In the November 15, 2004 Issue:

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Canada Launches $125M Facilities to Advance Tech Commercialization
To increase the commercial value and economic benefits of federal investments in scientific research, the National Research Council of Canada (NRC) is launching six new research and innovation facilities valued at over $125 million.

Minister of Industry David Emerson said the new facilities will be directed toward turning Canada’s investments in research into more products, services, high quality jobs, and increasingly productive and competitive businesses. Facility sites are located in Vancouver, Winnipeg, Ottawa, Ville Saguenay, Fredericton and Charlottetown.

Each facility was designed to meet specific needs as defined by the local research infrastructure and the regional technology cluster, according to NRC. The facilities, scheduled to open on various dates throughout November, will focus on the following technology sectors:

More information on the facilities is available from the NRC Canada at: http://www.nrc-cnrc.gc.ca/

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Georgia Tech’s $5M Tennenbaum Institute to Focus on Enterprise Transformation
For most people in the business sector and economic development field, perhaps, the word "innovation" is quickly associated with tech start-ups and entrepreneurial businesses. The new Tennebaum Institute at Georgia Tech, opened last month with a $5 million donation from school alumnus Michael Tennebaum, is hoping to change that.

The multidisciplinary center is structured to help private, public, nonprofit and educational enterprises to recognize and embrace innovation throughout their organizations -- transforming "their strategies, operations, and cultures, thereby enabling substantially enhanced stockholder value." The premise is that innovations involving processes rather than new products are often overlooked, as are innovations occurring within existing businesses.

Executive director William Rouse said the institute would help member companies determine what types of emerging technologies will be available in 5-10 years and how adopting them could change the way the companies operate. Focus technology and business areas will include aerospace, automotive, banking, computing, defense, education, health care, pharmaceuticals, retail, telecommunications, and transportation.

According to Georgia Tech, the institute and its members will work together to research the interdisciplinary nature of enterprise transformation and identify and evaluate best practices for achieving transformation. More information is available at: http://www.ti.gatech.edu/

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VC News
With the goal of creating new access to venture capital (VC) for area businesses, Arizona and Montana are investing up to $50 million into a “fund of funds” concept. Both states are undertaking this multi-management model with the hopes of luring high-tech start-up companies. Their efforts are described in further detail below.

Arizona
The State Compensation Fund (SFC) announced its pledge to invest up to $25 million in a “fund of funds” concept to help make venture capital more accessible to high-tech start-up businesses in the state. The Knowledge Capital Fund will strive to raise $100 million to invest in private venture capital funds, which then invest in Arizona firms magnifying the state’s competitive position in the global marketplace, according to SCF. The structure of the fund is still being considered, according to an Associated Press article. However, it is intended to be a purely private-sector venture that does not rely on state appropriations or tax credits.

Montana
The Board of Investments will invest $25 million with Credit Suisse First Boston in a “fund of funds” project to increase investments in regional venture capital funds. Credit Suisse will be required to raise an additional $15 million to $50 million for regional investments focusing on Montana, Idaho, Utah and Eastern Washington. The idea for the fund evolved from legislation developed in 2003 to create a private, professionally run venture capital fund in which institutional investors could invest, according to State Auditor John Morrison.

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SBA Report Outlines State of Small Business
The Office of Advocacy of the U.S. Small Business Administration recently unveiled a new federal government report outlining the state of small business and its contributions to the economy. The Small Business Economy, 2004, the latest in an annual series, analyzes 2003 data.

“In 2003, the overall economic indicators improved as the economy gained momentum,” said Office of Advocacy Chief Economist Dr. Chad Moutray. “Small businesses led the way. However, continued strong economic growth will require an environment that fosters more entrepreneurial activity.”

The report examines the role small business plays in the economy. It focuses on economic trends and indicators, regulatory issues at the federal, state and local levels, innovation and technology transfer, and federal government procurement and small business financing data.

Among the report's highlights:

The Office of Advocacy independently represents the views of small business to federal agencies, Congress and the President. The Small Business Economy, 2004 is available at: http://www.sba.gov/advo/

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Useful Stats: State Business Establishments, 1998 and 2003
The number of business establishments in the U.S. grew by 17.4 percent between 1998 and the end of 2003, although a slight net decline occurred in 2003 for the first time in six years, according to data recently released by infoUSA.

In its analysis, infoUSA tabulated the number of business establishments in the U.S. at the end of each calendar year, describing an "establishment" as any small, medium or large business, division, brand, organization, association or government office with an assigned telephone number and paid employees.

The Omaha-based company has been compiling and updating the database of business establishments in the U.S. for the past 30 years, and updates the data regularly through more than 20 million phone calls to businesses throughout the U.S. and Canada.

In 1998, the U.S. had 10.9 million business establishments across 50 states and the District of Columbia, according to infoUSA. Increases were made each year thereafter, but the number of businesses nationwide was down slightly from 12.84 million in 2002 to 12.79 million 2003.

On a state-by-state analysis, the highest percentage of net growth in the number of business establishments occurred among the southern and western states. The states with the highest percentage of business establishment growth between 1998 and 2003 include Nevada (48 percent), Delaware (29.5 percent), Florida (29.5 percent), Arizona (25 percent) and Georgia (24.5 percent). Those with the lowest net percentage of business establishment growth are Massachusetts (10 percent), New York (9.3 percent), West Virginia (9.2 percent), Illinois (8.5 percent) and Rhode Island (5 percent).

The top five states with the highest growth in the number of new business establishments during the same period are California (279,053), Florida (183,475), Texas (162,699), Georgia (71,006) and North Carolina (70,543).

A press release announcing infoUSA's findings is available at: http://biz.yahoo.com/bw/041018/186120_1.html

In addition, SSTI has created a table showing the states ranked by their percent growth and the change in the number of business establishments between 1998 and 2003. The table is available at: http://www.ssti.org/Digest/Tables/111504t.htm

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GAO Report Could Help U.S. Assess its Progress
A new U.S. Government Accountability Office (GAO) report sets forth options for Congress to consider in establishing a system of key national indicators.

At a base level, GAO envisions an independent, web-based comprehensive key national indicator system with the nation's best quality data. Such a system, the agency states, would allow the public, media, policymakers, government, and non-government institutions to better understand and assess the position and progress of the U.S., both on an absolute basis as well as compared to other nations. The system would cover traditional areas of American life and public debate such as the economy, society and culture, and the environment. It also would eventually include information on more complex topics such as socio-economic mobility, opportunity, competitiveness, equity or sustainability.

In its report (GAO-05-1), GAO finds that a number of indicator systems already exist from local to national levels, attempting to measure how the U.S. is really doing and compared to what. A clearinghouse of these key indicator systems can be found at http://www.keyindicators.org.

A broad consortium of over 200 leading institutions and individuals from across the country - led by the National Academies and coordinating with governmental entities - is working to produce a test version of the system to be released in the next year.

The GAO's 246-page report, Informing Our Nation: Improving How to Understand and Assess the USA's Position and Progress, is available at: http://www.gao.gov/cgi-bin/getrpt?GAO-05-1

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Seattle Tops Visa’s List of Most Innovative Cities
A Visa analysis of innovation and creativity among the nation’s top 50 metro areas has Seattle ranked first in combined scoring, followed by Austin, Nashville, Minneapolis and Washington, D.C. Visa’s Innovation Index measures entrepreneurialism, community support and creativity on a per capita basis throughout the major Metropolitan Statistical Areas. Each of the categories were scored individually.

To measure entrepreneurship, Visa considered the average number of new businesses, expansions, new divisions and the number of patents issued by the U.S. Patent Office in 2003. Austin scored the highest in this measure, followed by San Diego, Palm Beach, Houston and Raleigh.

U.S. Census Bureau and Bureau of Labor Statistics were used in determining community support, measured as the percentage of people employed by social organizations and the number of volunteers. In this category, Providence scored the highest, followed by Washington D.C., Minneapolis, Louisville and Nashville.

Los Angeles, San Francisco, Nashville, New York and Seattle round out the top five in the index's self-expression category. Variables for this measure were based on the percentage of adults employed in occupations classified as creative such as artists, musicians, architects, designers and writers.

Visa examined the three measures of innovation and creativity to complement its Ideas Happen campaign, which awards 12 prizes of $25,000 to help jump-start innovative ideas within communities. The campaign is meant to encourage young adults to express ideas that could lead to new businesses.

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People

University of Southern Mississippi Research Foundation President Angie Dvorak was named president of the Area Development Partnership. Dvorak currently serves on the organization’s executive committee.

Jan Griffen has accepted the position of Director of Contracts for the National Institute of Aerospace. Griffen was formerly the director of federal programs for the Virginia Center for Innovative Technology.

Eastern Idaho Economic Development Council has changed its name to Grow Idaho Falls Inc. to better convey its mission.

An advocate for small businesses in Washington known as “Mr. Small Business,” Milton Stewart died of pneumonia on Nov. 5 in Phoenix.

Gov. Mike Rounds announced Steve Zellmer will replace Dave Snyder, who resigned his position as board member for the South Dakota Science and Technology Authority. Zellmer previously served as Commissioner, Bureau of Finance and Management and Secretary of Revenue in Pierre.

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