In the October 5, 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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SBA Names FY 2001 FAST Winners 
This week, 30 states were named recipients of the first Federal and State Technology Partnership (FAST) awards administered by the Small Business Association (SBA). The awards range from $100,000 to $150,000, totaling almost $3.5 million. FAST, included in December 2000 legislation reauthorizing the Small Business Innovation Research (SBIR) Program, provides matching funds to enable states to augment or expand their tech business assistance and SBIR outreach efforts. FAST winners and their respective award amounts are below: 

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Hawaii, Connecticut Support Alternative Energy Tech Demos 
They may be separated by more than 6,000 miles, but tech-based economic development initiatives in Hawaii and Connecticut have adopted similar strategies to encourage the commercialization of alternative energy technologies: they're buying them. 

Using the purchasing power of the public sector to affect change has been an effective tool in the past for socio-political projects ranging from helping topple the apartheid regime in South Africa to addressing environmental goals such as providing a large enough market for recycled paper products to warrant the substantial private investment needed in pulp mill construction and refurbishment. 

Combining public purse strings with the need to demonstrate commercially unproven-yet-promising technologies such as all-electric cars and fuel cells, however, is a less commonly applied strategy. Public transportation projects, such as buses run on natural gas, provide perhaps the most widely known application of the concept. 

An advantage to technology demonstration projects using public acquisition programs is the relative cost savings. Tech-based economic development initiatives can pay the "surcharge" or increment a new technology costs over the regular government purchase schedule, maximizing the tech program's budget to support feasibility and demonstration projects. 

Another advantage is the government's ability to negotiate through multiple levels of regulation and bureaucracy with greater ease than the general public outside the system. Tech-based economic development programs – with the support and endorsement of the Governor – are able to facilitate and create inter-agency partnerships and public-private coordination. 

The stories in Hawaii and Connecticut provide two examples in practice. 

Hawaii 
This summer, the Hawaii High Technology Development Corporation (HTDC) and the State of Hawaii took delivery of the first 15 battery-powered Hyundai Santa Fe Sport Utility Vehicles. In 1998, HTDC initiated a program to make Hawaii the first "Electric Vehicle-ready" state in the country through the installation of rapid charging stations. The goal of this initiative was to show Hawaii's commitment to provide the needed infrastructure for consumer acceptance of battery-powered vehicles. 

HTDC will use the test vehicles, donated by Hyundai and valued at $100,000 each, to demonstrate and evaluate the charging infrastructure that has been set in place. To date, seven rapid chargers have been installed on Oahu, with another 13 planned installations by the end of this year. The SUVs will be used by four participating sectors on Oahu — Hickam Air Force Base, the Hawaii Electric Company, the City & County of Honolulu, and the State of Hawaii. 

According to Nola Miyasaki, Executive Director & CEO of HTDC, the corporation's Hawaii Electric Vehicle Demonstration Project has secured more than $20 million in federal funds over the past eight years and, in turn, funded 15 Hawaii-based organizations, working towards the goal of growing an electric vehicle industry in Hawaii. 

More information on the initiative is available on the HTDC website at http://www.htdc.org/010710Hyundai.html

Connecticut 
Connecticut Innovations, Inc. is providing funding to support the demonstration and testing of fuel cell energy applications through the Connecticut Clean Energy Fund (CEF). Created by the state General Assembly in 1998, the fund invests in enterprises and other initiatives that promote and develop sustainable markets for energy from renewables and fuel cells that will benefit the ratepayers of Connecticut. 

For example, CEF is providing $2 million for the community of South Windsor to install a fuel cell system to generate emergency power at the high school as part of the city's disaster-relief plan. Once in place, and fully tested, the fuel cells are expected to save the community $76,000 a year in back-up power costs, according to an Associated Press wire story on the project. 

CEF also provided $1.25 million to support the purchase of a 250 kW demonstration power plant for installation at the University of Connecticut. In addition to reduced air pollution, the project is expected to provide information on applicability and benefits of using fuel cell technology for larger-scale energy production. 

On August 28, Connecticut Innovations issued a Request for Proposal (RFP) for CEF, seeking bidders to conduct commercial and demonstration projects under the CEF Fuel Cell Initiative. First year funding levels for the three categories of projects included in the RFP are expected to reach $5 million, with an additional $1million in funding from the state's Conservation and Load Management Fund (CLMF). 

More information on CEF is available at http://www.ctcleanenergy.com/ 

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Plan to Transform Southern Economy Released 
In a bid to make the South a knowledge economy leader, the Southern Growth Policies Board has released Invented Here: Transforming the Southern Economy, a 10-year strategic plan to create an innovation-driven economy in the South. 

Southern Growth describes Invented Here as the "first of its kind in that not only does it lay out goals and objectives for an entire region, but it provides a mechanism for tracking the region's progress toward those goals." 

Invented Here is built around three goals: 

Each of the goals is supported by objectives and benchmarks that will be used to measure the states' and the region's progress. In all, 13 objectives and 74 benchmarks are identified. 

Southern Technology Council and Southern Growth Policies Board staff will work with the states to set 10-year targets for each of the plan's benchmarks. Annual reports will show the progress each of the states has made to those targets. 

What also may be of interest to Digest readers is Invented Here: Measures of Southern Growth, a several hundred page report that provides a plethora of statistics on each of the Southern states, including information on industry trends, entrepreneurship and innovation, globalization, and demographics. 

For more information on Transforming the Southern Economy and Measures of Southern Growth, visit http://www.southern.org/main/stc/projects/invented.shtml 

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NETT Issues Economic Strategy for Northern Kentucky 
The New Economy Transition Team (NETT) of the Northern Kentucky Chamber of Commerce has issued a 73-page plan that, if implemented successfully, could position Northern Kentucky as a center for life sciences and information technology, advanced manufacturing and financial services. 

NETT, in coordination with Northern Kentucky Tri-County Economic Development Corp. (Tri-ED), Northern Kentucky University and Madison E-Zone (a technology incubator in Covington, Ky.), made the New Economy Plan public on August 2. The plan will be combined with others from Lexington, Louisville, and other regions of the state to become the New Economy Plan for the Commonwealth of Kentucky. 

The plan contains four focus areas, including a series of initiatives in each area: 1.) expanding business clusters in life sciences, advanced manufacturing and information technology, 2.) nurturing new businesses, 3.) enhancing the infrastructure, and 4.) building a workforce for the future. Among the initiatives are: 

In 2000, the Kentucky Legislature appropriated more than $50 million to jump-start New Economy initiatives in Kentucky. More information on NETT, including a link to the New Economy Plan, is available through the Northern Kentucky Chamber at: http://www.nkychamber.com/nkyccwg/wg.dll?page&file=nettneweconomy 

Special thanks go to Mark Schenthal, Communications Coordinator of the Northern Kentucky Chamber, and James McNair of the Cincinnati Enquirer for assisting SSTI on this story. 

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State & Local Tech-based ED Round Up 

Alaska 
The Prince of Wales Tribal Enterprise Consortium (POWTEC) is a high-tech reality today, thanks to the collaborative efforts of two tribal governments and a Bellevue, Wash., company, the Anchorage Daily News reported. Established by the Craig Community Association, the Organized Village of Kasaan and n-Link, POWTEC is an information technology company which supplies computer services to the federal government. Plans for the company include using federal set-asides for small, disadvantaged and tribally owned firms and maintaining a computer training center linked to the University of Alaska Southeast and the Northwest Indian College in Bellingham, Wash. A $600,000 federal rural development grant is helping fund the center. 

Maine 
The Loring Applied Technology Center became the second of seven technology centers scheduled to open across the state, according to the Bangor Daily News. The center was made possible due to $500,000 from the Legislature and a $400,000 grant from the federal Community Development Block Grant program. Comprised of more than 42,000 sq. ft., the center offers new business marketing help, business counseling, conference rooms, Internet access, and video conferencing technology. Seven areas of the center meant for the set-up of manufacturing services average between 2,000 and 5,000 sq. ft. each. Another 14,000 sq. ft. is shared area for office space, a loading dock and warehouse storage. The first technology center opened in South Portland; remaining centers are planned for Eastport, Fairfield, Orono, Rumford, and Sanford. 

Nebraska 
Two rural cities in Nebraska with a combined population of 6,280 have taken a big step toward bringing high-speed commerce to businesses and growing tech-oriented enterprises, according to a story in the Omaha World-Herald. The cities, Aurora and Superior, are creating the Aurora Technology Business Incubator and growing the Superior Business Development and Technology Center, respectively. The Aurora project, which began in June, involves completing renovations to a 10,900 sq. ft. abandoned nursing home. Companies seeking space may qualify for reduced rent by participating in the incubator's training programs. The project is being financed by nearly $105,000 in grants. The Superior center stems from a $41,000 grant via the Nebraska Information Technology Fund in November 1999. The center currently offers business and technology training classes and houses the Stateline Business Development Association — an organization which boasts a revolving loan program that allows businesses a $1,000 loan upon which they may build a credit history. 

South Dakota 
Teachers, administrators and university faculty from across the state gathered in Rapid City October 2-3 to learn from national experts in education technology. The Distance Learning Showcase, a conference hosted by Gov. Bill Janklow, featured eight award winners from the United States Distance Learning Association (USDLA), who offered advice on future use of the Digital Dakota Network (DDN) — the state's education technology system that links schools, universities, libraries and other facilities throughout South Dakota. Also present was USDLA Executive Director John Flores and representatives of Northern State University describing their mission change to a distance learning center for South Dakota. 

Tennessee 
Memphis Incubator Systems is experiencing an 18-year property tax freeze on office space that will arise from a $3.1 million renovation of a warehouse, the Commercial Appeal reported. The incubator should save about $1.5 million over 18 years due to the freeze approved by the Center City Revenue Finance Corp. The incubator also is the beneficiary of a $90,000 loan which was approved by the Center City Development Corp. 

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