In the August 8, 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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Western North Carolina Looks to Speed TBED in 'Future Forward' Plan
After months of analyzing data and hundreds of interviews, organizers of western North Carolina's Future Forward economic development strategy only await the study's approval by local governments. Future Forward is aimed at improving economic development conditions for 12 counties in the Western Piedmont and Mountains of North Carolina located in the 10th and 11th Congressional Districts — Alexander, Burke, Caldwell, Catawba, Iredell, Lincoln, Rutherford, Avery, Mitchell, Watauga, Wilkes and McDowell counties.

Specifically requiring approval are the study's final recommendations, which fall into three broad categories:

Along with consultants and staff from Hickory's Western Piedmont Council of Governments, the 21-member Future Forward Leadership Committee that organized the study is composed of citizens from each of the aforementioned counties. More than 150 people were interviewed and 10 community workshops that drew almost 400 people were held.

The need for Future Forward partly is found in the research findings in a separate study commissioned by the leadership committee. The findings revealed manufacturing employment in the 12-county western North Carolina region peaked in 1994 with 149,000 jobs but fell by 25,000 jobs before the current recession. Some of the region's industry clusters – textiles, apparel and furniture among them – were said to be at-risk while others were not. Clusters said to be "large and growing modestly" include construction materials, metalworking and industrial machinery, motor vehicle manufacturing technologies, primary nonferrous metals, and chemicals and plastics. Other "emerging" small clusters also were named.

Conceived in late 2002, Future Forward is supported by a $320,000 grant from the federal Economic Development Administration and an $80,000 commitment from a N.C. Community Development Block Grant. It is one of four comprehensive economic development strategy projects currently underway in North Carolina. Committee members hope to adopt the final plan early this fall, following a series of meetings with officials from each of the region's 12 counties.

For more information on Future Forward or the economic situation analysis, visit http://www.future-forward.net.

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Digital Divide News

TOP Reauthorized and To Grow, Says Senate Commerce Committee
The Technology Opportunities Program (TOP), a highly-competitive, merit-based grant program for stimulating digital network technologies in the U.S., might survive after all. The Senate Committee on Commerce, Science, and Transportation adopted S. 1478 on July 31, reauthorizing the National Telecommunications Information Administration (NTIA) for four years and effectively restoring funding for TOP. Under the reauthorization act, NTIA would receive $18.9 million in 2004 and $21.2 million annually by FY 2008. TOP, which was proposed for elimination by the Bush Administration, would receive $15.9 million in FY 2004, $16.3 million in FY 2005 and $17.9 million in FY 2008.

TOP awards matching grants to public and nonprofit organizations to demonstrate practical applications of telecommunications and information technologies and is managed by NTIA. To date, TOP has awarded 555 grants totaling $204.9 million and leveraging $282 million in local matching funds.

Illinois Loosens Grip on $11M Fund to Eliminate Digital Divide
Illinois took a new step toward eliminating its Digital Divide in rural communities when Gov. Rod Blagojevich signed Senate Bill 553 on July 30. The new law, which became effective immediately, makes it easier for technology providers to access grants from the Digital Divide Elimination Infrastructure Fund by changing the eligibility requirements. Under the new law, high-speed Internet providers can obtain a subsidy on the cost of building the necessary transmission facilities.

The Infrastructure Fund was established as part of Illinois' telecommunications reform package passed in 2001 and was intended to subsidize the construction of high-speed Internet service or advanced telecommunications infrastructure in rural areas of the state. However, the original eligibility requirements were too restrictive — only companies that had been waived of the responsibility for providing advanced telecommunications services could apply. As a result, no grants have been released since the fund's creation.

By the end of next year, a total of $11 million will have been allocated for the fund from money collected from SBC by the Illinois Commerce Commission.

Indiana Study Surfaces Islands of Connectivity
A statewide study evaluating Indiana's telecommunications infrastructure and level of technology adoption reveals the Hoosier State has "islands" of connectivity. Indiana Interconnect finds Indianapolis ranks 12th among the most-wired U.S. cities and central Indiana, with 80 percent broadband connectivity, compares favorably on a national scale. However, just 71 percent of Indiana's northern residents and 41 percent of its southern residents have broadband access, according to the study. Indiana Interconnect was conducted by the Indiana Economic Development Council, a public-private partnership, and sponsored by the Central Indiana Corporate Partnership. It is available at http://www.iedc.org/telecom/.

Michigan Legislature Approves $39M for Program Expansion
The $39 million recently approved by the Michigan Legislature for Freedom to Learn, a program that gives Michigan's students access to high-tech learning tools, may mean laptop computers for all of the state's 132,000 sixth-graders. Freedom to Learn was conceived in 2002 by the legislature, with a goal of funding demonstration sites that would implement fully wireless computing solutions. Those sites were named in November 2002. Now, the vision for the program is to expand it to all students in grades 6-12 by 2008. Freedom to Learn is jointly administered by the Michigan Department of Education and Michigan Virtual University, with the assistance of a 32-member statewide advisory group.

California Foundation Awards $1.8M in Grants
The Community Technology Foundation of California (CTFC) recently approved grants totaling $1.89 million to address, in part, the Digital Divide in the state's underserved communities. CTFC, incorporated in 1998, promotes social justice, access and equity through community technology. Drawn from CTFC's 10-year, $50 million SBC/PacBell Fund, the grants will aid California nonprofits in increasing knowledge of and access to assistive technology and disability resources. The grants target the state's low-income seniors, disabled, immigrant, limited English proficient, inner city and rural populations. A complete listing of grantees is available at: http://zerodivide.org/grants/grantee2003

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States Lead as Renewable Energy Needs, Opportunities Grow
Climate change. Global warming. Foreign oil dependency. Natural gas prices. Ozone alerts. Brownouts. Increasingly, energy related items grab the headlines, copy space and news coverage across America.

Strategies for dealing with energy issues vary — and spark some of the most heated debates in federal public policy. More and more sides of the energy discussion see research, development and commercialization of renewable energy technologies, while historically receiving negligible federal funding relative to traditional energy R&D, as playing more prominent roles toward solutions to the country's energy issues.

A recently released national study finds that, in the absence of this federal leadership, 19 states have acted to increase the nation's supply of wind, solar and other renewable energy resources. Plugging in Renewable Energy: Grading the States, released by the independent nonprofit Union of Concerned Scientists (UCS), assigns grades to all 50 states based on each state's commitment to renewable electricity (as determined by projecting the results of renewable electricity standards for electric companies and dedicated renewable electricity funds). Current state renewable energy generation also is considered. The report shows California, Nevada, Texas, Massachusetts and New Mexico account for nearly 80 percent of the nation's projected renewable gains.

California and Nevada led the nation with grades of A- for committing to increase the amount of electricity generated from clean, renewable energy sources. However, 34 states received grades of D or F for failing to adequately promote renewable energy.

UCS estimates the 19 states that have enacted renewable electricity standards or funds will increase total U.S. renewable energy capacity 113 percent by 2017. This increase will provide enough electricity for 10.4 million typical homes and eliminate as much carbon dioxide – the main heat-trapping gas causing global warming – as taking 7.4 million cars off the road.

Long-term funding for President Bush's initiative in hydrogen fuel/fuel cell development, the report says, could play a significant role in creating the national infrastructure needed to support additional new renewable energy opportunities.

The technical potential of renewable energy sources already could provide 5.6 times the amount of electricity the U.S. used in 2001. The top 10 states for overall renewable energy potential are North Dakota, South Dakota, Montana, Wyoming, Nebraska, Kansas, Iowa, Oklahoma, New Mexico and Minnesota (additional states become major players when considering specific renewable energy sources of wind, solar, bioenergy or geothermal). For those curious about the commercialization opportunity of renewable energy technologies within their state, Chapter Two and Appendix B of the study are dedicated to each state's renewable energy potential.

Unfortunately, the report does not discuss nor consider in its grades various states' important roles in supporting research, development and commercialization of renewable energy technologies.

Plugging in Renewable Energy is available at http://www.ucsusa.org.

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Useful Stats: Per Capita Income Across States Lends Insights
Recently released information on per capita income by state reveals the dramatic impact the dot-com boom and bust, plus the economic slowdown has had on income levels. Analyzing per capita income from 1998 to 2002 indicates that during that time every state but Nevada saw their per capita income increase. However, almost half of the states (23) peaked in 2000 and their per capita income has declined since.

SSTI has prepared two tables comparing per capita income from 1998 to 2002 across states in constant 2002 dollars. The first table <http://www.ssti.org/Digest/Tables/080803t.htm> shows the percentage increase in per capita income over the four years. The data show that for the country as a whole per capita income is up 3.96 percent since 1998, but it decreased during 2000-2002 close to 1 percent. Wyoming experienced the largest increase from 1998 to 2002 at 11.89 percent, and Washington D.C. and Vermont placed second and third, respectively. Nevada was the only state to experience a decrease in per capita income from 1998 to 2002 falling 2.54 percent.

The second table <http://www.ssti.org/Digest/Tables/080803t2.htm> ranks the states by per capita income in 1998 and 2002 and their relative change in rank over that time period. Wyoming shows the most dramatic gain, rising 13 places from 31st to 18th. Vermont also made significant strides, increasing from 34th to 25th.

Per capita income, as generated by the Bureau of Economic Analysis, is defined as total personal income divided by total midyear population.

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Pre-conference Workshops Focus on Burning Issues
Two of the most critical issues in today's tech-based economic development (TBED) involve money — funding for companies and funding for TBED programs. That's why preceding SSTI's 7th Annual Conference, Building Tech-based Economies: From Policy to Practice, two intensive workshops will be held on October 20, 2003, that focus on financing: developing angel organizations to help increase the amount of capital available for entrepreneurial companies and exploring new strategies in financing TBED programs.

Developing Angel Organizations: A Practical Guide
Angel investors, often receiving little press, have provided significant financing of entrepreneurial companies. Experts estimate that, on a cumulative basis, angel investments have been double that of venture capital over the last 30 years. Angels also are financing start-up and early-stage businesses, filling a void left by venture capitalists. In short, angels recognize opportunity exists even in a risk-averse market and are putting up their money as proof, but can they be found or nurtured just anywhere?

Presented by the Ewing Marion Kauffman Foundation, this half-day workshop will focus on the development of angel organizations, including a step-by-step process for determining whether or not your community can support an angel organization and, if it can, the organizational type and structure that is right for the involved investors and your community.

Financing TBED: New Times, New Strategies
What alternate sources of funding are best? Earmarks? Foundations? EDA funds? Revenue bonds? Private contributions? Should you privatize? Where do you start?

It can all be a bit intimidating, but after too many rounds of across-the-board cuts, your program's effectiveness could start to bleed. In this intensive full-day session, we'll look at the pros and cons, dos and don'ts, nuances and intricacies of incorporating non-state and alternative state finances into your TBED funding portfolio. We'll draw on the expertise of foundation leaders who have put millions into TBED programs, organizations that can tell the story of securing Congressional earmarks, a lobbyist disclosing how to work with and win over elected officials, and an EDA insider and EDA grant recipients on the process for gaining EDA funding.

Perhaps your TBED program will be one of the lucky ones that escapes the double impact of record federal deficits and the bleak forecast for the states' 2004 fiscal situation. A safer bet is, given the continuing fiscal crisis, if your TBED effort isn't exploring alternate sources of funding, it will be soon.

In addition to the above workshops, SSTI will offer:

Introduction to Tech-based Economic Development
Expanded to a full-day, this interactive workshop is tailored to those professionals new to TBED. Attendance is always limited to a small group to ensure each participant benefits from the personalized session. Engaging, educational and enjoyable, you will discover proven programs and policies for creating technology companies, financing high-tech firms, commercializing technology, and developing productive university-industry partnerships. Attend the session to find out what your peers and colleagues in successful communities and states are doing to build tech-based economies.

These three pre-conference workshops will give participants an honest and eye-opening assessment of the challenges presented, the risks taken, the limitations encountered, the prices paid, the payoffs earned, and the benefits gained in successfully building a tech-based economy. For complete information on SSTI's 7th annual conference on October 21-22, visit http://www.ssti.org/conference03.htm [expired].

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New National Academies Resources Available Online

Large-Scale Biomedical Science: Exploring Strategies for Future Research
The Human Genome Project, considered by life scientists to be their first foray into "big science," has paved the way for future large-scale projects that promise to lead to faster improvements in human health. But no guidelines on how to organize and fund such initiatives in the biomedical sciences have been available — until now.

A new report from the Institute of Medicine and the National Research Council (NRC) of the National Academies fills this gap by describing how the National Institutes of Health and other federal agencies should select, fund, launch and evaluate large collaborative biomedical projects, and how their scientific staff should be trained and retained.

"A large-scale approach is relatively new in the life sciences, so there are very few precedents to follow or learn from when planning and launching a new project of this magnitude," said Bruce Stillman, vice chair of the committee that wrote the report and director of Cold Spring Harbor Laboratory, Cold Spring Harbor, N.Y. "With the recent completion of the Human Genome Project, it is now time to reflect and determine the best and most efficient ways to perform such endeavors."

More information on Large-Scale Biomedical Science: Exploring Strategies for Future Research can be found at: http://www.nap.edu/catalog/10718.html

Effectiveness of Air Force and Technology Program Changes
NRC was mandated through the FY 2002 National Defense Authorization Act to perform a study on the effectiveness of Air Force science and technology (S&T) program changes. With a goal of assuring that the availability of technology necessary for continued U.S. military superiority is present, the research focused on the actions taken by the Air Force to improve organization of its S&T agenda and whether changes introduced by the Air Force since 1999 are sufficient to reach these goals.

Some findings of the report include:

Effectiveness of Air Force Science and Technology Program Changes can be found at: http://www.nap.edu/catalog/10720.html

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People

Rod Casto was recently appointed to the position of Associate Vice President for Economic Development in the University of South Florida's Office of Research. Mark Laurenzo also has been named the new Deputy Director of the Division of Patents and Licensing in the USF office.

The nonprofit Challenger Learning Center of Alaska Board of Directors recently announced the hiring of Sharon Gherman as its new Executive Director. Gherman was the former K-12 program executive for the Alaska Science and Technology Foundation.

Jacques Koppel, president of Minnesota Technology, Inc. since 1991, announced his resignation on July 28. Under Mr. Koppel's leadership, MTI worked with more than 5,600 manufacturing and technology companies around Minnesota, helping the state's economy realize gains of more than $700 million in the process. MTI's Board of Directors has appointed Frank Starke interim President to lead the organization during its transition from a quasi-state corporation to a private nonprofit corporation.

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SSTI Weekly Digest Takes August Recess
The SSTI Weekly Digest will be taking a brief summer break and will resume publication on Friday, August 22.

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