In the May 30, 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.

Subscription to the SSTI Weekly Digest is free. If you are reading a forwarded copy of this issue and would like to receive your own copy each week directly, please subscribe at http://www.ssti.org/Digest/digform.htm. Requests to unsubscribe also may be completed at http://www.ssti.org/Digest/digform.htm.

Jobs and Growth Bill Provides $20B in State Aid
On Wednesday, President Bush signed the Jobs and Growth Tax Reconciliation Act of 2003, providing $20 billion in fiscal relief to state governments. Half of the $20 billion will come through an increase in the federal share of Medicaid.

The Federal Funds Information for States (FFIS), a joint subscription service of the National Governors' Association and the National Conference of State Legislatures, has published a table showing how the State Fiscal Relief Fund will be divided over fiscal years 2003-2004. The state-by-state table, available at http://www.ffis.org/ff/sfr052303.pdf, estimates fiscal relief allocations.

An amendment to the budget reconciliation bill (S. 1054) providing the $20 billion in fiscal relief was adopted May 15 by the U.S. Senate on a 97-3 vote. The reconciliation bill itself passed the Senate the same day.

Fiscal relief funds are expected to go toward education or job training, health care services, transportation or other infrastructure, law enforcement or public safety, and other essential government services. S. 1054 is available in its entirety at http://thomas.loc.gov/.

return to the top of this page

Cities Raise Fees and Taxes, Cut Projects and Staff to Deal with Fiscal Squeeze
A survey of 330 cities and towns by the National League of Cities (NLC) shows that cities are raising fees and taxes while cutting infrastructure spending and city staffs in order to deal with the worst fiscal conditions for municipalities since NLC began its annual survey of city finance managers in 1985.

The survey's release follows House and Senate conferees' decision to ignore a 95-3-2 Senate vote that would have provided $4 billion to local governments as part of the President's Jobs and Growth bill.

More cities are less able to meet their financial needs, according to NLC. Four out of five cities (79 percent) report they are less able to meet financial needs than they were during the previous year. This is a sharp rise compared to NLC’s 2002 survey, which listed 55 percent of cities as being less able to meet financial needs.

Cities face a 4 percent gap between revenue and spending, NLC adds. The gap between revenues and spending is highest in more than a decade. Revenues are down 1 percent over the previous year while spending is up 2.9 percent, making for a 4 percent gap.

NLC also highlights the following:

NLC argues that all levels of government should work together to prevent higher unemployment, lower incomes and lesser construction in response to declining city fiscal conditions. Congress should fast-track a stimulus package for states and communities, and state governments looking not to devolve fiscal crises to local governments should broaden tax bases and enable cities to diversify revenue portfolios. Local governments, NLC states, "should borrow now, invest in infrastructure expansion, and pay off the costs later."

To take a more active posture toward addressing the fiscal crisis facing cities and towns, NLC convened top economists and federal fiscal analysts on May 27. The three-hour roundtable discussion held at the National Press Club in Washington D.C. included former Congressional Budget Office (CBO) and Office of Management and Budget Director Alice Rivlin, CBO Deputy Director Barry Anderson, and other analysts and local elected officials. Participants presented their views on the federal tax and budget policies that should be sought in light of current projections of U.S. spending in Iraq, federal budget deficits, tax cuts, and state and local needs.

NLC serves as a resource and advocate for 18,000 cities, towns and villages that collectively serve 225 million people. To access the NLC survey, visit http://www.nlc.org.

return to the top of this page

DHS to Create Cybersecurity R&D Center; NIST Offers Help
A proposed Cybersecurity R&D Center is the centerpiece of the Department of Homeland Security's (DHS) first research agenda for information analysis and infrastructure protection, according to recent testimony presented by Dr. Charles McQueary, Under Secretary for the DHS Science and Technology Directorate, before the House Science Committee.

To be developed in partnership with the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST), the DHS Cybersecurity R&D Center will provide a DHS focus for the many cybersecurity research, development, test and evaluation activities underway in the defense and intelligence, academic and private laboratory communities.

Dr. McQueary outlined four roles for the center:

The center will be established with FY 2003 funds.

Dr. McQueary's complete testimony, which includes a brief discussion of several other DHS R&D activities in the cybersecurity area, is available at: http://www.house.gov/science/hearings/full03/may14/mcqueary.htm

Commerce-Homeland Security MOU
To help establish cyber-protection technical standards, DHS will work closely with the Department of Commerce's Technology Administration (TA) under an agreement signed last week by Dr. McQueary and the Under Secretary of Commerce for Technology Phillip Bond.

The Memorandum of Understanding (MOU) develops a formal working relationship with the DHS Science and Technology Directorate and TA's NIST. NIST research includes programs for the detection of chemical, biological and other explosive threats. NIST is also working to develop "interoperability" standards for first responders and is doing work on cybersecurity, radiation measurements, and biometrics, among other initiatives. For cybersecurity, the goal is to develop common technical standards to support U.S. Industry and DHS.

"The MOU formalizes a collaboration that will serve both of our Federal agencies well. NIST has already been engaged in providing technical expertise in several important national homeland security priorities. DHS can continue to rely on NIST to assist industry through standards and measurements in bringing new homeland security technologies into the marketplace. I look forward to working closely with the DHS Science and Technology Directorate," said Arden Bement, NIST Director.

return to the top of this page

NBIA Honors Excellence in Business Incubation
The National Business Incubation Association (NBIA) honored six top incubation programs, graduates and clients at its 17th International Conference on Incubation, held May 18-21 in Richmond, Va. Award winners are highlighted below:

A nonprofit organization, NBIA advances business incubation and entrepreneurship by providing training and information on incubator management and development issues and on tools for assisting start-up firms. For more information, visit NBIA at http://www.nbia.org.

return to the top of this page

Greater Philadelphia Acquires Road Map to Build Innovation Economy
Innovation Philadelphia, a public-private partnership, the Greater Philadelphia Chamber of Commerce, and the city of Philadelphia have developed a road map that identifies the future drivers of the Greater Philadelphia economy and provides a framework for developing these drivers.

A Road Map for Regional Growth: Connecting the Greater Philadelphia Innovation Economy represents the broader interests and perspectives of the 11-county regional business community, nonprofit community, higher education, and local agencies and governments. It articulates regional competitive advantages and identifies target opportunities that, if developed in a focused and determined manner, will allow Greater Philadelphia to reclaim a role as a leading global innovator.

The target areas include opportunities in evidence-based medicine; information technology and software; digital media and the arts; cancer research; chemicals, including polymers, coatings and advanced fibers; propellers, propulsion and rotorcraft; and advanced materials or nanotechnology.

Identification of the targets involved data collection and analysis of Census Bureau ES202 county employment and wage data and the Rand Corporation’s RaDiUS (Research and Development in the United States) dataset, an analysis of the region’s academic paper and patent activities, interviews with regional leaders, an online regional mindset survey, and an inventory of universities’ institutional capacity for innovation. Targets identified were tested against trends in technology convergence and global markets. Insights and recommendations from regional leaders and stakeholders were then solicited through a series of working sessions.

To ensure the road map becomes the region’s framework for implementation of the findings, "hot teams" are being created in each target area to develop business plans and metrics. Hot teams consist of 8-12 individuals representing key institutions, industry interests, entrepreneurs, venture capitalists and resources for advancing priorities. The teams will be charged with a series of "must do" actions. Additionally, a "trust team" comprised of 18-22 regional civic, business, academic, entrepreneurial and investor leaders will oversee the hot teams.

If Greater Philadelphia can build a foundation in the target areas over the next two years, then it will position itself in the global marketplace of ideas, discoveries, products and innovation, the authors state. The key, they say, is to accelerate economic churn throughout an innovation lifecycle in which mature firms spawn new companies and a new lifecycle begins. Such a lifecycle starts with business conception, leads to formation and continues through growth until reaching maturity.

Innovation Philadelphia's mission is to enhance the global innovation economy of Philadelphia through technological leadership. A Road Map for Regional Growth is available at http://www.ipphila.com.

return to the top of this page

State and Local Tech-based ED RoundUp

San Pablo, CA, College to Use $2.1M EDA Grant to Build Biotech Incubator
Contra Costa College has secured a $2.1 million federal grant for a biotech startup center, the Contra Costa Times reported earlier this month. A matching requirement set up by the federal Economic Development Administration, the source of the $2.1 million, means the project will receive additional funding from nearby cities. San Pablo gave all of the amount asked of it, and Richmond contributed about half the match money, the Times states. Other cities putting up partial commitments will evaluate their support on a continuing basis. The 14,000-square-foot biotech incubator will allow space for eight tenants, once construction – expected to be done by next summer – is completed.

Camden, AR, Celebrates Groundbreaking for Incubator
The City of Camden, Ark., held a groundbreaking ceremony on Wednesday for its new business incubator, the Ouachita Valley Business and Technology Center, according to the Associated Press. Three years ago, the Environmental Protection Agency awarded Camden a $250,000 grant to clear and decontaminate a brownfield site for the incubator and a light industrial park, the AP reports. Then, in 2002, the city won a $1.5 million grant from the federal Economic Development Administration. Camden, with a population just over 13,000, will finance the incubator with a one-cent sales tax approved by voters in July 2001. The sales tax is expected to raise $6 million over four years to support downtown business revitalization efforts.

Despite Unstable Environment, Continued Steady Growth Projected for Connecticut’s High Tech Sector
A study co-sponsored by Connecticut Innovations, the state’s high-tech investment arm, and PricewaterhouseCoopers indicates that Connecticut's Emerging Technology companies employ 52,000 people — more than a 15 percent increase over last year. Emerging Technology companies, defined as those with fewer than 500 employees whose sustainable competitive advantage is based on technology or technology expertise, number 200 less than a year ago. The decrease in the number of companies correlates with year 2002 revenues, which were $9.5 billion and represent a decrease of 7 percent from revenues for year 2001. However, average per company revenue increased from the $7.5 million average projected for 2001 to $7.9 million projected for 2002. Respondents, in total, are predicting employee growth – 57,000 employees for this sector are forecasted by the end of 2003. Revenues are forecasted to be $12 billion.

Indiana University Launches Emerging Technologies Center
An estimated 300 academics, business professionals, sponsors and civic and government leaders attended a recent ceremony to dedicate the Indiana University Emerging Technologies Center (IUETC). A part of the Central Indiana Life Sciences Initiative launched in February 2002, IUETC functions as a business incubator and accelerator for life sciences, biotechnology and bioinformatics companies. The City of Indianapolis directed $500,000 toward starting the incubator, which will be overseen by IU's Advanced Research and Technology Institute.

MEDC Launches $2M Entrepreneur Fund for Pfizer Layoffs
As part of its $30 million Life Sciences Corridor awards this year, the Michigan Economic Development Corporation has authorized the creation of a $2 million emergency fund to assist recently laid-off Pfizer scientists and professionals in beginning new business ventures. An Associated Press story reports Kalamazoo's Southwest Michigan First, which had 6,500 Pfizer employees in 2002, anticipates having 17 business proposals ready from former Pfizer employees when the fund opens. Additionally, Southwest Michigan First recently announced new biotech businesses formed by Pharmacia researchers not offered jobs when Pfizer bought out the company will have access to a $1.6 billionnational venture capital network called the National City Life Sciences Fund Network. More information on the 2003 Michigan Life Science awards is available at: http://medc.michigan.org/lifescience/

University of North Dakota Gets $2.6M to Expand Center for Innovation
Expansion of the University of North Dakota's Center for Innovation moved one step closer to reality last week with $1.8 million in private donations and an $800,000 state appropriation, according to the Grand Forks Herald. Ray Rude, a retired airplane-part manufacturer of western North Dakota, gave $1.5 million to fund a 19,000-square-foot building to be named after his late wife, Ina Mae. An anonymous member of the center's board donated another $300,000 for a total of $2.6 million, moving the center closer to its $2.9 million goal. The incubator currently hosts 21 tech ventures employing more than 80 people with advanced degrees, or people working on advanced degrees. When completed, the Ina Mae Rude Entrepreneur Center will be able to house 50 additional entrepreneurs, students, mentors and investors.

TEDCO, U.S. Navy Partnership Will Increase Tech Transfer
The Maryland Technology Development Corp. (TEDCO) recently became the first agency to sign a Partnership Intermediary Agreement (PIA) granted by the U.S. Navy with the Indian Head Division - Naval Surface Warfare Center (IHDIV - NSWC). The partnership will enable the two agencies to develop a more effective outreach program to small businesses, state agencies and academic institutions to increase technology transfer and the collaborative use of Indian Head facilities. TEDCO's mission is to foster the development of a technology economy that will create and sustain businesses throughout all regions in Maryland. IHDIV specializes in the research and development of energetic materials for the Department of Defense.

return to the top of this page

People

Stephen Jeffery has been appointed the new president/executive director of the Technology Association of Georgia.

Sandy Layman was named commissioner of the Iron Range Resources and Rehabilitation Agency (IRRRA) earlier this month. IRRRA promotes economic development in Northeastern Minnesota.

Tim Witsman recently resigned as president of the Wichita Area Chamber of Commerce to pursue other opportunities in the community. Witsman headed the area's lead economic development agency for 15 years.

return to the top of this page

State Science & Technology Institute
5015 Pine Creek Drive
Westerville, OH  43081
Phone: (614) 901-1690
Fax: (614) 901-1696
Email: ssti@ssti.org

© 2003 State Science and Technology Institute. All rights reserved.