In the April 11, 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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$50M Lilly Grant Boosts IU Genomics Initiative
For the second time in three years, the Lilly Endowment is demonstrating its strong commitment to Indiana University's role in life sciences education and research by awarding $50 million to advance the Indiana Genomics Initiative (INGEN).

INGEN was launched in December 2000 with a $105 million grant from the Endowment — the largest grant ever made by the Indianapolis-based philanthropic organization and the largest received by IU. The goal is to propel IU forward as a world-class biomedical research institution and to serve as the foundation for a robust life sciences enterprise.

The Endowment presented the $50 million grant with the stipulation that it be used in areas of greatest need involving INGEN.

"By helping IU attract top-flight researchers and strengthen its role in this highly competitive area, this grant will build the intellectual capital of our state, so vital to Indiana's future prosperity," said N. Clay Robbins, president of the Endowment.

According to IU School of Medicine Dean D. Craig Brater, M.D., the most immediate need for INGEN is research space. The university has yet to determine specifically how the Endowment's latest grant will be used, but using it to supplement construction of new facilities is a possibility, Dr. Brater said. Some of the funds will be used to support INGEN programs on the Bloomington campus.

The initial $105 million Lilly grant allowed IU to build on its existing resources in the basic sciences and information technology, including recruitment of 23 new researchers at the Indianapolis and Bloomington campuses. INGEN resources already have helped bring an additional $32 million in new research grants to IU, and an additional $36 million in grant applications are under review.

For more information on INGEN, see http://www.ingen.iu.edu.

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Programs with Results
20-Year Investment in Ben Franklin Pays Off Big for Pennsylvania
Convincing politicians to make a multi-year investment in a state's economic future is challenging, particularly when commitments made in one budget cycle or administration can be forgotten or ignored so easily in the next legislative session. The FY 2003-04 funding struggle for Michigan's $50 million-per-year-for-20-years life science initiative provides ample evidence: $50 million dropped to $45 million and eroded to $32.5 million because of budget problems. For FY04, the governor has requested only $20 million for the line item and added several other demands on the shrinking pot of funds.

Getting a state's General Assembly to stick to it for 20 years, as Pennsylvania's Ben Franklin Technology Partners (BFTP) has seen since 1982, takes strong gubernatorial and legislative leadership across terms, administrations and parties — and results worthy of the increased public funds.

And BFTP has delivered, according to an independent impact analysis. The analysis reported that  $311 million in public investments, resulted in 23 to 1 return on the public investment, or a $7.9 billion impact on the Pennsylvania economy (in constant 1996 dollars).

The BFTP analysis addresses one of the most common complaints about impact studies on public TBED programs: the perceived or real bias inherent to client self-reporting. Skeptics argue that, in concern for any political fallout or repercussions, TBED clients are likely to inflate positive results, attribute too much to the program services, or not report negative results in response to surveys. Using a quasi-experimental design that incorporates a "control group" of similar companies that had not received BFTP assistance, the study was able to isolate program impacts from other factors that influence a company's performance and use case studies to assess BFTP's specific role in a firm's success.

Results from the BFTP clients and control group were then compared to estimate the direct impact BFTP had on the state economy through several measures.

BFTP has invested in more than 2,500 companies since its first direct equity placement in 1989; 76 percent of the deals were with companies employing less than 50 people at the time of the initial BFTP investment. The results of these investments, according to the study are impressive:

A Continuing Record of Achievement: The Economic Impact of the Ben Franklin Technology Partners was prepared as part of BFTP's 20th anniversary celebration this year. More information on the program is available at http://www.benfranklin.org/. Requests for copies of the BFTP study should be directed to Terry Singer at tsinger@benfranklin.org.

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New Mexico Gains TBED Tools
Increased funding for equity investments and a new university-industry R&D partnership program are among the pieces of legislation New Mexico Governor Bill Richardson signed this week, greatly expanding New Mexico's portfolio of programs to grow a tech-based economy. Most of the initiatives were included in the economic development agenda Gov. Richardson outlined during his first State of the State address in January. They are:

In addition, Senate Bill 932 authorizes a variety of economic development financing tools such as bonds, loans and loan guarantees that can be used statewide by the New Mexico Finance Authority.

More information on each bill is available at: http://legis.state.nm.us/

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Commerce Report Affirms Major Role of S&T
In response to state and regional requests for assistance in identifying factors that influence regional innovation and competitiveness, the U.S. Department of Commerce's Office of Technology Policy (OTP) released this week an annual report measuring science and technology indicators in all 50 states, the District of Columbia and Puerto Rico.

The third annual edition of The Dynamics of Technology-Based Economic Development contains data to help policy makers and regional leaders better understand the factors that influence economic outcomes at the state and local level. Areas such as R&D investment, number of patents issued and education levels are among the categories measured.

"Technological innovation and commercialization are the new drivers of economic growth, both in the U.S. and around the world," said Assistant Secretary for Technology Policy Bruce Mehlman. "As state business and government leaders attempt to fashion appropriate economic development strategies, many first try to measure and understand their existing science and technology assets and strengths. This report goes a long way in helping localities obtain the information they need."

A new feature of Commerce's state indicators report is use of the North American Industry Classification System (NAICS) codes. The NAICS data system contains a definition of high technology that reflects the importance of high tech services, such as those related to systems design, data processing, software development and telecommunications.

State profiles showing states' overall economic conditions, their science and technology organizations, and their ranking among each of 37 measures are provided in Dynamics. Five major groups encapsulate the measures: funding in-flows (9); human resources (9); capital investment and business assistance (4); technology intensity of the business base (5); and, other outcome measures (10). Indicators are given for each state's high tech establishments, high tech employment, high tech payroll and high tech establishment births, to name a few.

OTP, part of Commerce's Technology Administration, cautions throughout Dynamics that no attempt is made or intended to analyze, benchmark or assess any state's performance among any of the 37 metrics included. However, the report provides numerous statistical tables for easy state-by-state comparison. It is available at http://www.ta.doc.gov/reports.

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Mississippi Technology Alliance Releases Second Annual Innovation Index
The Mississippi Technology Alliance has released a second annual index focusing on the process of innovation, the links between innovation and technology-based economic development, and activities that government, academia and the private sector provide to support innovation and economic development.

First published in January 2002, the Mississippi Innovation Index presents technology goals, targets and annual performance levels for Mississippi, using data from the Institutions of Higher Learning, the Mississippi Development Authority, the Mississippi Employment Security Commission, the Mississippi Tax Commission and other national databases. The 2003 index updates data for the most current years published by the agencies and the previous 3-5 years.

Eight innovation goals, or areas of focus, are the subject of the Index. Using a standardized scoring system, the index shows Mississippi's overall index value among the areas is 325, up slightly from the baseline index value of 300 — an improvement of 8 percent. The 10-year goals include:

Mississippi performs above the baseline in two areas, state research capacity and industrial productivity, but falls below it in four others. The Index concludes, "Although performance is high in some areas and low in others, the combined scores reflect the joint influence of this family of innovation measures."

The nonprofit Mississippi Technology Alliance promotes science and technology-based economic development in Mississippi. Its Index is available at http://www.innovationindex.ms.

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EDA National Conference Set to Tackle Economic Development Issues
More than 1,000 economic development professionals, business and government leaders, nonprofit organization representatives and university officials from across the U.S. will come together when the Economic Development Administration (EDA) holds its national conference on May 6-9, 2003.

Overseen by the U.S. Department of Commerce, EDA serves to generate and retain high-skill, high-wage jobs in economically distressed areas of the nation. Its conference, Engines of Economic Growth for the 21st Century, is expected to provide participants the opportunity to discuss market-based strategies to compete in a global economy. Participants also can look to discuss economic development as it relates to "the Administration’s highest priority issues — winning the war on terrorism, protecting Americans here at home, and restoring robust economic growth."

Twenty-five speakers will make presentations at EDA's conference, to be held at the Omni Shoreham Hotel in Washington D.C. The list includes presidents, directors, chairpersons, secretaries, vice-chancellors and at least one pastor. Complete conference details – registration information, program agenda, travel and accommodations, and sponsors – are available at http://www.edanationalconference.com.

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Women's Business Center Opens in South Carolina
The South Carolina Women's Business Center has opened its doors and already has 30 customers, the South Carolina Manufacturing Extension Partnership (SCMEP) recently announced. Headquartered in Columbia, S.C., the Women's Business Center will focus on serving only manufacturing facilities in 2003 but will add services to other types of businesses in 2004.

More than 64,000 existing women-owned businesses in South Carolina figure to benefit from the center, which will provide such services as business start-up assistance, marketing, training and access to financing. The center also will collaborate with other organizations including Small Business Development Centers.

Almost 85 percent of women-owned firms are sole proprietorships, compared to about 73 percent for all businesses, according to recent data released by the U.S. Small Business Administration's (SBA) Office of Advocacy. SBA established the Women's Business Center Program in 1988, and in late 2002, SCMEP applied for and was awarded a 5-year grant to fund its center. Today, nearly 100 centers nationwide are funded by more than 80 grants.

SCMEP is a nonprofit organization that help manufacturers solve business and supply chain process problems. More information on the Women's Business Center is available at http://www.scwbc.org.

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Minnesota Governor Establishes Biodiesel Task Force
Minnesota Governor Tim Pawlenty recently announced the formation of a Biodiesel Task Force to accelerate development of the state's biodiesel industry. The nine-member group will advise the Minnesota Department of Agriculture (MDA) on methods to increase production and use of biodiesel in Minnesota.

Legislation passed by the 2002 Minnesota Legislature requires that 2 percent of Minnesota’s diesel fuel be replaced with biodiesel by June 2005. This requirement will take effect on the condition that the state has developed by that time an annual biodiesel production capacity of at least 8 million gallons. To help reach that production capacity and ensure a smooth introduction of biodiesel into the marketplace, the new task force will help promote and educate possible biodiesel developers, marketers, consumers and manufacturers.

Governor Pawlenty said the task force will play a key role in making biodiesel use widespread in Minnesota.

“The task force will be an important tool for spurring biodiesel production in Minnesota,” the governor said in a press statement. “It will generate new, creative ideas for biodiesel producers.”

The task force will include representatives from farm organizations, fat and oil processors, the petroleum industry, environmental and/or public health groups, grower organizations, research and education experts, and consumers. Task force meetings will cover all biodiesel issues from a regular update on local, regional and national biodiesel activities to discussions on developing the biodiesel market and production industry.

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NorTech Seeks Associate Director
NorTech – an organization whose mission is to ensure economic growth and leadership in Northeast Ohio by promoting entrepreneurially based globally competitive technology development and commercialization – seeks to hire an Associate Director who will be responsible for all activities associated with one or more initiatives and ongoing high level support for the initiatives. This includes for each assignment: planning; convening and coalescing support from CEOs; advocacy at the local and state levels; launching the initiatives; and maintaining an active governance or advisory role post launch. NorTech seeks highly qualified individuals who have demonstrated success as entrepreneurs, senior business development assignments in growth organizations, and/or leadership experience in public-private initiatives. More information is available at http://www.ssti.org/posting.htm.

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People

The Sacramento Area Regional Technology Alliance announced this week that Clare Emerson will replace Lewis Attardo as executive director.

U.S. Department of Transportation Secretary Norman Mineta has named Samuel G. Bonasso as Acting Administrator of the Research and Special Programs Administration following the departure of former Administrator Ellen G. Engleman, who left to become Chairman of the National Transportation Safety Board.

South Dakota Governor Mike Rounds announced Friday that John Calvin has been named Secretary for the Department of Tourism and State Development. The newly formed department combines the Governor’s Office of Economic Development, Department of Tourism, Office of Tribal Relations, Division of Cultural Affairs, and the South Dakota Housing Development Authority.

Bill Duncan is the first president of the Kansas City Area Life Sciences Institute, which held its inaugural event at the end of March.

Christopher Foster has been named technology coordinator for the Maryland Department of Business and Economic Development.

John Murray has been named executive director of the Maryland Economic Development Commission.

William Rosenberg has resigned from his position as CEO of the Michigan Broadband Authority. which approved its first loan at the end of March for wireless broadband service in several small towns.

William Seelbach has been named Interim President of the Ohio Aerospace Institute.

Elizabeth Sellars is the new manager of Idaho Operations for the Department of Energy.

Michael Witt has been appointed Executive Director of MichBio, the state's bioscience industry association.

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