Uber’s self-driving cars are heading to Arizona

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Only one week after launching its self-driving pilot program in San Francisco, the birth place of Uber, the trial is moving to Phoenix, Arizona.

“Our cars departed for Arizona this morning by truck,” an Uber spokesperson said in a statement of the fleet of modified Volvo XC90 cars. “We’ll be expanding our self-driving pilot there in the next few weeks, and we’re excited to have the support of Governor Ducey.”

In 2015, Uber announced a partnership with the University of Arizona’s College of Optical science. The project focuses on research and development in the optics space for mapping and safety. Gov. Doug Ducey signed an executive order at the time, allowing the testing of the self-driving cars in the state.

The vehicles began testing in San Francisco, however after one week they were faced with backlash. The California Department of Motor Vehicles in partnership with the attorney general said the program has failed to obtain a permit to test self-driving cars. Uber in rebuttal, argued that the cars were exempt from a permit due to the presence of safety drivers in the car at all times. The presence of the driver meant the vehicles did not match the state’s description of an ‘autonomous vehicle’.

Given Uber’s existing relationship with Arizona, the cars will move testing to the state.

Colorado Network Promotes Innovation

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“Colorado is the epicenter of today’s innovation conversation”

With a large R&D community and a progressive business environment, Colorado is well aware of the importance of experimentation and innovation in today’s culture. So much so they have created a network of more than 2000 global leaders dedicated to the concept.

As stated on its website, “the Colorado Innovation Network (COIN) is a catalyst for innovation with the mission of advancing connections in the global innovation ecosystem whereby Colorado is recognized as the most innovative state in the nation.”

Those a part of the physical and virtual network are devoted to the innovation ecosystem, growing companies and creating jobs in the public sector. They are working continuously to keep the conversation of innovation open and accelerating it.

The Colorado Innovation Network conducts an annual report on the state of innovation in Colorado over the past four years. The reports are founded on the pillars of talent, entrepreneurship, ideas and capital and evaluate data, statistics and qualitative insights across these four ideals.

If you would like to view the innovation reports from 2012-2015.

The network seems to be doing a great job with promoting statewide innovation and growth. According to coloradoinnovationnetwork.com, Colorado holds the following titles:

  • 1st in the nation for arts participation (2015)
  • 5th in the nation for startup  activity (2016)
  • home to the first startup weekend and the largest startup weekend in the world
  • the fastest growing economy in the United States (2014)
  • 2nd most highly educated state

Colorado offers a tax incentive to businesses conducting R&D and any innovative work within the state. Our specialists at Swanson Reed are always available to discuss your benefits on both a federal and state level.

To find out more about the Colorado R&D tax credit, click here.

To speak with a Swanson Reed representative, click here.

Alabama Succeeds in 2015 as a Top State for Investment

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In 2015, many companies found prominent investment opportunities in Sweet Home Alabama.

According to a recent report from Ernst & Young, Alabama ranked 5th among states for mobile capital investment with a total contribution of $5.3 billion. This precise type of investment refers to expenditures of funds for projects such as office buildings, factories, call centers, and distribution centers, often geographically distant from a company’s headquarters. Alabama is ranked 4th when this figure is calculated as a percentage of state GDP. This is a remarkable ascent as the 2015 investment figure is double the state’s corresponding averages for the 2010 to 2014 period.

Specifically, a large portion of Alabama’s investment comes from a few concentrated and well-funded fields, including automotive manufacturing and aerospace. The state’s Department of Commerce has expressed a strong interest in continuing to focus on these high-profile sectors to increase the number of “knowledge-based jobs in fields such as research and development (R&D) and engineering.” In this same vein, Google announced intentions to construct a $600 million data center in Jackson County.

Another significant apportionment of funds comes from international sources in the form of foreign direct investment (FDI). Almost half of capital investment in 2015 originated in 18 countries, including Germany, Canada, South Korea, France, and Japan. Germany led this prestigious pack of FDI nations, with growth primarily driven by Mercedes’ $1.3 billion expansion in Tuscaloosa, located in western Alabama.

Alabama’s impressive performance in the national and global economic spheres is similar to that of many other southern states. Texas and Louisiana were the top two states in Ernst & Young’s mobile capital investment ranking. Because southern states offer competitive operating costs and concrete logistical infrastructure, they draw many foreign companies looking to expand into North America. Other appealing elements include ascending workforce development levels and the presence of state and local tax incentives. Because of these factors, states like Alabama often serve as preeminent indicators and can forecast upcoming trends in the global marketplace.

The overall takeaway from the investment advantage Alabama holds, according to a principal at Ernst & Young, is that “states should continue to find their competitive edge to attract a wide variety of investment types and maintain a healthy economy.”

Companies like Google and Mercedes are expanding and innovating through investment in new, driven ideas. They are taking advantage of the opportunities Alabama provides, including various tax credits for R&D. These credits offer advantages to forward- thinking companies in the form of cash-saving benefits.

If you would like to know more about how R&D tax credits function and how they can profit your firm in particular, Swanson Reed’s professionals are available for constructive discussions. Contact us today if you would like to know if your company qualifies.

Income Boosts From Innovation Are Not Just For Laboratories

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In an age of rapid change and modernization, hot words such as innovation, research and development, and growth are popularly thrown around. However, what many are still to realize, is the relation of innovation and companies that have nothing to do with lab coats.

 

Business Innovation quoted Martin Parkinson saying, “We tend to think of innovation as being done by start-ups or people in white coats, but it’s much more than that. By and large our greatest gains have come from building a culture that adapts and diffuses the ideas of others.”

 

Innovation is for everyone. In fact, Business Insider claims that, “innovation is good for income.” Innovation can be the adaption of a product manufacturing line to include newly redesigned technology or functionality. Innovation can be the development of new software technology that allows vehicles to autopilot completely, differentiating that company from the market. Innovation can be the research and creation of a new screening technology for cancer within the body.

 

Through the process of research and development (R&D), innovations can increase income when successfully applied. The world’s most successful and innovative companies are known for their large R&D programs turning innovation into business and revenue.

 

Business Insider reports that the majority of innovation stems from previously existing ideas that are then adapted and altered. For companies that are not yet profitable or for startups investing in R&D, the research and development tax incentive is a valuable tool.
If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

R&D Within the Smartphone Industry

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Reuters reported Apple’s commitment to invest roughly $44 million in a research and development center in Indonesia. The investment will allow Apple to begin selling the iPhone 7 as the government has stipulated 30 percent of handsets sold within the country must be made of local content which includes hardware, software or investment commitment.

 

Apple’s local content certification received in November allows the company to begin selling the iPhone 7 as of January 2017.  The agreement allows Apple to sell products of $488 (6 million rupiah) value and above.

 

As said by Suryawirawan, director general of metal, machines, transport equipment and electronics at the industry ministry, ” they can distribute devices priced 6 million rupiah ($448) and above. That means all iPhones can be distributed.”

 

With Samsung controlling 26 percent of the smartphone sales in Indonesia, and China’s OPPO holding 19 percent market share, Apple will have tough competition for one of the biggest social media markets worldwide.

 

The company has been trying to enter the market for some time, however, as Q3 of 2016 showed Apple’s first decline in revenue in over 15 years, this is a very important moment. As the iPhone comprises two thirds of the of the company’s total revenue the success of this market would have a large impact on revenue.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

Colorado Emerging as Top Leader in Renewable Energy

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Since the early 2000’s, when technological advancements allowed wind to be used as a viable source of energy, the United States has emerged as one of the leading nations in renewable energy research and job creation. According to the American Wind Energy Association, 769,000 renewable energy jobs have been created in the United States, designating 88,000 jobs in the renewable wind sector alone. In an effort to remain competitive among other renewable sources of energy and fossil fuels, significant investments in wind energy are now being made all across the United States. So who is leading the charge in wind research and development? The answer may come as a surprise to some – it’s Colorado.

But Colorado’s emergence as a leader in renewable wind energy really shouldn’t come as a surprise. Since passing the nation’s first voter-led Renewable Energy Standard in 2004 – requiring electrical utilities to obtain a percentage of it’s power from renewable sources – Colorado’s investments in wind, solar and other renewable energy’s have ignited several projects all across the state. Now looking to grow it’s already diverse renewable energy portfolio, Colorado aims to tackle the wind energy’s most pressing technological challenges associated with cost and manufacturing while simultaneously creating an abundance of jobs. Until now, Colorado’s presence as an emerging leader has gone largely unnoticed. However with its latest $1.6 million investment in the National Wind Technology Center, Colorado has now solidified it’s presence on the wind industry map and has distinguished itself as a top leader.

The total $1.6 million investment coming from the state of Colorado in partnership with the National Renewable Energy Laboratory, a member of the Institute for Advanced Composites Manufacturing Innovation, will be used to shape the future of composite manufacturing. Perhaps you recall the announcement of the creation of the IACMI, a partnership consisting of 122 corporations, nonprofits, universities, and the Department of Energy, in an effort from the Obama Administration to bridge the gap between industrial and advanced research institutions. The objective is to create cutting edge manufacturing technologies of advanced polymer composites.

In this joint effort to further advance the wind renewable energy sector, the $1.6 million investment will go towards “Structural upgrades, like insulation and exhaust vents, along with manufacturing improvements including the installation of a gantry crane to move and support large objects,” according to project engineers. The investment was also made in an effort to turn the National Wind Technology Center into an innovation catalyst center while attracting the state’s top renewable energy innovators and leaders to simultaneously support the work force.

The project also calls for the completion of a Wind Blade Component Manufacturing Facility, which will serve as an R&D site for the renewable energy industry. The specific R&D projects are likely to include automated production and 3D printing to produce a more durable, inexpensive wind blade.

For a more in-depth look at how Federal R&D Tax Credits have helped to spur developments in Colorado, we at Swanson Reed encourage you to speak with our highly specialized team consisting of Certified Public Accountants, Engineers or PhD qualified chemists, who manage all facets of the R&D tax credit claim process.

For an unbiased guide to everything you need to know to get started with Solar: The National Council for Solar Growth

Are you and your business eligible for an R&D Credit? Find out here.

New York Announces an Initiative of $650M for Life Sciences

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The Empire State Boosts Life Science

With the aim of becoming a top tier biocluster state, New York has announced an initiative to increase the state’s ability to commercialize research by investing $650 million into life sciences. The incentive hopes to have a success rate similar to those of California, whose company growth has accelerated that of job growth and Massachusetts, which invested $1 billion in a highly successful life sciences program 10 years prior.

As announced by Governor Andrew Cuomo the initiative will include $250 million in tax incentives for life science companies (new and existing), $200 million for capital grants towards wet labs and innovation space, $100 million towards early stage life science development and $100 million towards operating support from private partnerships.

The term life sciences has been defined by New York State as including, “biopharma, biomedical technologies, life systems technologies, as well as organizations and institutions that devote most of their efforts to research, development, technology transfer, and commercialization.”

In recent years, despite the presence of major academic research centers and Wall Street, New York has lacked commercialized research, early-stage company incentives, and biocluster development reported by Genetic Engineering & Biotechnology News.

Good News For R&D

The incentive will support the job market by investing $10 million annually in the Excelsior Job program. Refundable tax credit will be available at a 15% rate to life science businesses and at a 20% rate for small life science businesses.

The state also plans to attract life science talent to the state through internship programs, research recruitment programs, a mentor program to bring together entrepreneurs and innovators, and a program to support teaching hospitals with over $8.5 million in support annually.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

Future R&D Spending within OECD Countries

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Predicted Spending 

At a time when aging populations and the environmental challenges of climate change are in need of innovative solutions the decline in public-backed science and technology research is a concern. Data from the Organisation for Economic Co-operation and Development (OECD) shows the first fall of R&D spending in government and higher education in 2014 since the organisations conception in 1981.

The OECD Science, Technology and Innovation Outlook Report showed increased R&D spending from 2000 in Korea, Japan and Germany while the UK, US, Australia, FInland, Italy, France and Spain have decreased spending. Owing to the financial recession, overall government spending in OECD countries has been in decline since 2009.

With the combination of competing policies such as pensions, health and social care and the annual loss of tax revenue, conservatively estimated between $100 billion to $240 billion, the OECD says the warning signs are there. The organisation expects to see a greater decrease in government-backed science.

Increasing the R&D Tax Incentive

As budgets are increasingly tight, governments are increasing the use of policies that do not require short term public spending, partial public procurement and tax incentives for R&D and innovation.

Also, the increase in philanthropists, charities and foundations funding research has helped to balance the government drop off. These funds are estimated to support about 30% of annual research in leading US universities.

Specialization

The OECD has noted that specialization might be a key element within the recent climate. As the US devotes 24% of R&D spending to health, Canada, England and Luxembourg focus about one fifth of their budgets, and countries such as Mexico, Japan and Korea focus on energy.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

R&D Growth In Higher Education

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A report focused on federal R&D funding for higher education, published by the National Center for Science and Engineering Statistics (NCSES), shows that 2016 is the fourth consecutive year in which federal R&D funding has decreased since its peak in 2011.

As of 2015 universities reported a 2.2% increase from the previous year at $68.8 billion in R&D spending. The data was collected from 906 degree-granting institutions that has spent a minimum of $150,000 the year prior.

Since 2011, where federal funding supported 62.5% of higher education R&D costs, R&D funding has declined by 13%. A decline in funding of 1.7% was recorded between 2014 and 2015. Of the $68.8 billion spent during 2015, federal funding covered only $37.9 billion dropping the percentage of funding to 55.2%.

While federal funding has decreased, research has continued to grow by 2.2% from the previous year with additional funding from other sources at 6.4%. Medical science was reported to have supported the highest growth rate spending $21.3 billion while biological and engineering sciences floated around $11 billion.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

Is R&D A Valuable Measurement of Innovation?

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The Relationship Between R&D and Innovation

It is well known that when performed effectively research and development (R&D) can increase the value of a company. However, Forbes writes that this is commonly misconstrued as it has been claimed that research and development spending directly translates to a measure of innovation. While R&D and innovation do correlate, they are not a perfect formula.

Tendayi said, “having a great R&D process and achieving market success with technologies we invent are two different things.” He goes on to suggest that R&D spending may be an effective measure of best practice within a particular industry.

In gauging the correlation between R&D and innovation rankings, the 2016 report of the Top 10 Innovative Companies provides the perfect example. Five of the ten ranking innovative businesses were also ranked in the top twenty for R&D spending in 2016, while the remaining five spent between $4.5 to $0.7 billion US dollars. Effectively, this demonstrates the necessity for research and development within innovation, as all 10 of the raking companies invest largely in R&D, however, it also demonstrates that spending was not the solo contributor to innovative success.

What is the Perfect Formula?

A successful company is capable of marrying innovation with market understanding. As Forbes explains, effective innovation solves for both technical and market risk factors. This is often left behind in lab based companies where business models are overlooked.

According to Forbes entrepreneurial expert, the formula for success continues to fund research and development programs that meet industry standards while implementing a strong invention to market management process making the improvements and inventions accessible on the market.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.