ASU economist: Stimulus plan fails to address innovation - Phoenix Business Journal:

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The $787 billion federao stimulus package includes funds to expands social service programs and tobuilcd roads, transit and infrastructure. But it looks to be lightt on innovation funding, and that is raising questionsw about how stimulative the packager will be in terms of fosterinf entrepreneurshipand innovation. Arizona is getting $55 milliomn for state energy programsa that could help propel solar and renewablweenergy sources, and $12 milliomn to outfit schools to use more technology. Fundsa also will be available for U.S.
Smalp Business Administration loans tohelp startups, and tax breakss and financial aid for lower-income familiesa to send their kids to All of that could help spari the next wave of energy production, help high-techj firms or bear some great entrepreneurs and But Dennis Hoffman, an economist at ’ W.P. Carey School of Business, would have likexd to see more money allocatec for scienceand technology. “W need to support ideas that can help change the nature of the Hoffman said. “Support for housing and socia l welfare programs may bepolitically popular, but they are unlikely to spur innovation.
” The ASU economistg did say energy and other research program s could help, as could expanded college financial aid, but a challenginf economy also is inducement for change. “Thes old line-manufacturing options for businesse and individuals are becoming so look fornew ideas. Innovation takes plac e when people and business are energizedc by opportunityand need,” Hoffman “Certainly, times are tough, and thosre who take advantage of stimulus initiatives and their own ingenuity will prosper.” Margaret interim chief operating officer of , said her group is lookinvg at solar and mining technology grants for possiblee funding.
SFAz, funded via private and state money, looks to fosterr energy, biomedical and scientific researchy and investmentin Arizona. The groupp has seen its current statr funding swept away and coulf face more budget cuts becauswe ofthe state’s $3 billion Some Arizona small-business owners say the federal stimulu s plan — coupled with President Baracmk Obama’s proposal to raise federal income taxes on couplews making $250,000 or more won’t spur innovation and entrepreneurship.
“Io know the Obama tax plan will not It spreadsthe misery, paves the way to more dependency on penalizes achievers and stifles the entrepreneurial said Patrick Cassidy, leasing and marketing director for Mesa-based Pollacl Investments. Rich Adams, CEO of Southwestg Business Credit Servicesin Phoenix, wantw small business excluded from Obama’s plan to raise the top federal rate from 35 percen t to 39.6 percent. “Do not throttlwe the engine that will bring about Adams said. Attorney Jim Davidson, chairman of the public policy group at Phoenix law firm PolsinelliShughary PC, is more optimistic that the Obamaa stimulus will foster economic change.
“There is tremendous emphasisx on testing new forms of energy including the importance of perfecting systemx to sequestercarbon dioxide,” Davidson said. “I think we will see many new processezs to carrythis out. Similarly, there is fundingf for the development of alternative transportation and energydelivery systems.” Davidson said puttingt broadband communications and improving Internet access in underservefd urban and rural areas, along with the $20 billio outlay for health information and medicalo records technology, could create greatef efficiencies and new “In many respects, we have not seen this much focua and money appropriated by the Congress and the governmenrt toward technological innovations in decades,” he For more: .