Missouri Science and Innovation Reinvestment Act

Summary

Purpose and Concept

The purpose of the Missouri Science and Innovation Reinvestment Act (“Reinvestment Act”) is to foster economic growth and the creation, attraction, and retention of quality jobs related to science and innovation in Missouri.  It will enable Missouri to capitalize on its existing assets that make Missouri a national leader in science and innovation.  By providing a stable source of funding, the Reinvestment Act will make Missouri a leading location for science and innovation entities to locate and grow which will create new jobs, foster economic growth, advance scientific knowledge, and improve the quality of life for the citizens of the State of Missouri.
The Reinvestment Act functions by capturing the new growth in state income taxes generated by new employees working in Missouri within designated science and innovation fields and reinvesting this revenue to assure future and continued growth in this important sector of Missouri’s economy.  Funding through the Reinvestment Act will NOT involve the use of existing general revenue funds.
The Reinvestment Act creates an independent public authority, the Missouri Science and Innovation Authority (“Authority”), whose mission is to create, attract, and retain science and innovation jobs in Missouri.  As a statewide, independent public body, the Authority will be able to build strategic collaborations across Missouri, while maintaining the flexibility necessary to act quickly in response to opportunities that will attract outside funding (i.e. federal and private) to leverage and multiply science and innovation growth in the State.

Authority Board and Advisory Boards

The Authority will be governed by an 11-member Board of Directors.  This Board will consist of representatives of the public who are recognized for their outstanding knowledge and leadership in the areas of science and innovation and related entrepreneurship and commercialization. The initial Board will be appointed by the Governor, subject to confirmation by the Senate.  All members of the Authority’s Board must meet strict conflict of interest requirements to ensure that the Board operates fully independently and with the best interests of Missouri’s citizens in mind.

Additionally, the Board will establish at least two expert advisory committees to ensure the Authority undertakes projects based on the soundest science and with the greatest potential return to the citizens of Missouri. 

• The Scientific Advisory Board shall consist of members nationally and internationally recognized for their expertise in a variety of science fields. 
• The Commercialization Advisory Board shall consist of members recognized for their outstanding expertise in the fields of science-related business, finance, commercialization, manufacturing, and entrepreneurship.

Source of Funds

The Reinvestment Act will establish a base year level for existing state revenue from science and innovation jobs.  The level represents current revenue to Missouri from state income taxes of science and innovation employees.  This base level of income taxes continues into general revenue in future years and is not impacted by the Reinvestment Act.

In the future, as state withholding from science and innovation employees grows, new tax revenues - above the base year level - will be captured directly by the Authority and reinvested into projects aimed at growing science-related jobs in the state, that is, “growing the pie.”  Transferring such growth directly to the Authority will provide a predictable, stable source of funding for building science and innovation businesses in Missouri. 

Areas Eligible for Funding

Under the Reinvestment Act, the Authority is empowered to facilitate, support, fund, and perform projects that promote the growth of Missouri’s strengths in science and innovation.  Such projects must support the Authority’s mission of fostering the growth of new jobs and industries in Missouri.
Examples of the types of projects eligible for support by the Authority include:

• Technology Transfer/Commercialization
• Projects to help discoveries with commercial potential to be transformed into new Missouri-based companies that retain the economic benefit of science conducted in the state.
• Capital Formation
• Projects to attract or leverage private financing for emerging companies so they can grow and remain in Missouri. 
• Projects that help overcome Missouri’s capital gaps from the commercialization stage of innovation and discovery to the venture capital stage of expansion and company growth.
• Projects to strengthen the ability of Missouri companies to attract and compete for capital investment and grants from the federal government or other sources (examples include SBIR, STTR, and foundation funding).
• Facilities and Infrastructure
• Projects to address the infrastructure needs of science and innovation companies in Missouri.
• Projects that promote the availability of state-of-the-art facilities, including “wet lab” space for science and innovation companies, and other physical infrastructure for firms as they evolve from the earliest stage into mature companies. Examples include:
• Pre-Incubator/Translational space
• Incubator space
• Accelerator/”Graduate” space for post-incubator companies
• Multi-Tenant space
• Pilot or Full-Scale manufacturing space
• Research park/district development for clustering young and mature companies
• Workforce Development and Talent Recruitment
• Projects to attract and retain scientists, entrepreneurs, regulatory experts, specialized service providers, and others with expertise in science and innovation to Missouri
• Projects that enable educational institutions to train a qualified, professional workforce to meet the demand for workers at all levels of Missouri’s science and innovation companies.
• Expansion of Science and Innovation Industries
• Projects that aid in the recruitment of science and innovation companies to Missouri.
• Projects that raise public awareness and appreciation of science and innovation industries in Missouri.  Projects that help communicate the benefits to quality of life, human health, and economic vitality provided by science and innovation jobs and industry.
• Opportunity Fund to Attract Major Federal or Other Outside Investments
• In recent years, Missouri has lost out on potentially lucrative projects, including major federal labs and company relocations, that would have brought hundreds of millions of outside dollars to the state, because Missouri could not provide the matching funds necessary to attract such jobs and investment. 
• The flexibility provided by reinvesting new tax growth directly into the Authority will position Missouri at the forefront as the state competes for business and research opportunities the will attract new jobs and additional revenue to Missouri.

Updated: 2/23/09