15 U.S.C. § 3722
Section 3722 · Regional innovation program
Current version, with additions and removals from the January 4, 2011 version.
The Secretary shall establish a regional innovation program to encourage and support the development of regional innovation strategies, including regional innovation clusters and science and research parks.
(1) In general
As part of the program established under subsection (a), the Secretary may award grants on a competitive basis to eligible recipients for activities relating to the formation and development of regional innovation clusters.
(2) Permissible activities
Grants awarded under this subsection may be used for activities determined appropriate by the Secretary, including the following:
(A) Feasibility studies.
(B) Planning activities.
(C) Technical assistance.
(D) Developing or strengthening communication and collaboration between and among participants of a regional innovation cluster.
(E) Attracting additional participants to a regional innovation cluster.
(F) Facilitating market development of products and services developed by a regional innovation cluster, including through demonstration, deployment, technology transfer, and commercialization activities.
(G) Developing relationships between a regional innovation cluster and entities or clusters in other regions.
(H) Interacting with the public and State and local governments to meet the goals of the cluster.
In this section:
(A) a State;
(A) a State;
(B) an Indian tribe;
(B) an Indian tribe;
(C) a city or other political subdivision of a State;
(C) a city or other political subdivision of a State;
(D) an entity that—
(D) an entity that—
(E) a consortium of any of the entities described in subparagraphs (A) through (D).
(E) a consortium of any of the entities described in subparagraphs (A) through (D).
(2) Regional innovation initiative
The term "regional innovation initiative" means a geographically-bounded public or nonprofit activity or program to address issues in the local innovation systems in order to—
(A) increase the success of innovation-driven industry;
(B) strengthen the competitiveness of industry through new product innovation and new technology adoption;
(C) improve the pace of market readiness and overall commercialization of innovative research;
(D) enhance the overall innovation capacity and long-term resilience of the region;
(E) leverage the region's unique competitive strengths to stimulate innovation; and
(F) increase the number of full-time equivalent employment opportunities within innovation-based business ventures in the geographic region.
(3) State
The term "State" means one of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States.
(4) Venture development organization
The term "venture development organization" means a State or nonprofit organization that contributes to regional or sector-based economic prosperity by providing services for the purposes of accelerating the commercialization of research.
The Secretary shall establish a regional innovation program to encourage and support the development of regional innovation strategies designed to increase innovation-driven economic opportunity within their respective regions.
(1) Authorization of grants
As part of the program established pursuant to subsection (b), the Secretary may award grants, on a competitive basis, to eligible recipients for activities designed to develop and support a regional innovation initiative.
(2) Permissible activities
A grant awarded under this subsection shall be used for multiple activities determined appropriate by the Secretary, including—
(A) planning, technical assistance, and communication among participants of a regional innovation initiative to improve the connectedness and strategic orientation of the regional innovation initiative;
(B) attracting additional participants to a regional innovation initiative;
(C) increasing the availability and investment of private and philanthropic financing that supports innovation-based business ventures; and
(D) facilitating commercialization of products, processes, and services, including through demonstration, deployment, technology transfer, and entrepreneurial activities.
(3) Restricted activities
Grants awarded under this subsection may not be used to pay for—
(A) costs related to the recruitment, inducement, or associated financial or tangible incentives that might be offered to relocate an existing business from a geographic area to another geographic area; or
(B) costs associated with offsetting revenues forgone by 1 or more taxing authorities through tax incentives, tax increment financing, special improvement districts, tax abatements for private development within designated zones or geographic areas, or other reduction in revenues resulting from tax credits affecting the geographic region of the eligible recipients.
(A) In general
(A) In general
An eligible recipient shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require.
An eligible recipient shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require.
(B) Components
(B) Components
The application shall include, at a minimum, a description of the regional innovation cluster supported by the proposed activity, including a description of—
Each application submitted under subparagraph (A) shall—
(i) describe the regional innovation initiative;
(ii) how the existing participants in the regional innovation cluster will encourage and solicit participation by all types of entities that might benefit from participation, including newly formed entities and those rival existing participants;
(iii) the extent to which the regional innovation cluster is likely to stimulate innovation and have a positive impact on regional economic growth and development;
(iii) identify what activities the regional innovation initiative will undertake;
(iv) describe the expected outcomes of the regional innovation initiative and the metrics the eligible recipient will use to assess progress toward those outcomes;
(C) Special consideration
The Secretary shall give special consideration to applications from regions that contain communities negatively impacted by trade.
(5) Special consideration
(C) Feedback
The Secretary shall provide feedback to program applicants that are not awarded grants to help them improve future applications.
(D) Special considerations
(i) applications proposing to include workforce or training related activities in their regional innovation initiative from eligible recipients who agree to collaborate with local workforce investment area boards; and
(ii) applications from regions that contain communities negatively impacted by trade.
The Secretary may not provide more than 50 percent of the total cost of any activity funded under this subsection.
The Secretary may not provide more than 50 percent of the total cost of any activity funded under this subsection.
(7) Use and application of research and information program
To the maximum extent practicable, the Secretary shall ensure that activities funded under this subsection use and apply any relevant research, best practices, and metrics developed under the program established in subsection (c).
(1) In general
As part of the program established under subsection (a), the Secretary may award grants for the development of feasibility studies and plans for the construction of new science parks or the renovation or expansion of existing science parks.
(2) Limitation on amount of grants
The amount of a grant awarded under this subsection may not exceed $750,000.
(3) Award
(A) Competition required
The Secretary shall award grants under this subsection pursuant to a full and open competition.
(B) Geographic dispersion
(6) Outreach to rural communities
The Secretary shall conduct outreach to public and private sector entities in rural communities to encourage those entities to participate in regional innovation initiatives under this subsection.
(7) Geographic distribution
(C) Selection criteria
The Secretary shall publish the criteria to be utilized in any competition for the selection of recipients of grants under this subsection, which shall include requirements relating to the—
(i) effect the science park will have on regional economic growth and development;
(ii) number of jobs to be created at the science park and the surrounding regional community each year during its first 3 years;
(iii) funding to be required to construct, renovate or expand the science park during its first 3 years;
(iv) amount and type of financing and access to capital available to the applicant;
(v) types of businesses and research entities expected in the science park and surrounding regional community;
(vi) letters of intent by businesses and research entities to locate in the science park;
(vii) capability to attract a well trained workforce to the science park;
(viii) the management of the science park during its first 5 years;
(ix) expected financial risks in the construction and operation of the science park and the risk mitigation strategy;
(x) physical infrastructure available to the science park, including roads, utilities, and telecommunications;
(xi) utilization of energy-efficient building technology including nationally recognized green building design practices, renewable energy, cogeneration, and other methods that increase energy efficiency and conservation;
(xii) consideration to the transformation of military bases affected by the base realignment and closure process or the redevelopment of existing buildings, structures, or brownfield sites that are abandoned, idled, or underused into single or multiple building facilities for science and technology companies and institutions;
(xiii) ability to collaborate with other science parks throughout the world;
(xiv) consideration of sustainable development practices and the quality of life at the science park; and
(xv) other such criteria as the Secretary shall prescribe.
(4) Allocation constraints
The Secretary may not allocate less than one-third of the total grant funding allocated under this section for any fiscal year to grants under subsection (b) or this subsection without written notification to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committees on Science and Technology and on Energy and Commerce.
(1) In general
Subject to paragraph (2), the Secretary may guarantee up to 80 percent of the loan amount for projects for the construction or expansion, including renovation and modernization, of science park infrastructure.
(2) Limitations on guarantee amounts
The maximum amount of loan principal guaranteed under this subsection may not exceed—
(A) $50,000,000 with respect to any single project; and
(B) $300,000,000 with respect to all projects.
(3) Selection of guarantee recipients
The Secretary shall select recipients of loan guarantees under this subsection based upon the ability of the recipient to collateralize the loan amount through bonds, equity, property, and such other things of values as the Secretary shall deem necessary. Recipients of grants under subsection (c) are not eligible for a loan guarantee during the period of the grant. To the extent that the Secretary determines it to be feasible, the Secretary may select recipients of guarantee assistance in accord with a competitive process that takes into account the factors set out in subsection (c)(3)(C) of this section.
(4) Terms and conditions for loan guarantees
The loans guaranteed under this subsection shall be subject to such terms and conditions as the Secretary may prescribe, except that—
(A) the final maturity of such loans made or guaranteed may not exceed the lesser of—
(i) 30 years; or
(ii) 90 percent of the useful life of any physical asset to be financed by the loan;
(B) a loan guaranteed under this subsection may not be subordinated to another debt contracted by the borrower or to any other claims against the borrowers in the case of default;
(C) a loan may not be guaranteed under this subsection unless the Secretary determines that the lender is responsible and that provision is made for servicing the loan on reasonable terms and in a manner that adequately protects the financial interest of the United States;
(D) a loan may not be guaranteed under this subsection if—
(i) the income from the loan is excluded from gross income for purposes of chapter 1 of title 26; or
(ii) the guarantee provides significant collateral or security, as determined by the Secretary in coordination with the Secretary of the Treasury, for other obligations the income from which is so excluded;
(E) any guarantee provided under this subsection shall be conclusive evidence that—
(i) the guarantee has been properly obtained;
(ii) the underlying loan qualified for the guarantee; and
(iii) absent fraud or material misrepresentation by the holder, the guarantee is presumed to be valid, legal, and enforceable;
(F) the Secretary may not extend credit assistance unless the Secretary has determined that there is a reasonable assurance of repayment; and
(G) new loan guarantees may not be committed except to the extent that appropriations of budget authority to cover their costs are made in advance, as required under section 661c of title 2.
(5) Payment of losses
(A) In general
If, as a result of a default by a borrower under a loan guaranteed under this subsection, after the holder has made such further collection efforts and instituted such enforcement proceedings as the Secretary may require, the Secretary determines that the holder has suffered a loss, the Secretary shall pay to the holder the percentage of the loss specified in the guarantee contract. Upon making any such payment, the Secretary shall be subrogated to all the rights of the recipient of the payment. The Secretary shall be entitled to recover from the borrower the amount of any payments made pursuant to any guarantee entered into under this section.
(B) Enforcement of rights
The Attorney General shall take such action as may be appropriate to enforce any right accruing to the United States as a result of the issuance of any guarantee under this section.
(C) Forbearance
Nothing in this section may be construed to preclude any forbearance for the benefit of the borrower which may be agreed upon by the parties to the guaranteed loan and approved by the Secretary, if budget authority for any resulting subsidy costs (as defined in section 661a(5) of title 2) is available.
(6) Evaluation of credit risk
(A) The Secretary shall periodically assess the credit risk of new and existing direct loans or guaranteed loans.
(B) Not later than 2 years after January 4, 2011, the Comptroller General of the United States shall—
(i) conduct a review of the subsidy estimates for the loan guarantees under this section; and
(ii) submit to Congress a report on the review conducted under this paragraph.
(7) Termination
A loan may not be guaranteed under this section after September 30, 2013.
(8) Authorization of appropriations
There are authorized to be appropriated $7,000,000 for each of fiscal years 2011 through 2013 for the cost (as defined in section 661a(5) of title 2) of guaranteeing $300,000,000 in loans under this section, such sums to remain available until expended.
(8) Funding
The Secretary may accept funds from other Federal agencies to support grants and activities under this subsection.
(1) In general
(1) In general
(2) Research grants
(2) Research grants
(3) Dissemination of information
(3) Dissemination of information
Data and analysis compiled by the Secretary under the program established in this subsection shall be made available to other Federal agencies, State and local governments, and nonprofit and for-profit entities.
Data and analysis compiled by the Secretary under the program established in this subsection shall be made available to other Federal agencies, State and local governments, and nonprofit and for-profit entities.
(4) Regional innovation grant program
(4) Regional innovation grant program
(1) In general
(1) In general
(2) Collaboration
(2) Collaboration
(A) In general
(A) In general
(B) Small businesses
(B) Small businesses
The Secretary shall ensure that such collaboration with Federal agencies prioritizes the needs and challenges of small businesses.
The Secretary shall ensure that such collaboration with Federal agencies prioritizes the needs and challenges of small businesses.
(1) In general
(1) In general
(2) Requirements
(2) Requirements
(B) the program's efficacy in providing awards to geographically diverse entities;
Not later than 5 years after the first grant is awarded under subsection (c), and every 5 years thereafter until 5 years after the last grant recipient completes the regional innovation initiative for which such grant was awarded, the Secretary shall submit a summary report to Congress that describes the outcome of each regional innovation initiative that was completed during the previous 5 years.
In this section:
(1) Regional innovation cluster
The term “regional innovation cluster” means a geographically bounded network of similar, synergistic, or complementary entities that—
(A) are engaged in or with a particular industry sector;
(B) have active channels for business transactions and communication;
(C) share specialized infrastructure, labor markets, and services; and
(D) leverage the region's unique competitive strengths to stimulate innovation and create jobs.
(2) Science park
The term “Science 1 park” means a property-based venture, which has—
(A) master-planned property and buildings designed primarily for private-public research and development activities, high technology and science-based companies, and research and development support services;
(B) a contractual or operational relationship with one or more science- or research-related institution of higher education or governmental or non-profit research laboratories;
(C) a primary mission to promote research and development through industry partnerships, assisting in the growth of new ventures and promoting innovation-driven economic development;
(D) a role in facilitating the transfer of technology and business skills between researchers and industry teams; and
(E) a role in promoting technology-led economic development for the community or region in which the science park is located. A science park may be owned by a governmental or not-for-profit entity, but it may enter into partnerships or joint ventures with for-profit entities for development or management of specific components of the park.
(3) State
The term “State” means one of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or any other territory or possession of the United States.
Except as provided in subsection (d)(8), there are authorized to be appropriated $100,000,000 for each of fiscal years 2011 through 2013 to carry out this section (other than for loan guarantees under subsection (d)).
From amounts appropriated by Congress to the Secretary, the Secretary may use up to $50,000,000 in each of the fiscal years 2020 through 2024 to carry out this section.