Senator Feingold: Kicks off E4 Initiative with Focus on Small Business Innovation

Contact:  Zach Lowe (202) 224-8657


 


 


Initiative Also Includes Legislation to Strengthen Education and Workforce Development


 


Madison, WI – Today, U.S. Senator Russ Feingold met with Madison-area business and education leaders to discuss part of his “E4” Initiative, which aims to fuel job creation and enhance workforce development efforts.  The initiative – dubbed “E4” because of its focus on Economy, Employment, Education, and Energy – will include legislation to boost small business innovation, support job growth in the emerging energy sector, enhance workforce development, and build new education partnerships.  This morning Feingold met with members of the Wisconsin Technology Council to discuss the piece of the initiative that focuses on supporting small business innovation.  He is also discussing the broader E4 initiative at the City of Fitchburg’s Business Appreciation Luncheon.  


 


Supporting Small Business Innovation


 


Feingold met with members of the Wisconsin Technology Council, where he discussed his bill to reauthorize and substantially increase two federal programs that can do the most to support innovative small businesses: Small Business Innovation Research Grants and the Small Business Technology Transfer Program. His bill will substantially increase federal agency grant funding for innovation and research to small businesses – and for university and research institutions working with small businesses. 


 


“Wisconsin’s unique strengths that offer huge potential for job growth and economic development and our small businesses are the engines that can drive it,” Feingold said.  “In a changing economy, Wisconsin has the potential to be a national and global leader in addressing emerging challenges while creating jobs and spurring economic development.  To take one area as an example, I’ve been told that Wisconsin can be the ‘Silicon Valley’ of water technology.  Nurturing this opportunity will yield more jobs leading to more growth while addressing an issue with global implications. My upcoming legislation to increase funding for Small Business Innovation Research grants could offer important assistance to small businesses that can have a great impact on the economic success of Wisconsin.”


 


“The SBIR program has been a successful federal vehicle for spurring innovation and transferring ideas from the laboratory to the marketplace. We urge Congress to reauthorize the program while increasing the pool of competitive grant dollars and encouraging more follow-on private investment,” said Tom Still, president of the Wisconsin Technology Council. “We appreciate Sen. Feingold’s attention to an issue that will leverage Wisconsin’s technology strengths.”


 


Small high technology businesses are major national assets necessary to transform technologies into viable products to create global value and local jobs, and to motivate our youth to pursue science, math, and engineering capabilities. Senator Feingold’s recommendations and support of small business are on target and vital to fuel our sustainable economic competitiveness,” said Tom Crabb, Co-founder and CFO of ORBITEC.


 


Feingold’s legislation proposes to, over a three year period, quadruple the proportion of federal agency R&D budgets that go to small businesses. It will also establish and emphasize key national priority areas for small business innovation and research grants in energy innovation; water quality and security; domestic security and transportation. The legislation is offset as to not add to the federal deficit.


 


Yesterday, Feingold rolled out the E4 initiative in Milwaukee with a visit to Procorp Enterprises, a Milwaukee-area small business specializing in sustainable water and wastewater treatment solutions. Feingold visited the facility and met with area business and research leaders to discuss how the federal government can help small businesses grow and address emerging challenges.



 


The E4 Initiative


Economy · Employment · Energy · Education


 


Wisconsin is at a critical juncture.  The changing economy, flawed trade agreements, rising health care costs and rising energy prices have put communities and businesses across the state in a difficult position.  But Wisconsin’s unique strengths and resources are a great cause for optimism.  Wisconsin businesses have the potential to lead the way – nationally and globally – in addressing emerging challenges.  That is why Senator Feingold is pushing his E4 Initiative – dubbed E4 because of its focus on Economy, Employment, Education, and Energy. Over the coming weeks and months, Senator Feingold will take a multi-faceted approach to harnessing Wisconsin’s strengths in order to create jobs and enhance economic development.  Feingold will focus on four key areas: boosting small business innovation, supporting job growth in the emerging energy sector, strengthening workforce development, and building new education partnerships among our communities, high schools and businesses.


 


·              Boosting Small Business Innovation – Congress can do more to support small business innovation.  For example, Wisconsin small businesses focusing on water technologies are in prime position to help the region, country and planet address the grave problem of a lack of clean water.  Feingold is proposing to increase federal funding for small business innovation research and technology transfer programs, and to prioritize work in energy, water, transportation and domestic security – top national priorities where Wisconsin has a strategic advantage.


 


·              Supporting Job Growth in the Emerging Energy Sector – With skyrocketing energy prices, we should be prospecting for energy saving technologies.  Businesses, schools, and builders of all kind are looking for ways to make buildings more energy efficient, conserve energy, and expand renewables, creating a huge demand in the emerging energy sector for jobs – jobs that are far more likely to stay right here in America.  Feingold will continue working to advance Green Jobs efforts and energy efficiency programs. 


 


·              Workforce Development – We must help Wisconsin’s strong and able workforce find jobs in existing and emerging areas of the economy, and help businesses locate these qualified workers.  Feingold’s initiative will seek to expand awareness of and access to existing skills standards so more people are prepared and certified to work in emerging fields.  The initiative will also strengthen transportation opportunities to help connect these workers to the businesses that need them. 


 


·              Building New Education Partnerships – With a number of our cities confronting staggering high school dropout rates we should find ways to better engage teenagers in learning.  One way is to get them interested in new and exciting career paths in emerging industries and give them opportunities to explore those paths, whether they are going onto college or directly into the workforce.  Feingold’s initiative focuses on helping schools, businesses, and others collaborate on improved ways to teach our students skills that they can use in our region’s emerging industries.   



Strengthening Our Economy Through Small Business Innovation Act of 2008


 


U.S. Senator Russ Feingold is introducing legislation to expand and improve federal support for small businesses.  The bill will increase total federal spending on, and the size of, grants for small business innovation research.  It will also prioritize grants for work on energy, water, transportation and domestic security issues, which are key national priorities and areas where Wisconsin has a competitive advantage.


 


American small businesses generate approximately half of our nation’s payroll jobs and most of our new employment opportunities.  Studies also have shown that small businesses are the greatest source of net new employment in inner cities, generating 80 percent of the total employment in these urban areas.  Small businesses also drive product innovation, translating their cutting edge efforts and those of our research institutions into products that improve our lives and our economy.


 


The Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs were established to promote small business innovation and commercialization prospects as well as to enhance opportunities for women-owned and socially and economically disadvantaged small businesses.  These programs allocate a small percentage of federal agency research and development budgets to small businesses.  These programs have a proven record of success. 


 


In a recently completed comprehensive study of the SBIR program conducted by the National Academies of Science, the National Research Council found that the SBIR: is “sound in concept and effective in practice”; increases innovation; encourages participation by small companies in federal research and development programs; provides support for small firms owned by minorities and women; and resolves research questions for federal agencies in a cost-effective manner.  The report also specifically noted that additional funding “could be employed effectively by the nation’s SBIR program.”  Senator Feingold’s bill would act on these recommendations.


 


Senator Feingold’s bill would:


 


§        reauthorize the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs for an additional 14 year period;


§        substantially increase federal R&D funding for small businesses over a three year period from 2.5% to 10% of federal funding for the SBIR program and from 0.3% to 1% for the STTR program;


§        increase the levels of phase I and phase II awards beyond adjustments for inflation to $300,000 and $2.2 million, respectively, to strengthen project commercialization prospects; and


§        prioritize grants for R&D in key areas: energy innovation; transportation; domestic security; and water quality and security.


 


The cost of Senator Feingold’s legislation is fully offset.