In the February 28, 2003 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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House to Consider $2.1B Nanotechnology Bill
House Science Committee Chairman Sherwood Boehlert (R-NY) and Rep. Mike Honda (D-CA) recently introduced legislation that would authorize a multi-agency national nanotechnology research initiative. Nanotechnology is one of the top interagency priorities in the Administration's fiscal 2004 proposed budget for non-medical, civilian scientific and technological research and development.

H.R. 766, the Nanotechnology Research and Development Act of 2003, authorizes $2.1 billion over three years for nanotechnology research and development programs at the Department of Commerce, the Department of Energy, the Environmental Protection Agency, NASA and the National Science Foundation. The bill provides a formal structure for coordination of research across the agencies, emphasizes interdisciplinary research, addresses societal concerns raised by nanotechnology, and requires outside reviews of the program.

Cosponsors of the legislation include: Science Committee Ranking Democrat Ralph M. Hall (D-TX), Environment Technology and Standards (ETS) Subcommittee Chair Vernon Ehlers (R-MI), Research Subcommittee Chair Nick Smith (R-MI), Space and Aeronautics Subcommittee Ranking Democrat Bart Gordon (D-TN), Energy Subcommittee Chair Judy Biggert (R-IL), Research Subcommittee Ranking Democrat Eddie Bernice Johnson (D-TX), Rep. Roscoe Bartlett (R-MD), Rep. Zoe Lofgren (D-CA), Committee Vice-Chair Gil Gutknecht (R-MN), and Rep. Tim Bishop (D-NY).

The text of the bill and a section-by-section analysis can be found at the Science Committee website: http://www.house.gov/science

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'IT Revolution' Has Advantages, Pitfalls for Regions, Brookings Finds
Policymakers must understand the ways in which the information technology (IT) revolution is transforming business operations across both new and traditional industries, according to Paul Sommers and Daniel Carlson, the authors of What the IT Revolution Means for Regional Economic Development, a discussion paper prepared for the Brookings Institution Center on Urban and Metropolitan Policy. By achieving this understanding, economic development officials will "be prepared to respond to the new challenges and opportunities these changes present," say Sommers and Carlson, both of the University of Washington Evans School of Public Affairs.

The IT revolution, the authors state, has had far-reaching effects. Companies beyond the technology sector "are finding ways to cut costs dramatically by automating tasks, outsourcing certain functions, and linking customers to the factory floor." IT also continues to accelerate the fragmentation of large companies into separately located functional units and the number of strategic relationships among firms.

Sommers and Carlson make the following observations:

Sommers and Carlson conclude that although firms will continue to globalize, fragment and relocate their headquarters, regional leaders can work to ensure "a competitive setting for all business' survival and success in a high tech era." Action steps include investing in IT, providing education programs that foster certain skills, and assuring sufficient venture capital for start-ups. Companies also must effectively use technology and help to facilitate strong relationships between and among regions.

The authors interviewed chief information officers and information architects of 28 companies in Atlanta, Cleveland, Minneapolis/St. Paul, Pheonix and Seattle.

The Brookings Institution, an independent, nonpartisan organization, conducts research on public policy issues in the areas of economics, foreign policy and governance. CEOs for Cities, a national bipartisan alliance of mayors, corporate executives, university presidents and nonprofit leaders, provided funding for the report. The Brookings Report is available at: http://www.brookings.edu/es/urban/publications/sommers.htm

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Specialized Tech Incubators and Research Parks Hope to Build Clusters
Several recent project announcements highlight communities using incubators and research parks, some of the tools for technology-based economic development, in specialized formats to capitalize on existing strengths and nurture additional growth of clusters of related tech firms. Such targeted approaches can help to focus other TBED activities for additional benefits. For example, workforce training can be designed for the particular technology sector rather than tailored at higher costs to the needs of several unrelated technology firms in a general technology incubator or research park. Other savings can come in promotional and marketing strategies, tie-ins to university research capabilities, and specific EPA or OSHA regulations. Examples of some of the projects underway include:

In Greenville, ME, an incubator specializing in wood composites was given life earlier this month when the State Senate passed a spending bill that includes $225,000 for the incubator. The authorizing legislation provides that the Greenville facility will house and support businesses seeking to commercialize wood composite materials, most being developed at the University of Maine's Advanced Composite Center. An estimated $1.5 million project, the incubator becomes the latest in a larger statewide network of incubators initiated by the State Legislature in 2000 to encourage business growth in new and emerging industry sectors.

An agricultural technology research park is in the works for the City of Belvidere in Boone County, IL. The Rockford Register Star recently reported a $500,000 federal grant was approved for the Belvidere-Boone New Uses Agricultural Park. The research park will be built on 700 acres of land, the article states. Plans for the park include a 40,000-square-foot facility equipped with lab and office space, and shared conference rooms, and a 15,000-square-foot commercialization center. With the federal grant, the four-year project officially enters the start-up phase. Growth Dimensions, the county's economic development agency, is leading the drive to acquire additional funding for the park, which has received more than $130,000 from the City of Belvidere, Boone County and the private sector. Northern Illinois University also is involved with the project's development.

A $2.6 billion automotive research park might be in the works for Greenville, SC, according to the Associated Press. Governor Mark Sanford and Clemson University officials both are interested in developing the park, but the question where to build it remains. A 407-acre site in Greenville has been targeted; however, Clemson is considering other locations. Supporters are hopeful the park will bring the region an estimated 20,000 new jobs. The park ultimately will serve as an R&D hub, with the university's automotive engineering graduate program and a wind tunnel housed under one roof.

And, at Kansas State University, the Bioprocessing and Industrial Value-Added Program (BIVAP) facility will serve the functions of an incubator, once construction is complete. The 2001 Kansas Legislature approved $3 million in state funds for construction of the facility and a $4 million loan. Among other features, the BIVAP building will offer space to allow application of novel processes of grains, such as plastic molding and thermal processing, and for industry to move in equipment and test market new products and processes at a semicommercial scale. It will be the first of five buildings planned for a Grain Science and Industry Department Complex at K-State.

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PCAST Examines Homeland Security S&T, Broadband and US R&D Investment
The President’s Council of Advisors on Science and Technology (PCAST) drafted and approved four reports in 2002. Three of those reports are now available online at http://www.ostp.gov/PCAST/pcast2002rpt.html. Each report was submitted to President Bush and is briefly synopsized below.

Building Out Broadband
This report reviews the current standing of broadband demand and advocates policies that would aid the economic revival of information technology sectors. The report stresses the significant role that broadband technology plays in continuing growth and leadership of the U.S. high-tech sector. Steps are identified that the Administration should consider to aid the removal of barriers to timely broadband deployment. The following recommendations are issued:

Assessing the U.S R&D Investment
Based on the recommendations of a panel on Federal Investment in Science and Technology and Its National Benefits, this report analyzes the historical aspects, covering approximately the last 25 years, of investments in science and technology at the federal level. Three main recommendations are provided to address potential issues:

Recommendations are based on concerns that arose out of discussions and meetings. They include: federal funding as compared to GDP continues to decline, private sector R&D investments are generally of a different nature than federal support, federal funding for physical sciences and engineering benefits all scientific disciplines, federal funding for science and engineering students enhance economic growth, and international competition is stronger than ever.

Report on Maximizing the Contribution of Science and Technology within the New Department of Homeland Security
PCAST provides recommendations regarding the organizational structure, focus and operation of the R&D venture within the Department of Homeland Security (DHS). The report calls for an Under Secretary of Science and Technology that would directly report to the Secretary of the Homeland Security. Coordinating councils are recommended to be established to facilitate the cooperation between federal agencies and also between federal, state and local governments. Industry, academia and other government research and development organizations should be encouraged to collaborate with the DHS. The report suggests operational aspects as well, including which agencies should be transferred to the DHS and what criteria should be used in this transfer. Two important questions to be asked include: determining the needs and priorities of the new department and what is and what is not available to the department. Other operational concerns addressed include oversight, external R&D programs, the importance of the adaptive nature of the DHS and risk assessment and management.

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Understanding Early-stage Tech Development
The federal role in early-stage technology development (ESTD) is much more important than may be suggested by collective R&D statistics, suggests Between Invention and Innovation: An Analysis of Funding for Early-Stage Technology Development, a report by the National Institute of Standards and Technology (NIST). Prepared to support informed public policies concerning the transition from invention to innovation, the study finds that federal technology development funds complement, rather than substitute for, private funds.

The report states that economic growth will continue only with the constant pioneering of technological innovations that upset markets and generate new industries. Understanding the transition from invention-to-innovation is crucial in the creation of both public policies and private business strategies. Unfortunately, the report finds the practice in which an idea of potential commercial value is transformed into a successful product is complex, inadequately documented, and barely studied. The report attempts to fill that gap in this critical transition.

Two main questions are addressed. First, how do government programs compare with private sources in terms of scale and what is the allocation of funding for ESTD across diverse organizational categories? Second, what kinds of obstacles do firms face when attempting to locate funding for ESTD R&D projects and to what are these difficulties attributable?

Findings include:

Between Invention and Innovation can be downloaded at: http://www.atp.nist.gov/eao/gcr02-841/gcr02-841.pdf

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People in TBED

Jeff Bond, former long-time manager of the BMDO SBIR program, has been named Acting DoD SBIR/STTR Administrator, replacing the retiring Ivory Fisher.

The University of Nebraska Technology Park has named Steve Frayser as president.

Illinois Governor Rod Blagojevich has nominated Jack Lavin to run the newly named Department of Commerce and Economic Opportunity. The agency was formerly called the Department of Commerce and Community Affairs. Lavin was chief financial officer for Rezco Enterprises.

Greg Main, Oklahoma's former secretary of commerce, has been named president and CEO of the Oklahoma Technology Development Corp., which runs the Oklahoma Technology Commercialization Center.

Timothy Monger is the new executive director for the Indiana Department of Commerce, Monger replaces Thomas McKenna, who has taken the position as cheif of staff to the Lieutenant Governor.

Oklahoma Governor Brad Henry has named Tulsa businesswoman Kathryn Taylor to serve as Secretary of Commerce. The position oversees the state's economic development, commerce, and  tourism activities. David Lopez, a retired officer of SBC Communications, will serve in the voluntary, unpaid position as the Governor's economic development advisor.

William "Sandy" White has been named president and CEO for the Columbus Technology Council.

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Resource Updates on SSTI Website
During the past week, SSTI has made several additions to its website <http://www.ssti.org> that readers may want to note:

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