- Useful Stats: 1st Quarter VC Data by State
- Fuel Cells Increasingly on States' Radar
- Canadians Look at Policy Implications of the New Economy
- Louisiana Legislature Passes Tax Credits to Promote R&D
- State & Local Tech-based ED News
- People
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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Useful Stats: 1st Quarter VC Data by State
After holding steady in late 2001, the amount of venture capital investment continued its two-year decline in the first quarter of 2002, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey. Total investments fell to $6.2 billion — a 24 percent decrease from the fourth quarter of 2001. A total of 787 companies received venture backing, or 207 fewer than the prior quarter.All leading industries experienced declines, the survey shows. The software, networking and biotechnology industries received the most capital, respectively capturing $1.1 billion, $899 million and $752 million in first quarter investments.
The first quarter 2002 MoneyTree™ survey results are available on three websites:
http://www.pwcmoneytree.com, http://www.nvca.org, and http://www.ventureeconomics.com.In addition, SSTI has prepared a table <http://www.ssti.org/Digest/Tables/051702t.htm> to present MoneyTree™ results by state, including data for the number of deals, total amount invested, and average deal size.
Fuel Cells Increasingly on States' Radar
Ohio Proposes to Join RaceWith the growing need to identify cleaner sources of power, coupled with recent advances in alternative energy technologies, many states are targeting science and technology investments toward fuel cells. California, Connecticut, Massachusetts and New York all have made investments in fuel cell research demonstration or commercialization projects through energy related research funds. Michigan launched its fuel cell strategy in April (see the April 19, 2002 edition of the SSTI Weekly Digest).
Examples of specific fuel cell activities within the states include:
- The National Fuel Cell Research Center at the University of California Irvine is managing a pilot demonstration project launched in April that will allow rail commuters to use a pool of 50 low-emission electric vehicles to complete their commutes. The cars are recharged using solar and fuel cell technologies. Automakers participating in the program can earn credits toward a state requirement that will require 10 percent of all California car sales to involve zero-emission vehicles. In addition, the California Fuel Cell Partnership, a collaborative of auto manufacturers, energy companies, fuel cell technology companies, and government agencies, expects to place up to 60 fuel cell passenger cars and fuel cell buses on the road between 2000 and 2003.
- The Connecticut Clean Energy Fund is investing $6 million in first-year investments for fuel cell commercial application projects. Managed by Connecticut Innovations, Inc., the Fund is capitalized by a surcharge on consumers' utility bills and is expected to grow to approximately $120 million by 2005.
- In March of 2001, the Massachusetts Renewable Energy Trust, administered by the Massachusetts Technology Collaborative, launched the first two rounds of funding for its Premium Power Program. The objective is to promote the use of commercially available fuel cells in applications that require high reliability and/or power quality. On May 1, 2002, the Trust opened a request for information that could lead toward a $10 million targeted to distributed renewable energy generation.
- The New York State Energy Research and Development Authority recently awarded a $500,000 matching grant to MTI MicroFuel Cells, Inc. for development and commercialization of direct methanol micro fuel cell technology. The company in partnership with DuPont also received a $4.6 million grant in 2001 from the Advanced Technology Program of the National Institute of Standards and Technology.
With last week's announcement by Governor Bob Taft, Ohio becomes the latest to announce a strategic initiative to secure a prominent position in the start-up industry. The proposal, which hinges on voter passage of a $500 million bond issue for research and technology, includes a $100 million, three-year initiative focused on three areas:
- Expand the state's research capabilities by building on the work at universities such as Case Western Reserve University, Ohio University, and The Ohio State University and federal laboratories including NASA Glenn, the Air Force Research Lab at Wright-Patterson;
- Participate in demonstration projects involving hydrogen infrastructure; and
- Invest in expanding the fuel cell industry in Ohio to attract companies and the jobs they provide.
Ohio's fuel cell initiative calls for the Ohio Department of Development to allocate more than $100 million in funds for the following: $75 million for various financing projects; $25 million for research, development and demonstration; and $3 million for training.
Canadians Look at Policy Implications of the New Economy
The Spring 2002 edition of the Isuma, the quarterly Canadian Journal of Policy Research, is dedicated to issues surrounding the New Economy. Many of the 16 papers in the free, online issue will be of interest to readers of SSTI's Weekly Digest, including:
- What’s New About the “New Economy”? by Bradford DeLong
- The New Economy: Myth or Reality? (Translation), by Bernard Bobe
- American Economic Growth in the Information Age, by Dale W. Jorgenson
- Information and Communication Technology and Economic Growth in France, by Jacques Mairesse, Gilbert Cette and Yusuf Kocoglu
- Canadian Productivity: When Do We Catch Up? (Translation), by Pierre Fortin
- The Importance of Information Technology: A Canada-U.S. Comparison, by John R. Baldwin, Tarek M. Harchaoui and Faouzi Tarkhani
- Innovation in the New Economy by Dirk Pilat
- Clusters and Economic Policy by Clifford Bekar and Richard G. Lipsey
- Intellectual Property and Innovation in the Knowledge-Based Economy, by Dominique Foray
- Leveraging the Skills of Knowledge Workers, by Graham S. Lowe
- Internet Jurisdiction: The Shifting Adjudicatory Approach, by Michael Geist
- A NAFTA Approach to Internet Governance, by Catherine L. Mann and Diana Orejas
- Electronic Commerce and International Taxation, by Jinyan Li and Jonathan See
- Taxes And Fiscal Instruments in the New Economy, by Jack M. Mintz
- The Internet and the “Borderless” World, by Ronald J. Deibert
- The Productivity Paradox: A Case of the Emperor’s New Clothes, by Richard G. Lipsey
HTML and PDF versions of the papers, each ranging between 5-9 pages and an Editor's Introduction are available at: http://isuma.net/v03n01/index_e.shtml
Additional Canadian TBED Resources Worth A Click
In February, SSTI encouraged readers to consider a free subscription to Ontario's Regional Economic Development and Innovation (OREDI) Newsletter, which provides great international coverage of the field of technology-based economic development.SSTI learned about Isuma through yet another excellent Canadian online publication covering innovation policy and technology-based economic development, the weekly e-newsletter of Réseau Innovation Network (RIN) entitled Smart Practices Innovation Network.
A third great Canadian information resource, the Quebec equivalent to OREDI, was brought to our attention by SSTI Weekly Digest subscriber George Schoenhofer. E-Veille, a monthly e-newsletter that surveys scientific journals related to the evaluation of science, technology and research, is produced by the Observatoire des sciences et des technologies (OST). OST is a research infrastructure dedicated to the development of statistical tools for measuring the evolution of science and technology. The latest issue provides links to several European indicator reports and statistics.
Louisiana Legislature Passes Tax Credits to Promote R&D
The 2002 Special Session of the Louisiana State Legislature has yielded a series of tax credits that aim to benefit biotechnology companies in Louisiana, promote commercialization of technology, encourage R&D investments, and make the state more competitive in information technology. The tax credits are as follows:
- Biotechnology Tax Credit — Excludes biotechnology companies from paying sales and use taxes on capital expenditures for new research equipment.
- Technology Commercialization Credit — Offers marketable R&D tax credits to induce Louisiana entrepreneurs to commercialize research conducted at Louisiana universities.
- Research & Development Tax Credits — Encourages the state's businesses to invest in and increase their existing levels of R&D by offering tax credits to match proportionally any company's claim for federal research credits or Small Business Innovative Research (SBIR) grants.
- Customized Computer Software Development Tax Credit — Phases in a state sales and use tax exclusion for certain custom computer software over a four-year period.
The tax credits are part of the state's efforts to facilitate a knowledge-based economy. Earlier this year, Governor Mike Foster outlined an economic development plan, The Comprehensive Economic Development Strategy for Vision 2020, that included $187 million for a Biosciences Initiative (see the March 15 issue of the SSTI Weekly Digest).
Special thanks to Vic Johnson, Technology Transfer Manager of the Louisiana Technology Transfer Office, for giving SSTI the lead on this story.
State & Local Tech-based ED News
Buffalo
The Buffalo News reports InfoNiagara, a technology council serving 230 IT companies, has signed a reciprocal membership with the Amherst Chamber of Commerce to increase the benefits offered to both organizations' members. The chamber's 2,300 members gain access to InfoNiagara's training and professional development programs, according to the paper, while the tech council is able to offer its members a variety of insurance programs the chamber has in place.Cleveland
A portion of a struggling three-story, upscale mall in downtown Cleveland may become part technology incubator, according to the May 6 issue of Crain's Cleveland Business. The article reports several alternate scenarios are being discussed by civic leaders to use sections or an entire floor of the 130,000 sq. ft. glass building to house nascent software development and other IT companies.Fort Worth, Texas
The University of North Texas is consolidating several departments to create a new college of engineering, according to the Fort Worth Star-Telegram. The new school, which joins four other engineering programs in the region is anticipated to be a cornerstone in a planned research park for the university.Lawrence, Kansas
The May 8 issue of Journal-World reports the Kansas Innovation Corp. is working to identify adequate space to create a technology incubator. According to the article, $500,000 contributed by county and the Lawrence Chamber of Commerce has been available to start the incubator. The organization is a partnership among the Kansas Technology Enterprise Corp, Kansas University and the Chamber.Mobile, Alabama
The University of South Alabama in Mobile has created a new 35-acre research and technology park, according to the May 1 edition of the Sun Herald. The article adds that the university is building a 80,000 sq. ft. spec building to provide leasable space to tech firms.New York State
New York could see 10 more Empire Zones established in the state this year, according to the Times Union. There are currently 62 zones which offer tax breaks, discounted utility costs and other inducement incentives, the article reports. The program is administered by the Empire State Development Corp.
The president of the Buffalo Economic Renaissance Corp, Alan DeLisle, is leaving to become director of the Office of Economic and Employment Development in Durham, N.C.
Larry Kline has resigned as president of the Wisconsin Technology Council to take a position as chief financial officer and vice president for business development with a biotech firm.
Jeffrey Skolnick has been named executive director of the new Center of Excellence in Bioinformatics based at the University of Buffalo. In introducing Skolnick, Governor Pataki confirmed the new state budget includes $50 million for the center, according to the May 10 issue of the Buffalo News.
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