In the April 5, 2004 Issue:

Copyright State Science & Technology Institute 2004. 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.

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.

Pa. General Assembly Approves Economic Stimulus Plan
Shortly after a General Assembly vote last week, Pennsylvania Gov. Ed Rendell announced the bipartisan approval of the remaining components to the state’s economic stimulus package. The governor's plan is intended to fuel major new investment in communities across the state.

Eight final programs were approved by the General Assembly, adding to the previous five that were passed in December 2003 and February 2004. The passage of all components of Pennsylvania's stimulus package calls for more than $2 billion in investment to attract at least another $5 billion in private investments for community revitalization, site preparation, infrastructure improvement and construction, and businesses. The investments will focus on high-growth companies and provide resources to allow traditional industries such as manufacturing access to new technologies in order to enhance productivity, according to the Department of Community and Economic Development.

Tech-based economic development initiatives include:

Other initiatives include Businesses in Our Sites, which offers flexible loans and grants for local municipalities and their economic development partners, and Building PA, which provides funding for the development of real estate assets within Pennsylvania. Another program, Core Industries, will add an additional $75 million in revolving loan funds to the Machinery and Equipment Loan Fund and increase the maximum loan amount from $500,000 to $5 million.

More information on Pennsylvania's stimulus plan is available at: http://www.newpa.com

return to the top of this page

Wisconsin Gov. Expected to Sign $62M VC Bill
Legislation to create investment tax credits and a technology commercialization grant and loan program was approved by the Wisconsin Assembly just before the close of the legislative session. Intended to encourage high-tech industry and entrepreneurship in the state, Senate Bill 261 is designed to create approximately $62 million in new funding for start-ups.

A recent study from Competitive Wisconsin, Inc., a nonpolitical lobbying group of agriculture, business, education and labor leaders, reported that the state is losing ground on key economic indicators of financial, employment and knowledge-based strengths. Venture capital (VC) disbursements per worker in 2002 were down nearly 75 percent from their peak in 2000, the study shows. To help give small businesses the tools they need to be successful and create jobs, SB 261 offers assistance in  three areas:

According to the press office of one of the bill's co-authors, the bill is supported by Gov. Jim Doyle and expected to be signed into law.

The bill is available in its entirety through the Wisconsin legislature at: http://www.legis.state.wi.us/2003/data/SB261hst.html

return to the top of this page

$270M for VC Financing among Canada Budget Initiatives
Increased financial support for start-up companies and the research sector has the attention of Canadian Minister of Finance Ralph Goodale. In the Minister's 2004 budget report, released last month, venture capital (VC) initiatives totaling $270 million (CAN) are targeted for investment. Combined with private sector investments, total VC funding is expected to amount to $1 billion.

Canada is uniquely positioned to benefit from the current global economic recovery, the budget report states. The VC funding, which is reserved for the Business Development Bank of Canada (BDC) and the Farm Credit Corporation, would be directed into four areas:

Venture capital financing in Canada dropped 40 percent last year, the lowest level in seven years, according to MacDonald & Associates, Ltd. In Alberta, 38 percent of tech firms are considering leaving the province unless their ability to raise venture capital is improved, a recent Ernst & Young report found.

To further support start-up companies and entrepreneurship, Minister Goodale introduced numerous tax measures, including: 1.) increasing the small business deduction limit from $200,000 to $300,000; 2.) enabling businesses full access to the 35 percent refundable scientific research and experimental development investment tax credit; 3.) extending non-capital loss carry forward period to 10 years; and 4.) implementing a system to provide fair, equal and less expensive access to all businesses applying for government procurement opportunities.

Canada's universities, hospitals and research facilities also would receive increased support under the 2004 budget. A total of $80 million is set aside for these institutions in an effort to improve their capacity for commercialization of research. The total includes $25 million over the next five years to support proposals by federal science-based departments and agencies and $5 million for the Industrial Research Assistance Program, which promotes regional innovation initiatives.

The BDC, which would authorize the bulk of the VC investments, is expected to establish advisory committees consisting of scientists, engineers and financers to help target these investments. Canada's 2004 budget report is available at: http://www.fin.gc.ca/access/budinfoe.html

return to the top of this page

Nanotech Continues To Emerge In Massachusetts
Although Massachusetts' universities may be at the fore of nanotechnology research and development (R&D), they must continue to win on research for the state to stay competitive for federal funds, suggests a recent report by the Massachusetts Technology Collaborative (MTC) and the Nano Science and Technology Institute (NSTI).

Massachusetts is experiencing a surge in nanoscale technologies, according to Nanotechnology In Massachusetts. As of February 2004, close to 100 companies in the state are using or developing the technologies, half of which are within the healthcare and electronics industries. Massachusetts' venture capital community also has invested in companies using or developing nanotech. In 2003, these firms attracted more than $120 million in funding, second only to California's $480 million.

For Massachusetts to remain competitive in nanotech R&D domestically and abroad, the report argues, the state's universities must continue producing the innovations that have made the state a leader. Nine Massachusetts universities are said to be involved in nanotech R&D, including Harvard University, the Massachusetts Institute of Technology, and the University of Massachusetts campuses. Additionally, two of the nine National Nanotechnology Initiative “Centers and Networks of Excellence” are located in the state.

As nanotech R&D continues to surge across the U.S. and globally, the competition for federal research funds becomes increasingly fierce. Approximately $3.7 billion over the next four years has been authorized by the federal government for nanotech research, the report indicates. Spending on research and commercialization by Japan and the European Union is comparable to that of the U.S., according to NanoBusiness Alliance. The National Science Foundation predicts that the total market for nanotech products and services will reach $1 trillion by 2015.

The joint MTC and NSTI report includes industry summaries of the nine major areas in which nanotech has the greatest potential to make an impact. The areas include materials, instrumentation, electronics, healthcare, defense, sensors, energy, manufacturing and environment. Products currently using nantotechnology science include advanced computer chips, clothing, tennis balls, foods, ski wax, digital cameras, drugs and medical therapies.

MTC is the state's economic development agency for renewable energy and the innovation economy. NSTI, an interdisciplinary consultancy, assists industrial, academic and governmental organizations in realizing nanotechnology objectives. Nanotechnology In Massachusetts is available at: http://www.masstech.org/nano/index.htm

return to the top of this page

PTC Finds Pa. Region's Tech Industry Marked by Increased Wages, Job Loss
A significant reduction in employment among southwestern Pennsylvania's technology industries in 2002 was not enough to offset signs of a turnaround, according to new data released by the Pittsburgh Technology Council (PTC). Over the second half of the year, a turnaround began to emerge and technology companies accounted for nearly 17.5 percent of the region’s workforce, PTC's annual State of the Industry Report shows. The region's technology industries also experienced an average 4 percent increase in annual wages.

Released last month, the PTC report attempts to take a deeper look at the emerging technology clusters found in southwestern Pennsylvania. The updated report considers the contributions of technology companies to the 13 counties comprising the region, drawing on growth numbers from 2002.

In all, thirteen key industry clusters are identified by PTC. Covered in this year's edition of the State of the Industry Report are eight new clusters, including: system-on-a-chip, data storage, nanotechnology and micro-electro mechanical systems, cyber security, tissue engineering and regenerative medicine, electro-optics, robotics, and fuel cells. The report details the importance and future contributions of these technologies for southwestern Pennsylvania.

The region's tech industry took a hit during 2001-2002, losing 400 tech companies and 5,000 tech jobs, the report observes. PTC notes, however, that wages have increased in each of southwestern Pennsylvania's existing five clusters. Information technology led all sectors with an average 11 percent wage increase across the metropolitan statistical area. As an example, the average annual wage for the software sub-cluster was the highest in the report at $71,300.

PTC also indicates that the region's universities have experienced growth in research and development (R&D) spending, fueled by activity in the life sciences. For 2002, Carnegie Mellon University reported a sharp increase of 58 percent in R&D spending over the prior year, while the University of Pittsburgh reported an 8.5 percent increase in the category. Combined, the two universities accounted for an all-time high of 76 patents, a 13 percent increase.

Southwestern Pennsylvania is comprised of Allegheny, Armstrong, Beaver, Bedford, Butler, Cambria, Fayette, Greene, Indiana, Lawrence, Somerset, Westmoreland and Washington Counties. The State of the Industry Report is available at: http://news.pghtech.org/report.cfm

return to the top of this page

HHMI To Fund New Va. Biotech Magnet Program
The Howard Hughes Medical Institute (HHMI) announced last month a partnership with the Loudoun County, Va., school district to donate $1 million per year to establish a biotech magnet program for area high school students.

The nonprofit’s support of the Loudoun district was made in connection with a tax break for a new research campus at Janelia Farm, scheduled to open in 2006. The district is hoping some of the nearly 300 scientists expected to work at the new facility will also sponsor student research programs and act as mentors.

An empty wing of the district’s new Dominion High School will house the program that will be open to students through a competitive application process. Students will attend the program every other day, while remaining at their home high school for other classes and extracurricular activities.

Two other initiatives included in the partnership are:

According to HHMI, research has indicated that a student’s interest in science tends to peak around middle school and declines from there because of a perceived dullness in classroom teaching. The hands-on learning experience is intended to help bolster interest in the science field.

Included in the 2005 Loudoun County school district budget is $100,000 to hire a coordinator who will plan the curriculum and application process for the new program.

Since its inception in 1988, HHMI has invested more than $1.4 billion in activities for students across the country. More information on the partnership with Loudoun County is available at: http://www.hhmi.org/news/032504.html

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

© 2004 State Science and Technology Institute. All rights reserved.