In the May 10, 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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Bill Introduced Toward Doubling NSF Budget
Members of the House Science Committee introduced legislation this week that would place the National Science Foundation (NSF) on a track to double the agency's budget in five years. The bill, H.R. 4664, authorizes a 15 percent increase for NSF for each of the next three years.

The proposal is similar to the bipartisan effort to double the budget for the National Institutes of Health (NIH), which should be completed with the FY 2003 appropriations. While doubling the NIH budget included support from both the Clinton and Bush Administrations, proponents for doubling NSF's budget have yet to win over key people in the Bush White House, including John Marburger, Director of the Office of Science & Technology Policy.

At the American Association for the Advancement of Science's 27th annual Colloquium on Science and Technology Policy on April 11, responding to concerns about balance in the R&D component of the Administration's FY 2003 budget request, Marburger shared "my way of discussing the problem of 'balance,' sometimes expressed as too little funding for NSF compared with NIH, or as too little for the physical sciences compared with the life sciences. I think 'balance' is a
misleading term for the real issue, and it is a dangerous term."

Marburger continued, "If we want to achieve balance in federal science funding, we are going to have to understand how the complicated funding process works, or fails to work, to sustain the essential tools upon which our most exciting and productive areas of science and technology depend. Once the quality of this infrastructure is assured, then the questions of priority and adequacy of funding for the dependent fields remain."

In his prepared statement while introducing H.R. 4664, Science Committee Chairman Sherwood Boehlert (R-NY) appears to disagree, at least on the timing:

"The thinking behind this bill is simple - but not simpleminded. NSF funds research that is of critical importance to the future of the nation's economy - including such areas as Information Technology and Nanotechnology, which the Administration has emphasized in its budget proposal. NSF funds research that is of critical importance to the nation's security - including work on such vital areas as cybersecurity. NSF funds research that is of critical importance to the nation's health and well-being - including genomics research and climate change research. And last, but far from least, NSF funds research and educational activities that are of critical importance to the nation's students; from the kindergarten classroom to the post-doctoral laboratory, NSF is the agency that ensures that we are improving math, science and engineering education.

"Those are all pretty solid arguments, I think, for rewarding NSF with more than praise. Recognition is nice, but success requires real money. This bill will help NSF get the real money it needs to succeed in all its tasks.

"Congress has quite properly committed to doubling the budget of the National Institutes of Health (NIH), and I hope and expect we will complete that doubling this year as the President has requested. But NIH does not and cannot fund the full range of research activities the nation needs to remain prosperous - and healthy. NSF has the broadest research mission of any federal science agency and the clearest educational mission. It needs the funding that goes with that expansive - and expensive - mandate."

The coverage of the bill by the American Institute of Physics (AIP) Bulletin of Science Policy News (FYI #56) suggests "Section 7 of this bill will attract considerable attention. As described by the [House Science] Committee, the objective is to 'provide greater transparency to the process through which major research and facilities construction projects are evaluated, prioritized, and selected for funding.' ...Under this bill, the National Science Board would approve projects for inclusion in a future budget request. The NSF Director would then indicate by number (1, 2, 3, etc.) the relative assigned priority for each project. This list would then be submitted to the Board for approval. The list is to be updated as needed. A detailed report would be submitted to Congress every year."

Co-sponsors of H.R. 4664 include: Science Committee Chairman and Ranking Member Sherwood Boehlert (R-NY) and Ralph M. Hall (D-TX), Research Subcommittee Chairman and Ranking Member Nick Smith (R-MI) and Eddie Bernice Johnson (D-TX), Environment, Technology, and Standards Subcommittee Chairman and Ranking Member Vernon Ehlers (R-MI) and James Barcia (D-MI), Rep. Lamar Smith (R-TX), Rep. Bob Etheridge (D-NC), Rep. Constance Morella (R-MD), Rep. Brian Baird (D-WA), Rep. Ken Calvert (R-CA), Rep. Joe Baca (D-CA), Rep. George Nethercutt (R-WA), Rep. Michael Honda (D-CA), Rep. Judy Biggert (R-IL), and Rep. Wayne Gilchrest (R-MD).

The bill passed a House Science subcommittee yesterday and according to AIP, full Science Committee markup is scheduled for May 22. The bill's text is currently available through: http://www.house.gov/science/welcome.htm

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Useful Stats: 2001 SBIR Phase I Figures by State
SSTI has compiled the 2001 statistics from the ten federal agencies participating in the Small Business Innovation Research (SBIR) Program to help states gear up for the next round of competition for the Federal and State Technology Partnership and Rural Outreach Programs (FAST and ROP, respectively). SBIR statistics are also used by several states as one measure or indicator for innovation indices and S&T report cards.

For each of the 10 agencies, 50 states, District of Columbia and Puerto Rico, the table provides the number of awards, number of proposals, and the award-to-proposal percentage or conversion ratio as a measure of success or futility. SSTI's table of 2001 SBIR Phase I statistics is available at: http://www.ssti.org/Digest/Tables/050302t.htm

The table also includes the U.S. totals and averages for comparison purposes. The Department of Energy (DOE) and the Public Health Service are the only agencies for which the percentage of awards to proposals was higher than one-in-five. For DOE, which includes both STTR and SBIR in its figures, the conversion percentage was as high as 25.6. For the Public Health Service, which includes the rapidly growing SBIR program of the National Institutes of Health, the percentage was 22.9.

Information was provided directly by each agency's SBIR program office and may be subject to revision before the official statistics are made available by the Small Business Administration. Abstract information for funded SBIR projects may be obtained on each agency's SBIR website or by contacting the federal agencies directly.

Statistics for SBIR awards and dollar totals for previous years are available through the SBA Office of Technology:
http://www.sba.gov/sbir/indexsbir-sttr.html#sbirawards

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Michigan Evaluates Its Competitiveness
Earlier this week, the Michigan Economic Development Corporation (MEDC) and the Michigan Business Roundtable released a benchmarking study that used 140 indicators across seven areas to compare the state's competitiveness with 17 other states.

Entitled Benchmarks for the Next Michigan: Measuring Our Competitiveness, the study reveals Michigan ranks 2nd among Midwest/northern states and 9th in terms of overall competitiveness. Colorado, Texas, Minnesota, Virginia and California are the top five states overall. Using a Competitiveness Foundations Web Model developed by SRI International, the study reveals that high business costs continue to be Michigan's greatest competitive weakness, ranking 42nd of all 50 states.

According to the report, the states included in the analysis were selected by the following criteria:

States where innovative economic development organizations operate state-of-the-art business attraction and assistance initiatives; States with high growth in innovative, technology-based New Economy industries; States strong in the industry clusters that Michigan is focusing on; States that compete with Michigan for establishment/relocation of company headquarters, manufacturing plants, or critical research laboratories; States to which former Michigan-based firms migrate; and States similar to Michigan in size, diversity, and economic potential.

The seven target areas were innovation resources, human investment, globalization and vitality, business costs, quality of life, financial resources and infrastructure. Michigan's highest scores came in the areas of quality of life, globalization and business vitality and innovation resources.

A copy of Benchmarks for the Next Michigan is available through: http://medc.michigan.org/

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State and Local Tech-based ED RoundUp

Savannah, Georgia
CyberGeorgia, a pilot effort of the Georgia Department of Industry, Trade and Tourism (GDITT) and the Business and Education Technology Alliance of Southeast Georgia to create more tech-based companies outside the Atlanta metro region, was launched last month in Savannah. According to the April 17 issue of the Augusta Chronicle, the program will include an incubator, investment matching services, intellectual property assistance, and a connection between the area
universities and new tech businesses. If successful, GDITT anticipates creating similar centers in other regions of the state, the paper reports.

Chicago
The IT Resource Center, an 18-year-old Chicago nonprofit organization, has developed the Accelerator Project to help initiate new Community Technology Centers (CTCs) or help existing CTCs expand their services. The IT Resource Center believes CTCs are among the best strategies to foster digital literacy. In 2002, the IT Resource Center will select up to 10 participants in the CTC Accelerator Project through a competitive application process. The cash value of each package will vary depending on the applicant’s current software and equipment and the specific needs outlined in its proposal. It is estimated each participant will receive a package worth up to $40,000 in the first year. Participants that continue to meet eligibility requirements and show satisfactory progress will be eligible for upgrades and continued staffing worth up to $20,000 per year in the second and third years of the project.

Michigan
The nearly 1,600 Michigan tool, die and mold making firms that employ approximately 50,000 people will have a new, unified voice in state and federal policy matters thanks to the newly formed Coalition for the Advancement of Michigan Tooling Industries. Included among the first items on the organization's agenda is securing and increasing federal funding for the Manufacturing Extension Partnership.

Quebec
The Quebec Biotechnology Innovation Center, located in the Laval Science and High Technology Park, became the first non-American recipient of the National Business Incubation Association's Randall M. Whaley Incubator of the Year Award at this year's NBIA annual conference. Founded in 1996, QBIC is the key element of $250 million Biotech City (see the June 8, 2001 edition of the SSTI Weekly Digest for more details).

Rhode Island
The Rhode Island Technology Council (RITECH) has received a $2.7 million two-year grant from the U.S. Department of Labor to train unemployed workers including women, minorities and the disabled in the fields of engineering, programming and tech support. The Technology Partnership Project, a collaboration among RITECH with the Community College of Rhode Island and several companies, will give 500 existing workers an opportunity to receive skilled information technology training and will give an additional 250 individuals an opportunity to train for future IT positions.

Utah
The Utah Business and Economic Development has awarded $2 million through its Centers of Excellence Program (COEP) to support 15 centers and two planning grants. One of the oldest and most successful models of state-assisted, university-industry research collaboration, the Centers of Excellence Program helps with the commercialization of late-stage developmental technologies that have potential for economic development within Utah. Through FY 2001, projects supported by the 15-year old program had created 142 new high technology companies; applied for or received 125 new patents; signed 197 licenses signed between businesses/universities; and secured a 10.6:1 match on the state's investments.

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Program Manager Sought for Northwest Energy Technology Collaborative
Washington Technology Center is seeking someone to become the first full-time program manager for the Northwest Energy Technology Collaborative. The Collaborative is a public-private partnership committed to accelerating the emergence of the Pacific Northwest's energy technology industry. The Collaborative seeks to build market-based programs that support businesses, entrepreneurs, investors, researchers and policymakers to address challenges facing this emerging industry. The successful candidate will have demonstrated his/her effectiveness in building high-impact, effective partnerships and will bring exceptional communication skills, energy and business understanding to the position. Responsibilities will include raising additional funds to make the position permanent. The full job description can be found at: http://www.watechcenter.org/wtc/employment.html

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People

Marv Clement, former manager of Entrepreneurial Programs at Pacific Northwest National Laboratory in Richland, Washington, retired in April 2002.

Bob Filka, vice president of strategic initiatives for the Michigan Economic Development Corporation, is leaving to become chief operating officer of the Michigan Broadband Authority Board. William Rosenberg will become the new board's first director.

Alex Fisher, chief of staff for Tennessee Governor Don Sundquist, is leaving to become the director of technology transfer and economic development at Oak Ridge National Laboratory.

Molly Lambert, secretary of the Vermont Agency of Commerce and Community Development since 1998, is resigning July 1 to become head of the Vermont Captive Insurance Association. The Agency is comprised of the Departments of Economic Development, Tourism and Marketing, and Housing and Community Affairs.

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