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Created by the Kentucky Innovation
Act (KIA) of 2000 and reporting directly to the Governor, the Department
of Commercialization and Innovation
facilitated development of Kentucky Innovation, the state-wide
strategic plan for development of the knowledge-based economy
in the Commonwealth,. Drawing on area-wide strategic plans covering
six regions of Kentucky, the state-wide strategic plan focuses on
five Priority
Research Focus Areas and seven Special
Opportunities identified as areas in which Kentucky already
has developed a national or international reputation.
The Commonwealth has been divided into six geographic areas for
purposes of implementing the KIA. The following are Innovation and
Commercialization Center regions: Eastern Kentucky, Western Kentucky,
Northern Kentucky, Louisville Area, Lexington Area and Central Kentucky.
Over the past three years, Kentucky has been aggressively acting
to (i) be a venture capital investor itself, (ii) create incentives
to encourage private investments in venture capital funds, and (iii)
enact legislative changes that promote the organization and operation
of venture capital funds in Kentucky. Together, these efforts are
promoting a venture capital industry in Kentucky that is sufficiently
large to support our state's entrepreneurs and that is uniquely
committed to investing in companies located in Kentucky.
In addition, there are multiple venture
clubs throughout the state including The
Louisville Venture Club, The
Lexington Venture Club, The
Mountain Ingenuity Venture Capital Club, and The
Tri State Investment Capital Club.
Effective July 1, 2002, the amended Kentucky Investment Fund Act
("KIFA") will provide a 40% state tax credit to individuals
and businesses that invest in venture capital funds certified by
the Kentucky Economic Development Fund Authority, when the certified
fund invests in small Kentucky companies. Although there are many
detailed provisions regarding the application to become a certified
KIFA fund and the issuance and use of KIFA tax credits, KIFA is
a powerful incentive to encourage venture capital investing in Kentucky
companies.
Commonwealth Seed Capital, LLC ("CSC") was organized by
the Kentucky Economic Development Partnership in 2001 to invest
in venture capital funds that are committed to investing in technology
companies in Kentucky. CSC was initially capitalized with over $10
million. A prerequisite to securing an investment from CSC is that
each venture capital fund commits to invest at least three times
the amount of capital invested in it by CSC in Kentucky technology
companies. CSC is investing in venture capital funds that focus
on many types of technology companies and companies located across
the entire state.
For more information about the Department
of Commercialization and Innovation, please visit www.one-ky.com.
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