- Moneytree™ Finds VC Still Rising
- OSTP Shares Views on R&D Budget Battle
- Recent Reports & Studies
- Federal Funding Opportunities
- New Technology Demonstration Center Opens
- Companies Sought for VC Conference
- Federal Tech Transfer Opportunities
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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MoneyTree™ Finds VC Still Rising
Despite the stock market's rocky ride last Spring, the PricewaterhouseCoopers MoneyTreeTM survey for the second quarter of 2000 found investments of $19.58 billion, climbing 14 percent over the first quarter results. The total number of deals only rose by one percent to 1,432, resulting in the average investment size growing by 13 percent to $13.67 million.The stock market or the maturation of the Internet business sector may explain one phenomenon in this quarter's results: total investments in Internet companies were relatively flat while deals with technology companies overall continued to climb. Internet companies, representing 68 percent of tech-related funding in the first quarter of 2000, captured 63 percent in the second quarter. According to the MoneyTreeTM report, three categories of Internet companies saw decreases in investments over the last quarter: content sites, business-to-business e-commerce sites, and business-to-consumer e-commerce sites.
SSTI has prepared the accompanying table presenting the 2nd quarter results on a state-by-state basis. The state distribution for previous quarters can be found in the Digest subject index under "Venture Capital."
Complete MoneyTreeTM survey results can be found at: http://www.pwcmoneytree.com
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OSTP Shares Views on R&D Budget Battle
Saying Congress is threatening to stall "our progress toward our shared national goals and toward balance in a healthy R&D portfolio," Neil Lane, Assistant to the President for Science and Technology, has issued a mid-summer status report on the FY 2001 R&D appropriations. The report outlines the effect of the current appropriation scenario on the President's civilian R&D goals, collectively marketed as the 21st Century Research Fund. An agency-by-agency break out is provided of congressional funding levels versus the President's FY 2001 requests. The brief report and accompanying letter from Lane can be found at: http://www.whitehouse.gov/WH/EOP/OSTP/html/00810.htmlCongress will consider the budget appropriations when it returns after Labor Day from its August recess.
(thanks to American Institute of Physics FYI for the lead on this story)
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Recent Reports & Studies
Milken Institute: Blueprint for a High-Tech Cluster
Using the microsystems industry in the Southwest as a model, Ross DeVol, Director of Regional and Demographic Studies of the Milken Institute, has written Blueprint for a High-Tech Cluster, a 40-page policy brief on one of the hottest trends for tech-based economic development. Recognizing the importance of technology and knowledge in the New Economy, and that "knowledge is generated, transmitted and shared more efficiently in close proximity," DeVol asserts that those regions with leading clusters in key technologies will enjoy greater economic growth and stability. "Success in creating high-tech clusters is now the distinguishing determinant in regional vitality," states DeVol.Blueprint outlines and describes ten specific strategies for developing a high-tech cluster:
- "tech transfer policies should be made part of research facilities' charters
- create public/private organizations to foster commercialization success
- avoid competing spheres of influence
- team with related industries for joint-development
- invest state-controlled funds in venture capital pools
- educate wealthy local investors about the advantages of pooling resources to develop angel funds
- lifelong learning is essential for rapid skill set updates
- create entrepreneurial programs at universities and encourage business incubators
- communicate and promote the cluster strategy both inside and outside the region
- monitor cluster strategy objectives and goals on an on-going basis." (pp. vii-ix)
The study was commissioned by Sandia National Labs. The complete report can be downloaded from the Milken Institute's web site: http://www.milkeninstitute.org
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Kortum & Lerner: The Relationship of VC to Innovation
Using patent filing and quality as a measure of innovation, “a dollar of venture capital appears to be about three times more potent in stimulating patenting than a dollar of traditional corporate R&D,” according to a July 2000 paper by Samuel Korton (Boston University) and Josh Lerner (Harvard University). The authors report in Assessing the Contribution of Venture Capital to Innovation that, although venture capital averaged less than three percent of corporate R&D from 1983-1992, it was responsible for almost eight percent of US industrial innovations during the same time period.The findings are based on a study of the influence of venture capital on patent activity across 20 industries over three decades. The authors hope the study is the first of many to quantify the impact of venture capital on innovation. The paper can be found on line at: http://www.people.hbs.edu/jlerner/publications.html
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GAO Finds Big Problems in NIH Royalty Income
With the rapid expansion of the research budget for the National Institutes of Health (NIH) and the high profile role of biotechnology in the New Economy, concerns have been raised in Congress as to whether or not NIH was keeping up on licensing and royalties. At the request of Congressmen Tom Bliley and Fred Upton, the General Accounting Office (GAO) has reviewed NIH’s internal controls. The results, reported in Financial Management: Improvements Needed in NIH’s Control over Royalty Income (GAO/AIMD-00-210), are less than positive:
- The Office of Technology Transfer (OTT) only conducted one biennial audit of its licensees with sales that exceed $2 million. NIH has 1,204 active license agreements. Of the 13 licensees with annual sales exceeding $2 million, only one had provisions requiring an audit.
- While NIH reported $45 million in royalty income in fiscal year 1999, the one audit conducted revealed previously uncollected royalty payments of $9.2 million and the expectation of an additional $1.2 million.
- The office also did not enforce its collection policies and procedures to ensure timely payment of royalty fees. “As a result, institutes and inventors may not be receiving their share of royalty income in a timely manner,” the report said. Inventors are entitled to collect up to $150,000 in royalties for each license annually without special approval from the President. GAO identified 78 delinquent license agreements that owed $864,302 in royalties to the inventors and institutes.
- The OTT did not exercise its right to designate auditors for the semiannual royalty reports majority of its licensees, making it difficult, if not impossible, to verify its royalty income receipts for those agreements.
- Administrative procedures within NIH made reconciling the royalty payments with expectations laborious and potentially inaccurate.
In response the GAO report, NIH thought if the GAO had conducted a study benchmarking the NIH against other organizations that license technologies, NIH would have emerged as leader in the level of sophistication of its monitoring activities.
GAO/AIMD-00-210 can be downloaded from the GAO web site: http://www.gao.gov
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Bayer Survey Shows Strong Public Support for S&T
Americans say they take pride in our nation's leadership role in science and technology and believe the U.S. needs to continue investing in scientific research and development (R&D) in order to remain at the forefront of discovery and innovation, according to a Gallup survey conducted on behalf of the Bayer Corporation in partnership with the National Science Foundation. At the same time, many Americans also expressed concern about whether our educational system is preparing students for the challenges that accompany new technologies.The results of The Bayer Facts of Science Education VI: Americans' Views on Science, Technology, Education and the Future are consistent with the flurry of state S&T activities over the past twelve months and may help provide some directional push for future initiatives:
- 93 percent say students in their state need a stronger education in science to be prepared for the new inventions, discoveries and technologies that increased investment will likely bring
- 85 percent agreed that improving pre-college science education in their state should be one of their governor's top priorities
- Two-thirds say science should be given equal teaching priority in elementary education with reading, writing and math
- More than 80 percent say they are more likely to vote for a gubernatorial candidate who places a high priority on strengthening science and technology, with 19 percent saying "much more likely"
- In general, 72 percent are more likely to vote for a presidential candidate who places a high priority on strengthening science and technology, with 14 percent saying "much more likely."
- Almost 90 percent say they are more likely to vote for a presidential candidate who supports state and local efforts to strengthen science education (21 percent "much more likely"), and
- 82 percent are more likely to vote for the candidate who supports federal efforts in this area (19 percent "much more likely").
When informed of U.S. 12th graders recent poor science performance on the Third International Math and Science Study (TIMSS), where U.S. students scored near the bottom compared with students from other countries, Americans believe this year's presidential candidates should be more concerned about science education and science literacy. Some 94 percent of respondents say the presidential candidates should be concerned about these issues, while 57 percent say presidential candidates should be "very concerned."
The reason, the poll suggests, is that Americans see a strong connection between good education and U.S. economic success. Three-quarters agree that the poor TIMSS showing is an early warning that U.S. science and technology-related jobs may shift to countries whose citizens have stronger science literacy skills. Americans in all geographic regions expressed concern regarding this question.
For a copy of the report, visit Bayer's web site at http://www.BayerUS.com
(thanks to ASME Capitol Update for the lead on this story)
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NSF: Environmental Science & Engineering for the 21st Century
"How we view -- and treat -- the environment is a critical question for the 21st century," begins the letter from Eamon Kelly, chair of the National Science Board, that accompanies Environmental Science and Engineering for the 21st Century: The Role of the National Science Foundation. The study outlines the scope of the $600 million in current NSF environmental activities and conveys policy guidance for NSF to design a future $1.6 billion portfolio of programs and initiatives. Twelve recommendations are described in detail, including, in addition to the increased funding for NSF:
- Creating a "suite of environmental research and education hubs, on the scale of present Science & Technology Centers and Engineering Research Centers"
- Establishing a highly-visible, NSF-wide organizational focal point
- Supporting educational activities and proposals that capitalize on student environmental interests
- Enhancing and expanding disciplinary, interdisciplinary, and long-term environmental research
- Increasing research on scientific assessment for prioritizing research investments and for use in policy-and decision-making
- "Vigorously" supporting research on environmental technologies and enabling technologies
- Leading efforts to develop a digital environmental information network
- Implementing interagency, domestic and international partnerships that correspond to the location, scale and nature of environmental issues.
Copies of the report can be downloaded from NSF at: http://www.nsf.gov/cgi-bin/getpub?nsb0022
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Federal Funding Opportunities
United States-Egypt Science and Technology Program
The United States-Egypt Science and Technology Joint Board within the State Department seeks applications for the Science and Technology Program for Competitive Grants To Support International, Collaborative Projects in Science and Technology between U.S. and Egyptian CooperatorsThis program will provide modest grants for binational collaborative projects and other activities submitted by U.S. and Egyptian experts. Projects must help the United States and Egypt utilize science and apply technology by providing opportunities to exchange ideas, information, skills, and techniques, and to collaborate on scientific and technological endeavors of mutual interest and benefit. Proposals considered for funding in Fiscal Year 2001 must be postmarked by November 1, 2000.
For further information, contact Vickie Alexander, Program Administrator, U.S.-Egypt Science and Technology Grants Program, U.S. Embassy, Cairo/ECPO, Unit 64900, Box 6, APO AE 09839-4900; phone: 011-(20-2)
797-2925; fax: 011-(20-2) 797-3150; E-mail: alexanderva@state.govReturn to the top of this page
National Science Foundation: Nanoscale Science & Engineering
NSF seeks proposals to support a $74 million program on collaborative research in the area of nanoscale science and engineering. Through the current solicitation, the agency will support nanoscale interdisciplinary research teams (NIRT), nanoscale science and engineering centers (NSEC), and nanoscale exploratory research (NER). Eligibility for the entire nanoscale science and engineering initiative is limited to U.S. academic institutions.For NIRT, institutions may serve as lead on no more than four NIRT proposals. Principal Investigators (PI) may only serve as PI on no more than two proposals. Depending on Congressional appropriations, NSF anticipates making 35-45 awards ranging in size from $250,000 to $500,000. The deadline for submitting NIRT proposals is November 2, 2000
The agency anticipates selecting 6-10 nanoscale science and engineering centers through the solicitation. Multi-year awards will range from $1-4 million per year and will require a 10 percent cost share. Optional letters of intent should be submitted on or before September 18, 2000; full proposals are due January 30.
As with NIRT, institutions may serve as lead on no more than four NER proposals. The agency anticipates making 50-60 NER awards, at a maximum of $100,000 each. The NER deadline is November 2, 2000.
The full solicitation (NSF 00-119) is available from http://www.nsf.gov
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Air Force Electronic Systems Center: Time Critical Targeting Cell Design and Fielding
The Electronic Systems Center has issued a pre-solicitation announcement for an upcoming solicitation for proposals to develop and field a Time Critical Targeting (TCT) Cell. The TCT Cell will enable the Combat Air Force Air Operations Centers to greatly reduce the time required to find, fix, track, target, engage, and assess TCTs (TCTs are time sensitive targets with extremely limited windows of vulnerability or opportunity.) The contract award size is estimated to range between $25-50 million. More information can be found at: http://www.herbb.hanscom.af.milDepartment of Labor: Minority College and University Workforce Partnerships
The Employment and Training Administration within the U.S. Department of Labor seeks proposals for minority college and university workforce partnerships and training strategies to address skill shortages and workforce development needs. Of particular interest to the department are broad-based strategies that address shortages in technology, health care, and H-1B visa-identified occupations. Proposals will be accepted until September 22, 2000 to fund two types of demonstration grants: three to nine partnership building grants of up to $750,000 each; and, up to three training grants in the range of $1.5-2 million. Eligible applicants include consortia led by minority colleges and universities. More information, including a complete copy of the solicitation, is available at: http://www.doleta.govReturn to the top of this page
New Technology Demonstration Center Opens
The U. S. Department of Commerce Technology Administration (TA) has announced the establishment of a joint public-sector private-sector Technology Demonstration Center. The purpose of the Center will be to demonstrate state-of-the-art and future technological advances in a variety of technologies and to encourage future development. The Center is a joint activity, conducted under the auspices of Cooperative Research and Development Agreements between TA and one or more private sector parties. TA will not be providing financial assistance through the center. Nor will the center be used for sales of merchandise, solicitations, orders or for the advertisement of specific products or services. The Center will be physically located at the United States Department of Commerce's Herbert C. Hoover Building, in Washington D.C.The Technology Demonstration Center is immediately available for interested parties. Prospective participants should send inquiries to, Technology Demonstration, United States Department of Commerce, Technology Administration, Attn: Ms. Jacki Pickett, Washington DC, 20232 or call (202) 482-1039.
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Companies Sought for VC Conference
Companies seeking venture capital investments through the Great Midwest Venture Capital Conference have until August 25 to apply for consideration. The conference, this year taking place October 30-31 in Knoxville, Tennessee, annually draws around 200 investors and other financial professionals. The tenth annual event is organized by the Indiana Business Modernization and Technology Corporation and Technology 2020, located in Oak Ridge, Tennessee.Additional information on the event can be found at: http://www.gmvcc.com
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Federal Tech Transfer Opportunities
The National Institutes of Health, the Departments of Energy, and the Navy have announced a total of 46 inventions available for license. The invention titles, descriptions, and contact information is provided on the following SSTI web page: http://www.ssti.org/Digest/Tables/081800t.htmReturn to the top of this page
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