In the March 23, 2001 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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Ag-based Economic Development for the New Economy
Few economic sectors have experienced the combined economic, technological, social, biological, and – now with threats of mad cow and foot-and-mouth diseases – medical pressures that confront American agriculture. Adding the challenges of competing in the knowledge-based economy presents a formidable task for rural regions.

New Valley Connexions, a public-private partnership in California that teams agriculture businesses with both state and local governments as well as the larger business, financial, and educational communities, may provide a worthy model for study and replication in other parts of the country. Core funding for the initiative was provided by the Division of Science, Technology and Innovation within the California Technology, Trade and Commerce Agency.

Over the past three years, the partnership has developed plans for and is implementing a cluster-based economic development strategy, a comprehensive telecommunications plan, and a strategy to address digital divide issues for the eight-county San Joaquin Valley. An offshoot of the telecom plan is a builders’ seminar, to be held April 5, that will provide developers, planners, lenders, and communication companies strategic guidance on wiring the Valley's neighborhoods and offices for broadband communications services.

Producing A Competitive Advantage, the latest report from New Valley Connexions, outlines a tech-based economic development strategy for the region’s agri-businesses that focuses on the technological and marketplace dynamics of the New Economy and agri-technologies and processes for overcoming critical environmental issues.

The plan includes five recommendations for the San Joaquin Valley to implement to help the region address the forces of change in the agricultural sector: consolidation of the food distribution chain, technological advances, globalization, and mass market fragmentation. The recommendations, each of which has multiple action items identified for implementation, are:

Several additional opportunities are identified for the Valley to explore in each of the technological challenges identified in the report, such as ag-based biotech,  precision agriculture, integrated pest management, ag engineering, and environmental issues.

More information on the New Valley Connexions program, including the various strategic plans, can be found at: http://www.greatvalley.org/nvc/index.html

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Additional California Funding Offered for Rural Telecom Efforts
Complementing California’s support for New Valley Connexion, described above, is the state’s $2 million Rural E-Commerce program. Administered by the Division of Science, Technology and Innovation within the California Technology, Trade & Commerce Agency, Rural E-Commerce provides grants to non-profit organizations, educational institutions, and local governments for innovative, community-driven solutions to the telecommunications challenges faced by rural residents.

Examples of projects eligible for Rural E-Commerce support include rural telecommunications planning, rural network infrastructure, innovative applications, education and training, and related community planning efforts. According to the request for proposals, Rural E-Commerce grants also can be used as matching funds for rural communities competing for federal and foundation grants in areas relevant to rural e-commerce, such as the Technology Opportunities Program (TOP) and the Public Telecommunications Facilities Program.

More information on the California Rural E-commerce Program is available at: http://commerce.ca.gov/dsti/grants.html

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Rhode Island Explores Tax Changes for High Tech
Eliminating all state taxes on long-term capital gains and providing incentives to encourage biotech start-ups and investment are among the recommendations advanced in The Competitive Edge: Rethinking Rhode Island Tax Policy for Success in the New Economy, the first report from the Tax Competitiveness Committee of the Rhode Island Economic Policy Council (RIEPC). Governor Lincoln Almond requested RIEPC review the state’s tax policy and recommend mechanisms for enhancing Rhode Island’s tax competitiveness in the New Economy.

The report identifies four specific recommendations for the state to consider to encourage high-wage, New Economy growth, including:

Chaired by Edward Mazze, PhD, Dean of the College of Business Administration at the University of Rhode Island, the 15-member Tax Competitiveness Committee is composed of industry, labor, and public representatives.

The Competitive Edge: Rethinking Rhode Island Tax Policy for Success in the New Economy, is available on the Rhode Island Economic Policy Council website at: http://www.ripolicy.org

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Connecticut Releases Draft Plan for IT Workforce Development
With 26 percent more of its workforce involved in information technology (IT) than the national average and with IT-producing industries growing faster in the state than the national average, Connecticut has possibly felt the pinch of the IT worker shortage more than other parts of the country. Add to that the fact that the number of IT-related graduates from the state’s universities and community colleges declined during the late 1990s.

As a result, last year the state legislature ordered the development of a statewide IT workforce development strategy. Responsibility for the plan was given to the state Office for Workforce Competitiveness (OWC) and the Connecticut Economic Resource Center, Inc. (CERC). CERC is a private, not-for-profit 501(C)(6) corporation formed through a partnership of utility/telecommunications companies and state government in 1992.

The challenge for the state, according to the draft plan, is to integrate IT workforce skills development “in a practical manner across the full knowledge supply chain” of K-12, colleges, universities, and public and private workforce training and retraining providers. Addressing the Digital Divide within the state also is seen as a critical priority to protect and expand Connecticut’s competitive position in IT.

To ensure the IT efforts remain focused on meeting current and future industry needs, a new business-led Connecticut Digital Compact is proposed to oversee most of the plan’s implementation. Staffing for the Compact would be provided by the Office of Workforce Competitiveness.

Funding for many of the 26 strategic action items outlined in the plan would be provided by a new Digital Strategic Fund, to be managed by the Compact. The level of new state money required for the Fund’s initial capitalization is not identified in the plan. Intentions are to focus as many existing resources and additional industrial and foundation contributions as possible toward the plan’s implementation.

In addition to analysis of the state’s IT industry and presenting specific recommendations, Part I of the plan also benchmarks the competitive position in IT workforce development for six other states: Maryland, Massachusetts, Minnesota, New Jersey, New York and Virginia. Part II, which describes Connecticut’s IT occupations, has been released as a separate document.

Both sections of Connecticut’s IT Workforce Development Strategy are available for download by clicking on “OWC IT/High Ed.” under Featured Programs at: http://www.cerc.com

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People
President Bush has announced several more nominations for key positions for the tech-based economic development community, including:

Roberto Salazar is leaving his post as the Director of the New Mexico Office of Science and Technology at the end of March to assume the position of State Director of the USDA's Rural Development Agency for New Mexico.

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SSTI Weekly Digest Takes Spring Break
The SSTI Weekly Digest will be taking a brief spring break and will resume publication on Friday, April 6.

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