Crain's Detroit Business - December 20, 2010 - (Page 17)

December 20, 2010 CRAIN’S DETROIT BUSINESS Page 17 TRACKING INNOVATION IN MICHIGAN The Innovation Index, compiled by the University of MichiganDearborn’s Center for Innovation Research, tracks changes to six measures of economic innovation in Michigan. Each index is released quarterly, approximately five months after each quarter ends. Today’s report is for the first quarter of 2009. The index is calibrated to a base value of 100 for the first quarter of 2007: Innovation index for 2nd quarter 2010 The index is 85.8, down from 89 in the first quarter of 2010. Component Innovation workers SBA loans Venture capital Incorporations 2nd quarter ’10 1st quarter ’10 1,281 3.4% of labor 439 $72 million 18,044 1,251 4% of labor 514 $14 million 18,974 Index points Judge selection task force to study campaign spending BY CHAD HALCOM CRAIN’S DETROIT BUSINESS Trademark applications ▲ 0.7 points 1.3 points 1.1 points 0.7 points ▲ 2.9 points ▲ Index points 1st quarter ’10 4th quarter ’09 Gross job creation* 184,000 212,000 *Enters the index one quarter late due to availability of the data. 3.7 points Drop in job creation hits innovation index BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS The index that tracks indicators of innovation in Michigan’s economy dropped in the second quarter as gains in venture capital funding and trademark applications couldn’t offset a decline in gross job creation. The University of MichiganDearborn’s quarterly Innovation Index tracks trademark applications, U.S. Small Business Administration loans, venture capital funding, new incorporations and other indicators. The index fell to 85.8 in the second quarter of 2010 from 89 in the first quarter of 2010, which was the highest figure since the third quarter of 2008. The index has a base value of 100 for the first quarter of 2007. The second-quarter decline was due to a drop in incorporation filings, SBA loans, innovation workers and gross job creation. An estimated 18,044 incorporation filings were registered in the second quarter, down from 18,974 during the previous quarter and reducing the index by 0.7 points. SBA loans decreased to 439 from 514 in the first quarter, reducing the index by 1.1 points. The SBA loan slowdown is attributed to the lapse of federal stimulus incentives toward small-business lending, said Lee Redding, associate professor of business economics at UM-Dearborn and the index’s project director. Another falling indicator was the percentage of innovation workers in the labor force, which dropped to 3.4 percent in the second quarter from 4 percent in the first. The decline lowered the index by 1.3 points. Despite a shrinking unemployment rate, gross job creation continued its decline during the first quarter of 2010 to approximately 184,000 jobs, from 212,000 in the fourth quarter of 2009, lowering the index by 3.7 points. Gross job figures are delayed by a quarter due to the availability of data “ We’re at the bottomingout phase (of the gross job creation figure). Lee Redding, University of Michigan-Dearborn ” from the state. The drop in job creation is attributed to workers not shuffling jobs from company to company, Redding said. “What you’ve seen throughout the nation and Michigan was a real slowdown in movement in the labor market,” Redding said. “People just aren’t leaving their jobs.” However, Redding said he expects the gross jobs figure to improve in the third quarter. “As we put more people to work, we should start to see improvement,” he said. “We’re at the bottoming-out phase (of the gross job creation figure).” The bright spots of the current index were an increase in venture capital funding and the continued increase in trademark applications. Venture capital funding rose to $72 million in the quarter from $14 million in the first quarter, adding 2.9 points to the index. VC funding in the quarter was at its highest level since 2008, Redding said. “It’s nice to see and, hopefully, that will create some net job growth going forward,” he said. However, the figure is unusually high and won’t likely be duplicated next quarter, Redding said. Trademark filings also rose in the state to 1,281 from 1,251 in the previous quarter, adding 0.7 points to the index. Dustin Walsh: (313) 446-6042, dwalsh@crain.com A task force convened by a state and federal judge, with input from business leaders and law firm partners, will explore the state’s method of picking appellate court judges and publish recommendations on improving the process late next year. The 24-member Judicial Selection Task Force, convened by Michigan Supreme Court Chief Justice Marilyn Kelly and 6th U.S. Circuit Court of Appeals Senior Judge James Ryan, will begin meeting in January to examine Michigan’s appointment model as well as a recent spike in campaign spending for Michigan Supreme Court races. “Millions of dollars have been spent to portray judicial candidates as unfit for office,” Kelly said in a statement. “It leads to a public perception that the justice system is neither effective nor impartial. We must find improvements to the way we choose our appellate judges.” Organizers met Tuesday at the Wayne State University Law School to announce the task force, which will include former U.S. Supreme Court Justice Sandra Day O’Connor as honorary co-chair. Initial funding for the study will come from the Michigan State Bar Foundation. Panel participants over the next year will include: Loretta Ames, partner at the Detroit office of Bloomfield Hillsbased Plunkett Cooney PC. Kathleen Bogas, principal at the law offices of Kathleen L. Bogas PLLC, soon to become Bogas, Koncius & Croson PC in Bingham Farms. Patricia Donath, attorney and past president of the League of Women Voters of Michigan and board member of the League of Women Voters of the United States. Peter Dunlap, attorney and past president of the Michigan Defense Trial Counsel, Lansing. J. Kay Felt, retired membershareholder at Detroit-based Dykema Gossett PLLC and past president of the American Health Lawyers Association. Robert Garvey, attorney and president of Robert F. Garvey PC, St. Clair Shores, and past president of the Michigan Chapter of the American Board of Trial Advocates. W. Anthony Jenkins, member and chief diversity officer at Detroit-based Dickinson Wright PLLC and president of the State Bar of Michigan. H. Lynn Jondahl, chairman of the Michigan State Ethics Board and former state representative for 22 years. John Logie, former mayor of Grand Rapids and founder of the health practice law group at Warner Norcross & Judd LLP. Justin Long, associate professor of law at Wayne State University. “ Millions of dollars have been spent to portray judicial candidates as unfit for office. ” Marilyn Kelly, Michigan Supreme Court Olivia Maynard, regent of the University of Michigan and trustee of the C.S. Mott Foundation. Terrence Nagle, president of automotive supplier M&N Plastics. Edward Parks, former managing partner of Plante & Moran PLLC. Bruce Peterson, senior vice president/general counsel for DTE Energy Co. Wallace Riley, attorney in pri- vate practice in Grosse Pointe and past state bar president. Paul Rosen, attorney in private practice in Southfield and past president of the Michigan Chapter of the American Board of Trial Advocates. Iris Salters, president of the Michigan Education Association. Michael Sarafa, president and CEO of Bank of Michigan and past president of the Associated Food Dealers of Michigan. John Schwarz, otolaryngologist in practice in Battle Creek for 36 years, past U.S. congressman and mayor of Battle Creek. Charles Toy, associate dean for career and professional development at Thomas M. Cooley Law School, Auburn Hills, and past president of the state bar. Janet Welch, executive director of the state bar. William Whitbeck, a judge on the Michigan Court of Appeals since 1997 who served as chief judge of the court for six years of his tenure. 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Table of Contents for the Digital Edition of Crain's Detroit Business - December 20, 2010

Crain's Detroit Business - December 20, 2010
Department Index
Keith Crain
Mary Kramer
Opinion
Calendar
People
Business Diary
Classified Ads
Briefly
Rumblings
Week on the Web

Crain's Detroit Business - December 20, 2010