In the April 12, 2002 Issue:

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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NY Governor Announces $304M Redevelopment Plan for Campus 
New York Governor George Pataki recently announced a multimillion plan to transform the aging 300-acre W. Averell Harriman State Office Building Campus in Albany, N.Y., into a world-class research and development technology park. 

"The transformation of the Harriman Campus will provide opportunities for researchers and entrepreneurs to work together right here in the Capital Region, attracting technology businesses and building new industries, to create high quality, high-tech jobs for 21st century," Gov. Pataki said in a press release. 

The plan paves the way for $304 million in combined public and private investment to help renovate aging facilities at the campus and to develop new office space. 

Under the plan, public sector investment will provide for site and infrastructure improvements costing $14 million and demolition costing $50 million. Approximately $240 million of private sector investment will build 1.2 million sq. ft. of new office space ($134 million); 650,000 sq. ft. of renovated office space ($40 million); 250,000 sq. ft. of renovated R&D space ($14 million); and 525,000 sq. ft. of new R&D space ($52 million). 

A 10- to 20-year build-out projected by the plan is expected to generate approximately 8,000 new private sector jobs and provide for 1,000 state jobs to remain on the campus. The plan also estimates the direct, induced and indirect economic impact on the Capital Region will exceed $220 million. 

The campus will target established technology employers and a mix of tenants conducting research in such areas as biotechnology, software, and telecommunications. Businesses working with technology developed at the University of Albany or resources available at the university also will be targeted. 

The plan is being made possible through a partnership between the New York State Office of General Services, the Empire State Development Corporation, and the University of Albany. 

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Rural Communities Making Technology Work for Them, Report Shows 
Ten rural communities and the technologies being used within them are the focus of Networking the Land: Rural America in the Information Age, the latest report released by the National Telecommunications and Information Administration (NTIA) of the Department of Commerce. 

NTIA's new Technology Opportunities Program (TOP) report reveals the communities are using telecommunications and information technologies for many purposes, from developing local economies to managing natural resources to improving access to education. Case studies are presented on the 10 communities: 

Asserting the U.S. is experiencing a revolution in information technology, the TOP report offers the case studies as it attempts to answer, "Is rural America playing a role in this new period of invention, too?" People in isolated regions are finding ways to connect to information networks, the report shows. The Sevier River Water Users Association, for example, demonstrates "the collection and distribution of timely information about the supply and flow of water through an entire river basin is enabling farmers to stretch a precious but limited resource farther than ever seemed possible." 

Networking the Land is available under "Lesson Learned Reports" here.

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Collaborative Planning Focuses Regional Development Efforts 
Economic development leaders within the Cedar Rapids/Iowa City Technology Corridor have joined other areas of the U.S. in marketing the area as one unified region. Elected representatives from 10 cities and two counties located in the Cedar Rapids/Iowa City Technology Corridor recently signed a joint proclamation as a statement of support for the Corridor’s targeted industry cluster development regional efforts. This effort, focusing on the strength of the regional economy, is designed to attract prospective businesses and industry to the Corridor. 

For planning and marketing purposes, the Cedar Rapids/Iowa City Technology Corridor is defined as a region including the metropolitan areas of Cedar Rapids and Iowa City and adjacent communities represented by Priority One and Iowa City Area Development (ICAD). Representatives of Priority One — an economic development division of the Cedar Rapids Area Chamber of Commerce — and the nonprofit ICAD worked to define the regional economy and to determine both short- and long-term development prospects. The approach utilized industry clustering concepts outlined in a state-funded research project. 

During the spring of 2001, the Iowa Department of Economic Development approached representatives of the Cedar Rapids/Iowa City Technology Corridor with a proposal to conduct a pilot study that would explore ways to bring targeted industry clustering concepts into practice on a regional level. 

An extensive trip schedule to visit prospective target industries is planned for this year. 

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Can the Innovation Process Survive A Competitive Market? 
In Perfectly Competitive Innovation, a March 2002 research department staff report for the Federal Reserve Bank of Minneapolis, Michele Boldrin and David K. Levine address whether current copyright, licensing and patent laws which grant monopolist rights to inventors beneficial or harmful to the innovation process. The authors suggest the latter in certain markets. 

Most modern analysis of innovation, the authors contend, is based on models assuming monopolistic competition as a prerequisite for understanding innovation and growth. Instead, Boldrin and Levine conceive a model that confers the "right of first sale" practice that was granted to entrepreneurs historically [defined loosely as before the mid-19th century]. They also argue that, contrary to prevalent opinion, idea generation and the creative effort should be viewed as sunk costs instead of as fixed costs. Models based on competitive markets can address sunk costs. 

The econometric model developed by Boldrin and Levine supports the conclusions that: 

As a result, their model, which is described as "a positive theory of technology change," has normative implications in markets meeting the model's assumptions, including a truly competitive environment that rewards innovators but not through the monopolistic measures in place today. 

The paper can be downloaded from: http://minneapolisfed.org/research/sr/sr303.html 

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Useful Stats: State Rankings of Industrial R&D Intensity, 1997-1999 
Industrial R&D intensity — measured by the ratio of industry R&D to Gross State Product (GSP) — can be a useful S&T indicator, because it indicates the level of private sector R&D activity and standardizes the data to eliminate geographic, demographic, historical, and natural resource differences among the states. 

With the recent release of the National Science Foundation's Survey of Industrial Research and Development: 1999, SSTI has constructed a table presenting the data and state rankings for industrial R&D intensity for 1997-1999, the three latest years available. 

The top five states for each year and their scores are: 

1997

1998

1999

Michigan (4.65) Delaware (7.30) Michigan (5.75)
Idaho (4.02) Massachusetts (4.40) Rhode Island (3.88)
Washington (3.77) Michigan (4.34) Delaware (3.64)
Massachusetts (3.71) Rhode Island (4.33) Idaho (3.56)
New Jersey (3.69) Washington (3.90) Massachusetts (3.55)
US Average (1.92) US Average (1.92) US Average (1.96)

Industrial R&D statistics on the state level can fluctuate sharply across years while the national average holds relatively level, and the impact on individual state rankings can be dramatic. For example, Arizona's rank jumped from 24 in 1998 to 8 in 1999, as industrial R&D expenditures grew from $1.727 billion to $4.434 billion. After seeing a near tripling of industrial R&D between 1998 and 1999, Vermont's intensity ranking rose from 34 to 16. The District of Columbia's ranking conversely fell from 29 to 44 between 1998 and 1999. 

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State & Local TBED RoundUp 

Alabama 
To help rural Alabama communities work with existing industries toward job training and creation, Governor Don Sielgelman is creating a Center for Economic Growth within the Alabama Department Office. The new initiative is intended to help businesses in the rural communities cope with pressures to keep and retain qualified workers once the recently announced $1 billion Hyundai automotive plant begins hiring up to 2,000 employees. The center also will help the areas develop industrial recruitment strategies, according to the Associated Press. 

Arlington, Texas 
The Arlington Technology Incubator opened April 1 at the University of Texas at Arlington in cooperation with the Arlington Chamber of Commerce, according to stories in the Dallas Morning News and Fort Worth Star-Telegram. The center, to be housed in a building to be constructed in downtown Arlington, will help spin off research from the school's nanotechnology program. Former Mayor Richard Greene will serve as the first director, and the chamber's foundation will help secure grants to fund operations. 

Loudoun, Virginia 
The Loudoun County Department of Economic Development has named an official science adviser, the first such county-level position that SSTI knows of. The March 28 Washington Post reported that Terry Sharrer was named to the volunteer position in January, along with a 10-person advisory cabinet that includes several prominent science and technology leaders. The team is tasked with helping cultivate science and tech-based economic development in the largely rural county. The county has made innovation, research and tech business recruitment an integral part of its strategic plan and promotional activities. 

Massachusetts 
Acting Governor Jane Swift introduced legislation this week to create a Massachusetts advanced materials and biotechnology tax benefit certificate pilot program. An April 5 Boston Globe article reported the program would allow biotech and selected other tech firms to sell tax credits earned by increasing their R&D expenditures. The credits, applicable to corporate income taxes, would be equal to 10 percent of the increased R&D investment and could carry over for up to 15 years. The state's exposure from the pilot would be limited to $5 million annually. House Bill No. 5005 has been referred to the House Committee on Taxation. The Boston Globe points out supporters predict passage is unlikely this session since the state is facing a $2 billion deficit for the next fiscal year. 

Pennsylvania 
Governor Mark Schweiker has announced the creation of a new Ben Franklin Technology Center to serve northwest Pennsylvania from the campus of Penn State Erie. The initial focus of the fifth Ben Franklin Technology Center will be on expanding the application and development of electronic supply-chain management. The center — in cooperation with Penn State Erie, Gannon University, Allegheny College, Edinboro University and Carnegie Mellon University — also will work to establish a Center of Excellence, focusing on the development of next generation information technologies, such as remote diagnostics. The state will invest $3 million annually in the center. 

Organizational Name Changes 
The information technology council of the Charlotte Chamber of Commerce in North Carolina has been renamed Information Technology Charlotte. The press release says "the new council name was created to inextricably link the Charlotte region and the words information technology, helping to brand the region as a hotbed of IT activity, both to potentially relocating technology workers and to customers looking for IT services."

The Southwest Pennsylvania Industrial Resource Center, which provides advisory services to the region's small and medium-sized manufacturers, has changed its name to Catalyst Connection. According to the press release, the "brand-building campaign focuses on organization’s manufacturing expertise and leadership; strives to raise awareness of vitality of regional industry." 

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Great Titles Added to SSTI Bookstore 
Want to expand broadband in your state or community? Looking to launch a biotech initiative? Getting into commercializing university research? Are tight budgets leading to more rigorous program evaluation? Or do you simply want to help your community understand the importance of technology? 

Any of these efforts should get easier with the 17 new titles added to Resources for Building Tech-based Economies, SSTI's publications catalog. A three-page PDF supplement of the new titles is available on the SSTI website as is the entire revised catalog, replete with more than 125 great resources to make your programs more effective and your job more rewarding. 

As always, SSTI sponsors and affiliates receive a 10 percent discount on all purchases. 

Both the new titles supplement and complete catalog are available at: http://www.ssti.org/Publications/publications.htm

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