Connecticut Technology Councils Calls for Support of High Growth Firms, Provide More Funding For Connecticut Innovations and Asks Governor to Oversee Building of Innovation Eco-System. State's second largest statewide business trade association issues 2011 Agenda.

1. 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.
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2. 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
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3. 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.
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4. 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.
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5. 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.
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6. 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.
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7. 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.
7 | InnovationAgenda.2011 — February 2011

8. 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.
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9. 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.
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10. 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.
10 | InnovationAgenda.2011 — February 2011

11. 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.
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12. 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) Rich Mavrogeanes, Discover Video
Peter Armstrong, Triple Point Technology, Inc. Andy McCarthy, Comcast
James Boyle, Yale Entrepreneurial Institute Alan Mendelson, Axiom Venture Partners
Victor Budnick, Ironwood Capital Frank Milone, Fiondella, Milone, & LaSaracina LLP
Kevin Burns, Precision Combustion, Inc. David Mitchell, Open Solutions Inc.
Mike Cantor, Cantor Colburn LLP Kevin Morris, Microsoft Corporation
Christopher Cerrito, Dickstein Shapiro LLP Kristin Muschett, HABCO, Inc.
James Cioban, Cierant Corporation Matthew Nemerson, Connecticut Technology
Council (President & CEO)
Robert Daigle, Rogers Corporation
Chuck Pagano, ESPN
John Emra, AT&T Connecticut
David Parekh, United Technologies
Tom Flynn, Shipman & Goodwin LLP
Leon Pintsov, Pitney Bowes, Inc.
Rob Friedland, Proton Energy Systems, Inc.
Carol Pride, Mohegan Sun
Elliot Ginsberg, Connecticut Center for Advanced
Technology, Inc. Ernst Renner, NEOS, LLC
Andy Greenawalt, Continuity Engine, Inc. Eric Rosow, Allscripts Corporation
Rick Harris, Day Pitney LLP (Secretary) Gualberto Ruano, Genomas, Inc.
Paul Hermes, Covidien Surgical Devices Jeffrey Rubin, Cronus Partners LLC
Rick Huebner, Visual Technologies, Inc. William Rucci, The Hartford Steam Boiler Inspection
& Insurance Company
Jack Hughes, TopCoder, Inc.
Joe Savage, Webster Bank (Treasurer)
Chris Kalish, EdgeLab (Chair)
Al Subbloie, Tangoe, Inc.
Richard Leone, COCC, Inc.
Peter Walsh, Sonalysts, Inc.
Peter Longo, Connecticut Innovations, Inc.
Kevin Williams, Gerber Technology
Joe Lubenstein, Greater Hartford Academy of Math
& Science Ira Yellen, First Experience Communications
Frank Marco, Wiggin and Dana LLP
Matthew Nemerson, President & CEO Connecticut Technology Council
Mike Scricca, Director Memberhip 222 Pitkin Street, Suite 113
Paige Rasid, Director Communications & Operations East Hartford, CT 06108
Ann Discenza, Manager Programs & Development
Jack Antonich, Special Projects 860 289 0878 x335
Casey Pickett, Competitiveness Agenda Project Dir. prasid@ct.org
12 | InnovationAgenda.2011 — February 2011