In the June 22, 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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Oklahoma Creates Technology Institute 
With the establishment of a $1 million trust fund to serve as seed money, the new Oklahoma Institute of Technology intends to position the state as a national leader in information technology, engineering, and biotechnology. Governor Frank Keating signed Senate Bill 694 into law June 8, creating the public-private collaboration. Tulsa World news reports indicate supporters of the institute anticipate raising a $100 million endowment for the project and securing additional state support.

Several objectives are laid out in the legislation for the institute to pursue, including: 

Institute governance will be the responsibility of a board of trustees consisting of representatives of the Oklahoma Center for the Advancement of Science & Technology (OCAST), the state's academic institutions, an unnamed private institution that grants engineering degrees, the Oklahoma Department of Career and Technology Education, an unnamed private foundation "that has a history of providing grants for capital higher education funding and health research and delivery systems," and five gubernatorial appointees representing the information technology and biotechnology industries. 

SB 694 can be found online at http://www.state.ok.us/osfdocs/leghp.html 

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The Aging of America: Challenges and Opportunities in Information Technology 
Editor’s Note: Results of the 2000 Census indicate that the U.S. population is aging. The median age, at 35.3 years, is the highest ever, and those 62 years and older total almost 10 percent more than they did in 1990. In every state except West Virginia, the census shows an increase of at least 20 percent in the 35 to 54 age group. Twenty-seven states saw a more than 30 percent increase in that age cohort. 

This aging of the populace is affecting some areas more than others. For example, greater Cleveland–an area comprised of seven counties–saw 45- to 54-year-olds increase by about 40 percent between 1990 and 2000 while 25- to 34-year-olds decreased by 19 percent. Pennsylvania, second only to Florida in its population of senior citizens, also grew older during the last decade. The state’s median age increased by three years, and the number of children, age 4 and younger, dropped by almost 9 percent. 

The aging of the population presents new challenges for policymakers involved in building tech-based economies. They include: an IT worker shortage exacerbated by hiring practices of some IT companies, encouraging older workers to remain in the workforce longer, and promoting increased involvement with computers and the Internet for those 50 and older.  

IT Worker Shortage: Those with Too Much Experience Need Not Apply 
The Information Technology Association of America (ITAA) reports that 843,000 IT jobs went unfilled last year, with nearly 20 percent of those being programming positions. 

Yet, older IT-capable workers can only hope to fill these positions, based on recent survey results published by Information Week. More experienced applicants are less likely to be hired. The survey found that only 4 out of 200 managers would hire an applicant with more than 10 years of experience. Nearly half, however, would hire someone with four to 10 years of experience. 

Older IT workers do bring certain advantages to the workplace, according to a survey conducted in 2000 by the Institute of Electrical and Electronics Engineers-USA. The survey found that IT workers 45 years and older were rated higher than younger workers in qualities such as problem-solving, communication, technical knowledge, and teamwork. They were, however, considered weaker in other areas such as adapting to new assignments and staying abreast of the latest tech developments. 

Retaining Workers: Computer Training Can Be Critical 
In The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use — a study released in May by the National Bureau of Economic Research — Leora Friedberg asserts that computer use leads directly to a later retirement and that training in computer skills increases this likelihood. 

Friedberg cites estimates from the Current Population Survey and the Health and Retirement Study, showing that non-computer users were 25 percent more likely to leave work than computer users. (The Current Population Survey collects monthly employment data from more than 150,000 people, yielding a sample of about 60,000 workers aged 18-64. The Health and Retirement Study follows over 7,600 households with someone born between 1931 and 1941, collecting data on employment, income and health every two years.) 

SeniorNet: Computers and the Internet for 50+ 
SeniorNet has dedicated itself solely to adults age 50 and older, providing access to and education about computer technology and the Internet and offering computer classes specifically designed for the age group. It is an international nonprofit organization with more than 220 learning centers across the U.S., having served more than 100,000 seniors since 1986. Among SeniorNet’s curriculum are courses on introduction to computers, word processing, spreadsheets and using the Internet. The centers are managed primarily by senior volunteers, taught by volunteer instructors and housed in locations such as senior centers, community centers, schools, colleges, clinics, hospitals and public libraries. 

Among SeniorNet’s more recent developments is the Bridging the Digital Divide Enrichment Center, a center aimed at educating the public about the age-related Digital Divide. The center was launched on Memorial Day to honor America's 76 million older adults and 17 million military veterans over 50. It features a collection of articles, research reports, and interactive discussions focused on understanding and ending the Digital Divide. 

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Useful Stats: State Demographic Profiles: 1990 -2000 
SSTI has prepared a 50-state table presenting the 1990 and 2000 figures and percent change for selected age cohorts: 25-34, 35-54, and 55 & over. The table can be accessed on-line at: http://www.ssti.org/Digest/Tables/061501t2.htm

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State & Local Round Up 

Indiana 
The Indiana legislature approved a $50 million appropriation over the next biennium for Indiana's 21st Century Research and Technology Fund. The program supports the development and commercialization of advanced technology. Created in 1999 (see related 9/10/99 Digest story), the fund received $50 million in the 2000-2001 biennium. 

Maryland 
To help grow new technology and biotech firms, the Maryland Department of Business & Economic Development five years ago modified the rules of a now 30-year old economic development tool originally intended for manufacturers’ equipment acquisition. The program now permits the state to guarantee lease payments for selected tech companies that landlords consider too risky. Six companies have been backed so far and the state is considering more, according to a June 17 Associated Press wire story. The story reports the state is experiencing its first payout under the new rules — a maximum of $1 million over the next year — when an Internet connection provider declared bankruptcy and abandoned its lease. The remaining five companies employ 750-1,000 Marylanders, according to the article. 

Kalamazoo, Michigan 
Southwest Michigan First, a Kalamazoo-based partnership of the region's leaders in private business, education and government, has secured $6.5 million in private commitments for the initial $10 million raised for a local early-stage technology investment fund. The balance of the fund is being provided through a partnership with Chicago-based Arch Development Partners. According to the Chicago Tribune, the new fund will receive a $20 million injection of money from the Small Business Administration. Planners say, when fully capitalized, the fund will have $100 million to invest in life-science and technology firms around the Midwest. For more information: http://www.southwestmichiganfirst.com/100_million_early-stage_ventur.html 

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People 

Cliff Numark is leaving his position as president and CEO of the San Diego Regional Technology Alliance to join a Los Angeles-based private consulting practice. 

Governor Don Siegelman has named Norm Davis as the director of the Alabama Department of Economic and Community Affairs. Mr. Davis had been serving as the State Banking Superintendent. Jim Hayes, director of the Alabama Development Office, has announced his resignation. 

Jim Pickens will be the permanent director of the Arkansas Department of Economic Development. Mr. Pickens has served as interim director since February 2. 

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