In the October 15, 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.

Subscription to the SSTI Weekly Digest is free. If you are reading a forwarded copy of this issue and would like to receive your own copy each week directly, please subscribe at: http://www.ssti.org/Digest/digform.htm Requests to unsubscribe should be sent to sstiwd@ssti.org

Connecticut Innovations Nets $21 Million In FY 1999
After only ten years of investments, Connecticut Innovations, Inc. achieved a net income of $21.4 million in 1999, according to Connecticut Innovations’ latest annual report. The corporation reversed a deficit of over $20 million in retained earnings accumulated through 1995 to a positive $24.7 million by June 30, 1999. The corporation's record provides one of the strongest examples of successful state-funded, technology-based seed and venture capital investment to date.

Surpassing another significant milestone, total fund equity for Connecticut Innovations grew to slightly more than $103 million. The return on fund equity was 20.8 percent in 1999, also a new best for the corporation. Connecticut Innovations reported an internal rate of return on its equity and near-equity portfolio of 40 percent since inception.

Connecticut Innovations is the State of Connecticut’s leading investor in high technology, making risk capital investments in entrepreneurial companies across the state. The corporation has several different financial and technical programs and investment funds to assist qualified Connecticut businesses, colleges, and universities including:

In FY 2000, Connecticut Innovations will administer the Connecticut Renewable Energies Investment Fund, a new effort established by the state legislature to encourage the development and commercialization of renewable energy technologies. Additionally, the Fund will ensure Connecticut electricity consumers have renewable energy options under electric utility deregulation.

Also over the next 3 years, Connecticut Innovations will provide up to $9 million for university/industry applied research projects.

Because of its success, Connecticut Innovations will self-fund (i.e., use no public appropriations for) its operating expenses, capital for equity investment, launch capital for a new technology test bed program, and funding for the university/industry collaborations.

For more information on Connecticut Innovations and its 1999 annual report, visit http://www.ctinnovations.com or call Pamela Hartley at (860) 563-5851.

Return to the top of this page

ATP Announces 37 New Awards for 1999
The Advanced Technology Program (ATP), managed by the National Institute of Standards and Technology, has selected 37 projects from the 1999 solicitation to receive awards. Recipients will share $110 million of ATP funding for high-risk R&D projects with the potential to spark important, broad-based economic benefits for the United States. ATP funds will be matched by at least $102 million from private industry.

The 37 new awards were selected from more than 400 proposals received last Spring. The selected projects target a broad array of technologies, including pharmaceutical design, tissue engineering, industrial catalysts, energy storage, image processing, manufacturing control systems, electronics manufacturing, computer software, and electro-optics.

The majority of the 1999 ATP awards, 26, went to small businesses, either for single-company projects or as the lead company in an industry joint venture. More than 20 universities are involved as joint-venture partners or subcontractors.

The accompanying table presents the 1999 ATP awards by the lead organization’s state.  Please note, some projects involve companies and universities from different states than the lead organization so the true
geographic impact or distribution of the awards is not reflected in the list.

STATE AWARDS STATE AWARDS
AZ 1 MN 2
CA 11 NJ 2
CO 1 NY 4
CT 3 OH 2
FL 1 RI 1
MD 2 TX 1
MA 4 VA 1
MI 1 Total 37

A list of the 1999 ATP projects and participants are available at http://www.nist.gov/public_affairs/atp/99project.htm.   Full project descriptions can be found at http://www.atp.nist.gov/www/comps/index99.htm

Return to the top of this page

ATP National Meeting To Be Held In San Jose
The 1999 Advanced Technology Program National Meeting, Nov. 15-17 in San Jose, Calif., will feature more than 30 workshops for industry, academic and government researchers to discuss current ATP work in
high-risk, high-potential technologies and future R&D opportunities. The meeting also will feature general information presentations on ATP and a showcase exhibit of a broad array of successful ATP-sponsored
technologies. More details can be found on the meeting web site: http://www.atp.nist.gov/nationalmeeting.

Return to the top of this page

Foundation Grants $60 M to Indiana Colleges to Boost State’s Tech Competitiveness
The Indianapolis-based Lilly Foundation is providing nearly $60 million in two grants to help make Indiana more competitive for technology research and education and high-tech business development. The grants were made to Indiana University and the Rose-Hulman Institute of Technology.

During the press announcement for the grants, Clay Robbins, Lilly Endowment President, cited the state's low ranking in educational achievement as a motivation for the Foundation’s awards. Indiana ranks 48th in the percentage of adults with a college degree and 50th in the percentage of the work force in professional positions or specialty occupations.

The two grants are:

For more information on the IU award, visit: http://www.iuinfo.indiana.edu/ocm/packages/lilly_presskit.htm.   For more information on the Rose-Hulman award, visit: http://www.rose-hulman.edu/news/articles/innovate.htm

Return to the top of this page

R&D Share of GDP Grows
Total annual research and development (R&D) expenditures — expected to pass $247 billion in 1999 — have grown 7.2 percent over 1998 levels (adjusted for inflation), according to a recent Data Brief from the National Science Foundation. Growth in R&D expenditures has been accelerating since 1995. The annual real R&D growth for 1995-99 is expected to average 6.1 percent. Almost all of the growth is attributed to a resurgence in industrial R&D.

R&D’s share of the gross domestic product is forecasted to be 2.79 percent in 1999, the highest level since 1967's 2.80 percent share. The lowest R&D/GDP ratio was 2.12 percent in 1978. R&D as a proportion of GDP has risen sharply since 1994, following a three-year decline during the early 1990s.

Industry continues to account for the largest share of US R&D support; industry’s share of the $247 billion is projected to be $169 billion. Only $2.2 billion of industry’s R&D expenditures will be directed toward academic research; other nonprofits account for only $1.2 billion.

Federal support for R&D dropped to 26.7 percent of the total annual expenditures — the federal government’s lowest figure since 1953 when the ratio was first calculated.

Copies of the report can be downloaded from http://www.nsf.gov/cgi-bin/getpub?nsf99357

State Science & Technology Institute
5015 Pine Creek Drive
Westerville, OH 43081
Phone: (614) 901-1690
Fax: (614) 901-1696
Email: ssti@ssti.org

  © 2002 State Science and Technology Institute. All rights reserved.