In the August 2, 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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Premier Conference on Building Tech-Based Economies Opens Registration
With more than 30 sessions and keynote addresses by Michigan Governor John Engler and U.S. Assistant Secretary of Commerce for Economic Development David Sampson, SSTI's Sixth Annual Conference promises to be the year's best and most comprehensive conference on tech-based economic development. Building Tech-Based Economies: From Policy to Practice will be held October 2-3, 2002 in Dearborn, Michigan, with pre-conference activities on October 1.

Sessions focus on a variety of topics, including:

The conference will have a unique blend of three types of sessions: best practices, policy, and roundtable discussion. For the first time, four roundtable discussions will permit a free exchange of ideas, opinions, and advice among the conference participants.

Preceding the two full days of the conference will be three pre-conference sessions on October 1, including SSTI's first-ever full-day pre-conference. Focusing on one of the most important areas of tech-based economic development, Growing Your Own: Building Blocks for Bio-Based Economies will explore the elements of successful bio-based economic development strategic planning and the approaches states and communities are implementing. Participants will learn more about one of the nation's largest life sciences initiative, and tour the R&D lab of one of the world's leading pharmaceutical companies. Half-day pre-conference sessions will concentrate on measuring and monitoring the knowledge economy, presented in cooperation with ACCRA, and an introduction to tech-based economic development.

If you're interested in:

then Building Tech-based Economies: From Policy to Practice is for you. For more information on the conference, visit: http://www.ssti.org/conference02.htm [expired]

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NY Offers Grants To Recruit Retain Biotech Faculty
Earlier this week, New York Governor George E. Pataki and NY Senate Majority Leader Joseph L. Bruno unveiled a new funding program designed to recognize and support outstanding scientists and engineers who, early in their careers, show potential for leadership and scientific discovery in the field of biotechnology.

The James D. Watson Investigator initiative is part of the $225 million Gen*NY*sis program (Generating Employment through New York State Science), which was created to maximize the R&D potential of the life sciences research being conducted at New York State's public, not-for-profit and private academic research institutions.

Russell W. Bessette, M.D., Executive Director of the New York State Office of Science, Technology and Academic Research (NYSTAR), said, "By creating this unique program, we're encouraging early career biotechnology scientists to stay and conduct their research here in New York State. In doing so, these scientists will be positioned to make the important advancements in biotechnology that will lead to our future economic growth."

NYSTAR was provided $2 million for the establishment of the early career program. Ten grants, totaling $200,000 per grant, will be provided to promising early career scientists at academic, public and not-for-profit private research institutions in New York State. Each grant will be awarded for a two-year time period.

Similar in concept to the National Science Foundation's Faculty Early Career Development Program (CAREER), grants from the James D. Watson Investigator Program will be made to scientists who are performing their research in the life sciences or in other life science-enabling disciplines such as engineering, material science, chemistry, computer science, electronics, physics, bioinformatics, nanotechnologies and applications of microelectronics and micro-electromechanical devices.

Candidates must have been awarded a doctoral degree and have less than five years' experience since being awarded their doctoral degree. Applications are to be made by the institution and only one award will be made per institution.

More information is available at: http://www.nystar.state.ny.us/jdw.htm.

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Northwest Research Institute for Bioproducts, Bioenergy Formed
Two Department of Energy national laboratories and two land-grant universities announced on July 17 that they will work together to form a new research institute for the production of energy and industrial products from biomass resources. The new Northwest Bioproducts Research Institute will combine the talents of DOE's Pacific Northwest National Laboratory, DOE's Idaho National Engineering and Environmental Laboratory, Washington State University, and the University of Idaho.

Under terms of the agreement — signed last month — the participating universities and federal research laboratories will collaborate to form a nationally renowned, multi-disciplinary research and development program. They will examine and develop methods for converting agricultural and food processing residue and wastes into bio-based fuels, power and industrial products, such as chemicals for plastics, solvents and fibers. Industry, processors and growers will be able to use and profit from the institute's products and technologies and, in some cases, will profit from the discoveries through licenses.

Using their existing laboratory facilities, they will examine and develop methods for converting agricultural and food processing residue and wastes into bio-based fuels, power and industrial products.

A Bioproducts Advisory Committee that includes members from industry and grower organizations will be created to set research priorities and help ensure the rapid transfer of scientific discoveries to commercial products and processes.

For more information, visit: http://www.pnl.gov/news/2002/02-19.htm

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MBDA Launches Minority Entrepreneurship VC Initiative
On July 2, the U.S. Commerce Department’s Minority Business Development Agency (MBDA) and the Emerging Venture Network (EVN) launched the MBDA Equity Capital Access (MECA) Program to increase minority entrepreneurs access to capital.

MBDA hopes the initiative will help address the fact that minority firms receive only two percent of all private equity.

The MECA program is one of the first to offer minority entrepreneurs equity capital training of this kind at a national level. The program’s first major project will be a business plan competition organized through the five MBDA regional offices. MBDA and EVN will identify up to 200 entrepreneurs to assess and give a scored evaluation with written comments on strengths, weaknesses and areas for improvement.

Of those 200 entrepreneurs, 25 will be selected to participate in an intensive training session, or "boot camp," where selected applicants will be drilled in the fundamentals of obtaining venture capital. The boot camp will take place during the National Minority Enterprise Development (MED) week-long conference in Washington, D.C., September 24-27, 2002.

Five of the 25 selected businesses will present their concepts at MED Week to a panel of venture capital experts for feedback and coaching.

The deadline for online applications is Friday, August 9, 2002. Additional information is available at http://www.evn.org/ or http://www.mbda.gov/.

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Competition Best For Broadband?
“Failure to improve broadband performance could reduce U.S. productivity by 1 percent per year or more,” concludes Charles H. Ferguson in a recent Brookings Institution policy brief. The July brief addresses the pace of broadband deployment and development in the U.S. and makes several recommendations to further progress.

While Ferguson's focus is on national broadband policy, the objective is to increase access to the "last mile" services that enable, for example, videoconferencing, telecommuting, and wireless data services. Addressing last mile service capability is an area of concern for many state and local technology-based economic development initiatives, which hold future competitiveness for many regions will depend on accessibility to the nation's broadband infrastructure.

In The U.S. Broadband Problem Ferguson suggests that the broadband industry, unlike other high technology industries, has not shown sufficient technological progress. This lack of advancement is a result of the monopolistic structure of the industry and major deficiencies in policy and regulatory systems among other factors, he asserts.

The brief calls for various policy changes including structural divestiture within the industry — including breaking local exchange carriers into separate companies addressing data transport, switching operations and enhancing services — and investment incentives to help increase competition. Ferguson contends competition would, therefore, push forward technological progress within the broadband industry. He uses the rapid advances in computer technology during the 1990s as an example of competition working well.

The full policy brief can be found at http://www.brookings.edu/comm/policybriefs/pb105.htm

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NCSC Offers TBED Resources
The National Center for Small Communities (NCSC) has two new free or low-cost resources for small town leaders and rural development practitioners. Based in Washington, D.C., NCSC conducts research, training and technical assistance to benefit the leaders of U.S. small communities.

Technology and Grit at the Grassroots
A 68-page guidebook, Technology and Grit at the Grassroots identifies and explores effective technology-based economic development strategies for distressed, rural communities. Concrete guidance on how to put computers, the Internet and advanced telecommunications to good use is distilled from practical research of 14 distressed rural communities and supplemented by recent articles and reports.

NCSC is distributing 1,000 guidebooks to interested regional and statewide economic organizations and agencies at a fulfillment price of 93 cents per book. These organizations are asked to give their guidebooks to small town leaders. More information is available at: http://www.smallcommunities.org/ncsc/TechandGrit.htm

Thriving Hometowns Network
The Thriving Hometowns Network is a compilation of more than 50 original in-depth community and economic development case studies drawn from small communities, most with a population of less than 10,000. It is a fully searchable electronic database, available free of charge to anyone with Internet access.

Users can search the database by any keyword or by such criteria as geographic region, population range, economic development strategy, and key project organizers. The search produces a list of qualified case studies, which may be reprinted and distributed, if credit is given to NCSC. More information is available at: http://www.smallcommunities.org/ncsc/THN.htm

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TBED RoundUp

Columbus Tech Councils Merge
To establish more clout, eliminate confusion and duplication, and cut costs, the Columbus Technology Leadership Council and the Industry & Technology Council of Central Ohio are merging into a new entity, according to the Columbus Dispatch. The details for the new organization, including its new name, will be announced later this year.

First Incubator in Memphis Gets New Digs
The grand opening of the new location of EmergeMemphis was celebrated last month as the city's only incubator and current 16 tenants moved into a renovated warehouse in the historic district of downtown. The incubator, operated by Memphis Incubator Systems, Inc., was launched in 2000, having received $4 million in initial funding from the Economic Development Administration, City of Memphis, Tennessee Valley Authority, Housing and Urban Development, Tennessee Technology Infrastructure Program, Memphis 2005, and private sector investors.

New Grafton, MA Receives Grant for Science Park
A $1.895 million grant to the town of New Grafton from the state's Community Development Action Grant program is being used to develop the infrastructure for a new 106-acre life science and biotech park adjacent to the Tufts University School of Veterinary Medicine. The Science Park project is a partnership between the university, the Tufts Biotechnology Corporation, and the community.

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Recent GAO reports on TBED Issues
Several recent reports and testimonies by the United States General Accounting Office (GAO) address issues of importance to many state and local technology-based economic development initiatives. Highlights of six are provided below. The full reports and testimonies can be found at http://www.gao.gov/.

Technology Transfer: Several Factors Have Led to a Decline in Partnerships at DOE’s Laboratories (GAO-02-465) April 2002
This report outlines factors that have contributed to a recent decline in the number of cooperative research and development agreements (CRADAs), that Department of Energy (DOE) national laboratories have entered into with businesses, universities and other partners. Surveying 12 DOE labs, the GAO looked at laboratories’ participation in and funding for technology transfer activities with non-federal entities during the past ten years. The GAO also sought lab managers’ views on barriers that limit technology transfer between DOE labs and potential nonfederal partners.

The results validated the decline in CRADA partnerships and also cited managers’ opinions as to barriers in the technology transfer process, including lack of dedicated funding, uncertainty of funding, and lack of commitment from the DOE for technology partnerships among other barriers.

The report includes several statistical tables showing tech transfer activities at the 12 labs for the past decade.

Lessons Learned from Previous Research Could Benefit FreedomCAR Initiative (GAO-02-810T) June 6, 2002
Jim Wells, Director of Natural Resources and the Environment, testified before the Subcommittee on Oversight and Investigations of the House Committee on Energy and Commerce regarding lessons learned from previous research that could benefit the FreedomCAR Initiative. The FreedomCAR would focus a federal and industrial R&D partnership toward developing hydrogen fuel cells that would provide the ability to produce cars and trucks that are not dependent on petroleum and would have no polluting emissions.

Mr. Wells outlined four themes for Congressional oversight in regards to the FreedomCAR initiative based on past R&D work:

New Department Could Improve Biomedical R&D Coordination but May Disrupt Dual-Purpose Efforts (GAO-02-924T) July 9, 2002
Janet Heinrich, Director of Health Care - Public Health Issues, testified before the Subcommittee on Oversight and Investigations for the House Committee on Energy and Commerce on the effects on biomedical research with the proposed creation of the Department of Homeland Security. She states that the new department could improve coordination in biomedical research and development efforts.

Ms. Heinrich was concerned, however, over the transfer of control and authority of dual purpose research. Some research programs have broad-based missions and could not be easily separated into homeland security research and research for other purposes, she reported. Antibiotic research at the National Institutes of Health was offered as an example. Ms. Heinrich concluded her remarks by stating that the new department could help reduce wasteful duplication and increase efficiency, but she is concerned over broad-based control of proposal grants for biomedical research.

Highway Research: Systematic Selection and Evaluation Processes Needed for Research Program (GAO-02-573) May 2002
This report assesses two elements of the surface transportation research and technology program of the Federal Highway Administration (FHWA): the organization of the FHWA research and technology program; and, FHWA processes for developing research agendas and evaluating research outcomes versus the established best practices utilized for similar research programs.

While recognizing the FWHA research and technology program has potential to significantly improve the nation’s highway system, the GAO was somewhat critical of the agency's efforts:

The GAO recommended the agency develop a systematic approach to gather input from external stakeholders to help guide the agenda of the research and technology programs. Other recommendations included deploying a process that evaluates significant research that incorporates best practices in use at other agencies and generating plans for implementing these recommendations, including time frames and estimates of their costs.

Industry and Agency Concerns over Intellectual Property Rights (GAO-020723T) May 10, 2002
Jack L. Brock, Managing Director of Acquisition and Sourcing Management, testified before the Subcommittee on Technology and Procurement Policy for the House Committee on Government Reform concerning industry and agency concerns over intellectual property rights. Mr. Brock discussed whether the government’s ability to contract with commercial companies for goods and services needed to support essential government services was restricted by concerns over rights to intellectual property.

He stated that a key issue in regards to acquiring new technologies from private companies was the government’s ability to successfully deal with intellectual property issues. Mr. Brock identified concerns from within the commercial sector and also within the public sector over the willingness to contract with each other. Some perceived private sector concerns included poor definitions of technical data the government needed, the government’s ability to protect proprietary data, and an unwillingness of government officials to exercise available flexibilities in IP rights negotiation.

Mr. Brock reported many of the agencies shared the same concerns as the private sector, adding that poor upfront planning and limited IP experience among federal contracting officers was also somewhat of a barrier.

Education Research: Education Should Improve Assessments of R&D Centers, Regional Labs, and Comprehensive Centers (GAO-02-190) January 2002
The GAO analyzed three structural elements of Department of Education-funded research — the research and development centers, regional educational labs, and regional comprehensive assistance centers — to address three areas of concern to some members of Congress: the consistency of the activities of the centers with legislative mandates; collaboration of these centers with each other and the Department of Education; and, to what extent are practices by the Department of Education useful for assessing the performance of these centers.

The GAO found that, while the centers do collaborate with each other and the Department of Education, there were varying degrees to which centers followed legislative mandates. To a large extent, the Department of Education shapes the priorities that guide the research, the GAO concluded, but evaluation practices have provided limited information and have not been useful for making future funding decisions.

The report also concluded that regional labs were different from the other centers due to the lack of state or federal government oversight and commented on the unknown satisfaction of products and services of comprehensive centers. The report outlines recommendations for Congress as well as executive action by the Secretary of Education focusing on improved assessment techniques and accountability standards.

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Final Chance for Warm Fuzzy
You know that feeling you get when you've done something nice for no apparent reason? Or at least the grounds for being good are hidden so deeply within you that you aren't aware of the potential payoff?

Well, the annual readers' survey for the SSTI Weekly Digest presents another one of those opportunities to ignite or rekindle that warm inner glow that made the Grinch's heart grow three sizes that day.

Think we're overselling the potential positive impact of completing the survey? Only one way to tell: http://www.ssti.org/digestsurvey02.htm [expired]

For the record number of you who have completed the survey already, we don't want to interrupt the feelings of bliss, nirvana or absolute oneness with everything right in the universe we know you're experiencing — other than to say soft and humble thank yous.

And for those of you tired of these little pleas for help the survey form will be removed from the website on Tuesday, August 6, 2002.

One final time, the 11-question, mostly multiple-choice survey is available at: http://www.ssti.org/digestsurvey02.htm [expired]

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