture capital has fallen by 50 percent over the past five years and many investors have turned to later stage investments.
MA Gov Announces Innovation-Focused Economic Development Package
Massachusetts Gov. Deval Patrick has unveiled an economic development package intended to bolster the state’s role in the global tech economy through multi-year investments totaling an estimated $100 million.
Vermont Gov Seeks $5M in Lending Support for Startups
Two proposals announced by Gov. Peter Shumlin would provide additional lending tools and incentives to attract and retain technology companies using revenue surpluses for the current fiscal year. The first proposal would establish the Vermont Enterprise Incentive Fund and authorize the governor to offer an incentive package not exceeding $4.5 million to businesses that have a substantial statewide or regional economic or employment impact. The second part adds $500,000 in state general funds to the $1 million in federal funds available to the Vermont Economic Development Authority’s Entrepreneurial Lending program.
Tech Talkin’ Govs: Part II
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.
Useful Stats: U.S. Venture Capital Per Capita and Share of National Total by State, 2008-13
After hitting an all-time high in 2012, California’s dominance of the nation’s venture capital activity receded a bit last year. California continues to receive about half of the country’s venture investment dollars and about 40 percent of its dealflow, but in 2013, the state’s share of dollars fell from 53 to 50 percent, according to data from the PricewaterhouseCoopers/National Venture Capital Association (PwC/NVCA) Moneytree survey. Massachusetts, which has been host to about 10 percent of national venture activity in past years, also saw its share of total U.S.
MA Continues to Lead U.S. in Progress Toward ‘New Economy,’ According to ITIF
Massachusetts continues to reign as the U.S. state best prepared to meet the challenges of the current and future global economy, according to the sixth edition of the Information Technology and Innovation Foundation’s (ITIF) State New Economy Index.
Lawmakers Tackle Workforce, STEM and Higher Ed Policy
Addressing accessibility, affordability and ensuring workforce preparedness topped legislators’ agendas in many states during the 2014 sessions. States and regions are increasingly competing for talent as the trend toward growing and nurturing innovation ecosystems continues.
Public, Private Sector Entities Announce Initiatives to Connect Globally
As the world becomes more globally connected, both public and private entities have turned their attention to foreign markets in the hopes of spurring innovation, capital creation, and economic prosperity. Whether their effort is developing international business partnerships, attempting to attract foreign direct investment (FDI), investing in startups, or taking advantage of international demand, the entities establishing these initiatives view long-term economic success for both firms and regions as dependent upon entering the global market place.
MA Lawmakers Pass Economic Development Bill, Awaits Gov Approval
On August 1, the Massachusetts lawmakers enacted a comprehensive economic development bill (H.4377). The bill currently awaits Gov. Deval Patrick’s approval. Per state law, Gov. Patrick has until August 14 to sign the bill, 10 days after he received it. The approved bill that received unanimous approval by the Massachusetts state Senate was passed as a comprise package between two bills proposed in the Senate and House.
Tech Talkin’ Govs 2018: AZ, FL, IA, ID, MS, NY, VT present state of the state addresses
SSTI’s Tech Talkin’ Govs feature returns as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this first installment, we present excerpts from governors in Arizona, Florida, Indiana, Iowa, Mississippi, New York and Vermont.
SSTI’s Tech Talkin’ Govs feature returns as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this first installment, we present excerpts from governors in Arizona, Florida, Indiana, Iowa, Mississippi, New York and Vermont.
With the seat up for election in 36 states this fall, many governors are delivering what may be their last state of the state address (see last week’s story on the definite turnover in 17 states and another 19 eligible for reelection). Some governors are more specific in their addresses regarding the innovation economy, such as Idaho where its governor is seeking additional money for college and career advising, an additional $5 million for the Opportunity Scholarship program, and a new position to coordinate the work of all its higher education institutions. Iowa’s governor is calling on the legislature to pass the Future Ready Iowa Act and proposes a new scholarship for Iowans who decide to pursue up to a two-year degree in a high-demand field as well as more money for apprenticeships. Taxes are taking a large part of the discussion for many governors. For instance, the Florida governor is hoping for a constitutional amendment to make it more difficult for future legislators to raise taxes, while in New York, the governor says the state will challenge the federal tax code.
Freestanding Entrepreneurship Schools, Creative Courses Illustrate Evolving Role of Universities
Recent research on the evolving role of universities finds the emergence of an entrepreneurial society has contributed to a broader and more fundamental role for universities — that is to provide thinking, leadership and activity to enhance entrepreneurship capital. University-based entrepreneurship programs and initiatives seem to have gained steam following the recession with federal support for programs to enhance entrepreneurial efforts in states and regions and increased interest from students and out-of-work individuals.