In the August 3, 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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Tech Fares Well in Wisconsin Biennial Budget
On July 16, both houses of Wisconsin’s state Legislature passed a state budget including numerous incentives for technological development. The budget covers state spending for a two-year period that began July 1. Gov. Scott McCallum has until August 30 to approve the budget; several of the tech-related items were in the Governor's first state of the state and executive budget addresses. See the February 23, 2001 issue of the SSTI Weekly Digest for a related story: http://www.ssti.org/Digest/2001/022301.htm

Highlights include:

The budget also provided for the following:

Summaries of Wisconsin’s budget provisions are available at: http://www.legis.state.wi.us/lfb/lfb_publications.htm

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larta Assesses Southern California Bioscience Industry
Despite many indications that show strong potential for growth, Southern California's bioscience industry still faces challenges, according to a new report from the Los Angeles Regional Technology Alliance (larta). Released July 19, Heart of Gold: The Bioscience Industry in Southern California highlights the strengths of the region's industry and honestly assesses the ways that the industry can overcome its weaknesses. The report was created to present a full 
and objective overview of the industry through analysis of data from numerous sources, interviews with leaders of the biosciences industry, and insights from bioscience publications.

In its research, larta found the region has a vast amount of resources available to develop the industry but that these assets have yet to “pull together cohesively to create a leading center or bioscience development.”

Some Digest readers may be surprised to learn the report also found the area suffers from the same brain drain of research talent bemoaned by other areas of the country. In addition, Heart of Gold reports that compared to other well-known tech centers, biotech companies in the Los Angeles region often did not meet metrics used by venture capitalists for making investments.

While the San Francisco Bay area and San Diego are the main centers for comparison among some measures, larta also considered the metro areas of Atlanta, Boston, New York City, Philadelphia, and Washington, D.C.

larta concludes the main challenge for the region is to “wake the sleeping giant of Southern California bioscience without, at the same time, creating unsupportable hype that is unsustainable for the long run.” Specific measures recommended include: furthering the development of bioscience parks and other industry clusters; expanding awareness efforts such as networking forums, informational conferences, and investment showcases; matching skilled workers to bioscience job opportunities to stem the brain drain; and foster a community of service professionals to assist the industry.

The executive summary of Heart of Gold: The Bioscience Industry in Southern California is available online. The full report can be purchased directly from larta. More information is available at http://www.larta.org/

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Pittsburgh Mayor to Lead 'Tech City' Tour for SSTI Conference
Tom Murphy says when he first took office as Mayor of Pittsburgh in January 1994, the city was suffering from one of the worst inferiority complexes in its history. To be sure, Pittsburgh once was known first and foremost as being the capital of steelmaking in the U.S. By 1994, the devolution of U.S. steelmakers during the past 25 years had taken its toll on the steel city, physically, economically and psychologically.

Boy, have things changed in seven years! Rightfully proud of what has been accomplished and demonstrating the city's top-level commitment to being competitive in a tech-based economy, Mayor Murphy will lead SSTI's upcoming Policy In Practice tour of Pittsburgh's revitalization on September 19.

The foundation and unifying theme on which Pittsburgh's successful transformation is based – and true of any effective tech-based economic development effort – is an enduring commitment to public-private partnership at several different levels: state, local and regional governments, research institutions, community leaders, business and industry, foundations, education systems, and workers.

The commitment and integral involvement of strong organizations – such as the Allegheny Conference on Community Development, the Center for Economic Development at Carnegie Mellon University, the Heinz Endowments, Innovation Works, the Pennsylvania Dept. of Community & Economic Development, the Pittsburgh Regional Alliance, the Pittsburgh Technology Council, and the University of Pittsburgh – made Pittsburgh's transformation possible. Having leaders with an enthusiastic understanding of what it takes to build a tech-based economy, as Pittsburgh has in Mayor Tom Murphy, made the transformation happen.

The results of Pittsburgh's cooperative efforts have paid off; the city boasts a new economic base today. New technology clusters – information technology, biomedical/ biotechnology, advanced manufacturing and robotics, advanced materials and environmental technology – account for the city's major industry. Indeed, Pittsburgh is home to more than 900 software firms and specializes in tissue engineering, specialty metal alloys, and engineered plastics and chemicals. In addition, schools such as Carnegie Mellon University, the University of Pittsburgh and Duquesne University are either in or near the city, which is in a southwestern Pennsylvania region that includes 29 colleges and universities. Southwestern Pennsylvania is recognized for its lead in medical research and technology in the organ transplant surgery, diabetes, cardiology and cardiothoractic surgery.

Mayor Murphy's tour for SSTI will include projects symbolic of the region’s rebirth from heavy industry to innovative research and technology. The group will visit the Pittsburgh Technology Center, an impressive research park built on a brownfield site of a former steel mill. Mayor Murphy also will take participants to the McGowan Center for Artificial Organ Development, which performs world-class research and is spinning off businesses that are bringing its research to the marketplace.

Mayor Murphy understands that a strong tech-based economy take a vibrant quality of life to succeed. He has directed more than $4 billion in new investment in the city since 1994 – from office towers for two of the city's nationally ranked banks to new world-class facilities for the city's professional football and baseball teams to an expanded Downtown convention center. The tour will include quick visits to the two newest additions to the skyline — the beautiful, technologically sophisticated PNC Park and Steelers Stadium.

Mayor Murphy's Policy in Practice Tour event is one of three optional pre-conference activities preceding SSTI's fifth annual conference on September 20-21. More information is available at: http://www.ssti.org/Conf01/conf01.htm [expired]

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Velazquez Amendment to STTR Threatens FAST
The House Small Business Committee approved H.R. 1860 this week, legislation that amends and reauthorizes the Small Business Technology Transfer (STTR) Program. STTR funds cooperative research and development projects between small companies and research institutions such as universities or federally funded R&D laboratories. H.R. 1860, as amended, increases the percentage of R&D funds earmarked for this program from 0.15 percent to 0.3 percent beginning in 2004, thus doubling the support for small high-tech firms. The Senate version of the STTR reauthorization would increase the program set-aside to 0.3 percent beginning in 2004 and 0.5 percent for fiscal year 2007 and each fiscal year thereafter.

An amendment offered by Representative Nydia Velazquez (D-NY), the ranking minority member of the committee, and approved by the full committee, reopens the design and intent of the Federal and State Technology Partnership (FAST), a new program to support state efforts to assist companies in developing and commercializing technologies through federal programs such as STTR and the much larger Small Business Innovation Research (SBIR) Program. The Small Business Administration is currently reviewing the first round of proposals submitted by more than 40 states to receive matching grants of up to $150,000.

The Velazquez amendment, if included in the final STTR reauthorization act, would require FAST grants to focus on the needs of small business concerns in census tracts in which 50 percent or more of the households have income that is less than 60 percent of the area median gross income provided the population of all census tracts in an area that satisfy this criterion does not exceed 20 percent of the total population of the respective area. The number of technology firms located within these specific areas was not available at press time.

FAST, as passed with the SBIR Program’s reauthorization last December, allows each applicant state to develop and propose the strategy they feel is most appropriate for the needs of small technology businesses residing in their state.

Separately, the Committee also approved the Vocational and Technical Entrepreneurship Development Act of 2001 (H.R. 2666) to authorize the SBA to provide grants to Small Business Development Centers to offer technical assistance, curriculum development and implementation assistance to vocational education institutions to promote entrepreneurship among students. The new program would be authorized at $7 million a year for the next three fiscal years. No grant made under the new program is to be less than $200,000.

More information on each of these bills is available at http://thomas.loc.gov/

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Useful Stats: USDA SBIR Phase I Results
The U.S. Department of Agriculture (USDA) has posted its selections for the FY 2001 Phase I solicitation of the Small Business Innovation Research (SBIR) Program. Using information obtained from Ruth Lange of the USDA SBIR Program Office and the USDA website, SSTI has prepared the accompanying table presenting the state-by-state distribution of proposals, awards and total funding provided for the Phase I cycle. Phase II information will be available in September, once awards are finalized.

The FY 2002 solicitation for the USDA SBIR Phase I cycle is currently open. The deadline to submit proposals for consideration is August 30, 2001. SBIR Phase I grants are limited to $80,000 and a duration of six months. Proposals must address one of nine broad topic areas, which include Forests and Related Resources; Plant Production and Protection; Animal Production and Protection; Air, Water and Soils; Food Science and Nutrition; Rural and Community Development; Aquaculture; Industrial Applications; and Marketing and Trade. 

The Rural and Community Development topic may be of particular interest to Digest readers. The solicitation states: 

“The objectives of this research area are to foster, promote, or improve the well-being of rural Americans. This program supports research that will result in commercial products or services that are focused on issues and problems related to the economic development and social enhancement of rural areas, small towns, rural people, rural organizations, and rural institutions. Proposals submitted to this area should not concentrate primarily on the development of new technology, but rather on applying new or existing technology to address important issues and/or solving significant problems of importance to rural America. Proposals that involve development of new technology should explicitly discuss the specific rural problem or opportunity that will be examined and how this technology will successfully address the problem or opportunity. The proposals do not need to be centered on agriculture, per se, but may be focused on any area (e.g., information systems, education, health care) that has the potential of providing significant benefits to rural Americans. Most of the competitive proposals submitted to this topic should include a market feasibility study as one of the research objectives.”

Only for-profit small businesses are eligible to compete for SBIR funding.

The solicitation is available online at http://www.reeusda.gov/sbir/

Questions should be directed to Dr. William Goldner (wgoldner@reeusda.gov) or Ruth Lange (rlange@reeusda.gov). The general office number is 202-401-4002.

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State & Local Tech-based ED Round Up

Birmingham, Alabama
A $90 million building and as many as 2,000 more jobs are in the works for the University of Alabama at Birmingham, reported The Associated Press July 25. Construction costing up to $125 million would provide more than 1.4 million sq. ft., doubling the university’s research space. The new building is among the university’s plans for an additional three buildings that would add up to 500,000 sq. ft. and 2,000 jobs. The announcement of the building follows Gov. Don Siegelman’s $35 million recent pledge to build the Interdisciplinary Biomedical Research Institute — an 11-story building and $90 million project expected to create 1,400 jobs. School officials anticipate the project also will create $100 million in new research dollars annually.

Franklin, Virginia
Local officials in Franklin have announced plans including $2.3 million in renovation costs to develop a business incubator center, according to a July 19 article in the Virginian Pilot. State and federal grants will help fund the renovation of nearly 40,000 sq. ft. on four floors of a former buggy factory, the article reports. In addition, Virginia’s Center for Innovative Technology is supplying a $50,000 grant from its Advanced Communications Assistance Fund to help link the center to Franklin’s fiber optic communications network.

Portland, Maine
The Bayside neighborhood soon may be revitalized. New offices and possibly manufacturing space are included in an $11 million plan to use 400,000 sq. ft. to build a business and technology park, The Associated Press announced August 1. Expected to spur hundreds of new jobs, the park would replace a brownfield site in the Bayside neighborhood. The first phase of the park, $1.5 million, is being funded by the U.S. Economic Development Administration. Another $1 million to buy the property is being provided by the U.S. Department of Housing and Urban Development.

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Education Department Offers Research Funding Opportunities
The DOEd Office of Special Education and Rehabilitative Services, National Institute on Disability and Rehabilitation Research invites applications for Fiscal Year (FY) 2002 awards under the following programs. More information is available under the July 31 announcements of the Federal Register: http://www.ed.gov/legislation/FedRegister/announcements/

Research Fellowships Program
Approximately 10 awards, up to $45,000 each, are available to build research capacity by providing support to perform research on the rehabilitation of individuals with disabilities. Eligibility requirements for each of two fellowships, Merit Fellowships and Distinguished Fellowships, include: (a) Only individuals are eligible to receive fellowships. (b) Any individual who has training and experience that indicate a potential for engaging in scientific research related to the solution of rehabilitation problems of individuals with disabilities is eligible. The deadline for applications is October 9, 2001.

Field-Initiated Projects
The purpose of this program is to (a) develop methods, procedures, and rehabilitation technology that maximize the full inclusion and integration into society, employment, independent living, family support, and economic and social self-sufficiency of individuals with disabilities, especially individuals with the most severe disabilities; or (b) improve the effectiveness of services authorized under the Act. Eligible are states, public and private agencies or organizations, institutions of higher education, and Indian tribes and their constituents. Approximately 30 awards are available, with the maximum award amount not exceeding $150,000 per year over a 3-year period. Applications for this program are due on October 10, 2001.

Advanced Rehabilitation Research Training Projects
Up to five awards, each not exceeding $150,000 per year over a 5-year period, are available under this program. Participants must provide research training and experience at an advanced level to individuals with doctorates or similar advanced degrees who have clinical or other relevant experience. Eligible are institutions of higher education. Applications for this program are due on October 10, 2001.

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