connecticut technology councils calls for support of high growth firms, provide more funding for...

1 | InnovationAgenda.2011 — February 2011

InnovationAgenda.2011 Connecticut’s economy is weakening compared to other States, and we enter 2011 worried

about jobs and economic growth amidst a budget deficit. Still, there is reason for hope.

The competitive skills of our talented citizenry, the diverse strengths of many firms spread

across many key global growth clusters and the favorable access we enjoy to New York

and Boston mean we have the potential to re-create the successes our state has enjoyed

during past times of economic change and challenge.

With new state leadership and the recognition that economic vitality is the key to high

quality jobs growth, we now need to take action towards regaining our position as a

crossroads of talent, capital, innovation, and generator of good jobs.

The President in his State of the Union Address challenged all Americans to again position

us as the productive resourceful land of innovation and economic agility. Let us not forget

that few states did better than Connecticut by capitalizing on their skills and ingenuity

during the last “Sputnik” moment.

The question is, do we have the will and resources to capture our share of the new global

innovation economy? We say “yes”. We believe we must start down this road now with

direction and energy – while also acknowledging that for the next few years we face budget

limitations.

Once Connecticut was acknowledged as the home of Yankee ingenuity, and we were the

technology center of the world. This created our high standard of living. Now we face

tougher competition, and our leadership position has eroded through a confluence of global

changes.

We need to recreate a dynamic economy for growing high potential businesses, including

an innovation environment that will grow and attract the talent, technology, growth

businesses and capital we need to generate new jobs and a strong tax base for the future.

Targeting this objective will leverage our limited resources and produce the greatest impact

on our long term prosperity. This agenda seeks to focus on the changes and actions that

will transform decline into growth.


Built on input from the recent Competitiveness Agenda Project, which asked successful

growing firms what they needed to best thrive, this Agenda represents the commitment of

all facets of the Connecticut technology community to create a globally competitive

environment in which to prosper and be active corporate citizens.

We do not intend this Agenda to be comprehensive – it is mostly about issues pertaining to

Connecticut’s economic innovation culture and systems, which offer the potential for

substantial economic development and growth of good new jobs. We recognize there are

many other important areas, e.g. STEM education and urban revitalization, that are also

key to our regional success, but outside our purview.

Our recommendations are directed to State policy, and have common themes: leadership,

global standards of performance and comparison, and a focus on creating an environment

or “eco-system” that will promote growth in existing companies and support the

development of new firms.

We look forward to being part of the debate and the fight to bring our state back to the top

of the list of best locations for high potential technology-oriented economic growth.

Kevin Frank Kevin Burns, Agenda Task Force Co-Chair Frank Marco, Co-Chair

Founder and CEO Precision Combustion Partner, Wiggin & Dana

Chris Matthew Chris Kalish, CTC Chairman Matthew Nemerson, President

Director, Edgelab Connecticut Technology Council

February 2011


Recommendation 1

The Governor and top legislative leaders must actively support and lead the development of an effective and dynamic Connecticut Technology Business Growth Eco-system.

Over the next decade, innovation-based job growth will be the critical factor in Connecticut’s economic development and growth. Returning innovation-based job growth to the State requires the direct involvement of the Governor – in the process of setting Technology Based Economic Development priorities and leading both the public and private sector with a clear vision. Action Steps:

• State policies and actions should be designed to actively and expressly support the

development of an effective Connecticut innovation eco-system in which existing and

start-up technology businesses find a supportive and attractive environment in which to

grow to their full potential.


Recommendation 2

Targeted State action to promote growth and retention of high

growth potential technology firms and divisions of larger firms.

The state must take specific action to support the development and growth of new and existing technology firms with high potential for growth and job creation. These include promising start-ups and small firms which begin or are attracted here as well as mid-sized and larger firms that are investing in the development of new products or services that results in growth.

Action Steps:

• Implement policies and programs that create a supportive and sustainable growth

environment to help grow high potential firms and divisions (e.g. so-called “gazelles”),

such as:

o State-wide business “acceleration” services with central case-management,

o Center that facilitates corporate tech transfer to create new company

development from underused and dormant technologies,

o State-wide cluster and network development, and

o Support for firms and projects seeking capital or federal revenues.

• Establish short and near-term plans to assist identified early stage firms considered as

having high potential for growth.

• Create strategies and retention plans for identified high value-added firms and divisions

of all sizes.

• Collect key longitudinal and real-time data and conduct analysis on the entire “eco-

system.”

• Adopt a planning process and strategic approach to gain participation as one of the

model state programs for the StartUp America and JumpStart America efforts to build

impactful innovation acceleration networks in key regions with national foundation and

federal support.


Recommendation 3

Support major increases in Connecticut’s supply of early stage

risk capital.

The state must be able to respond more quickly to opportunities and to build a much larger pipeline of high potential firms. The availability of adequate capital at each stage an enterprise needs funding is critical to building and retaining new jobs.

Action Steps:

• Allocate at least an additional annual $10million of state funding to the state’s leading

investment agency, Connecticut Innovations, Inc. (CI), to invest in early stage, high-risk

opportunities, especially those that may be relocating to the state.

• In any reorganization of state development functions, consider an expanded role for CI.

• Pursue new mechanisms for investments in venture capital funds, such as incentives for

private investment and a “fund of funds” created by the State Pension Fund.

• Strengthen and expand state programs (such as the SBIR Office) to improve growing

firms’ success in winning competitive federal research and development (R&D) funding.


Recommendation 4

Encourage, promote and deepen the productivity of university-

busines s technology relationships.

CEOs of fast growing firms point to their inability to quickly and easily create relationships with universities, professors and students to work on product development projects and address customer issues.

Action Steps:

• Provide new and adequate funding to enhance the ability to match companies and

faculty researchers through programs such as the University of Connecticut (UConn)

“Innovation Connection”, CI’s “Yankee Ingenuity” fund and efforts at other schools,

including at Yale University, to encourage and support the early key relationships that

foster innovation eco-system growth.

• Support Higher Education’s reorganization in Governor Dannel Malloy’s budget and

transition document.


Recommendation 5

Maintain existing initiatives and commit to long-term policies regarding tax credits, exemptions and sector-related investments.

Business development and growth is a long-term undertaking. Temporary tax incentives have little influence, usually flowing to activities that would have occurred anyway. Sustained tax incentives and initiatives match the time frame of serious investments, reduce business risk, and affect decisions. The process needs political leaders who have patience, belief and stamina to take action and then remain supportive for sustained periods of time. A state that shows consistent support even without quick success, will earn the respect and more easily attract the talent and investors needed to fuel its innovation eco-system.

Action Steps:

• Maintain existing R&D tax credit policies and trade-in provisions to establish confidence

and stability among businesses and investors.

• Maintain the new Angel Tax Credit program and consider feedback from actual users to

increase its attractiveness within the region.

• Maintain sales and use tax exemption for biotechnology equipment.

• Maintain $10million/year stem cell investment and funding program.

• Review the focus and purpose of the Insurance Reinvestment Tax Credit to see if

modifications are warranted.


Recommendation 6

Support the development of dynamic networks among technology

entrepreneurs, investors, scientists and engineers.

The state needs to compete with New York and Boston for the best and brightest. Stamford, Norwalk and New Haven are beginning to hold their own against the “brain drain” out of the state. We need to do much more to build an international presence on key campuses and to build the next generation of business leaders.

Action Steps:

• Continue to support the development of self-energizing statewide networks through

events, interactions, competitions, internships and other networking activities.

• Provide incentives through efforts such as targeted internships, fellowships and

international competitions - to bring to the state and develop from current residents - the

talent that will stay here and contribute and compound over time to become key parts of

the state’s new innovation based culture.


Recommendation 7

Build a global Connecticut brand and international network.

The state needs to create a presence through marketing and targeted outreach in both North America and around the world about is goals and the role it can play as part of a regional or global strategy as an operational beach-head and as a location for corporate R&D Action Steps

• Design a brand for Connecticut national and international audiences. • Re-engage in various types of international initiatives to make new connections for the

state’s companies to export and also to recruit foreign firms to establish North American R&D and headquarters in Connecticut.


Recommendation 8

Support effective transportation and communication infrastructure investments to improve Connecticut’s connections with a global economy.

Winning the competition in a global economy requires the highest level of internal and external connectivity, achieved both physically through easy access and virtually through world-class communications. Families need their highly skilled members to have access to a large field of good quality jobs that may span multiple labor markets. Younger workers are hoping to live with fewer ties to cars. Investors want easy access to their portfolio firms. So quick, quality and connected travel options are key requirements for high growth companies as they seek the best locations.

Action Steps

• Utilize the State Transportation Strategy Board’s 2011 strategic plan for the State

Department of Transportation with its focus on improving rail infrastructure, speeds and

frequency, adding capacity to Bradley and Tweed airports and relieving congestion on

our major highways - especially between Bridgeport and New York State.

• Consider a regional infrastructure bank and other revenue sources to develop multi-

state support for major projects and also the means to develop them successfully and

keep Connecticut in a key geographical position.


About the Connecticut Technology Council

CTC is the largest and most broad based business association expressly serving the needs of enterprises involved in areas relating to technology, innovation, and the commercialization of the sciences. Representing almost 300 members and a community of some 2,500 companies and several hundred thousand employees, CTC strives to serve its members and the general interests of the State of Connecticut as they relate to the growth and success of technology based development.

The CTC works to make Connecticut a vibrant location for innovation and growth by helping to advocate for a set of networks, attitudes and performance standards that will give our region a key role in the new “flat world.” Working with an active board of directors composed of technology and professional services leaders, the CTC offers a rich selection of programs and services all intended to build a community of successful innovation and technology based businesses operating in a globally competitive environment.

Our Programs

Marcum Tech Top 40: A program that honors the 40 fastest growing Connecticut technology companies in the

state. This fall event recognizes growth based on revenue over a four year period.

Innovation and Entrepreneurship Summit: This annual event is part of a larger event that now includes a

northeast region angel investor forum. The event, now in its fifth year, honors start-up technology companies in

several awards categories and includes CTC’s unique poster fair and elevator pitches from select companies.

Women of Innovation: The Connecticut Technology Council annually celebrates the state's leading women in

technology in a gala dinner event each January. This year’s seventh annual dinner at the Aqua Turf is expected to

draw 575 attendees to this statewide event. Visit the CTC website, www.ct.org for a recap of finalists and winners.

CEO Forum: This is an exclusive once-a-year event for CEOs or Presidents of companies with revenue greater

than $3 Million. Participants come from all the technology verticals for an evening of networking, dinner and a

keynoter. CTC also hosts facilitator-led, monthly CEO Forums for tech company executives whose revenue is

greater than $3M and for the CEOs of companies doing less than $3M.

CIO Forum: This event is held in November of each year and is aimed at senior IT executives. The event is a half

day forum at which attendees discuss topical issues.

Innovation@Work (I@W): A private forum at which smaller, selected companies are invited to present their

technology to a large, host company per a prescribed set of technology criteria developed by the host company..

CTC seeks large companies to host this event and will customize it to meet the host company’s requirements. A

2010 I@W was hosted by Pitney Bowes.

PowerMatch: A networking program based on a highly successful professional business networking model

developed in Silicon Valley, It is held monthly around the state at alternate sites in Hartford, New Haven,

Stamford, New London and Danbury.

The Connecticut Growth Network: A grassroots networking effort to have the state’s technology practitioners

meet informally and regularly in small groups to discuss tech issues and to hear guest presenters. Visit the CTC

calendar at www.ct.org to see when the next growth cell convenes.

The CTC Web Site, Social Networking Groups and Master Calendar: Bringing diverse elements of the 2,00

firms and 200,000 members of the regional technology together and keeping them in touch.

Management and coordination of the Connecticut Venture Group (CVG): The CTC works with and for the

board of the CVG to assure a model of synergy and joint goals between the two leading innovation trade

associations in the state.


CTC 2011 Board of Directors

Some board members are not listed due to corporate policies. This list does not constitute an endorsement by the

companies listed of the recommendations in this document.

Tony Allen, The IMPACT Group, LLC (Vice Chair)

Peter Armstrong, Triple Point Technology, Inc.

James Boyle, Yale Entrepreneurial Institute

Victor Budnick, Ironwood Capital

Kevin Burns, Precision Combustion, Inc.

Mike Cantor, Cantor Colburn LLP

Christopher Cerrito, Dickstein Shapiro LLP

James Cioban, Cierant Corporation

Robert Daigle, Rogers Corporation

John Emra, AT&T Connecticut

Tom Flynn, Shipman & Goodwin LLP

Rob Friedland, Proton Energy Systems, Inc.

Elliot Ginsberg, Connecticut Center for Advanced Technology, Inc.

Andy Greenawalt, Continuity Engine, Inc.

Rick Harris, Day Pitney LLP (Secretary)

Paul Hermes, Covidien Surgical Devices

Rick Huebner, Visual Technologies, Inc.

Jack Hughes, TopCoder, Inc.

Chris Kalish, EdgeLab (Chair)

Richard Leone, COCC, Inc.

Peter Longo, Connecticut Innovations, Inc.

Joe Lubenstein, Greater Hartford Academy of Math & Science

Frank Marco, Wiggin and Dana LLP

Matthew Nemerson, President & CEO

Mike Scricca, Director Memberhip

Paige Rasid, Director Communications & Operations

Ann Discenza, Manager Programs & Development

Jack Antonich, Special Projects

Casey Pickett, Competitiveness Agenda Project Dir.

Rich Mavrogeanes, Discover Video

Andy McCarthy, Comcast

Alan Mendelson, Axiom Venture Partners

Frank Milone, Fiondella, Milone, & LaSaracina LLP

David Mitchell, Open Solutions Inc.

Kevin Morris, Microsoft Corporation

Kristin Muschett, HABCO, Inc.

Matthew Nemerson, Connecticut Technology Council (President & CEO)

Chuck Pagano, ESPN

David Parekh, United Technologies

Leon Pintsov, Pitney Bowes, Inc.

Carol Pride, Mohegan Sun

Ernst Renner, NEOS, LLC

Eric Rosow, Allscripts Corporation

Gualberto Ruano, Genomas, Inc.

Jeffrey Rubin, Cronus Partners LLC

William Rucci, The Hartford Steam Boiler Inspection & Insurance Company

Joe Savage, Webster Bank (Treasurer)

Al Subbloie, Tangoe, Inc.

Peter Walsh, Sonalysts, Inc.

Kevin Williams, Gerber Technology

Ira Yellen, First Experience Communications

Connecticut Technology Council

222 Pitkin Street, Suite 113

East Hartford, CT 06108

860 289 0878 x335

[email protected]

connecticut technology councils calls for support of high growth firms, provide more funding for...

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