In the August 13, 1999 Issue:

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 Decimates R&D, Lane Says
Appropriation bills approved by the U.S. House of Representatives have “decimated the President’s R&D budget,” according to Neal Lane, the President’s Science Advisor and director of the White House’s Office of Science and Technology Policy.

Dr. Lane issued a scathing statement earlier this week that condemned the House R&D budget appropriations, which include, according to the statement, the following:

The statement says,”The hopes that such cuts to R&D can be overcome in post-recess negotiations dim in the face of the bloated GOP tax cut.”

Dr. Lane also issued a call to arms in the statement, saying,“I am confident that this situation can be turned around if America’s research community makes its strong voice heard in these days ahead; otherwise if such cuts are allowed to stand, we will all be leading lesser lives in a lesser land.”

The statement can be viewed in its entirety at the website for the Office of Science & Technology Policy at: http://www.whitehouse.gov/WH/EOP/OSTP/html/998_6.html.

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Challenges of the New Economy Focus of SSTI’s 3rd Annual Conference
The State Science and Technology Institute’s (SSTI) third annual conference will focus on how to meet the challenge of the New Economy through science and technology programs.

The conference will focus on some of the largest issues facing policy makers and practitioners, including:

The conference program includes the following sessions:

Wednesday, October 6
Two optional, concurrent preconference workshops (seating is limited)

Industry Clusters: Analysis, Implications and Beyond: The workshop will focus on conducting the analysis to determine a region’s industry clusters, the implications of that analysis, and examples of policy options available once the analysis is completed.

S&T Primer: An Introduction to S&T Programs: Designed with those new to technology-based economic development in mind, this workshop will present approaches taken to encourage economic growth through S&T, the rationale underlying the approaches, and the evolution of S&T programs at both the state and federal level.

Thursday, October 7
Innovation Indices: An examination of the increasingly popular S&T report cards, their purposes, development process, and policy implications.

Using the Internet to Deliver Your S&T Program: This session will focus on how the Internet is being used by S&T programs, whether it is as part of a marketing strategy or integrated component of a program’s delivery system.

New Approaches to the New Economy: State S&T activities have spanned four decades and continue to try new approaches. This session will highlight two states attempts to position themselves at the forefront of the New Economy

E-Commerce: In addition to examining the potential of e-commerce, this session will explore how to determine if a region is prepared for e-commerce and steps to be taken to ensure that no region is left behind.

Marketing S&T: Techniques, Tips & Tricks: This session will look at creative methods of strategically marketing S&T programs to industry, legislators, governors’ offices, and other stakeholders.

Tapping the Well: How to Access Early Stage Capital: Many states have created programs to encourage local development of early-stage capital. This session will examine a variety of approaches a number of states have undertaken.

The Role of S&T Programs in Technology Deployment: Where to Draw the Line? There is increasing pressure to work with non-technology companies to deploy technology (e.g., teaching retail operations to implement e-commerce or resolving Y2K problems). This roundtable discussion will consider the following questions: Where
should S&T programs draw the line? What’s the appropriate role for S&T programs vs. the private sector?

Friday, October 8
Trends in S&T Programs: This interactive, plenary sessions will examine the latest advancements in technology-based economic development, the implications for program managers and policymakers, and where those trends may lead.

Addressing S&T Workforce Development Issues: The issue of workforce development and worker shortages is one of the greatest challenges of the New Economy. This session will highlight two states’ innovative approaches to addressing S&T workforce issues.

SSTI’s third annual conference will be held at the Hyatt Regency in downtown Indianapolis. Additional information may be obtained from the SSTI website http://www.ssti.org [Link Deactivated] or by contacting the SSTI offices.

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Texas Passes R&D Tax Credit
On October 1, Texas will begin offering a tax credit for business research and development expenditures. The new law, Texas Senate Bill 441, provides Texas corporations with a franchise tax credit equal to five percent of eligible R&D expenses for up to 50 percent of a company’s total franchise tax liability. Unused portions may be carried forward for up to 20 years.

To be eligible for the credit, R&D expenditures must occur within a Texas Strategic Investment Area, which include: counties with unemployment rates above the state average and per capita income below the state average; or federally designated urban enterprise communities or urban enhanced enterprise communities.

Senate Bill 441 requires the state comptroller to prepare a biennial report on the impact of the R&D tax credit.

A copy of the bill can be viewed on the Texas Legislature website: http://www.capitol.state.tx.us/

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Bingaman Introduces Bill to Create MEP-like Program for E-Commerce
To help small businesses participate fully in the expected e-commerce revolution, Senator Bingaman (D-NM) has introduced legislation to create a national e-commerce extension program. Senators Rockefeller (D-WVa), Snowe (R-ME) and Mikulski (D-MD) are co-sponsors of the bill, S. 1494.

E-commerce sales are expected to grow from the 1998 level of $100 billion to $1.3 trillion in 2003 -- less than four years from now. The opportunities for businesses prepared to compete in the electronic commerce market are significant. The challenges and implications for others, particularly in areas, populations, and companies underserved by the Internet, are enormous.

Modeled after the Manufacturing Extension Partnership and the USDA agricultural extension program, the new e-commerce program would be administered by the National Institutes of Standards and Technology. Regional centers would be created and required to secure non-federal matching funds equal to or greater than the 3-year
federal grant.

In his remarks while introducing the bill, Senator Bingaman outlined his vision of the e-commerce program’s potential relationship with the 70 MEP centers nationwide,“I assume NIST ...would begin by leveraging their MEP management expertise to start a few e-commerce extension centers and then gradually build a network separate from MEP.”

The bill can be downloaded from http://thomas.loc.gov. Senator Bingaman also seeks comments on the proposal from interested parties. Additional information can be obtained from John Jennings in Sen. Bingaman’s office at John_Jennings@bingaman.senate.gov

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