In the March 21, 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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Senate Small Business Committee Want FAST, ROP Funded
U.S. Senator Olympia J. Snowe (R-Maine), Chair of the Senate Committee on Small Business and Entrepreneurship, has called on the Senate’s top appropriators to help reverse budget elimination of two key programs designed to strengthen the technological competitiveness of small businesses.

Snowe and a bipartisan group of 14 other senators released a letter calling on Appropriations Committee Chairman Ted Stevens (R-AK) and Ranking Member Robert Byrd (D-WV) to help identify new sources of funding “to alleviate the severe impact” of FY 2003 cuts in the Federal and State Technical Partnership (FAST) and Rural Outreach Programs (ROP) administered by the Small Business Administration. Both federal programs provide matching grants to state initiatives to help small businesses with technology development and commercialization.

A total of $3.5 million in combined funding for FAST and ROP were cut from the Conference Report on the Omnibus Appropriations Act, which was signed into law by the President on February 20. The Bush Administration had requested $3 million in FY03 for the SBIR FAST program and $500,000 for the SBIR Rural Outreach program, which provides grants to approximately 25 states to increase participation in the SBIR Program.

The Administration has requested $3.5 million for the two programs in its FY04 budget request.

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Senators Want $3B for Rural VC as Part of New Homestead Act
A bi-partisan group of Senators have cosponsored the "New Homestead Economic Opportunity Act" to help renew the promise of the original Homestead Act to attract new residents and businesses to rural areas suffering from high out-migration. Introduced by Senator Bryon Dorgan (D-ND) and Chuck Hagel (R-NE) this week, the bill provides incentive tools including a $3 billion venture capital fund.

S. 602 calls for a federal injection of $200 million annually between 2004-2013 into the New Homestead Venture Capital Fund, after $100 million in investments have been made each year from private and nonfederal sources. The purpose of the fund would be to strengthen the economies of qualifying counties – those which have seen a net outmigration exceeding 10 percent over the past 20 years – by:

The act also would establish a Rural Investment Tax Credit to help fund construction of new buildings or improvements to older ones. Overall, states with heavy out-migration would have up to $1 million for tax credits per county.

In addition to the capital and investment elements, the New Homestead Act includes the following provisions:

A similar version of the bill was introduced in the previous Congress. Co-sponsors include: Sen. Tim Johnson (D-SD), Sen. Sam Brownback (R-KS), Sen. Tom Daschle (D-SD), Sen. Conrad Burns (R-MT), Sen. Mark Dayton (D-MN), Sen. Kent Conrad (D-ND), Sen. Dick Durbin (D-IL), Sen. Mary Landrieu (D-LA), Sen. Norm Coleman (R-MN), John Rockefeller (D-WV) and Sen. Zell Miller (D-GA).

S. 602, referred to the Senate Committee on Finance, can be downloaded at: http://thomas.loc.gov/

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Top 10 Universities for 2002 Patents Identified
The United States Patent and Trademark Office has posted a preliminary list of the 10 U.S. universities receiving the most patents for inventions during calendar year 2002. The University of California tops the list for the ninth consecutive year. The table below also presents the school's 2001 ranking and total. 

Preliminary Rank
in 2002*
Preliminary # 
Patents in 2002*
Organization
2001 
Rank 
2001 # of 
Patents
1
431
University of California**
1
402
2
135
Massachusetts Institute of Technology
2
125
3
109
California Institute of Technology
3
124
4
104
Stanford University
5
84
5
93
University of Texas 
4
89
6
81
Johns Hopkins University
6
80
7
81
University of Wisconsin
7
73
8
55
State University of New York
17
41
9
50
Pennsylvania State University
11
52
10
49
Michigan State University
18
39

* These are preliminary patent counts and are subject to correction. The final listing of patent counts for U.S. universities in 2002 should be available in late December of 2003.
** Includes all campuses.

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West Virginia Creates ED/Tech Centers, Limits CAPCOS
Wrapping up its 2003 session earlier this month, the West Virginia State Legislature passed three bills designed to help build a technology-based economy.

Copies of each act are available at: http://www.legis.state.wv.us/

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Colorado Prepares Biotech Strategy
Earlier this week, Colorado Chief Technology Officer John Hansen released a statewide plan to develop biotechnology and life sciences industry sectors in Colorado. Colorado's Place in the Sun: A Bioscience Future provides analysis, direction and recommended actions for three key sector areas — workforce development, business development, and research development.

After outlining the state's current strengths in biotech and life sciences, the plan identifies several key factors for success:

Some of the plan's primary recommendations include:

Funding for the $184,000 plan, developed by the Battelle Memorial Institute, came mostly from major corporate donors IBM and Amgen. Other sponsors include the Denver Metro Chamber of Commerce, the Colorado Institute of Technology, and the State Economic Development Commission.

The plan is available at http://www.cobiotech.com

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Working Paper Links VC to Employment Growth
Conventional wisdom in the technology-based economic development community is that increased access to risk capital is critical for building competitive economies. Establishing a causal relationship between early-stage capital and employment growth external to the companies receiving the funds has been difficult, however.

A new working paper from the University of Vienna presents a model linking venture capital investment and job growth on the national level. Does Venture Capital Investment Spur Employment Growth?, written by Ansgar Belke, Rainer Fehn and Neil Foster, finds "a one unit increase in venture capital will increase employment growth by 1.8 percentage points."

Looking at data on a sample of 20 member countries of the Organisation for Economic Cooperation and Development (OECD) over the period of 1986-1999, the authors conclude an increase of one standard deviation in early-stage capital alone is associated with a positive change in employment ranging between 1.1 and 1.4 percent.

Five policy recommendations – some of which may have value for U.S. states – suggest ways Europe can help stimulate venture capital investment and employment growth:

Does Venture Capital Investment Spur Employment Growth? is available at: http://mailbox.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0303.pdf

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Southern Growth Policies Board Offering Knowledge Economy Toolkit
The Southern Growth Policies Board has released a toolkit to help communities understand the knowledge economy and how new economic forces affect quality of life and economic development. Seeing the Future: The Knowledge Economy seeks to inform people about the knowledge, skills and resources needed to compete in today’s economy.

Seeing the Future is designed to stimulate discussion among community groups of any size or background — from economic development councils to public officials and city planners to civic and service clubs — by providing information on how technology and innovation, globalization, the workforce and community affect economic development. The toolkit contains a moderator’s script; a video that introduces the basic principles of the knowledge economy; interactive exercises to stimulate critical thinking and community planning; comprehensive resource materials such as briefing books on globalization, technology and innovation, the workforce and community; ideas for taking action; real-world success stories; and sources for further research.

Produced with financial support from the Appalachian Regional Commission and the U.S. Economic Development Administration, Seeing the Future is available for $50, and volume discounts apply for purchases of five toolkits or more. For complete information, visit the Southern Growth Policies Board website at http://www.southern.org/

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Useful Stats: Employed Doctoral Scientists & Engineers by State, 2001
Last week, the National Science Foundation (NSF) released the latest edition of Characteristics of Doctoral Scientists and Engineers in the United States, which reports characteristics for 2001. Valuable data is presented in the report on the demographic and employment characteristics of doctoral scientists and engineers in the U.S.

NSF has performed this survey every two years since 1973. Current and past reports can be found online at http://www.nsf.gov/sbe/srs/cdse/start.htm

SSTI has prepared a table comparing the percent change from 1999 to 2001 by employer location and broad occupation for doctoral scientists and engineers in the U.S. Each state’s percentage increase or decrease in employment in various occupational categories is calculated. The states are ranked from highest to lowest in percentage increase or decrease for overall employed doctoral scientists and engineers. This data presents a unique geographic view of the distribution of U.S. doctoral scientists and engineers. The SSTI employment table is available at: http://www.ssti.org/Digest/Tables/032103t.htm

A similar table presenting the change from 1997 to 1999 is available in the SSTI Weekly Digest archives at: http://www.ssti.org/Digest/Tables/092002t.htm

SSTI also has prepared a table concerning the median salary of these professionals by location. The table presents the percent change in each state’s median salary from 1999 to 2001 for doctoral scientists and engineers. Again, the states are ranked from highest to lowest in terms of percent increase for overall employed doctoral scientists and engineers. Each broad occupational category is provided as well. (Note this data has not been adjusted for inflation.)

The SSTI median salary table is available at: http://www.ssti.org/Digest/Tables/032103t2.htm

A similar table presenting the change from 1997 to 1999 is available in the SSTI Weekly Digest archives at: http://www.ssti.org/Digest/Tables/092002t2.htm

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Tech-based ED RoundUp

Tucson gains Community Investment Business Center, New Tech Park building
The Tucson Citizen reports the second incarnation of the Tucson Technology Incubator, which closed in January, has opened as the Community Investment Business Center. The new center, under the auspices of the Community Investment Corp. and funded partially by the Pima County Industrial Development  Authority, offers business assistance with the aid of five University of Arizona interns and limited office space for client companies, according to the article.

Tucson-area tech companies in need of more space can take advantage of the new 72,000-square-foot building opened at the University of Arizona Science & Technology Park in February. The park, named as the Association of University Research Park's Outstanding Research Park of 2001, is already home to 30 companies and organizations with more than 6,000 employees working in technology fields including optics, life sciences, aerospace and advanced materials.

Florida's Orange County Commission commits $2.2 million for TBED initiatives
With an eye toward diversifying the Orlando-area economy, the Orange County Commissioners are investing $2.177 million mostly to support several technology-based economic development initiatives. Titled "Economic Stimulus Package 2.0," the county's funding will be allotted across 30 different projects, the majority of spending going to seven projects connected to the University of Central Florida (UCF), including: a high-speed Internet and video conference system for the UCF technology incubator ($100,000), construction of a biotech research greenhouse at UCF ($150,000), and a new Institute for Economic Competitiveness at the University of Central Florida ($700,000). Another recipient is an O-Force project supporting workforce development and training programs in information technology at area high schools ($125,000). A March 12 article in the Orlando Sentinel points out "the $2.2 million stimulus package amounts to a fraction of the amount the country spends to promote tourism. This year, for instance, the county will spend $300 million to expand and operate the Orange County Convention Center."

Fort Wayne Mayor Commits Funds to TBED
Mayor Graham Richard announced this week that the City of Fort Wayne has committed $1 million to the Northeast Indiana Corporate Council’s $20 million economic development fundraising effort. The City is pledging $1 million to the Corporate Council’s job creation fund over a two-year period. The money will come from County Economic Development Income Tax (CEDIT) funds and City Utilities.

The City of Fort Wayne has already has pledged $1.5 million to the Northeast Indiana Innovation Center’s Biomedical Research Center, $175,000 for operating funds for the Northeast Indiana Innovation Center, and more than $1 million in annual allocations for the Economic Development Alliance and other groups.

In making a $1 million commitment to the Corporate Council, Mayor Richard also is challenging Fort Wayne City Council members to support the $20 million campaign by pledging $1 million of their CEDIT allocation to the Corporate Council’s job creation fund.

Vermont Offsets 70% of IT Training Costs with DOL Grant
A new grant and partnership, the Vermont High Skills Training Project, will cover 70 percent of Vermont businesses' costs for securing information technology certification and training for their employees. Offered online to facilitate distance learning, the collaborative effort involves the Vermont Information Technology Center, the Vermont Human Resources Investment Council, the Vermont Department of Employment and Training, and Champlain College. A March 11 article in the Burlington Free Press suggests up to 50 people are expected to be trained and certified through the program, which takes approximately 18-24 months to complete. Funding for the $512,000 initiative came from a grant from the U.S. Department of Labor.

New Website Will Help Investors Utilize New Markets Tax Credits
As investors prepare to make investments that qualify for New Markets Tax Credits, New Markets Advisors, a group of six community development finance organizations, has launched a new online resource dedicated to explaining why these investments make smart business sense. A federal program created in December 2000 through the U.S. Department of Treasury's CDFI Fund, the New Market Tax Credits are designed to increase investment opportunities and stimulate business development in America's economically underserved markets. More information on the credits, investment opportunities and additional resources are available at: http://www.newmarketsadvisors.org

Manufacturing Tech Center In Works for Douglas, WY
The Converse Area New Development Organization (CANDO), a Wyoming nonprofit corporation dedicated to encouraging new and existing business growth, with the least amount of disturbance to the area's quality of life, received a $110,000 School-to-Careers grant from the state to establish a manufacturing technology training center. According to the Douglas Budget, the center will use the grant to acquire two manufacturing software training programs for use by high school students and adults. The course is to provide hands-on experience through actual product design and manufacturing.

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Commerce's NIST Invites Proposals for MEP Projects
The National Institute of Standards and Technology of the U.S. Department of Commerce has announced it is accepting proposals from organizations in Florida, Hawaii and South Dakota to establish Manufacturing Technology Centers under the Manufacturing Extension Partnership (MEP) Program. Approximately $4 million will be available to support these centers.

Currently, the MEP national system consists of over 400 centers and field offices located throughout the U.S. and Puerto Rico. The objective of these centers is to enhance productivity, technological performance, and strengthen the global competitiveness of small- and medium-sized U.S.-based manufacturing firms. Services are provided through the coordinated efforts of a regionally-based manufacturing extension center and local technology resources.

The funding level for individual MEP awards is not prescribed in the program solicitation. However, applicants will be required to provide roughly two-thirds or more of the operating costs for providing manufacturing extension services. Projects awarded under the program will have a budget and performance period of one year.

Manufacturing extension centers must be affiliated with a U.S.-based nonprofit institution or organization, including universities and state and local governments. Existing MEP centers in Florida, Hawaii and South Dakota also are eligible.

Proposals must be received by May 19, 2003. The full solicitation is available in the March 18 edition of the Federal Register at: http://www.access.gpo.gov/su_docs/fedreg/frcont03.html

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People

Lloyd Chestnut, vice president of research at the University of Montana is leaving to take the position as vice president for research and technology transfer at the University of North Texas.

Christopher C. Foster is the new state technology coordinator at the Maryland Department of Business and Economic Development.

Chris Matthews is the president of the new Chattanooga Technology Council, which held its official kickoff event earlier this month.

Katherine O'Dea has been named executive director of the Rhode Island Technology Council.

Dr. Leonard Peters is the new director of the Department of Energy's Pacific Northwest National Laboratory.

Tom Walker has been named executive vice president and chief operating officer of the Oklahoma Technology Commercialization Center.

Congratulations to Steve Zylstra, his staff and the 1,500-plus members of the Pittsburgh Technology Council as they celebrate the organization's 20th anniversary.

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