In the June 28, 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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Metro Areas Are Key to U.S. Jobs, Economy
The nation's metropolitan areas were responsible for "driving the economic performance of the nation as a whole last year," accounting for 98 percent of job growth and 86 percent of national economic growth, according to a new report prepared for the U.S. Conference of Mayors by DRI/WEFA.

The Role of Metro Areas in the U.S. Economy contains data on each of the nation's 319 metro areas, including 2001 gross metropolitan product, as well as growth and employment figures. Economic forecasts are also provided for the 20 largest U.S. metro areas.

As engines of economic growth, job and income creation, metro economies hold the key to the future of the U.S. economy, the report observes. Some of the findings include:

The report found that 2001 productivity gains helped lead to an average annual growth rate of 10.4 percent for Las Vegas, 9.8 percent for Austin, and 9.3 percent for each of Boulder, Phoenix and Colorado Springs, between 1991-2001. The report also offered good news about New York City's economy, saying it weathered the recession better than many other cities, despite the impact of September 11. But a difficult 2002 is predicted for New York, the nation's largest metro economy, "followed by a robust recovery in the following years, bolstered by growth in service employment."

The report underscores the enormous size of the nation's metro economies:

The Role of Metro Areas in the U.S. Economy is available under Online Publications at: http://usmayors.org/uscm/news/

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Tallahassee Compared with Nation's Largest MSAs in New Economy Index
The Center for Economic Forecasting and Analysis at Florida State University has completed a New Economy index for Tallahassee, showing how the Florida capital compares with 66 MSAs and, in a second analysis, a comparison of 20 Florida MSAs. Tallahassee ranks 11th among all MSAs assessed, a finding the authors suggest confirms "the city's economy has a number of very strong advantages."

The new index strives to build on the The Metropolitan New Economy Index, a study released by the Progressive Policy Institute in April 2001 that established a framework within which to rank the nation's 50 largest metropolitan areas.

In Comparison of Tallahassee and Other American and Florida MSAs Using the Metropolitan New Economy Index, the authors describe new characteristics of the New Economy using five major categories: knowledge jobs, globalization, economic dynamism and competition, the transformation to a digital economy, and technological innovation capacity. Within the categories are 16 indicators used for MSA rankings. Tallahassee's high overall placement, the authors contend, shows the city's economy "is quite robust by both conventional measures and by those that measure the area's fitness for the new Economy."

The index suggests Tallahassee business and government leaders should build on their economy's strengths and partner to accomplish the following:

The index also suggests the Tallahassee index has broader implications. Forces such as new industries and jobs, globalization, competition and dynamism not only continue driving the New Economy but also are contributing to a "reordering of the economic geography of America." The share of employment located in the largest 61 MSAs, the index notes, declined by 1.5 percent between 1988-1997, from 55.1 percent to 54.3 percent. The share in smaller MSAs, however, increased by 7 percent.

Industrial and occupational characteristics of economic activity, as much as the location (or spatial) order, also have been transformed by the New Economy, according to the index. As a share of total jobs, manufacturing employment accounts for only 11 percent of total employment in the 50 MSAs. Office jobs account for more than 40 percent of total employment, and managerial, professional and technical jobs account for over 30 percent.

The Tallahassee New Economy Index includes many statistical tables for comparison and is available at: http://www.cefa.fsu.edu/projects.html

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Microsoft Gives $750 Million to Chinese Universities and Companies
Today's online issue of the Chronicle of Higher Education reports Microsoft Corporation is contributing $750 million to China to support computer science education, basic research, software training, and business growth.

To give a sense of the magnitude and potential importance of Microsoft's investment on the Chinese and global IT market and workforce: the $750 million (to be allocated over three years) is currently equal to 50 percent of the entire Chinese software industry's annual revenues.

The article reports $24 million would be used to create five software colleges in the leading Chinese universities while the balance "will go directly into joint-ventures with Chinese manufacturing firms and software companies."

The article is available online free on the Chronicle's website: http://chronicle.com/free/2002/06/2002062801t.htm

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USDA Distributes $6.1 Million for Rural Economic Development
The U.S. Department of Agriculture has announced 51 grant recipients will share $6.1 million for rural economic development. Funding for the projects comes from the USDA's Rural Business Opportunity Grants Rural Development and Rural Business Enterprise Grant programs.

The 2002 awards are distributed across 24 states: Arizona - $265,221; California - $450,000; Florida - $399,600; Georgia - $183,279; Illinois - $874,500; Kentucky - $398,000; Louisiana - $50,000; Maine - $445,000; Mississippi - $372,923; Missouri - $319,999; Montana - $63,260; Nebraska - $50,000; New Mexico - $200,960; New York - $250,000; North Carolina - $300,000; North Dakota - $236,290; Oklahoma - $211,070; Oregon - $250,000; South Carolina - $163,450; South Dakota - $100,000; Tennessee - $288,247; Utah - $46,545; Washington - $149,271; and West Virginia - $92,930.

While traditional economic development and infrastructure improvements still dominate the slate of awards, nearly half of the 51 grants will support creation of business incubators, entrepreneurship programs, revolving loan funds for emerging businesses, cluster analyses and technology related manufacturing projects. A complete list of the individual grant recipients can be found at http://www.rurdev.usda.gov/rd/newsroom/2002/rbogrbeglist.html

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MSTF Study Assesses Maine's Technology-intensive Industries
A new report assessing Maine's seven targeted technology sectors represents the first systematic attempt to analyze the growth of the state's industry clusters. The report, Assessing Maine's Technology Clusters, was prepared for the Maine Science and Technology Foundation (MSTF) by the University of Southern Maine's Muskie School.

The MSTF report begins by defining clusters as more than geographic concentrations of firms in a similar industry. Clusters occur when a network of relationships between companies, suppliers, service providers and supporting institutions provide a competitive advantage to all related firms in the region, the report states.

A cluster strategy, the report observes, can benefit both rural and heavily populated areas in Maine. By pursuing an economic development strategy of investing in the technology sectors — information technology, biotechnology, advanced materials and composites, precision manufacturing, forest products and agriculture, marine technology and aquaculture, and environmental technologies — the state has sought to spur technological innovation in its traditional natural resource-based industries and to make its industries more competitive overall.

Eight major characteristics of successful clusters, such as Silicon Valley, Route 128 around Boston, and the Research Triangle in North Carolina, are identified in the report. The strengths and weaknesses of each of the targeted technology sectors are assessed using the characteristics, and the sectors are grouped into four categories based on their cluster development: stars, potential stars, base industries and industries seeking direction.

The report concludes that Maine has no star clusters but potential stars, biotechnology and information technology. Additionally, Maine's forest products, agriculture and aquaculture clusters are strong, yet have small potential for growth.

Assessing Maine's Technology Clusters, a year-long project involving a survey of 170 individuals, launches the first of a four-stage process for economic development in Maine. The 144-page document is available in full and by section [PDF] at: http://www.mstf.org/

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Two U.S. Locales Named "Intelligent" Communities
Florida's High Tech Corridor and LaGrange, Georgia, have been named two of the world's top seven "intelligent" communities in a recent report by the Intelligent Community Forum (ICF), a project of the New York-based telecommunication group World Teleport Association.

In The Top Seven Intelligent Communities of 2002, the Corridor is recognized for its work in developing the region's high-tech workforce and as an effective collaboration between academia, the private sector and local and state government. Other ranked communities include Bangladore, India; Calgary, Alberta, Canada; Seoul, South Korea; Singapore; and Sunderland, UK.

The ICF's yearly award honors the seven top communities or regions it sees as pioneers or role models for the development of vibrant "Digital Age communities." To be chosen, the communities must meet at least one of the five Intelligent Community Indicators defined by ICF:

The Top Seven Intelligent Communities of 2002 is available at: http://www.intelligentcommunity.org/html/TopSeven.html

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State & Local Tech-based ED RoundUp

California
A $30 million tax break tentatively approved by the state Board of Equalization will benefit the software industry but hurt other groups, the San Jose Mercury News reported Tuesday. Software companies, which have lobbied for years with state tax officials on the tax code covering maintenance contacts, has wanted the tax on the contracts eliminated, the article states. Under existing law, entire contracts are taxed.

Cleveland
Plans are underway for the conversion of an 144,000-square-foot office building into the MidTown Technology Center, an urban campus that will house biomedical and information technology companies, according to the Plain Dealer. A $20 million project, the center will reserve more than 72,000 sq. ft. of office and lab space for situating up to 20 companies and 100 workers. Financing has not been arranged, but local officials anticipate the project will qualify for a $5 million federal Housing and Urban Development loan and a $1.25 million city grant. The entire MidTown campus is expected to cost an estimated $62 million.

Iowa
The newly created Eastern Iowa Angel Investors group soon will take a first step toward accomplishing its mission, to help boost the growth of small companies, according to the Associated Press. In July, the group will consider such factors as market position and leadership as it looks for small companies in which to invest. Up to 100 businesses with investments of between $50,000 and $250,000 stand to benefit from the group's efforts.

New Hampshire
Five new U.S. Small Business Administration Business Information Centers are being established across the state via Combinet-NH, a public-private and nonprofit corporation. A recent story in the Union Leader stated that Combinet would give people access to thousands of resources through the Internet and hands-on technical assistance. Fleet Bank, SBA, the Knowledge Institute, Southern New Hampshire University, the state Department of Resources and Economic Development, the Office of State Planning, and regional economic development organizations are the major collaborators involved.

Virginia
Governor Mark Warner recently signed an executive order that creates an advisory board for the Virginia Biotechnology Initiative and instructs the panel to prepare recommendations for making Virginia a leader in the biotech industry. The board will undertake the following initiatives:

The advisory board will be led by Brandon Price, chairman of the Virginia Biotechnology Association, and Michael Schewel, the Secretary of Commerce and Trade. The Secretary of Technology will serve as vice chairman, and the secretaries of Natural Resources, Education, and Health and Human Resources also will participate. In addition, the board will include state lawmakers, state and local economic development officials, and private sector representatives.

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ASTF Seeks Executive Director As Kenworthy Announces Retirement
The state technology-based economic development community is losing one of its most dynamic and longest-serving leaders by the end of the year. Jamie Kenworthy, executive director of the Alaska Science & Technology Foundation (ASTF), has announced his retirement effective December 1.

Prior to taking the ASTF directorship seven years ago, Jamie served on the organization's board from its founding in 1988. He also ran Michigan's tech-based economic development initiatives during the 1980s for the Blanchard Administration and has been an active contributor nationally on state-federal science and technology policy issues.

With Jamie's departure pending, ASTF is seeking an executive director with experience in establishing working partnerships, market orientation and excellent communication skills.

ASTF — a state agency that invests money to improve Alaska's economy and to increase the state's science and engineering capabilities — encourages candidates with a background in science and technology, public sector experience and familiarity with Alaska to apply. The salary is $100,000, depending on experience.

As an equal opportunity employer, ASTF supports workplace diversity. ASTF also complies with Title I of the Americans with Disabilities Act. Individuals who require special accommodation or formats should call (907) 465-5438 or TTY at (907) 465-5437. To apply, send a resume and cover letter to: The Growth Co., 121 West Fireweed Lane, Suite 175, Anchorage, AK 99503. More information is available at http://www.astf.org.

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People
Enterprise Florida has named Darrell Kelley as its new president and chief executive officer effective August 5. Kelley currently is the president of the defense-related technology incubator, MILCOM Technologies.

Two of North Carolina's state-created non-profit science and technology centers announced new leaders last week. David Rizzo is the new president and chief executive officer of MCNC. and Leslie Alexandre will serve in the same position for the North Carolina Biotechnology Center.

Matthew McClorey is the new president and chief executive officer of Kansas Innovation Corp. McClorey formerly served as vice president for business development & portfolio management at KTEC, a position now filled by Michael Peck.

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Digest Breaks for Holiday
In honor of Independence Day, no SSTI Weekly Digest will be published July 5.

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