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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HOUSE SCIENCE COMMITTEE MAJORITY RELEASES R&D BUDGET ANALYSIS
The majority members of the House Science Committee released an analysis of the President's R&D budget request. Overall, the report recognizes the real increase in non-defense R&D spending; however, it is critical of the increase being funded by uncertain tax increases. Some of the major conclusions from the report are:
The report finds that except for FY1999, real spending for total R&D investments is less than FY1998 levels in all other years (FY2000-2003). In terms of actual dollars, spending increases significantly in FY1999 and then dips before recovering in FY2002.
In terms of real dollars, there is an increase every year in non-defense R&D. However, there is a decrease in real dollars every year in defense R&D. It is projected that for the first time non-defense R&D will surpass defense R&D by FY2001.
After FY1999, the majority of R&D programs lose real dollars through FY2003. Except for the programs that have been determined by the Administration as "key civilian research" (i.e., NIH, NSF, and NIST) which receive increases in funding, most other programs will be cut. These programs include all other health programs, veteran's health care and hospitals, the environment, agriculture and space research.
Finally, the report states that the President proposes to pay for the Research Fund for America with unspecified reductions in other discretionary spending, with uncertain tax increases and uncollected money from the proposed tobacco settlement.
House Science Committee Chairman James Sensenbrenner (R-WI) echoed these concerns in a recent speech, where he declared a long-term science policy must be in place before large increases in federal R&D spending can occur. Noting the tightness of spending caps, he stated that any large increases will be difficult, and would come at the expense of other programs. He was critical of the Administration's R&D request because it exceeds spending caps, is financed with new taxes and fees, and relies on a tobacco settlement that he believes is in trouble.
The Republican's report can be viewed on the web at www.house.gov/science/ budgetreview_02-26.htm.
SOUTH CAROLINA RELEASES S&T STRATEGIC PLAN
The South Carolina Technology Advisory Council (SCTAC) has released a technology strategy for the state. Creating South Carolina's Future Through Technology: Strategies for Developing a Knowledge-Based Economy grew from a 1995 strategic plan for economic development, Approaching 2000: An Economic Development Vision for South Carolina.
The technology strategy builds on the state's successes in attracting capital investments and jobs from large manufacturing companies. The plan is designed to increase the wealth-generating capacity of South Carolina's economy by making the state more competitive in supporting and expanding its base of high-growth technology companies, new knowledge-based start-up companies, and world-class scientific and engineering operations.
SCTAC recognizes that the state's current levels of technology-based business formation, R&D expenditures, preparation for knowledge-based careers, and intellectual property development are inadequate to achieve the Council's vision. The four goals and subsequent recommendations in the strategy focus on creating the business and cultural environment needed to attract, create, grow and retain world-class, knowledge-based workers and companies.
The strategy sets out four goals:
- Prepare a technology-capable work force;
- Create a business environment that is friendly to technology-intensive companies;
- Invest to expand the base of rapidly growing companies and start-up businesses; and,
- Invest in world-class university research programs that are directly linked to South Carolina industry.
Among the Council's recommendations to achieve the goals are the following:
- Establish a collaborative process to continuously convey the needs of technology-intensive industries to education providers at all levels, and institute a set of metrics to ensure success;
- Form strategic alliances to leverage and expand the technology-related support available for start-ups and other rapidly growing technology firms;
- Enact legislation that provides incentives to investors who capitalize early-stage technology commercialization funds, or make direct investments in qualified early-stage high tech companies;
- Develop technology maturation and commercialization services to support rapidly growing technology-intensive companies;
- Develop strategies for recruiting technology companies; and,
- Develop incentives to reward institutions that achieve success in linking their science and engineering research programs with the state's economic development priorities.
- The council also recommended that for the strategy to be successfully implemented that an entity be established with a strong board of directors to lead, coordinate and promote the implementation of the goals and recommendations in the technology strategy.
Creating South Carolina's Future Through Technology: Strategies for Developing a Knowledge-Based Economy can be located on the web at www.state.sc.us/sctac For information on creating a state science and technology strategic plan, call SSTI at 614/421 SSTI (7784) to order its publication Science and Technology Strategic Planning: Creating Economic Opportunity.
EDA SEEKS COMMENTS ON FEDERAL STATISTICAL DATA
As a result of a recent study on the federal role in economic development, the U.S. Economic Development Administration (EDA) is concerned that the current federal statistical system is not meeting the needs of economic development practitioners. EDA has commissioned a web-based survey to assess the usefulness of the data.
The National Academy of Public Administration (NAPA), in a report commissioned by EDA, noted that state and local development agencies rely heavily on data generated by federal statistical agencies, and by state employment agencies following federal methodologies.
The report suggests that a long-standing lack of coordination among federal agencies, recent cutbacks in
funding for federal statistical programs, and the low priority placed on regional data has resulted in a data collection system that cannot supply usable, reliable data of a region's economic activity.
EDA, with cooperation from the Bureau of the Census, the Bureau of Labor Statistics, and the Bureau of Economic Analysis, is looking to assess how well the requirements of economic development practitioners are being met by the current system and to identify means for improving the availability of socioeconomic data needed for regional economic development.
One component of the assessment process is a survey of economic development practitioners to determine:
- The extent to which the data needs of regional development practitioners are currently being met by the Federal data system, in terms of elements such as availability, frequency, level of geographic and industrial detail, and timing; and,
- The extent to which practitioners are aware of the data sources currently available, and the tools and methods for effectively analyzing them.
The survey is being conducted via the World Wide Web through the end of March at www.hevanet.com/lad/survey.htm.
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