On Friday, the N.C. Economic Development Board presented a long-term jobs creation blueprint to Gov. Pat McCrory. So what’s in the plan for North Carolina’s technology industry as well as entrepreneurs?

Two points that could be especially good.

WRALTechWire is reaching out to executives to discuss their reactions to various aspects of the plan. Among them is Jim Roberts, who recently was named executive director of the Center for Innovation and Entrepreneurship at the University of North Carolina Wilmington. He was involved in the shaping of the plan, serving on the innovation and entrepreneurship committee. (Our first report featured Joe Freddoso, CEO at MCNC, who discussed the importance of broadband and Internet access.)

Restoration of a venture tax credit and matching federal Small Business Innovation Research (SBIR) grants could give North Carolina’s entrepreneurial community a boost, says a veteran executive who has been involved in venture fund raising and startups for more than a decade. (Roberts also has been a contributor to WRALTechWire over the years.)

“I am a big believer in the Qualified Business Venture Tax credit to encourage [and] incentivize the high net worth individuals who have a high risk tolerance to work with innovators and entrepreneurs,” said Roberts, who has been involved in VC work in Charlotte, Asheville and the Triangle.

“I also believe in the SBIR matching grant,” he added.

For those unfamiliar with the SBIR program, its website explains:

“The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation’s R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.”

Specific Proposals

The blueprint (full details available online included these specific proposals to foster investment and entrepreneurship:

1. Convert university innovation into jobs.

  A. To increase commercialization and collaboration, support a system for businesses and the external
community to “look in” to university expertise, capabilities and technologies.
  B. Evaluate the tech transfer and commercialization rewards at each public and private North Carolina
University and provide legislative recommendations that incentivize long-term job creation over licensing.
  C. Incent/reward Universities for converting research to jobs.
  D. Provide competitive proof-of-concept funding to assist campuses in moving promising technologies and
strategies from theory into reality by facilitating proof-of-concept work.

2. Create a new tax credit model to attract venture capital to North Carolina.

  A. Analyze a tax credit that will eliminate capital gains tax on founder’s stock and angel investment.
  B. Review fiscal impact and legal implications of proposed credit and investigate the State of California’s
experience with a similar model.

3. Re-fund the One North Carolina Small Business Fund.

  A. Re-establish the One NC Small Business Fund to match federal awards for Phase I & II SBIR/STTRs.
  B. Establish a quantitative assessment of impact of funds during a five-year period.

4. Streamline entrepreneurial resources.

  A. Conduct a thorough study of the state’s small business development services that:
• sets and compares economic impact across programs;
• identifies opportunities to consolidate services to reduce costs, competition, and customer confusion; and
• consolidates and increases promotion and awareness of business education programs that are proven
effective.
  B. Expand North Carolina’s workforce development programs to include training for start-up and small business
owners within all Prosperity Zones.
  C. Develop a customer-friendly, one-stop-shop of information and all state resources available that support
entrepreneurship.

Expanding Reach

Roberts hopes that the entrepreneurs and startups across the entire state choose to get involved. He cited some recent first-hand experience from his new job in Wilmington.

“Both of these would have much bigger impact if we helped the regions outside of the Triangle utilize these tools,” he explained.

“I worked in Asheville on both of these topics to improve the number of successful SBIR applications and I am working with the entrepreneurs and investors to tell more people about the QBV.

“Two of our entrepreneurs in Wilmington have used the QBV since May to raise successful rounds of capital. They were previously unaware of the tax credit that helps the entrepreneurs more than the investors.

Most entrepreneurs, innovators and individual investors outside of the Triangle are not aware of the QBV tax credit.

“Once they are informed, they love utilizing this tool.

“The venture funds and angel funds love this tool to help them raise funds from potential investors.

“I don’t believe lowering the overall state income taxes will encourage more angel investing. I believe these tax credit incentivize the people that have a taste for risk. But again, this tax credit is much more beneficial for the innovators and entrepreneurs who need startup capital in a fiscally conservative state.”