In the February 9, 2001 Issue:

Copyright State Science & Technology Institute 2002. Information in this issue of 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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Pennsylvania Budget Includes $208 Million for Tech-based ED, Research 
Pennsylvania has been a leader in tech-based economic development for more than two decades. With more than $208 million for tech-based economic development initiatives, the 2001-02 Budget Request submitted by Governor Tom Ridge this week shows why the state remains at the forefront of the field. Coupled with the $61 million in education technology, "Brain Gain," and digital divide initiatives proposed (see Pennsylvania's entry under this week's Tech Talkin' Govs article below), the state is developing a cradle-to-grave strategy for competing in the New Economy. 

The technology-based economic development proposals include: 

In addition, tech companies would benefit from Governor Ridge's proposals to phase-out the capital stock and franchise tax (cost to state $172.3 million) and expand the sales tax holiday for personal computer purchases to include computer peripherals and Internet access devices. 

More information on the Governor's budget request can be found at: http://www.state.pa.us/PAPower/ under "What's Hot in PA" 

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Maine Task Force Recommends State-Purchased Computers for Students 
In a follow-up to Maine Governor Angus King’s call for every 7th grader to have a laptop computer that they would use in school and could take home, the Task Force on the Maine Learning Technology Endowment has recommended that every student and teacher in the 7th through 12th grades be provided with computers that would be wireless and portable. The computers could be used in the classroom and, pending school district permission, be taken home. 

Last year, Governor King proposed spending $50 million to purchase laptops for every 7th grader. In response, the Legislature created a $50 million endowment and created the Task Force to make recommendations for how learning technology could be better incorporated in the classroom. 

The Task Force report outlines a phased-in strategy that would start with the 2002-2003 school year. The initial phase would target the 32,500 students and 2,330 teachers at the 7th and 8th grade levels. Expansion to grades 9-12 would be dependent on third-party fundraising or improved revenue and cost projections. Students and teachers would be provided with a computer that could operate as a stand-alone, non-networked device, but could be connected to the statewide network; be wireless and portable; and would be “rugged, tamper-resistant, and energy efficient.” The schools would own the devices and determine the policies governing home use of the devices. 

Saying the plan “goes well beyond a simple proposal to purchase machines,” the Task Force report also makes recommendations on professional development for teachers, the creation of a statewide network that the computers could connect to, and how technical support will be provided. 

The Task Force report can be found at: http://www.state.me.us/legis/opla/MLTErpt.PDF

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The Dichotomy of the Washington DC Technology Phenomenon  
The Washington DC metro area is widely recognized as one of the country’s technology hubs. Unlike the country’s other major tech centers, however, which have been heavily focused on computer technology for several decades (see Annalee Saxenian’s Regional Advantage for a discussion of Silicon Valley and Route 128, for instance), the nation’s capital region went through a significant restructuring during the 1990s as a result of the New Economy and federal government downsizing. 

The tech-based boom of the New Economy has not been shared evenly across the metro area, however. A recent study revealed that, during the seven years of 1993-2000, the region enjoyed a growth of 379,500 jobs – with more than 23 percent of those jobs being in the technology industry. The District of Columbia employment base, though, shrunk by nearly 47,000 jobs during the period. The city lost 79,200 government jobs over the seven years, more than two-thirds of them in the federal sector. 

Such a substantial transformation in so little time presents new challenges for the local non-governmental organizations dedicated to expanding economic opportunities for the area’s lower income residents. DC Agenda, the independent nonprofit organization that commissioned the study, is working to confront these challenges. 

Understanding the scope of the change was a critical first step for DC Agenda. The civic group works in partnership with existing service provider organizations and institutions to overhaul the systems serving low-income residents and strengthen the capacity of local government and community-based organizations. 

The study characterizing D.C.’s tech industry was prepared for DC Agenda by George Mason University researcher Stephen S. Fuller. While presenting the dichotomy of the District versus the metro region, it also reveals some significant differences between the Washington and Silicon Valley areas. For instance, while technology industry directly generates 28 percent of the gross regional product for Silicon Valley, it accounts for 16 percent of the Washington metro economy. 

The Washington area is much more dependent on the services sector of the tech industry, which makes up 86 percent of all tech jobs in the Washington area. By comparison, only 42 percent of Silicon Valley tech jobs are service-based. 

Tech employment accounts for nearly 11 percent of all jobs in the Washington DC metro area and more than 22 percent in Silicon Valley. In striking contrast, tech employment for the District of Columbia only represents 1.5 percent of all private sector jobs. 

The study found that the city’s small technology community was based largely on information technology that grew from entrepreneurial activity dependent on market access to federal and international business opportunities. Access to the large suburban tech industry was also important for partnering and subcontracting opportunities. 

Fuller recommends promotion of the city’s market access, coupled with offering incentives as marketing strategies for the District to pursue to further grow its tech-based industry. 

The complete report can be found on the DC agenda website
http://www.dcagenda.org/pages/m_dc_publications.htm 

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Tech Talkin' Govs VI: A Final Look at the 2001State of the State, Budget Addresses 
Editor's Note: The sixth and final installment in our review of the Governors' inaugural addresses, state of the state addresses, and budget messages for 2001. Previous weeks' installments are available on our website http://www.ssti.org/Digest/2001/headlines01.htm 

Alabama 
Governor Don Siegelman, State of the State Address, February 6, 2001 
http://www.nga.org/governors/1,1169,C_SPEECH^D_684,00.html

Pennsylvania 
Governor Tom Ridge, Budget Presentation and supporting press releases,
February 6, 2001 
http://sites.state.pa.us/PA_Exec/Governor/Speeches/010206-add.html 
Budget in Brief at http://sites.state.pa.us/PA_Exec/Governor/budgetadd.html

A large number of tech-based economic development initiatives and funding proposals were announced with the budget (see the lead story of this issue of the Digest

Rhode Island 
Governor Lincoln Almond, State of the State Remarks, February 7, 2001 
http://www.governor.state.ri.us/Gov's%20Speeches/stateofstate01shrink.html

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Workforce Issues for the New Economy 
In light of major economic changes due to technological transformation, increased globalization, and changing demographics over recent years, and the resulting effects of rising workforce insecurity, the Office of Workforce Security in the Employment and Training Administration of the U.S. Department of Labor (DOL), will hold its first national research conference. 

The conference will focus on issues related to impacts, trends, and challenges of the macro-economy to workforce development, the significance of recent changes in workforce development, workforce competitiveness in global economy, workforce security in the New economy, and major policy options to promote economic opportunities for the workforce. 

The office has issued a call for papers to be presented at the event. Papers selected for the conference also will be published as part of the Office of Workforce Security Occasional Paper Series. Travel and accommodation expenses for invited presenters will be paid by the Office of Workforce Security. 

Papers must be received by March 16, 2001. For more information, see the
February 9 online edition of the Federal Register or see “News” on
http://workforcesecurity.doleta.gov/

The National Workforce Security Research Conference will be held on June 26-27, 2001 in Washington, D.C. The event will be free and open to the public. 

Telework and the New Workplace of the 21st Century  
On a related topic, the DOL has issued on its website Telework and the New Workplace of the 21st Century, a compilation of a dozen studies presented at a national telework symposium held in New Orleans lat October. The symposium revealed the typical teleworker appears to be a college-educated white man,  between the ages of 34 and 55, who owns a home computer and earns more than $40,000 a year. By some estimates, there are between 13 and 19 million teleworkers in America today. 

The studies are presented in three parts: the Evolution and Economics of Telework; Telework and Organizational Behavior; and, the Cultural and Societal Implications of Telework. To read or download the report, see http://www.dol.gov 

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Career Opportunity in Tech-based ED 
The Office of Technology in the Utah Department of Community and Economic Development seeks an Assistant Director for the Centers of Excellence Program. The position's responsibilities include promoting the development of new and established Centers that will assist the state economy to expand in focused technology areas. Deadline for application is February 23, 2001. More information on this and additional career opportunities in tech-based economic development can be found at the S&T Job Corner: http://www.ssti.org/posting.htm 

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