2002-2005 Accomplishments

• Qualified Business Venture tax credit expanded and extended 
• New R&D tax credit created
• Board of Science and Technology and the Economic Development Board coordinated strategic plans
• The General Assembly created the One North Carolina Small Business Program that provides matching funding for companies that are awarded a federal SBIR or SBTR grant
•  In 2005, the Governor's Task Force on Nanotechnology and North Carolina's Economy was formed
•  The General Assemble authorized the Treasurer to invest up to 20 percent of the Escheat Fund corpus in a new asset category which includes venture and seed funds for early stage capital development
•  UNC added ED as chapter of long-range plan
• The Defense Technology Innovation Center in Fayetteville was authorized in 2005 to create collaborations with the military, entrepreneurs, and innovators to produce technology solutions and business development
• UNC Technology Development Initiative completed

 
Next Steps

•  Support & strengthen R&D and tech-transfer efforts
• Address capital gap for start-up companies and encourage growth of early-stage tech firms 
• Mobilize leadership support for role of S&T and university outreach in economic growth
•  Assess and build upon regional tech strengths
• Increase North Carolina's workforce talent pool by improving K-12 mathematics and science education
• Implement strategic imperatives outlined in "A Roadmap for Nanotechnology in North Carolina's 21st Century Economy"
  

Along with Governor Easley and the General Assembly, the following organizations are partners in the Economic Development Board's Science and Technology Initiatives:

Boards and Commissions:

• NC Board of Science and Technology
  

Public Organizations and Educational Institutions:

• The University of North Carolina
• The North Carolina Department of Commerce
• The North Carolina Department of Revenue
• The North Carolina Department of State Treasurer 
  
   

Private and Non-Profit Organizations:

• North Carolina Chamber of Commerce
• Economic Development Partnership Regions
• North Carolina Electronics and Information Technologies Association
• North Carolina Biotechnology Center
• The Microcomputing Center of North Carolina
• The Council for Entrepreneurial Development
• The North Carolina Biosciences Organization
  
  

Allocate resources and make investments to create an environment that promotes the effective transfer of scientific and technological knowledge and resources to promote the economic growth and development of North Carolina.  

Action 2.1.1: Develop a mechanism within state government to provide coordination and assistance to existing public and private sector science and technology resources to make the best use of those resources for advancing economic development and job growth throughout the state.

• Responsibility:  NC Board of Science and Technology
• Deadline:  December 2005
• Funding Source:  State appropriations (cf. 2.1.2)
• Expected Outcome/Return on Investment:  The creation of opportunities for more efficient and effective leveraging of existing and new resources to support technology-based economic development to create jobs and turn innovative ideas into marketable products. 

For example, it will work with partners across the state to facilitate:

• External research funding to North Carolina’s colleges, community colleges, universities, and industry;
• The amount of federal SBIR/STTR research commercialization funding awarded to North Carolina organizations;
• Commercialization of intellectual property (IP) from universities and laboratories and growth of entrepreneurial companies;
• Growth and diversification of private and venture investment across North Carolina;
• Activities to attract and leverage private investment in North Carolina companies;
• Economic development through the promotion of technology-based solutions to current and future business issues, serving both technology and non-technology firms in the state

2006 Update

This action step has not been fulfilled but it still relevant to the advancement of science and technology in North Carolina.

Action 2.1.2: Increase funding for the Board of Science and Technology. Science, technology, and economic development are interrelated and vital to North Carolina’s future economic success, and they require coordinated attention at the state level. Increasing the resources of the Board will enable it to develop programs, identify opportunities, and strengthen science and technology as a foundation for North Carolina’s economic development.

1. Responsibility:  NC General Assembly; Office of the Governor, Department of Commerce
2. Deadline:  June 2005
3. Funding Source:  Recurring state appropriations of $1,000,000/year
4. Expected Outcome/Return on Investment:  As listed in objectives 2.1.1, 2.1.5, 2.1.6, and 2.2.2

2006 Update

Funding for the Board of Science and Technology has not increased substantially over this time period.

Action 2.1.3: Catalyze and support expanded innovation activities from all of North Carolina’s Universities through appropriate follow-up to the University’s recently completed Technology Development Initiative.

• Incenting Universities to embrace a culture of innovation and entrepreneurship that transfers seamlessly to the State’s economy;
• Strengthening technology transfer services at all campuses;
• Establishing a statewide, distributed support network of key technology transfer partners;
• Providing additional resources to University technology-transfer organizations;
• Developing new metrics for university innovation and economic development.

1. Responsibility:  University of North Carolina (Vice President for Research and Sponsored Programs; Small Business and Technology Development Center)
2. Deadline:  January 2007
3. Funding Source: Accelerate NC and SBTDC expansion budget requests
4. Expected Outcome/Return on Investment:  Increase in level of technology transfer activities and value; statewide business creation and enhanced competitiveness

2006 Update

North Carolina universities are emerging as centers of regional entrepreneurship. The University of North Carolina’s Board of Governors added a seventh strategic directive to its long-range plan in 2006 to emphasize the university’s role in transforming the state economy through “basic and applied research, innovation and creativity, transfer of knowledge, application of best practices, and high quality degree programs.”  In May 2006, the Board of Governors adopted a report by the Special Committee on ‘Economic Development and the Role of The University’. This report provides a framework for economic and community development activities on university campuses.

Technology transfer services have been strengthened on less research-intensive campuses through contracts with university-based spin-off companies. These initiatives were implemented based on discussions with the Council of Research Administrators, a group comprised of representatives from the various university campuses, and convened by the Vice President of Research. These measures aim to increase the amount of university innovation through technology transfer and commercialization and to promote economic development activities.

Action 2.1.4: Taking into account mission studies mandated by the legislature in this area, complete regional resource analyses across the state to understand regional strengths and opportunities; align university initiatives and expertise with the needs of regional economic development clusters; and develop strategies and tactics to address knowledge-based job creation in each region.

1. Facilitate the establishment of partnerships with entities in other states (e.g., federal labs, universities, government agencies) to leverage their strengths in mutually beneficial ways;
2. Create the best possible / most robust set of tax and incentive policies available to start, grow, and attract technology-based businesses;
3. Undertake a comprehensive review of the Umstead Act, with the goals of proposing amendments to it to improve the ability of the University of North Carolina to commercialize its technologies while protecting the state’s private enterprises from unfair competition.

1. Responsibility:  NC Board of Science and Technology; NCCBI; University of North Carolina; Department of Commerce; Department of Revenue
2. Deadline:  July 2008
3. Funding Source:  Current resources
4. Expected Outcomes/Return on Investment: Increased commercialization of University technologies. Increase in the number of high-technology companies.

2007 Update

Several proposals have passed during the 2006 legislative session that aim to boost North Carolina’s position in science and technology. Specifically, the 2006 General Assembly included a provision in its budget to reduce the sales tax on R&D equipment to promote technology-based growth in North Carolina.          

During the 2005 legislative session the General Assembly voted to amend the Umstead Act with HB 1539. This bill authorized the Board of Governors of the University of North Carolina to establish a panel to determine whether the university system has the authority to undertake an activity in competition with a nongovernmental entity. This measure aims to improve the ability of the University of North Carolina to commercialize its technologies while protecting private enterprises from unfair competition.

The University system has benefited from an expansion of funding for the Area Health Education Centers (AHEC) to help address critical needs for health care workers and other needs.

With support from the General Assembly and Golden LEAF Foundation, N.C. State and North Carolina Central University have continued to develop their programs to do research and train graduates in critical areas of biotechnology.

 

Action 2.1.5: Establish new, and refine existing, information technology platform, policy, and capacity priorities to enable the state and its businesses to remain competitive in a rapidly changing IT/ communications environment. Ensure that strategic IT infrastructures across the state have consistent ongoing funding appropriate to their mission and sufficient to leverage the strategic advantage of these assets.

1. Responsibility:  NC Board of Science and Technology; NCCBI; University of North Carolina; Department of Commerce; Department of Revenue
2. Deadline:  July 2008
3. Funding Source:  Current resources
4. Expected Outcomes/Return on Investment: Increased commercialization of University technologies. Increase in the number of high-technology companies.

2006 Update

In 2006, the legislature passed the HB 2645 (SB 1964) Internet Data Center Facilities Sales Tax Exemption: This bill makes large Internet data centers in Tier 1-3 eligible for a sales tax exemption on purchases of electricity and equipment.

Action 2.1.6: Adopt and fund in sequence the strategies detailed in New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology January 2004.

1. Responsibility: As detailed in plan
2. Deadline: As detailed in plan
3. Funding Source: As detailed in plan
4. Expected Outcome/Return on Investment:  As detailed in plan

2006 Update

The North Carolina Biotechnology Center has used this plan as a foundation for their actions and will continue to do so in the future.

Action 2.1.7: Support legislation that would enable, on an ongoing basis, the allocation of funds (e.g. from the escheats fund) for the purpose of creating science and technology related jobs in NC.

1. Responsibility: State Treasurer, Governor’s Office
2. Deadline: December 2007
3. Funding Source: As specified
4. Expected Outcome/Return on Investment:  Increased success of businesses relying on early-stage funding; enhanced business creation through University technology transfer

2006 Update

Senate Bill 341 / S.L. 2005-252 allows the state treasuer to have additional discretion when investing a portion of the escheats fund. This broader discretion may open the door for a portion of the escheats fund to be used for the types of investment advocated in this action step.

Allocate resources and make investments to support the creation of new knowledge and technology that will sustain and enhance North Carolina’s competitiveness as a leading technology state.

Action 2.2.1: Strengthen the overall R&D capacity of all North Carolina Universities and research institutions by enhancing key administrative support functions and processes that currently constrain their competitive R&D position.

1. Seeking opportunities to streamline internal operations and find ways to most effectively administer operations;
2. Continuing to allow the University to retain 100% of its indirect cost recovery. 
3. Widening the exemption of the University from the State Personnel System for UNC;
4. Modifying State purchasing regulations such that UNC can be empowered to use State purchasing contracts when advantageous from a cost, quality, and/or service perspective;
5. Granting the University authority to choose alternative vendors when lower costs, higher quality, or superior service are available;
6. Easing existing restrictions on construction and leasing arrangements for University buildings that are constructed or acquired through self-liquidating sources;

1. Responsibility: General Assembly; University President and Board of Governors; Institution Chancellors and Boards of Trustees
2. Deadline:  July 1, 2006
3. Funding Source:  Current resources; required financial investment for this step would be minimal
4. Expected Outcome/Return on Investment: Enhanced competitive advantage for the University, thus increasing the impact of University-based research on state economic recovery, growth, and development

2006 Update

The UNC system still retains 100% of its indirect cost recovery.

Action 2.2.2: Fund an initiative to promote economic growth in North Carolina through the identification and development of emerging technologies. For example, nanotechnology—the science of the very small— will fundamentally transform science, technology, and society, from microscopic computer chips to cancer-fighting vaccines.  As such, it holds tremendous potential for North Carolina and the nation.  Nanotechnology will be the basis of manufacturing technology in the future.  Developing a coordinated response to the challenges and opportunities presented by emerging technologies will greatly expand the opportunity for all North Carolinians to obtain and retain challenging and economically rewarding employment.     

1. Responsibility:  NC Board of Science and Technology (coordinating); University of North Carolina; MCNC; NC Biotechnology Center; Department of Commerce
2. Deadline: December 2005
3. Funding Source:  State appropriations
4. Expected Outcome/Return on Investment:  The creation of a strategic plan which assesses the states assets and ROI comparable to state investment in Biotechnology. Development of capabilities core to the retooling of existing manufacturing industries as well as the development of new generations of science and technology businesses and clusters statewide.  Position North Carolina aggressively to secure federal research funding and technology leadership in these technologies

2006 Update

In the spring of 2005 the Board of Science and Technology formed the Governor’s Task Force on Nanotechnology and North Carolina’s 21st Century Economy. The task force issued its first report in April 2006 and is working to implement a series action steps that will improve the environment for technological innovation and the application of nanotechnology in North Carolina.

In 2005, the General Assembly authorized the Defense Technology Innovation Center in Fayetteville to create collaborations with the military, entrepreneurs, and innovators to produce technology solutions and business development.
 
                           

Action 2.2.3: Strengthen the overall R&D capacity of the 16-institution University of North Carolina by providing resources and incentives for faculty development.

Priorities include:

1. Investing in competitive faculty salaries;
2. Investing in state-of-the art research and development facilities and equipment across all regions of the state;
3. Increasing opportunities and incentives for faculty collaboration with universities, industry, government, and non-profits.
4. Reviewing and revising promotion and tenure guidelines to reflect the increasing importance of collaboration, entrepreneurship, and scholarly community assistance.

1. Responsibility:  General Assembly; University President and Board of Governors; Institution Chancellors and Boards of Trustees
2. Deadline: Ongoing
3. Funding Source: State appropriations would fund salaries, incentives, facilities, and equipment
4. Expected Outcome/Return on Investment:  Enhanced competitive advantage for the University, thus increasing the impact of University-based research on State economic recovery, growth, and development.

2007 Update

In 2006, community college and university faculty will get 6 percent with a one-time 2 percent bonus for community college faculty and staff. The higher pay raises, along with $79 million for new professors and staff, are intended to attract high-quality faculty and meet projected enrollment increases at North Carolina universities. The new budget also invests in research initiatives at state universities. The University of North Carolina at Chapel Hill medical school will use $2.5 million to expand its translational medicine program, which connects basic research with applied pharmaceutical development. Biotechnology programs at North Carolina Central University and North Carolina State University will receive $4.5 million, and the NC Biotechnology Center and its regional offices are getting a $2.5 million budget increase. The new North Carolina Research Campus in Kannapolis will have $6.7 million through UNC and Rowan-Cabarrus Community College Training Center and Greenhouse to fund its first year of operations, and Fayetteville State University will be able to begin capital planning on a new science and technology complex with a " million allocation. The budget also provides $20 million for a new competitive grant program for state universities that can be used to attract faculty, purchase equipment, and undertake allied health projects.

 

Action 2.2.4: As part of a regional strategy, systematically promote the state’s University Millennium Campuses and support the development of new ones as sites for growing and attracting new technology-based businesses.

1. Responsibility: University of North Carolina
2. Deadline: Ongoing
3. Funding Source:  Allocate a portion of the state’s marketing resources to heighten awareness of the state’s science and technology initiatives, including its University research parks; also consider ways the State capital budget can serve as a strategic investment tool for creating new and enhancing existing industry-university research parks
4. Expected Outcome/Return on Investment: Significant increase in inquiries by prospective tenant companies and measurable increase in company commitments to research park locations; increased collaboration among universities, industry, and non-profits; increase in number of research parks; strengthening of university-industry collaborations, enhanced opportunities for technology transfer and business creation.

2006 Update

This action step is in progress and the University of North Carolina continues to receive support for the millennium campus initiative.

Action 2.2.5: Increase knowledge of SBIR and STTR awards throughout the state and strengthen application assistance for entrepreneurs to increase their success rate in receiving such awards.

1. Responsibility: University of North Carolina (Small Business and Technology Development Center)
2. Deadline: December 2007
3. Funding Source:  State appropriations
4. Expected Outcome/Return on Investment:  Enhanced awareness of funding opportunities; improved quality of funding proposals; increased success rate of proposals and businesses relying on these programs for early-stage funding; increase in the number of strategic linkages between businesses and research institutions.

2007 Update

The Small Business and Technology Development Center (SBTDC) is the state’s lead organization for the promotion and support of small business access to SBIR and STTR programs. It provides a robust range of services to entrepreneurs and university researchers aimed at increasing awareness of these programs and boosting the number of successful applications for awards.  Examples of the SBTDC’s services include major statewide conferences, numerous workshops, and individualized proposal assistance. Combined, these steps have raised awareness of SBIR and STTR awards throughout the state and increased the application success of regional entrepreneurs.

The SBTDC’s success in this area has been noticeable, as it was selected to host the national 2007 SBIR/STTR conference in North Carolina.

To increase the number of these awards as well as the competitiveness of North Carolina businesses in receiving them, the One North Carolina Small Business Fund, created in 2005 by the Board of Science and Technology and Commerce, has provided more than " million in matching awards to twenty-four companies from April to July 2006. During the 2006 legislative session the General Assembly appropriated $5 million in non-recurring funds on the Governor’s recommendation to support the One North Carolina Small Business Fund. With these funds, the Department of Commerce will offer grants under the North Carolina SBIR/STTR Incentive Program and matching grants under the North Carolina SBIR/STTR Matching Funds Program for fiscal year 2006-2007.

Allocate resources and make investments to increase public understanding of science and technology and their relationship to economic prosperity.  Mobilize broad-based public leadership support for science, technology, and university outreach objectives and their role in economic prosperity.

Action 2.3.1: Conduct and publish the following statewide assessments on public understanding of science and technology and their importance to the North Carolina economy.

• The popular understanding of the importance of science and technology to economic growth and prosperity, replicating the survey methodologies found in the 2004 National Science Foundation report Science and Engineering Indicators, and the survey conducted by the NC Board of Science and Technology found in Public Perceptions of the Importance of Science and Technology to the NC Economy.
• The needs of North Carolina's policy leaders for information related to science, technology, and technology-based economic development.
• The factors linking technology-based economic development and prosperity in each of North Carolina’s seven Economic Development Regions.                 

1. Responsibility: NC Board of Science and Technology
2. Deadline: Initial 2006, then biennially
3. Funding Source: Biennial state appropriations of $250,000
4. Expected Outcome/Return on Investment:  Establish baselines for comparison of public science and technology knowledge against the national average as reported biennially by the National Science Foundation; provide benchmarks for setting future goals and monitoring the effectiveness of action steps to increase public understanding of science and technology within North Carolina.  Understand public perceptions of the factors that successfully link technology-based economic development and widespread economic prosperity; understand how public perceptions reflect the conditions in their region. Meet the needs of state policy leaders for timely information on science and technology and its role in economic development.

2006 Update

This action step has not been undertaken due to a lack of resources.

Action 2.3.2: Based upon the assessments of Action Step 1, develop recommendations for appropriate outreach programs targeted at educating the public and policy leaders (at the state level as well as in the seven Economic Development Regions) on technology-based economies, emphasizing best practices and key elements that produce the widest prosperity and economic benefit.

1. Responsibility:  NC Board of Science and Technology
2. Deadline: Initial report by December 2005
3. Funding Source: External program support; biennial state appropriations of $250,000
4. Expected Outcome/Return on Investment:  The success of Goal 2 of this Strategic plan is ultimately contingent upon public understanding of the factors that link technology-based economic development with widespread prosperity.

2006 Update

This action step has not been undertaken due to a lack of resources.