Copyright State Science & Technology Institute 2002. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.
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VENTURE CAPITAL INVESTMENTS END THE YEAR AT RECORD LEVEL
Price Waterhouse recently announced that venture capital investments hit an all-time record in the fourth quarter of 1997. Total investments exceeded $3.7 billion, eclipsing the previous high of $3.5 billion reported in the third quarter of 1997. Compared to the fourth quarter of 1996, investments increased 50%. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States.
The following table shows the amount of venture capital dollars invested by state in the fourth quarter of 1997:
State Amount Percent of Total CA $1,306,668,000 35.2% MA $470,973,000 12.69% TX $347,519,000 9.36% CO $151,721,000 4.09% GA $132,561,000 3.57% NC $117,404,000 3.16% WA $115,036,000 3.10% NY $107,824,000 2.90% FL $102,081,000 2.75% NJ $93,300,000 2.51% PA $84,418,000 2.27% IL $78,467,677 2.11% MO $66,400,000 1.79% MN $64,953,000 1.75% OH $62,401,000 1.68% VA $53,324,000 1.44% CT $42,858,000 1.15% TN $32,816,000 0.88% WI $24,625,000 0.66% NH $24,470,000 0.66% NV $24,050,000 0.65% MD $22,065,000 0.59% KS $18,000,000 0.48% OR $16,668,000 0.45% DC $15,001,000 0.40% OK $14,750,000 0.40% UT $13,955,000 0.38% MT $13,000,000 0.35% MI $12,100,000 0.33% AL $10,850,000 0.29% NE $10,000,000 0.27% AZ $9,838,000 0.27% MS $9,420,000 0.25% IN $8,750,000 0.24% IA $7,050,000 0.19% LA $7,000,000 0.19% PR $6,667,000 0.18% AR $5,000,000 0.13% ME $4,000,000 0.11% KY $1,500,000 0.04% SC $1,173,000 0.03% HI $796,000 0.02% NM $500,000 0.01% DE $347,000 0.01% TOTAL $3,712,299,677 100.00% *States that received no financing in the 4th quarter were AK, ID, ND, RI, SD, VT, WV, and WY.
A total of 749 companies received financing in the fourth quarter compared to 675 companies in the third quarter of 1997, a 10 percent increase.
Technology-based companies also set a record in the fourth quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information accounted for 68% of all investments in terms of dollars and number of companies - $2.52 billion and 512 companies.
More information on the survey results can be located on the web at http://www.pw.com/vc. A breakout of state investments by industry can be obtained from SSTI by calling 614/421-SSTI (7784).
NSF ASSESSES BENEFITS, OUTCOMES OF ERC PROGRAM
The National Science Foundation (NSF) has released an assessment of its Engineering Research Centers (ERC) Program. The two-part study looked at two key aspects of the ERC program: ERC- industry interaction and effectiveness of former ERC graduate students in the workforce.
The ERC-industry portion of the study found that the benefits received by member companies is directly related to the length and level of involvement in a center. The longer a firm participates and the more direct personal interaction there is between corporate and center personnel, the more direct benefits the firm will have received and the greater the impact on company competitiveness.
The study cited three factors in promoting industry participation: (1) the existence of a champion for the ERC within the company; (2) the receptivity of company technical staff to ERC ideas and results; and (3) management support for the ERC partnership within the company.
Benefits of ERC membership as cited by companies surveyed include:
*Access to new ideas, know-how, or technologies.
*Receiving technical assistance.
*Interaction with other firms participating in the ERC.
*Access to ERC equipment and facilities.
*Hiring ERC students and graduates.
The second part of the study examined the impact of the ERC experience on students. Supervisors and other industry representatives of firms employing ERC graduates rated the students higher than their peers in several areas, including: general technical competence; ability to contribute to the employer's technical work; understanding the relationship between work and the clients' needs; and, the ability to work in interdisciplinary teams.
The 26 ERCs were created as government-industry-university partnerships designed to:
*Create long-term collaborations between universities and industry.
*Create new industry-relevant knowledge using an interdisciplinary approach.
*Prepare a new generation of engineering leaders with experience in team-based, cross-disciplinary collaborations.
The study, The Engineering Research Centers (ERC) Program: An Assessment of Benefits and Outcomes, is available on the World Wide Web at www.nsf.gov/pubs/1998/nsf9840/nsf9840.txt
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