In the May 11, 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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Pennsylvania Works Toward $90 Million Life Sciences Initiative
Governor Tom Ridge’s $90 million plan to create a series of life science research/commercialization centers would be the largest, single technology initiative ever proposed in Pennsylvania, according to a recent press release from the Governor's office. The Life Sciences Greenhouse Initiative would be a network of innovation centers in Philadelphia, Pittsburgh and Harrisburg closely connected to university research activities. To be seeded with a $90 million investment from a one-time surplus of tobacco settlement funds, the centers would be sustained by grants from the ongoing settlement.

The initiative hopes to capitalize on increased private and federal research investment as well as the state's 30 percent growth in employment in life-sciences industries over the last five years -- double the rate of overall job growth in that same period. The Life Sciences Greenhouse network would be a university-industry-state partnership for research and commercialization of life science technologies.

Governor Ridge hosted leaders of Pennsylvania’s biotech industry last week to begin the process of designing the new tech-based economic development effort. The Greenhouse model is based on the Pittsburgh Digital Greenhouse, launched by Gov. Ridge in 1999, that focuses on computer-chip design. (See the July 23, 1999, SSTI Weekly Digest article and http://www.digitalgreenhouse.com/)

Gov. Ridge also did a three-city fly-around the state to promote the importance of biotechnology and the life sciences proposal for Pennsylvania's future economic health. He called on the General Assembly to pass the Life Sciences Greenhouse initiative in conjunction with his overall tobacco-settlement plan, which he presented to the General Assembly in January 2000.

More information is available at: http://www.dced.state.pa.us/

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Senate Says Community Tech Centers Should Stay in Education
The National Journal’s Technology Daily reported Wednesday that the Senate has approved an amendment to the Elementary and Secondary Education Act reauthorization bill (S.1) that would authorize up to $100 million for the Community Technology Centers program. The amendment, introduced by Senator Barbara Miluski of Maryland and passed by a 50-49 vote, also keeps the popular program within the Department of Education.

President Bush’s FY 2002 budget had requested the program be moved to the Department of Housing and Urban Development which has a series of computer access centers in its public housing projects.

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Are State Coffers in Jeopardy from Fed Tax Cut?
With the National Conference of State Legislatures saying 23 states already feel the pinch of a slowing economy and large state tax cuts made during the late 1990s, at least one group says the situation will only worsen with the pending federal tax cut. Basing its analysis of the President's original tax cut proposal, Citizens for Tax Justice estimates states stand to lose potentially $35 billion dollars a year in revenues by 2012.

As much as $15.2 billion would be lost through the repeal of the federal estate tax. Currently, according to the group, each state gets almost 26 cents of each dollar the federal government receives from estate taxes paid by residents of that state. The revenue sharing accounts for 1-3 percent of states' total tax revenues.

The group points out as well that, according to the congressional Joint Committee on Taxation, another effect of the estate tax repeal is an additional $16 billion in lost state income tax revenues annually by 2012.

The May report from Citizens for Tax Justice provides a table presenting the estimated losses for each state. The full report is available at: http://www.ctj.org/html/statefx.htm

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Useful Stats: Federal Investment in Academic Science & Engineering
The National Science Foundation (NSF) has released Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions: Fiscal Year 1999 (NSF 01-323). The data presented in the 33 tables cover all categories of direct federal science and engineering (S&E) support to institutions of higher education in the United States. The 18 agencies listed in these tables provide virtually all of the Federal funding for S&E research and development (R&D) at U.S. universities and colleges. Data also are reported on these agencies' obligations to nonprofit institutions.

In FY 1999, the 18 agencies reported obligations to 1,088 universities and colleges, 35 academic system offices, and 1,038 independent nonprofit institutions.

Statistical tables presenting the information by state include:

Using the information included in Table B-5, SSTI has prepared the accompanying table presenting the rankings by state for the percentage growth in federal R&D obligations between 1992 and 1999.

Detailed agency-specific data are available from the National Science Foundation upon request. The complete report can be found online at http://www.nsf.gov/sbe/srs/nsf01323/start.htm

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State & Local Tech-Based ED Round Up

Arkansas
The Arkansas Democrat-Gazette reports that Fayetteville city officals are looking at alternative locations to create the Arkansas Research and Technology Park since a wetlands has grown to consume 80 of the 289 acres originally purchased for the park in 1994. A possible front-runner site, according to the paper, is an area that would closely link the park to the University of Arkansas Engineering Research Center, the Genesis Technology Incubator, and the High Density Electronics Center. State, federal, and private funding sources currently are being investigated for the technology cluster-based economic development project.

Georgia 
The Georgia Research Alliance is leading the state's effort to transform Atlanta into a nationally recognized center for cancer research and treatment. The Atlanta Journal and Constitution reports the state legislature approved $44 million this year for construction of the first of three centers of excellence connected to universities and research hospitals. Plans call for spending up to $400 million of tobacco settlement funds to leverage $600 million in private investment toward the goal. The strategic plan for a Georgia Cancer Coalition to coordinate the effort and hire a Coalition director should be completed this summer. More information is available at http://ganet.org/governor/fact_sheet.html

Kentucky
The Lexington Herald-Leader reported in early April that Bill Brundage, Kentucky's Commissioner for the New Economy, wants the Commonwealth to invest $10 million to create two seed-capital funds. The public funds are expected to leverage an additional $15-25 million from private investors. Brundage made the recommendation after learning the state's existing 40 percent tax break for investments had been used only three times over the last decade. Critics point out the credit is not too popular since it bars venture capitalists from taking an active management role in portfolio companies.

Maryland
Unfortunately for Maryland biotech firms, two bills that would have made business less taxing died in committee when the state General Assembly ended its 2001 session. One bill created a "tax transfer" program for biotech companies similar to New Jersey's broader program. The other bill provided sales tax exemptions for biotech equipment purchases. MdBio, a biotech trade association, reports the state's biotech industry employs nearly 16,000 people at 258 companies.

North Carolina
This August, the N.C. Technology Development Authority will be opening 20,000 sq. ft. of wet-lab space in a new biotech incubator for Research Triangle Park. The News and Observer (Raleigh) reports biotech firms already employ 11,000 people in the area and captured one-third of the $156.2 million of venture capital raised during the fourth-quarter of 2000. The paper adds that only one percent of the 8 million sq. ft. of wet-lab space existing in the Triangle is available for lease.

Virginia 
In addition to cash prizes ranging up to $7,000, the four finalists of the 16th Annual Business Plan Competition held by the Darden Graduate School of Business in the University of Virginia have been given the opportunity to launch their new companies through the Darden Progressive Incubator program. The offer includes free office space, Internet access, leads for securing funding, mentoring, and a modest summer stipend. More info available at http://www.darden.virginia.edu/batten/

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$24 Million Available for Materials Research Centers
Between 10 and 15 Materials Research Science and Engineering Centers (MRSEC) will be funded by the National Science Foundation (NSF) in early 2002. In a recently released request for proposals, NSF indicates that it has $24 million available for the centers. The MRSEC program supports interdisciplinary, university-based group research and education in the areas of materials science and engineering, condensed matter physics, solid state and materials chemistry, and related areas. Each of the 24 existing MRSECs encompass one or more interdisciplinary research groups.

The request for proposals is toward making between 10 and 15 awards to universities for the establishment of new MRSECs or continuation of existing centers. Existing MRSECs will be in open competition with new proposals. If an existing MRSEC is unsuccessful, phase out funding may be provided at a reduced level for up to two years.

Grantees will receive awards ranging from $800,000 to $5 million per year for up to six years starting in September, 2002. NSF will make an initial commitment to awardees for up to six years, although funding for years five and six will be contingent on external reviews of the MRSEC's activities. A ten percent cost share is required.

The Centers, depending upon their size and capabilities, incorporate most or all of these activities:

U.S. institutions may submit up to two MRSEC proposals each. Pre-proposals are due by September 10, 2001 and full proposals, which will be by invitation only, will be due January 14, 2002. The complete solicitation (NSF 01-109) can be downloaded from: http://www.nsf.gov/cgi-bin/getpub?nsf01109

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People

Lewis Branscomb, one of the leading voices in science and technology policy, and Harold E. Varmus, former director of the National Institutes of Health and a Nobel prize holder for contributions to understanding the mechanisms of cancer, will receive the Vannevar Bush Award for lifetime achievement in science and public service from the National Science Board (NSB) on May 23.

Joseph Hammang, currently vice president for science, technology and business development at the Rhode Island Economic Development Corp., has accepted a position with the Rhode Island Economic Policy Council to run the Samuel Slater Technology Fund and six Slater Centers. Mr. Hammang will remain the Governor's Advisor for Science and Technology.

In March, the North Dakota Department of Economic Development and Finance (ED&F) named Jim Hirsch director of workforce development.

Ann Rydalch has been elected to serve as chair of the Federal Laboratory Consortium for Technology Transfer. Ms. Rydalch works for at the Idaho National Engineering & Environmental Lab. Outgoing chair C. Dan Brand will be retiring this summer.

Christopher Anderson has been promoted to become president of the Massachusetts High Technology Council. Prior to his appointment, Mr. Anderson served as vice president and general counsel to the organization.

SSTI welcomes Mark Kish to the staff as our new Writer/PR Assistant. Mark will assist with the SSTI Weekly Digest, updating and expanding our website, and planning for our September 19-21 annual conference.

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