Maine's 2010 legislative session wrapped up last week, ending on a relatively high note for tech-based economic development (TBED). Actions supporting TBED include a measure signed by Gov. John Baldacci to encourage venture capital investment in innovative companies and the legislature's approval of a bond package that includes $11 million for ocean wind energy demonstration sites through the University of Maine System.

Three recent reports from Maine provide insight into the challenges of fostering an innovative economy in a rural state. Overall, the research suggests that Maine has done well in its efforts to support startups, but could do more to help those startups expand and find new markets. By encouraging innovation-based businesses to expand to markets outside of Maine and by offering mentoring services, the state could overcome the stagnation that can occur when companies and states focus on local markets.

“I recognize the importance of attracting venture capital and new investments to Maine,” Gov. John E. Baldacci said. The governor later added, “However, as it is currently written the bill carries enormous risk. This bill would guarantee a rate of return for venture capital investors while Maine would shoulder all the risk. The potential liability for the State is too great for me to sign this bill.”
 

Voters in 37 states will decide on more than 170 ballot measures this year, many of which are related to tech-based economic development (TBED). Tax measures seem to be dominating ballots this year, with questions relating to both decreases and increases for sales, property and income taxes. Several states are counting on voters to agree to temporary increases to help fill budget deficits and ensure steady funding for education.

Recently, the Maine Technology Institute (MTI) announced a new outreach effort to connect the state's community banks with promising technology and innovation-based businesses. These businesses often have capital needs that differ from other small firms and less collateral to secure loans. As a result, it can be difficult for high-tech firms to secure bank loans. The initiative will kick off with a series of workshops, held in partnership with community banks, on the funding options available to tech companies.

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

Lawmakers in several states wrapped up their 2011 sessions in time for the new fiscal year, which begins on July 1 for most states, allocating funds and passing bills in support of tech-based economic development. Read more...