In the August 16, 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.

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Science & Engineering: Offering Jobs for All Ed Levels
The vast majority of the nation's four million science and engineering (S&E) occupations are held by individuals with a bachelor's degree education or higher; however, a surprising 22 percent - 1.036 million - are not, according to a National Science Foundation (NSF) InfoBrief released last week. The analysis, based on the April 2003 Current Population Survey, reveals 5 percent of S&E workers hold only a high school diploma and 17 percent reported an associate's degree as their highest level of educational attainment.

While not argued in NSF's InfoBrief, the findings support arguments for the important role vocational education and community colleges can play in training a regional tech-based economic development workforce. This is particularly apparent when the data are sorted by occupational group.

Computer and math sciences hold the greatest opportunity for individuals with less than a bachelor's degree, according to the report, where they already comprise 40 percent of all positions. Only 7 percent of physical science occupations are held by individuals with a high school diploma or associate's degree, while 20 percent of engineering positions went to similarly educated individuals.

Only 10 percent of occupations in the final two groups, life sciences and social sciences are held by individuals with less than a bachelor's degree. With the expected maturation of the biotech industry over the next few years, it is possible the percentage for the life sciences will grow as more jobs are created in lower wage, lower skill biomanufacturing.

The InfoBrief is available at: http://www.nsf.gov/pubsys/ods/getpub.cfm?nsf04333

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Iowa Charts 10-year, $302M Biosciences Plan
A recent study completed for Iowa calls for continued investment in the biosciences - a 10-year, $302 million plan - to grow the industry and to create new job opportunities for the state.

Iowa's Bioscience Pathway for Development, released earlier this month, highlights Iowa’s core competencies and platforms for development of the biosciences industry. The researchers recognize three important assets: strong bioscience research capacity at several of the state's universities; core bio-industrial competencies in sectors such as biomass conversion, traditional biotechnology, pharmaceuticals and medical devices; and a significant workforce base already employed in bioscience-related jobs.

In fact, the report contends that Iowa's employment in the biosciences industry is 24 percent higher than the national average, with jobs paying $12,000 more than the state's median income. This large employment base is concentrated in organic and agricultural chemicals, with a focus on industrial applications geared toward energy, industrial commodities and specialty health products.

The plan emphasizes the need to encourage and facilitate the commercialization of bioscience research and development while fostering a business environment that supports the growth and sustainability of Iowa's firms. Twenty action steps to be undertaken by various groups are outlined through four broad focus areas. The actions range from developing bioscience educational programs to creating and funding an economic development director position on the Iowa Board of Regents within the first 12 months of strategy implementation.

The plan's $302 million price tag would be funded over 10 years, with roughly $170 million coming from the sale of bonds and about $132 million from direct state appropriations. Each state dollar invested is expected to be leveraged 5 to 1, with an estimated $1.5 billion coming from federal, industry and other private sources. The total projected economic impact is 16,050 new bioscience jobs by the year 2015.

The Iowa Department of Economic Development (IDED) invested approximately $230,000 to complete Bioscience Pathway for Development and another study. More than 500 interviews were conducted with representatives of organizations across Iowa. The plan is available through IDED at: http://www.iowasmartidea.com/

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Useful Stats: State Business Churning Figures, 2002-2003
Conditions favorable for entrepreneurship in 2003 laid the foundation for job gains in 2004, according to a report issued last week U.S. Small Business Administration's (SBA) Office of Advocacy. Small Business Economic Indicators for 2003 notes that “the outlook for future small business expansion was positive at the end of 2003” due to the progress of some important economic indicators throughout the year.

Among the report's highlights, 2003 saw an estimated 572,900 employer firm births and 554,800 terminations. This resulted in a net increase in employer firms of 18,100, or 0.3 percent, while the number of non-incorporated self-employed rose by 369,000, or 3.7 percent. The report also confirmed that by the year’s end interest rates were low and banks had relaxed lending standards, leading to an uptick in job creation and employment.

SSTI has prepared a table presenting "business churning" statistics and rankings for all 50 states and the District of Columbia over 2002-2003, using data from the SBA indicator report. Business churning is a measure of new firm births and existing firm deaths as a share of total firms. This churning increases as the number of new start-ups and existing business failures per year increases. Business churning is seen as a major driver of innovation and growth.

The SSTI table is available at: http://www.ssti.org/Digest/Tables/081604t.htm [For state business churning statistics over the four-year period of 1998-2001, see the Feb. 21, 2003 issue of the Digest.]

Other state level data available in the report include the number of self-employed, business bankruptcies, and financial information. Industrial level data is provided for nonfarm private employment and the fastest and largest growing industries in 2002-2003. Other macro-level indicators for the U.S. economy also are presented.

For more information or to obtain a full copy of Small Business Economic Indicators for 2003, visit the Office of Advocacy at http://www.sba.gov/advo.

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When You Want the Complete Picture...
Few of us would consider one piece of a jigsaw puzzle to be sufficient for comprehending the whole picture. Similarly, a state or regional strategy to develop a knowledge-based economy is not complete with just one element of a complete portfolio to nurture science, technology and entrepreneurship.

Research has found innovation does not follow a simple linear path, but instead requires a complex system of inputs. It also happens locally with the presence of key resources. Strategically developed public and public-private initiatives can be supportive players in strengthening a regional innovation system, but only if well designed, well managed and well funded.

While there are several great organizations and associations around the country offering valuable assistance to the key elements of tech-based economic development, only SSTI provides a balanced, impartial and comprehensive picture of what it takes to grow your tech-based economy.

We believe that's why SSTI's annual conferences have grown to be so well respected in the field. Building Tech-based Economies: Preparing for Tomorrow's Challenges, to be held in Philadelphia on Oct. 13-15, promises to be no different. With an array of 30 stimulating breakout sessions and four timely pre-conference workshops, our eighth annual conference provides practitioners and policymakers alike the most complete resource to hone your professional skills and refine your tech-based economic development programs.

The 15-plus brief stories in the Tech Council, Research Park and Seed Capital items below demonstrates there are several different pieces required to building a tech-based economy. Individually, the items may not seem substantial; viewed collectively, one begins to sense the larger whole. To put all the pieces together to complete your state or regional innovation picture, join us in Philadelphia.

More information, including a registration form, is available at: http://www.ssti.org/conference04.htm [expired]

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Tech Council News

Forum Aims to Support Entrepreneurs in Southern New Jersey
A business support group for newly-formed companies, the Entrepreneurs Forum of Southern New Jersey, is promoting a more entrepreneurial-friendly environment in the Southern New Jersey region by partnering with universities and area businesses. The nonprofit group plans to leverage the resources of Rowan and Rutgers universities, business leaders, and government officials to improve the flow of ideas, services and funding to entrepreneurs. Private companies are providing funding for the forum to deliver free and low-cost services as well as planned seminars, events and networking opportunities to young companies in the region.

TAG Launches Council to Serve Minority Interests
The Technology Association of Georgia (TAG) recently launched the Minority Technology Council, a special interest group to help advance the interests and careers of ethnic minority technology professionals. The council will operate as part of TAG, providing an inclusive forum for members to network, share best practices, and gain access to mentoring, business and leadership opportunities.

CodeME Keeping Tech Jobs in the State
To retain technology jobs in the state, the Maine Software & Technology Industry Association (MESDA) has created a free online technology assistance service to provide Maine businesses with a resource to locate companies within the state and help them with their technology needs. CodeME matches businesses needing to implement new technologies such as software development services, technology consulting, and other tech-related services with Maine companies providing them. The program has generated 57 leads representing more than $1 million in potential contracts for Maine computer companies this year, according to an article in the Portland Press Herald. Computer companies face increased competition from offshoring, which MESDA hopes to alleviate with this service.

Groups Merge to Form Regional Entrepreneurial Network
Two entrepreneurial groups are combining their efforts into a new economic development network designed to stimulate economic development through the creation and growth of high-tech companies in the Piedmont Triad region of North Carolina. The newly-formed Piedmont Triad Entrepreneurial Network (PTEN) will combine programs from the Piedmont Entrepreneurs Network and the Triad Entrepreneurial Initiative. According to PTEN, the organization will focus on five major areas to nurture new, emerging businesses. The areas include networking, education and mentoring, business plan competitions, capital access, and communications. The initiative will be funded by Action Greensboro, Winston-Salem Alliance, High Point Partners, and corporate sponsors.

South Florida Focusing on Biotech
The South Florida Bioscience Consortium is leading an effort to transform South Florida into another Silicon Valley or Research Triangle, a South Florida Sun-Sentinel article recently reported. The consortium is a 30-member group of business leaders, pharmaceutical companies and university researchers, who have been working together over the past year and will recommend how the region should sell itself nationally and internationally as a leader in the biotech industry, according to a recent Associated Press article.

Medical Technology Companies Form Organization in Central New York
The formation of CNY MedTech, a nonprofit trade association to unite and energize central New York’s medical technology sector, was announced in July. Four leading companies formed the association, which aims to bring together medical technology companies, pharmaceutical companies, university leaders, and others to exchange information about new technologies and ways to attract researchers. According to an article in The Post-Standard, Sen. Hillary Rodham Clinton (D-NY) suggested the idea last year that local medical technology and drug companies work together to brand central New York as a major medical technology center, and she will be a speaker at the CNY MedTech kickoff event in October.

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Research Park News

Rowan University Wins Approval for Technology Park Loan
A $5 million low-interest loan was approved in June to fund the South Jersey Technology Park at Rowan University. The Delaware River and Bay Authority’s (DRBA) Board of Commissioners approved the loan, which will be owned by the DRBA and leased to the university until the loan is repaid, according to the Courier-Post. The Courier-Post article states Rowan has secured more than $12 million for the first phase of the project, including a $6 million grant from New Jersey’s Economic Development Authority. The park could open as soon as 2006.

Oregon State University Moving Ahead With Research Park Plans
Oregon State University will request proposals to develop a research park that would bring technology-oriented companies to the region and create spin-offs, according to a university press release. Rich Holdren, vice provost for research, said the university would like for the research park to have three anchor buildings that will include multiple clients, with a focus on technology. The park also would have separate lots to attract new businesses, which could build free-standing facilities to fit their needs. University officials hope to have the solicitation process completed by the year's end, with the first building in the research park to be completed by July 2006.

Wayne State University Opens First TechTown Building
TechTown, Wayne State University’s Research and Technology Park in Detroit, opened its first building, TechOne earlier this year. TechTown serves as an urban center for technological research and entrepreneurial activity and is part of the revitalization and development activity occurring in mid-town Detroit. General Motors donated the TechOne building, and a $12 million renovation was funded by public and private entities in partnership with TechTown.

Florida Gulf Coast University Plans for Biotech Research Park
Florida Gulf Coast University President William Merwin announced earlier this year plans to build a 20-acre biotechnology research park, contingent on land that the university is slated to receive from a Naples, Fla., developer. The developer has donated 80 acres of land to the university, and the deal should be completed this fall, according to The News-Press. University officials, the articles states, say the idea for the park came from the Scripps Research Institute’s decision to expand a satellite center in Palm Beach County.

Environmentally Friendly Developer Chosen for New Tech & Energy Park
The New York State Energy Research and Development Authority recently selected a developer for its 280-acre Saratoga Technology & Energy Park in Malta, N.Y. Small clean-energy companies housed by the park must earn at least a basic certification form the U.S. Green Building Council. The Authority helps to develop new and more efficient energy technologies in the state.

Angel & Venture Capital News

Boise Gains First Angel Investor Network
The Boise Angel Alliance, the city's first angel investor network, was launched in June drawing about 50 investors to its first session, The Idaho Statesman reported. The Idaho Office of Science & Technology and the venture capital committee of the Boise Metro Economic Development Council, which together formed the alliance, said they expect to run the network on their own. A screening committee reviews the plans set forth by companies that must then make a 10-minute presentation at the angel meetings, followed by a five-minute question-and-answer session. Investors may privately contact the companies afterwards if they are interested.

Illinois Commits $50 Million for VC Fund
Although a modest amount compared to other state initiatives, Illinois will invest $50 million in venture capital funds that the state treasury department promises will create jobs and provide a good return. The Technology Development Fund will not invest directly in companies, but rather in venture funds based in the state to minimize risk, the Chicago Tribune reports. According to the Tribune, former Gov. George Ryan initially introduced the idea for the fund over four years ago in an effort to make Illinois more attractive to entrepreneurs and venture capitalists.

Louisiana Takes On Capital Needs on Several Fronts

Wisconsin Focusing on Development of State-wide Angel Network Fund
To fuel rapid development and expansion of high-growth industries in Wisconsin, the state Department of Financial Institutions (DFI) will focus on establishing a state-wide angel network fund. DFI currently is creating an online portal called the Angel Capital Resource, to direct angel investors to the networks and other resources in the state, Wisconsin Technology Network reports. The department also will collaborate with other state agencies to produce an annual study of Wisconsin businesses to capture trends in entrepreneurship and obstacles faced by new businesses. According to DFI Secretary Lorrie Keating Heinemann, the department hopes to create a $10 million state-wide fund, however, collaboration is needed between the private and public sectors as well as the legislature in order to do so.

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