In the May 19, 2000 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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Surveys Find VC Investments Continue Climb
Two quarterly surveys of venture capital investments were released during the past two weeks. Both report record levels of venture-backed investments for the first quarter of 2000, in spite of the jittery stock market. While the figures vary between the two surveys, both identify the same investment trends. For instance, both surveys found that among the states, Georgia, Illinois, and New York experienced the greatest growth in deals. Summaries of both reports are provided below. 

PricewaterhouseCoopers Moneytree™ Survey 
Venture-backed investments in the first quarter of 2000 reached $17.2 billion, surpassing previous quarterly records by $2.6 billion, according to the latest Moneytree™ survey results compiled by PricewaterhouseCoopers. First quarter 2000 eclipses the total reported for the entire year of 1998. 

The number of companies receiving venture capital funds (“deals” ) during the first quarter of 2000 rose to 1,423 – nearly double the 732 deals reported in the first quarter of 1999. The average size per deal increased 105 percent over a year ago to reach $12.1 million. 

Technology-related investments, including Internet-based companies, accounted for 93 percent or $16 billion of the total for the first quarter of 2000 – their highest share yet since the survey was first conducted. Internet companies have experienced the most rapid growth, capturing $10.8 billion during the latest quarter versus only $1.9 billion one year ago. The number of deals involving Internet-based firms tripled during the period to 750 in 2000. 

The accompanying table presents the Moneytree™ results for the first quarter of 2000 by state. No investments were reported in states omitted from the table. More detailed information by state, industry sector, stage of development and type of financing can be found on the PricewaterhouseCoopers website: http://204.198.129.80/index.asp 

National Venture Capital Association/Venture Economics Survey 
The National Venture Capital Association (NVCA) and Venture Economics found venture capitalists invested $22.7 billion into companies during the first quarter of 2000, compared to $6.2 billion in the first quarter of 1999 — representing a 266 percent increase.  

The number of companies receiving venture-backed financing also increased dramatically with 1,557 firms receiving financing in the first three months of 2000, compared to only 851 companies during the same time last year. 

The survey also found venture capitalists are focusing their investments on companies in earlier stages of their development. In the first quarter of 2000, 85.2 percent of all venture capital investments went to companies in the early or expansion stage. This is in contrast to 64.8 percent in the first quarter just a year ago. Expansion-stage companies overwhelmingly received the largest percentage of funding with 61.9 percent of all investments. 

State-by-state statistics are not readily available for the NVCA survey, but additional information can be found at: http://www.nvca.org/ 

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Montana Legislature Approves $46 M Economic Development Package 
After two years of partisan politics and court battles, the Montana legislature last week overwhelmingly passed HB 1, a $46 million, five-year appropriations package to fund several state science, technology, and economic development initiatives. The legislation brings to close a saga that began with a successful court challenge to the funding mechanism for S&T programs. Governor Marc Racicot called a special session of the legislature this year specifically to address the need for funding. 

HB 1 provides $13.3 million for the current biennium ending June 30, 2001, and $8.2 million each fiscal year thereafter until June 30, 2005. The Department of Commerce will receive $12.6 million over five years for 32 specific infrastructure, water, and wastewater projects around the state. The balance of the bill’s appropriations will be divided among the following science, technology, and economic development programs: 

The bill can be viewed on the Montana legislature’s website: http://leg.state.mt.us/services/legal/00_sp_session.htm 

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Useful Stats I: New NSF Science & Engineering Reports Available 
The National Science Foundation has released two statistical reports that present several science and engineering statistics by state: 

Federal Science & Engineering Support to Universities, Colleges, and Nonprofit Institutions for Fiscal Year 1998 Detailed Statistical Tables 
The April 2000 report presents 39 tables characterizing federal science and engineering (S&E) obligations to colleges, universities, federally funded research and development centers, consortia, and independent nonprofit institutions. Several present the data by state, including: 1991-1998 federal obligations for S&E, 1991-1998 federal obligations for S&E research and development, 1998 S&E obligations by type of activity, and 1998 S&E obligations by federal agency. Many others present the information for the 100 universities and colleges receiving the largest amount of federal funding. Perhaps, most useful are four tables (B-15-18) that present 1998 S&E and S&E research and development obligations by state and by university or college. The report can be downloaded from: http://www.nsf.gov/cgi-bin/getpub?nsf00315 

State Science and Engineering Profiles and R&D Patterns: 1997-98 (Early Release Tables) 
The tables, which present one-page summary statistical profiles of each state, the District of Columbia and Puerto Rico, are one section of the upcoming report from the Division of Science Resource Studies, State Science and Engineering Profiles and R&D Patterns: 1997-98. The individual state profiles provide rankings, state and US figures for easy reference across 30 statistics as well as the distribution of federal R&D obligations by department and performer. Copies can be downloaded at: http://www.nsf.gov/cgi-bin/getpub?srs00411 

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Federal Funding Opportunities 

Department of Agriculture 
The Rural-Business Cooperative Service has $300,000 available in FY2000 to support research on opportunities and problems for agricultural and non-agricultural cooperative serving rural communities. Proposals will be accepted from institutions of higher education and nonprofit organizations. The due date is June 30, 2000. More information can be found at: http://www.usda.gov/rbs/coops/rrcop.htm 

Department of Education 
The Office of Special Education and Rehabilitative Services, Rehabilitation Services Administration, requires a contractor to evaluate the Projects With Industry Program (PWI) in terms of its employment outcomes, interaction with local business communities, the type of individuals PWIs serve, relationships between State Vocational Rehabilitation agencies and PWI projects, the impact of PWI Standards on projects, the services provided by PWIs, the degree to which projects utilize the PWI model, and identifying possible changes to the PWI model. Requests for copies of the Request for Proposals (ED-00-R-0035) may be made by sending an email to Yolanda_Abney@ed.gov or Janet_Mata-Hitz@ed.gov  The closing date is June 9, 2000. 

Department of Energy 
The solicitation period is open for proposals addressing the Aluminum Industry Vision of the Future. The Office of Industrial Technologies has $3,000,000 available in combined fiscal years FY 2000 and 2001 to fund first year efforts for four to six grants. All DOE funding for this solicitation requires a 50 percent match. Multiple partner collaborations between industry, university and national laboratory participants are encouraged. Proposals are due by July 12, 2000. More information is available at: http://www.id.doe.gov/doeid/psd/proc-div.html 

The Department of Energy, Office of Science (SC), plans to issue a solicitation for Financial Assistance for the Commercialization Assistance Program (CAP) to invite applications from small businesses that provides services to DOE SBIR Phase II recipients for successful commercialization of products or services developed in the DOE SBIR program. The application due date will be approximately 45 days from the date the solicitation is issued. The solicitation will be available at http://www.ch.doe.gov/business/ACQ.htm For more information, contact Tonja L. Stokes at tonja.stokes@ch.doe.gov or (630)252-2136, or Rene L. Irwin at renee.irwin@ch.doe.gov or (630)252-2566. 

The Office of Industrial Technologies seeks proposals from private and public institutions of higher learning to promote multidisciplinary education and training programs for graduate students in the are of renewable bioproducts. Proposals must be received on or before June 20, 2000. DOE anticipates making three to five grants with each ranging between $70,000 - $100,000 per year for a maximum of three years. The Solicitation (DE-PS07-00ID13962) can be found at: http://www.id.doe.gov/doeid/psd/proc-div.html 

Department of Health & Human Services 
The Centers for Disease Control and Prevention have announced the availability of $500,000 to fund up to three innovative technology development grants for the assessment of micronutrient status in people at risk of micronutrient malnutrition living in developing countries. The program seeks to stimulate the development, commercialization, and application of innovative technologies which are rugged, portable, easy to operate and maintain, cost effective, and sustainable. Proposal may be submitted by public and private nonprofit and for profit organizations, and by governments and their agencies. Proposals are due on or before July 10, 2000. More information is available by clicking on “funding” at: http://www.cdc.gov 

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McKnight Foundation Offers Funding for Neuroscience Research 
The McKnight Foundation has committed $44.5 million over ten years to support scientific research in neuroscience/memory and brain disorders. The McKnight Endowment Fund will support three national fellowship programs: 1) Scholar Awards, which link basic researchers and clinical scientists or physicians who are in the early stages of their careers; awardees receive $75,000 per year for up to three years; 2) Memory and Brain Disorders Awards, which encourage novel applications of neuroscience research to clinical problems related to memory and brain disorders; and 3) Technological Innovations in Neuroscience Awards of up to $100,000 per year for two years to encourage multidisciplinary research and technical innovations. The Endowment Fund is also the sponsor of the annual McKnight Conference on Neuroscience in Aspen, Colorado, organized to share research developments and foster interaction among all the awardees. 

More information is available at: http://www.mcknight.org/neuroscience/index.htm 

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$5 Million in Community Technology Projects Announced
On Tuesday, WorldCom and Brown University announced grants for 20 programs in 19 states to link public schools or community organizations with local colleges or universities to develop educational technology projects for youth in underserved areas. The grants were awarded through Making a Civic Investment, a $5-million, five-year program funded by WorldCom and administered by Campus Compact, a national coalition of nearly 700 college and university presidents based at Brown. 

The programs range widely from urban schools to Native American tribal communities, from online community newspapers to urban gardens to Web sites that gather neighborhood history. Many programs are intergenerational. Each program will receive annual funding for two years and will be eligible for continued funding for a total of five years. Leaders of the 20 programs qualify for annual professional development programs at Brown. WorldCom and its UUNET subsidiary will ensure that each project has high-speed Internet service for the term of the grant. 

Although the size of individual projects varies, most grants will total more than $200,000 over five years. More than 160 community-based programs applied for the grants. Information on each award can be found at http://www.brown.edu/Administration/News_Bureau/1999-00/99-119.html 

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Useful Stats II: Top High Tech Metros Identified
Forbes magazine, in conjunction with the Milken Institute, released on Monday its second annual "Best Places for Business and Careers" - a ranking of the top 200 metropolitan areas in the United States. The Forbes-Milken Institute list looks at two critical factors to determine which metro areas are the most dynamic: jobs and earnings, and high-technology growth and output. All of the numbers were provided by the Institute's Regional and Demographic Studies group as part of its ongoing research into how high-tech impacts regional economies. 

The top ten metro areas were: 

1. Austin-San Marcos, Texas 
2. Atlanta, Georgia 
3. Santa Rosa, California 
4. Boulder-Longmont, Colorado 
5. Boise City, Idaho 
6. San Diego, California 
7. Orange County, California 
8. San Antonio, Texas 
9. West Palm Beach, Boca Raton, Florida 
10. Colorado Springs, Colorado 

To view all 200 rankings and the full story, go to http://www.forbes.com/tool/toolbox/bestplaces/00/index.htm. 

For a more complete picture on high-tech's impact on local economies, one can download the Milken Institute's report, America's High-Tech Economy: Growth Development, and Risks for Metropolitan Areas, at
http://www.milken-inst.org/pub14/pub14_research.html 

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S&T Career Opportunities
Minnesota Technology, Inc. seeks candidates to fill the position of Technology Transfer Specialist. The incumbent will help bring Federal Technology Transfer activities to Minnesota companies by developing partnerships with federal labs, identifying opportunities for tech transfer activities in Minnesota companies, and assisting companies with the development of proposals, agreements and licenses. 

An Executive Director is sought to manage the Ohio Environmental Technology Incubator located at Central State University, Wilberforce, Ohio.  This Incubator is in the initial stages of development, and the Executive Director will be responsible for initiating, planning, organizing, and directing all activities of the Incubator under the supervision of an Advisory Board. 

The Research and Development Statistics Program of the National Science Foundation's Division of Science Resources Studies (SRS) is recruiting for an Economist 110, Social Scientist 101, or Statistician 1530 at the GS-13/14 ($60,890-$93,537) or AD-III level ($60,890-95,923) under vacancy announcements 00-94 and EX00-50. 

More information on these and other S&T career opportunities is available on the SSTI website at: http://www.ssti.org/posting.htm 

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