In the January 12, 2001 Issue:
- Rosy Forecast for R&D Spending
- Tech Talkin' Governors II
- $42.5 Million Technology Opportunities Program RFP Opens
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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Rosy Forecast for R&D Spending
Total research and development investment in the United States was strong in 2000, and is expected to increase about five percent in 2001, according to two separate reports recently released by Battelle Memorial Institute and the National Science Foundation.
Since 1994, spending on R&D in the United States has risen sharply, from $169.2 billion to a projected $264.2 billion in 2000, according to NSF, which issued Data Brief 01-310 Sixth Year of Unprecedented R&D Growth Expected in 2000 before the end of the year. That is the greatest single increase for any six-year period in the history of collecting R&D data, NSF said.
Battelle-R&D Magazine’s research and development forecast predicts that $277 billion will be spent on R&D in 2001. U.S. R&D investments remain largely driven by industry, which is anticipated to spend $190 billion this year, a 6.5 percent increase over the previous twelve months. Battelle cautioned that the unpredictable state of the dot-com world and stock market fluctuations could affect its forecast. Spending by the federal government will increase slightly by 1.3 percent to $72 billion, and academic institutions and other non-profit organizations will spend about $15 billion in 2001, which is about 6.2 percent more than last year.
NSF reported that federal R & D support in 2000 was about $71.2 billion, just a one percent real increase per year since 1994, and the government’s share of support for the nation’s R & D has dropped steadily since 1979 when it fell below 50 percent for the first time. NSF estimates that in 2000 the figure was 26.9 percent.
Battelle predicts that industry will continue to emphasize various forms of partnering and collaborations, including relationships with other industry, federal laboratories and international facilities. Many of these partnerships will most likely continue to concentrate on those aspects of basic and applied research, which are far from commercialization, but which are necessary for the establishment of stronger platforms for future technology growth.
Excellent business conditions, a strong economy and enhanced tax revenues continue to fuel a federal budget surplus, thus potentially easing some past pressures on government support of R&D. Factoring in the change in administration, continued modest growth of federal commitment to a broad range of R&D programs is expected, if the economy remains strong and the revenue stream continues to flow, Battelle said.
Recent significant gains in biomedical and health-related R&D will continue. Federal government commitment to health-related R&D has been instrumental in spurring the growth of private industry funding in this area, according to Battelle.
The complete Battelle and R&D Magazine forecast is published annually in the January issue of R&D Magazine. It can be accessed online at http://www.rdmag.com/home.htmThe NSF Data Brief, Sixth Year of Unprecedented R&D Growth Expected in 2000, can be downloaded at http://nsf.gov/sbe/srs/databrf/nsf01310/sdb01310.htm
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Tech-Talkin’ Governors II: The State of the State and Budget Addresses
Editor's Note: We continue our look at the priority Governors are placing on tech-based economic development and math & science education with highlights from recent speeches and budget proposals. Based on this week's announcements, it appears 2001 appears will be a third strong growth year for state and local tech-based economic development activities.Arkansas
Governor Mike Huckabee, State of the State Address, January 9, 2001, and accompanying legislative agenda
-- new initiatives
http://www.state.ar.us/governor/state_of_state_2001/index.html
- a new Arkansas Biosciences Institute to foster biotechnology development and research
- the establishment of a chief information officer for the state and an advisory council
- a new Arkansas Technology Infrastructure Fund so high-speed connectivity is accessible to every Arkansan
- a new Arkansas Venture Capital Fund, combining many existing state economic development programs into a single incentive program
- passage of a Uniform Electronic Transactions Act, providing legal recognition by the state of commercial activities transacted on the Internet.
- New Horizons Scholarship program providing scholarships-internships to graduates of the state's 86 high-school level Environmental and Spatial Technology Labs
Arizona
Governor Jane Dee Hull, State of the State Address, January 8, 2001
-- new initiatives
http://www.governor.state.az.us/sos/index.html
- a targeted tax credit for high tech companies
- release of New Economy That Works for Everyone strategic plan next week
- restructuring the Department of Commerce to reflect the New Economy strategy
- urge passage of a bill to increase venture capital availability in the state
California
Governor Gray Davis, State of the State Address, January 8, 2001
-- expansion of a previous initiative and announcement of new education program
http://www.governor.ca.gov/state/govsite/gov_homepage.jsp
- all 200,000 math and reading teachers in the state will receive 40 hours of University of California-accredited, out-of-classroom training and 80 hours of follow up support
- a $30 million Algebra Initiative, a financial incentive for high schools to attract and retain high quality algebra teachers
Iowa
Governor Thomas J. VIlsack, Condition of the State Address, January 9, 2001
-- new initiatives
http://www.state.ia.us/governor/news/2001/january/January901cs._1.html
- Develop an Advanced Telecommunications Alliance to design an advanced telecommunications service plan for the state with the goal of electronically linking all Iowans by 2005.
- Create a Digital Communities Account to provide funding for planning and technical assistance toward connectivity
- Take an industry cluster promotion approach to the state's economic development activities (life sciences, advanced manufacturing and information solutions)
- Increase investment in university research and development
- Create a tax credit to encourage venture capital and entrepreneurship investment in the state
Kansas
Governor Bill Graves, State of the State Address, January 8, 2001
-- new initiatives
http://www.ink.org/public/governor/state/stotst01.html
- $3 million for construction of an agriculture value-added center at Kansas State University for producer-industry-university research partnerships.
- $500,000 to assist schools in technology infrastructure planning to meet the goal of statewide interconnectivity by 2002
New Jersey
Governor Christine Todd Whitman, State of the State Address, January 9, 2001
-- expansion of last year's initiatives
http://www.state.nj.us/sos01/sos2001.html
- $5 million increase for the High-Tech Workforce Excellence Grants, a competitive tech training grant
- program for universities and colleges (FY 2002 total would be $20 million)
- hints that her January 23 budget message will include an additional $180 million in a high tech economic development package (total most likely includes non-state match requirements)
North Dakota
Governor John Hoeven, Inaugural Address, January 9, 2001 and budget statement, January 9, 2001
-- new initiatives and increased spending for existing programs
http://www.governor.state.nd.us
- a new 20 percent state income tax credit for North Dakotans who invest in new or expanding primary-sector businesses (estimated cost to the state: $2.5 million)
- funds to complete the statewide high-speed data network, providing high-speed Internet access
- capabilities to 194 communities, and permitting expansion of distance education and technology workforce development programs
- $4 million for the Challenge Grant program for universities to match federal and private research funding (increase of $528,900)
- $830,000 for new innovative scholarship program and incentives for students and faculty to pursue math, science and technology-based degrees
- unspecified increase of "several million dollars" for agriculturally related biotech research
- consolidating state economic development financing, workforce development, community services, and tourism activities into a single department of commerce
Oregon
Governor John A. Kitzhaber, 2001-2003 Budget in Brief, January 8, 2001
-- new initiatives
http://www.governor.state.or.us/
- $20 million to improve engineering education by creating a tier one engineering school and increasing the number of engineering students in the state
- $10 million per year from the tobacco settlement funds to support biotechnology research at the Oregon Health Sciences University
Virginia
Governor James S. Gilmore III, Presentation of the 2002 Biennial Budget Amendments, December 20, 2000
http://www.thedigitaldominion.com/press/speech/spch1220.cfm
- $2.6 million to expand the Algebra Readiness Initiative to ensure every student meets Algebra I standards (funds will be targeted toward hiring 100 new teachers for intensive remedial math instruction)
- a merit-based New Century Scholarship program providing $3,000 college scholarships to the top 20 graduates of each high school, and $500 for each advanced passing score on a Standards of Learning test
- $1 million to fund 33 Internet-ready computer centers across the state for under-served youth
Washington
Governor Gary Locke, Budget Message, December 19, 2000
-- new initiatives and increased funding for existing programs
http://www.governor.wa.gov/press/2000/00121901.htm
- $16.8 million to target college and university enrollment in high demand science and technology fields (goal 1,500 new students over biennium)
- $5 million in state funds to match private investments into new community college and university programs in high-tech and other high demand fields
- $2 million for the Advanced Technology Initiative at the University of Washington and Washington State University to invest in specific research areas
- $7.5 million to create a new technology institute at the University of Washington-Tacoma campus
- $9.6 million to broaden on-the-job customized training programs in emerging industries and technology
- Dividing the state's Department of Trade and Economic Development into two agencies -- one focused on community development, the other on economic vitality and trade issues.
Wyoming
Governor Jim Geringer, State of the State Address, January 10, 2001
-- new initiatives
http://www.state.wy.us/governor/governor_home.html
- establish a $65 million endowment fund for the University of Wyoming (UW) and the community college system. The schools must use non-state funds to match what they draw on the interest income
- $10 million for the Horizon Merit Scholarships for students attending UW and the Horizon Careers Scholarships for students attending community college
- creation of a technology incubator in Laramie allowing UW to offer capacity and expertise to partner with new start-up companies to commercialize basic research
- pass a Uniform Electronics Transaction Act providing legal recognition by the state of commercial activities transacted on the Internet
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$42.5 Million Technology Opportunities Program RFP Opens
The National Telecommunications and Information Administration is now accepting applications for funding through the Technology Opportunities Program (TOP). The purpose of the matching grants is to extend the benefits of advanced telecommunications technologies to all Americans, especially those in inaccessible, rural, and under-served urban communities. Entities eligible to apply include state, local, and tribal governments, colleges and universities, and non-profit entities. The deadline for submitting proposals is March 22, 2001. Congress appropriated $42.5 million for grants through TOP for Fiscal Year 2001.Copies of the Application Kit, including the Notice and guidelines for completing an application, can be downloaded from the TOP web site: http://www.ntia.doc.gov/otiahome/top/
To give potential applicants an opportunity to find out more about applying for grant funds, TOP will hold Technical Assistance Workshops February 2, in Washington, DC; February 6, in Denver, Colorado; and February 8, in Saint Louis, Missouri. Online registration for the workshops is now available at http://www.ntia.doc.gov/otiahome/top/conferenceworkshops/workshops.htm
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