In the January 25, 2002 Issue:
- 2002 R&D Funding Buffeted by External Forces
- $100 Million Centers of Excellence Initiative Proposed for Florida
- Foreign Students Boost Graduate S&E Enrollments
- Rhode Island EPC Consolidates Slater Centers
- Community College Scholarship Program Aids Tennessee Students
- Tech-talkin' Govs: State of the State Addresses and Budget Requests
- Texas Governor Creates Biotech Council
- State and Local Tech-based ED RoundUp
- Kansas, Virginia Look to Fill Key Positions
Copyright State Science & Technology Institute 2003. 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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2002 R&D Funding Buffeted by External Forces
Total R&D expenditures in the U.S. are expected to increase about 3.5 percent to $285.6 billion in 2002, according to the annual Battelle-R&D Magazine research and development forecast.
Three significant factors, according to the forecast, have combined to exert influence on the state of R&D funding for the upcoming year, including the change in presidential administration, the faltering economy and the events and aftermath of the Sept. 11 terrorist attacks. The forecast suggests the impact of these factors cannot be underestimated.
"In previous years, the analysis of the emerging patterns of R&D could readily accommodate almost any singular disruption and could present a reasonable picture of the anticipated effects," said Dr. Jules Duga, a Battelle senior researcher and co-author of the report. "However, the concurrent triple-whammy experienced over the past few months creates a degree of uncertainty that is higher than usual and adds a layer of complexity to the forecast."
Highlights in the forecast are:
- The federal government is expected to spend $75.5 billion on R&D in 2002, a 4.7 percent increase over the prior year.
- Industry continues to lead in the number of dollars funding R&D with nearly $195 billion expected to be spent in 2002, a 3.2 percent increase.
- Academia and non-profits provide the other significant portion of national R&D funding, which is expected to be $15.4 billion or about 3 percent more than was committed in 2001.
The forecast also offers federal and industrial perspectives, respectively:
- Government commitment to R&D before Sept. 11 was beginning to show signs of growth driven largely by proposed expansions of programs in defense and health. As a result of Sept. 11 events, federal expenditures on R&D will be even greater, especially in the areas of intelligence information and improved methods for the interpretation of such information. Other areas include electronics for computers and telecommunications; and pharmaceuticals and medical delivery systems using specialized capabilities in vaccine development and administration.
- While the total amount is significant, the rate of increase is somewhat less than has been experienced in recent years and is a reflection of the economic factors that have emerged in the last year. The economic downturn that is partially related to the stock market, to cash flow, to discounted interest rates, and to the perception and anticipation of difficult times will have an adverse effect upon both the funding of R&D and the distribution of that funding across different performing sectors. Historically, inflation-adjusted reductions in R&D funding have resulted in periods of retrenchment that lasted over a few years. However, the upcoming year's change in industrial support is primarily a change in the rate of growth and a period of adjustment.
The complete Battelle-R&D Magazine forecast is published annually in the January issue of R&D Magazine. Reprints of the full report can be obtained by calling Karen Taylor, (614) 424-5545, or by e-mail at taylorks@battelle.org
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$100 Million Centers of Excellence Initiative Proposed for Florida
In his fourth State of the State Address, Governor Jeb Bush outlined a new $100 million university-based initiative focused on nanotechnology and biotechnology.
"I propose that we dedicate $100 million to create the Florida Technology Development Initiative. This initiative will build centers of excellence among our universities dedicated to the key research necessary for building our promising technology sectors. New facilities, laboratories, and endowed academic chairs will be the catalysts for entrepreneurial investment. If we build it, they will come. If we seize this opportunity, the best and the brightest academics, researchers, innovators, and entrepreneurs will call Florida home. And they in turn will help build businesses that will fuel our economy for the next century," Gov. Bush said.
The Governor's written budget request provides more details on the proposal:A new and important technology-related initiative that the Governor is proposing focuses on developing Florida as a key center for biotechnology and nanoscience activity...Governor Bush recommends that Florida move forward with a plan to establish an infrastructure of nanobiotechnology research, utilizing the state's university system as the foundation in tandem with establishing commercial partnerships in this field. Development of biotechnology/nanoscience capability in Florida will allow the state to attract top-flight scientists and researchers, which in turn will attract research capital and ultimately lead to new high-paying jobs associated with the advancement of this technology and the production and marketing of related products.
The Governor's State of the State Address and budget request is available at: http://www.state.fl.us/eog/
Foreign Students Boost Graduate S&E Enrollments
The following item was prepared by Bill Noxon of the National Science Foundation.
U.S. collegiate enrollments in graduate-level science and engineering (S&E) fields rose in Fall 2000 for the second year in a row following several years of declines, according to a new National Science Foundation Data Brief from the Division of Sciences Resources Statistics. However, the entire 2000 increase, and then some, was due to the largest-ever, single-year increase in foreign student enrollees who held temporary visas.
The 2000 graduate S&E enrollments rose a modest 0.8 percent over 1999, reaching 414,570 — the highest number since 1996. The all-time high was in 1993 when more than 435,700 enrolled as full-time graduate students. But the numbers declined for the next five years. In 1998, less than 405,000 students enrolled in S&E graduate programs U.S.-wide, representing the lowest total for the decade.
In 2000, S&E graduate students with temporary visas reached an all-time high of more than 121,800. From 1998 through 2000, their numbers jumped by more than 19 percent, far exceeding the overall increase of the last two enrollment years.
"In the mid-1990s, the numbers of students with temporary visas went down fairly sharply when the Chinese Student Protection Act of 1992 made thousands of Chinese students eligible to receive permanent resident visas," Joan Burrelli, author of the data brief, says. "The recent increases, we believe, are tied to more foreign students coming to the U.S. to study computer science and electrical engineering." [Bill Noxon]
For more information, see: http://www.nsf.gov/sbe/srs/databrf/nsf02306/db02306.htm
Rhode Island EPC Consolidates Slater Centers
Yesterday's Providence Journal-Bulletin reports the Rhode Island Economic Policy Council (RIEPC) has reduced by merger the number of Slater Centers. With the goal of increasing the impact of the state's annual $3 million investment, the restructuring from six to four centers is intended to reduce overhead and administrative costs, allowing more of each resulting center's funding to flow into emerging businesses.
The Slater Centers foster industry-university collaborations, build and strengthen relationships among academic institutions, and develop industry clusters. The centers offer business development resources — in the form of investments of up to $100,000 — to nascent ventures while creating a culture of entrepreneurialism. The merger, according to RIEPC officials quoted in the article, also permits center staff to focus more time and energy in the portfolio companies.
Two of the original six centers, the Slater Center for Biomedical Technology and the Slater Center for Interactive Technologies, remain focused in their original technology areas, while the remaining four are being consolidated into two broader centers: the Slater Center for Design and Manufacturing Innovation and the Slater Center for Marine and Environmental Technologies.
More information on the Slater Centers and RIEPC is available from: http://www.ripolicy.org/slater.html
Feature Story
Community College Scholarship Program Aids Tennessee Students
Tennessee's Sullivan County took a big step toward reducing the presence of a brain drain when it approved a scholarship program for its high school graduates.
Officials in Sullivan County, a community of about 144,000 that neighbors Virginia, established the Educate and Grow scholarship program in May 2001. The program was approved first by the Kingsport (Tenn.) Board of Mayor and Aldermen and, with no dissenting votes, the Sullivan County Commissioners gave way to a $300,000-per-year plan for the program.
Under the program's terms, up to 168 students may receive full tuition assistance on a per-year basis to attend Northeast State Technical Community College, and every student in Sullivan County's six high schools and homeschoolers is eligible for the $1,600 in tuition money. Recipients must take at least 12 hours of classes a semester, maintain a C-average, enter college within 15 months of graduating high school, and complete a 60-hour degree at Northeast State within three calendar years.
Northeast State, which offers two-year associate degrees in 45 fields, reportedly has experienced success in attracting graduates via the Educate and Grow program. This past fall, 103 students enrolled in the program, and an above-average 72 returned for the spring semester, according to the Kingsport Times-News. In November 2001, the program was lauded by members of Kingsport's Economic Development Partnership for showing progress and gaining national attention.
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Tech-talkin' Govs: State of the State Addresses and Budget Requests
The third part in a series, "Tech-talkin Govs" highlights programs, policies and issues in tech-based economic development that were considered in the following governors' State of the State and Budget addresses.
California
Gray Davis, 2002-2003 Budget proposal, January 2002
http://www.dof.ca.gov/HTML/Budget02-03/00_toc.htm
- $75 million for purchase of science lab equipment and materials for grades 7-12.
- A $4 million appropriation to continue the HighTech High School Program, which provides five matching grants totaling $2 million each over two years.
- Reductions in the Technology, Trade and Commerce Agency beginning in 2002-2003 include: $600,000 from the Manufacturing Technology Program, leaving $5.4 million intact; and $1 million each from the Next Generation Internet Program and the Rural Ecommerce Grant Program, maintaining half of the third-year funding for each program.
- Consolidate all existing job training programs that provide core employment services, economic development, and job training services to special populations under the auspices of a proposed new Labor Agency. The Labor Agency would consist of the Employment Development Department and the Department of Industrial Relations, and their associated boards and commissions, the Workforce Investment Board, and the Agricultural Labor Relations Board.
Delaware
Ruth Ann Minner, Budget Address, January 24, 2002
http://www.state.de.us/governor/speeches/2002/012402-Budget.htm
- In the face of $200 million in budget cuts, fully funded the Strategic Fund (which Gov. Minner proposed be focused on biotechnology in her State of the State Address on January 17, 2002) at $10 million.
Georgia
Roy Barnes, Budget Address, January 16, 2002
http://www.gagovernor.org/speech
- Georgia's 34 universities and colleges have developed programs to promote economic development, including the Intellectual Capital Partnership Program (ICAPP). Institutions are teamed with new or existing companies to create training programs that provide highly skilled workers to meet specific needs, especially in the information technology field. The Governor recommended an additional $1.5 million to expand the program into the health care arena, bringing the state's total investment in ICAPP to $4.6 million.
- Recommended $2.8 million, along with a combination of $7 million in bonds and general funds in the FY2002 amended budget, to provide a permanent home for Yamacraw and continue to grow the broadband industry in Georgia.
- The budget request also includes $3 million for a biotech venture capital fund through Yamacraw.
Kentucky
Paul Patton, Budget Address, January 22, 2002
http://gov.state.ky.us/speeches/2002budget.htm
- Proposed continuing the Bucks for Brains program at the level of $100 million for the University of Kentucky and the University of Louisville and $20 million for the six comprehensive universities.
Michigan
John Engler, State of the State, January 23, 2002
http://www.michigan.gov/gov/1,1431,7-103-705-9483--M,00.html
- Urged passage of MI HiSpeed Internet plan. The plan, which would accelerate the deployment of broadband statewide, is expected to help create more than 500,000 new jobs and more than $440 billion in additional economic output.
- Stating that "it is no longer a question of whether, but when, we will leave behind an economy powered primarily by fossil fuels," Governor Engler said he wants Michigan to be prepared for new vehicles which will require a new generation of engineers, plants, and workers. In the next 60 days, he will propose steps to be taken to ensure Michigan's preeminence in the global auto industry — fuel cell technology in particular. The agenda will address a number of key issues, including taxes, regulations, new infrastructure, intellectual property, research and development.
New York
George Pataki, Budget Address, January 22,2002
http://www.state.ny.us/budget2002/budget2002text.html
- Consistent with his State of the State Address (covered in the Jan. 11, 2002, issue of the Digest), the budget request provides $250 million in funding to support Centers of Excellence for bioinformatics in Buffalo, photonics in Rochester, nanoelectronics in Albany, and information technology on Long Island. This investment would allow pursuit of promising new biotech opportunities around the state — in Cold Spring Harbor, in a new biotech corridor in New York City, and in Rochester.
Oregon
John Kitzhaber, Budget Address, January 23, 2002
http://www.governor.state.or.us/governor/speeches/s020123.htm
- Recommended a $112 million cut in state support for schools in the K-12 system, rather than the $152 million cut contained in the legislative proposal.
- Reduced the legislatively proposed cut to the Oregon Health Sciences University from $33 million down to $5 million.
Vermont
Howard Dean, Budget Address, January 22, 2002
http://www.gov.state.vt.us/press_release.php3?display_num=17
- Asked that, in 2003, the money cut from the higher education budget as a result of the rescission be restored and an additional 2 percent increase be approved. Combined, these changes would mean a 4.6 percent increase in funding for higher education in Vermont.
Texas Governor Creates Biotech Council
Last week, Texas Governor Rick Perry announced the formation of the Governor's Council on Science and Biotechnology Development. The Council will strive to create a seamless system of innovation from the laboratory to the marketplace in rapidly developing areas of biotechnology — such as biopharmaceutical development, bioinformatics, genomics and nanotechnology.
Governor Perry described the Council's mission as one that will ultimately bring more research dollars to Texas higher education institutions, encourage university researchers to get products that advance the quality of life to the market, and create biotechnology jobs — and growing companies — across Texas.
Among its responsibilities, the 36-member Council will work to identify ways institutions of higher learning can coordinate efforts to attract federal research funds. Currently, Texas ranks sixth in research funds received from the National Institute of Health and third overall in research expenditures.
The Council also will develop a strategy to increase research and development expenditures in Texas, including both private and public funds. The Governor urged the council to identify ways to commercialize intellectual property that helps turn an idea into a marketable medicine or product.
Ashley Smith, a senior advisor on the governor's staff, will serve as chairman of the Council. Smith is a former member of the Texas House and serves as chairman of the Southeast Texas BioTechnology Park in Houston. He is also president and CEO of the Texas Institute for Rehabilitation and Research in Houston.
More information is available from: http://www.governor.state.tx.us/
State and Local Tech-based ED RoundUp
Lincoln, Nebraska
Mayor Don Wesely's Technology Council has proposed to end the competition between Lincoln and Omaha for educational and economic resources, favoring a collaboration geared toward economic development, the Associated Press recently reported. The collaboration is expected to create new technology industries and help lessen the struggle for development in territory in and among the cities. Lincoln's strength, the presence of the University of Nebraska-Lincoln, traditionally has been pitted against that of Omaha — venture capital and telecommunication infrastructure.
Pontiac, Michigan
Mayor Willie Payne recently announced the sale of $33 million in Tax Increment Financing Authority bonds to finance development at the former site of a state hospital, according to the Associated Press. The bonds, which include $10.2 million to purchase the former Clinton Valley Center, will make way for the Pontiac Oakland Tech Center technology park. Expected to yield millions of tax dollars, new residents and jobs, the $350 million project includes a 670-home residential development.
Montgomery, West Virginia
Plans are underway for the Upper Kanawha Valley Technology Community, a proposed three-story, 36,000-square-foot technology park that backers hope will bring more than 300 jobs, according to the Charleston Gazette. Early in 2001, $2.35 million in federal funds was earmarked for the center; in September 2001, the Upper Kanawha Valley Economic Development Corp. received a $132,000 grant from the U.S. Department of Agriculture. The tech park, to be housed in the former G.C. Murphy building, is a result of collaboration among the City of Montgomery, UKVEDC and the West Virginia University Institute of Technology.
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Kansas, Virginia Look to Fill Key Positions
Two of SSTI's sponsoring organizations, the Kansas Technology Enterprise Corp (KTEC) and Virginia's Center for Innovative Technology, are looking for strong candidates to fill two critical positions. A brief description of each opportunity is provided below. More detailed information is available on SSTI's website at: http://www.ssti.org/posting.htmKansas
KTEC, a state-owned corporation established in 1984 to stimulate economic development in Kansas by fostering innovation and development of technology, seeks candidates to fill the position of President and CEO. The President and CEO is an executive leadership position responsible for promotion of Kansas business and technology, as well as the administrative and investment management functions of the organization. Reporting to 20-member Board of Directors, the President and CEO leads a diverse decentralized organization with entities managed by technology, innovation, commercialization, entrepreneurial and venture capital professionals from the academic, governmental, and private sectors. The President and CEO manages a budget of approximately $13 million and a staff of 20 individuals.
Virginia
Virginia's Center for Innovative Technology (CIT) is a state-chartered, nonprofit organization dedicated to building Virginia's future through technology. The Center has an immediate opening for a seasoned professional to serve as Executive Director, R&D and University Relations. The position directs research funding and development activities and participates in the executive management team. Competitive candidates will have a Ph.D. in a scientific field, substantive experience in private industry, and be familiar with the mechanisms of technology-based economic development. Experience and ability in working with senior officials from business, government and education, and knowledge of Virginia's research institutions and organizations is also desirable. Interested candidates should send resume and cover letter, including salary requirements to CIT, attention R&D position, 2214 Rock Hill Rd. Suite 600, Herndon, VA 20170 or fax 703-464-1708. EOE
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