In the June 29, 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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President Bush Nominates OSTP Head
On June 25, President Bush named John H. Marburger, III, as Director of the White House Office of Science and Technology Policy (OSTP).

Marburger, 60, currently is the Director of the U.S. Department of Energy's Brookhaven National Laboratory and President of Brookhaven Science Associates. Presently, however, he is on a leave of absence from the State University of New York at Stony Brook, where he served as President and Professor from 1980 to 1994 and as a University Professor of Physics and Electrical Engineering from 1994 to 1997.

Among Marburger's tasks will be to review the nation's energy efficiency. As President Bush's science advisor, he will make recommendations on numerous issues including stem cell research, the human genome, nuclear weapons, bioterrorism, space, endangered species, the Internet and the training of scientists. Marburger also will assist the President in filling roughly 75 high-level scientific jobs in the federal government.

Marburger served as the Dean of the College of Letters, Arts and Sciences at the University of Southern California from 1976 to 1980. He has been a member of numerous professional, civic and philanthropic organizations including the Universities Research Association, the Advisory Committee to the New York State Senate Committee on Higher Education, and the Board of Directors of the Museums at Stony Brook.

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As State Revenues Recede, Some S&T Cuts Made
The latest semi-annual state fiscal survey, released jointly this week by the National Association of State Budget Officers and the National Governors' Association, reconfirms the increasing pressure on state coffers found six months ago. Slowing revenues and increasing Medicare and health care costs have resulted in 16 states reducing expenditures in the current fiscal year by $1.6 billion. Eleven states also are reducing their FY 2002 revenue projections. An average of only 1.3 percent growth in state revenues is estimated from 2001 to 2002. Budget officials in seven states are preparing for declining expenditures in FY 2002.

The survey can be downloaded at http://www.nasbo.org/Publications/PDFs/FSJUN2001.pdf

The impact of state fiscal matters on funding for tech-based economic development initiatives and investments in university research varies dramatically. Big winners capture Digest headlines, such as the Pennsylvania story this week and the June 15 article on Texas’s $800 million spree.

Many states, because of tight budgets, are expecting zero-growth for FY 2002 or only modest cost-of-living increases. A couple of notable exceptions – each facing 20 percent cuts next year – have surfaced in two Midwestern states:

Michigan — Crain’s Detroit Business reports that the state’s investment in its life science corridor will be cut by 20 percent next year. Slated to receive $50 million annually when created last year, the life science program — which is supported by tobacco settlement funds — will receive $40 million next year. The program, administered by the Michigan Economic Development Corporation, supports basic and applied research and development at universities and the commercialization of life science technologies.

Ohio — Ohio’s Thomas Edison Program is preparing to take a 20 percent reduction of $10 million for the biennium beginning next week. Also, opportunities for companies to take advantage of the state’s research and development tax credit, including the start date for the credit, have been delayed.

And in Alaska, the fiscal situation for the Alaska Science & Technology Foundation (ASTF) is less-than-rosy but for different reasons. ASTF is financed by revenues earned from investments of a permanent trust fund. The Anchorage Daily News reported Wednesday that losses on the stock market have reduced revenues by nearly 50 percent from $10.3 million to $5.5 million. Since $3.1 million is reserved each year for the University of Alaska - Fairbanks and the Alaska Aerospace Development Corporation, only $2.4 million is left for ASTF administration and grants.

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Life Sciences Wins Big in PA Tobacco Settlement Plan
After nearly two years of discussion between the state legislature and the Governor’s office, Pennsylvania has enacted a plan for its $11 billion share of the national tobacco settlement. The final plan includes $160 million in one-time outlays for research and commercialization of life science technologies and a formula ensuring research gets nearly one-fifth of the total money received over the 25-year span of the settlement agreement.

Highlights include:

More information is available at http://www.dced.state.pa.us/PA_Exec/DCED/newevent/current.htm

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Maine 7th Graders to Get Laptops
To strengthen Maine’s ability to compete in a knowledge-based economy, Governor Angus King proposed last year that the state create a $65 million endowment that would annually purchase and place a laptop in the hands of every seventh grade student in the state. A one-time $50 million state appropriation was to be matched by $15 million in private contributions. Interest off the endowment would have allowed every 7th-12th grader to own a laptop PC by 2007.

Sixteen months later, and after considerable revision of the concept by a specially-called Task Force on the Maine Learning Technology Endowment (see February 9, 2001 SSTI Weekly Digest story), the state legislature has authorized a $30 million program to begin. The Governor still plans to pursue $15 million in private and foundation support for the endowment.

Rather than giving students computers each year, the endowment will fund the acquisition of Internet-ready laptops that 7th graders can sign out, beginning in the fall of 2002. Eighth graders will be eligible to participate the following year.

The Task Force also recommended using a portion of the fund to support programs to train teachers on integrating information technology and the web into their curricula.

Our thanks to the Maine Science & Technology Foundation for the lead on this story.

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Chemical R&D Investment Pays Off
Representing ten percent of U.S. manufacturers and accounting for the largest trade surpluses of the non-defense sectors, the chemical industry remains an important contributor to the U.S. economy. Despite substantial growth in R&D investments by chemical companies during the past decade – R&D investment as a percentage of sales grew from 2.47 percent in 1980 to 4.70 percent in 1999 – the industry remains below the national average for several indicators of R&D expenditures.

Measuring Up: Research and Development Counts in the Chemical Industry, a new study commissioned by 27 chemical companies, laboratories, and government agencies and released by the Council for Chemical Research, reveals the importance and benefit of increased private and public R&D investment for the sector. The study includes econometric, bibliometric and historical analyses of chemical research investment.

Major findings include:

The third point suggests some policy roles for state and federal government to encourage increased investment and research partnerships. The study concludes:

Separately, the Council has openly opposed the Bush Administration's proposed budget cuts to the Advanced Technology Program and the Department of Energy Program's Industries of the Future Program.

The full report can be purchased from the Council for Chemical Research for $150. The six-page executive summary can be downloaded from http://www.ccrhq.org/news/study_purchase.htm

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Local Incubator & Tech Park Gleanings

Atlanta, Georgia
The Atlanta Journal and Constitution reported on June 20 that the 
Robert W. Woodruff Foundation is donating $5 million toward the acquisition of land for Midtown Park, a 15-acre development project to anchor the Atlanta Technology Corridor. The article reports Midtown Park will soon house the Advanced Technology Development Center, a state-funded technology incubator, and the Yamacraw Design Center, the state’s $200 million research/economic development initiative. 

Coordination of the Midtown Park project is being handled by the University Financing Foundation, a nonprofit organization that assists Georgia colleges and universities to obtain research equipment and facilities.

Buffalo, New York
The Buffalo News reports the University of Buffalo (UB) is taking over management of its Technology Incubator to allow for expanded services for its tenants. The article reports the nonprofit Western New York Technology Development Center, the anchor tenant and current manager, will continue to provide other tenants and area tech firms with business counseling services.

Since its founding in 1988, the UB Technology Incubator has assisted 57 companies and boasts a 75 percent survival rate. More information on the incubator is available at: http://www.uballiance.buffalo.edu/index.phtml?locale=ti

Chicago, Illinois
On June 18, Crain’s Chicago Business reported that the creation of the 17-acre Chicago Technology Campus, located in the Near West Side, will alleviate some of the local space needs for biotech graduates of the near-capacity incubators in the Chicago Technology Park. Financed through a state-local, public-private partnership, the campus is envisioned to grow into a 180-acre enclave for businesses in biotechnology and life science research. As part of the Illinois Medical District, the campus will offer a variety of tax abatements, tax credits, and financing options to prospective tenants, according to the article.

Lewiston, Idaho
The Lewiston Morning Tribune reported on June 26 that the Idaho Department of Commerce is providing the city of Lewiston a $500,000 grant for the development of a new business and technology park. The grant provides that at least 101 of the jobs created in the park employ low and moderate income people.

Milwaukee, Wisconsin
The Milwaukee Journal Sentinel reported on June 21 that the Senate version of next year’s state budget includes $25 million in bonding authority to transform the former Pabst Brewing Company headquarters and brewery into a research park and incubator facility. The bill’s language calls for creation of the Pabst University Research Foundation, a governing board for the park including representatives of seven colleges and universities and a representative of the Milwaukee public school foundation. The measure passed the Wisconsin Senate on June 19 and moved to the Assembly for consideration. More information is on pages 25-27 of http://www.legis.state.wi.us/2001/data/SB55-SSA1-SA2.pdf

Urbana-Champaign, Illinois
According to a June 20 university press release, the University of Illinois will receive more than $138 million in FY 2002 state money for new construction and continued development of facilities in research parks at its Urbana and Champaign campuses. The funding will cover construction of a new $80 million computer science building, a post-genomics research institute, and a technology incubator. More information is available at: http://www.news.uiuc.edu/news/01/index.html

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SBIR Briefs

Comment Period on the Policy Directive Extended
In response to Congressional requests, the Small Business Administration (SBA) has reopened the comment period on the draft policy directive to guide agencies’ administration of the Small Business Innovation Research (SBIR) Program. Interested parties may now submit their comments to the SBA Office of Technology through July 23, 2001.

SSTI has made the SBA’s draft policy directive available at: http://www.ssti.org/Digest/Tables/051801t2.htm

Three perspectives on the proposed draft are included on the following web page: http://www.ssti.org/Digest/Tables/060801t2.htm

Comments should be sent to technology@sba.gov or to: Maurice Swinton, Assistant Administrator for Technology, Office of Technology, Office of Policy, Planning, and Liaison, Office of Government Contracting/Business Development, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416

Nominations Sought for 6th Annual Tibbetts Award
Each year, the Small Business Administration recognizes individuals, companies, and organizations from around the country for their SBIR-related achievements through the Tibbetts Award Program. The emphasis is on recognizing those accomplishments where, in the judgment of those close to hand and often most immediately affected, the stimulus of SBIR funding has made an important difference.

For this year’s awards, the selection focus is on 1) economic impact of technological innovation 2) business achievement and effective collaborations, and 3) demonstrated state and regional impact.

Awardees will be honored at a ceremony in Washington, D.C. on October 2, 2001. More information, including nomination forms, can be found at: http://secure.brtrc.com/tibbetts/

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National Medal of Technology
The Technology Administration of the U.S. Department of Commerce is accepting nominations for the National Medal of Technology program. The Medal, established by Congress in 1980 as part of the Stevenson-Wydler Technology Innovation Act, is presented annually by the President as the highest honor for technological achievement. While its primary purpose is to recognize the contributions people have made to strengthening America's economy and improving the standard of living, the Medal highlights the creation of new or significantly improved products, processes or services.

Nominations for the 2002 Medal are being accepted in such areas as product and process innovation, technology transfer, advanced manufacturing technology, technology management, human resources development and environmental technology. All nominations should meet the following criteria:

The nominations are reviewed by the National Evaluation Committee, as well as an independent panel of public and private sector experts. The Committee issues recommendations to the Secretary of Commerce, who sends them to the President for final determination.

Individuals, teams of up to four members, companies and organizations are eligible. The deadline for submissions is August 30, 2001. For additional background on the Awards program, past Medal recipients and access to nomination forms, visit: http://www.ta.doc.gov/MEDAL

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Final Rule Issued for Federal Licensing Opportunities
58 Inventions Also Offered by Health, Navy

In today's online edition of the Federal Register, the Technology Administration of the Department of Commerce issued the final rule for changes regarding licensing government-owned inventions. SSTI has republished the new rule for our readers at: http://www.ssti.org/Digest/Tables/062901t2.htm

Additionally, during the past ten days, the Department of Health & Human Services and the Department of the Navy have published 20 and 38 inventions, respectively, that are available for partial or exclusive licensing. SSTI has collected the announcements on the following web page for review: http://www.ssti.org/Digest/Tables/062901t.htm

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