In the April 25, 2005 Issue:

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Stem Cell Research Update: A State-by-State Analysis
While the topic of embryonic stem cell research has been at the forefront of S&T policy since 2001, attention has shifted to the states in the last six months. Last fall, California voters overwhelmingly approved a $3 billion bond issue to support embryonic stem cell research over the next decade. This vote triggered action in a number of states concerned about the loss of researchers to California and increased activity on Capitol Hill to overturn the Presidential directive that limits the use of federal research funds to only those embryonic stem cell lines derived before Aug. 9, 2001.

While New Jersey had already committed smaller levels of funding for embryonic stem cell research through a new state institute, the magnitude and scope of the California referendum led several states to consider their own legislation this year. Calls for multi-hundred-million-dollar investments filled the speeches of some elected officials, while others called for a complete ban on public support of embryonic stem cell research.

At the heart of the controversy is a form of stem cell research known as somatic cell nuclear transfer (SCNT) or "therapeutic cloning." SCNT, according to the Association of American Medical Colleges, "involves removing the nucleus of an unfertilized egg cell, replacing it with the material from the nucleus of a 'somatic cell' (a skin, heart, or nerve cell, for example), and stimulating this cell to begin dividing. Once the cell begins dividing, stem cells can be extracted 5-6 days later and used for research."

Many states have introduced bills to join California and New Jersey in encouraging and financially supporting this type of research. At the opposite end of the spectrum, Arkansas, Iowa, Michigan, North Dakota and South Dakota recently have banned therapeutic cloning. Louisiana and Nebraska previously had enacted laws that specifically prohibit research on human embryonic stem cells.

The following states recently considered or are continuing to consider legislation that will define their stance on stem cell research, secure funding, or introduce the issue for discussion.

Connecticut
With a projected $335 million surplus for the current fiscal year, Gov. Jodi Rell's budget proposal sets aside $10 million for each of the next two years to promote stem cell research. Funding would be used to provide grants for qualified stem cell research companies. Also under consideration is S.B. 934, which permits research in the state involving embryonic stem cells but prohibits human cloning that includes SCNT. An article in the Hartford Courant states that Senate President Pro Tempore Donald Williams Jr. agrees with the annual increment, but is seeking a long-term investment of $100 million over a 10-year period. The bill was referred to the Office of Legislative Research and Office of Fiscal Analysis last week.

Hawaii
A bill designed to set state policy for stem cell research recently was deferred by the House Health Committee. According to an Associated Press article, the University of Hawaii's John A. Burns School of Medicine will open its Kakaako campus in the spring with new research facilities, and H.B. 288 would broadly define the state's policy in favor of a resolution to bring together a task force on the topic led by the medical school and would include public meetings. Currently, the state does not have a policy regarding stem cell research.

Illinois
State Comptroller Dan Hynes is seeking a voter referendum to approve $1 billion worth of bonds to create the Illinois Regenerative Medicine Institute to support stem cell research. S.B. 2100, approved by a Senate committee in March, would allow the referendum to be placed on the November 2006 ballot. However, the bill to allow the referendum must first be approved by the General Assembly. Under the proposal, a 6 percent tax on elective cosmetic surgery would fund start-up costs and debt service on the bonds, according to Hynes' press office. The institute would be governed by an oversight committee to be appointed by state government and university officials and would provide stem cell research grants to Illinois universities and institutions over a 10-year period.

Maryland
Maryland's legislative session recently ended without a Senate vote on a bill to promote state-funded stem cell research through a $23 million Stem Cell Research Fund. The House unanimously passed the bill earlier this month and action was dependent on approval by the Senate. H.B. 1183 would have authorized research that involves embryonic stem cells and create a fund to provide grants and loans to public and private entities in the state. According to press reports, the legislation did not come up for a vote in the Senate because supporters could not produce the 29 votes needed to halt debate.

The Senate version would have allowed the governor to decide the amount to be allocated from each annual budget. Backers were hoping Gov. Robert Erlich would voice support for the bill, but he did not take a public position. Sen. Paula Hollinger (D-Baltimore), the bill's lead sponsor, said the legislation would return early in next year's session.

Massachusetts
In an attempt to signal that embryonic stem cell research is legal and encouraged in the state, both the House and Senate passed slightly different versions of a bill allowing therapeutic cloning. Under current law, scientists need the approval of the district attorney. Gov. Mitt Romney is opposed to the bill because it allows for therapeutic cloning, and lawmakers expect him to veto it, although the legislature has the two-thirds vote needed to override the veto, according to press reports. Because the two bills offer different versions, they must be reconciled within a conference committee before the legislation is sent to the governor. The Senate version, S. 2032, would give the Department of Public Health licensing authority over researchers conducting embryonic stem cell research, but the House version, H. 2792, includes a stronger role for the agency, according to House Speaker Salvatore DiMasi (D-North End).

Senate President Robert Travaglini (D-Boston) and local biotech industry leaders also are discussing a spending package of up to $100 million for embryonic stem cell research facilities and education initiatives, reports the Boston Globe. However, they are waiting for the outcome of the bill to legalize and endorse stem cell research before advancing any such legislation. According to Travaglini, the state needs to put forth at least $100 million annually to keep up with California and other states. Some ideas for the fund include putting the money toward research grants, establishing state-owned stem cell laboratories, and investing in scholarship programs and endowed chairs.

Missouri
Legislation designed to make embryonic stem cell research a criminal offense recently was shelved. S.B. 160 prohibited the cloning of a human being and the use of public funds or facilities to clone a human being, including SCNT. The Senate debated the issue for five hours before deciding to shelve the measure due to lack of support, reports the Kansas City Star. Gov. Matt Blunt, who is opposed to cloning for reproductive reasons, opposed SB 160 because it would ban stem cells from being used for scientific reasons.

The Stowers Institute for Medical Research, a biomedical research institute located in the state, is considering building a second campus in Kansas City. Executives from Stowers, however, are concerned by what has become an annual proposal to ban SCNT and will not commit to building in Missouri until the state defines its laws on embryonic stem cell research, according to the Kansas City Star.

New Jersey
Budget shortfalls are delaying the stem cell research initiative announced last year by Acting Gov. Richard Codey. The $380 million proposal includes a $230 million ballot initiative for stem cell research and grants and $150 million in capital funds to build the Stem Cell Institute of New Jersey.  During a recent symposium on state-sponsored stem cell research at Princeton University, Acting Gov. Codey announced that he expects to break ground on the Institute in August and once again expressed support for the ballot initiative, although a proposal has yet to be created.

Acting Gov. Codey also announced that Harold Shapiro, a former president of Princeton, will preside over an ethics panel that will monitor state-funded stem cell research activities. To ensure science and not politics governs the award of grants, an independent panel of scientific experts will be convened to score applications, Acting Gov. Codey said.

New York
Assembly Speaker Sheldon Silver (D-Manhattan) unveiled legislation to create the New York Institute for Stem Cell Research last month. Under the bill, A. 6300, the institute will make grants for stem cell research, regenerative medicine and related facilities. Funding of $100 million for the first year and $200 million for the second year would be granted under the Health Care Reform Act. According to Silver's press office, the Institute would be governed by a board of members appointed by the governor, president of the Senate, speaker of the Assembly, attorney general, and the comptroller.

The bill, which prohibits cloning for reproductive reasons, was referred to the Health committee on March 9. Sen. Nick Spano (R-Westchester) announced on the same day that he would introduce similar legislation in the Senate, providing $100 million annually for research. According to an article in the Journal News, Senate Majority Leader Joseph Bruno (R-NY 43rd) supports stem cell research, although he is opposed to SCNT. Bruno also expressed concerns that the state's budget may not be able to support the measure.

North Carolina
A bill authorizing the Legislative Research Commission to study the state's role in stem cell research recently was introduced by Rep. Paul Miller (D-Durham). H.B. 1293 requires the commission to examine laws limiting or expanding current research efforts and to investigate the possibility of providing state funds to scientists conducting stem cell research. An interim report would be provided to the General Assembly in 2006 with a final report expected during the 2007 legislative session.

Texas
Lawmakers are pondering four pieces of legislation concerning the authorization or restriction of stem cell research. Two of the bills establish support for stem cell research, while the other two oppose it. All four of the bills prohibit reproductive cloning and currently are in committee.

The two bills supporting embryonic stem cell research, S.B. 128 and H.B. 1929, allow for other types of cloning for research and regulate research involving derivation and use of embryonic stem cells to develop regenerative or reparative therapies. Prohibiting stem cell research, S.B. 943 and H.B. 864 ban all human cloning and would make it a first degree felony to conduct therapeutic cloning or study or consult with researchers from another state or country involved in therapeutic cloning. Gov. Rick Perry opposes using state money for stem cell research. In an article from the American Statesman, Perry said that as long as he is in office, he will oppose taxpayer dollars being spent on research that ends human life.

Two lawmakers have introduced separate legislation to provide funding for stem cell research. Rep. Senfronia Thompson (D-Houston) filed a bill and joint resolution to establish the Texas Institute for Regenerative Medicine, which includes a $900 million bond issue over the next six years. Rep. Elliott Naishtat (D-Austin) also filed H.B. 3076 to establish a stem cell research program that would make grants and loans.

Washington
The Senate recently killed a bill that would allow Washington to join the ranks of California and New Jersey in supporting embryonic stem cell research. In an attempt to keep S.B. 5594 alive, Majority Leader Lisa Brown (D-Spokane) switched her vote from yes to no in order to bring the bill back for consideration, reports the Seattle Times. Senate Democrats thought they had enough votes to pass the bill, which was already approved by the House, but two Republicans who originally backed the bill, withdrew their support, the article states.

Wisconsin
In response to California's vote, Gov. Jim Doyle announced in November 2004 a proposal to invest $375 million over the next ten years in the Wisconsin Institute for Discovery (see the Nov. 22 issue of the Digest). Earlier this year, Gov. Doyle included $19 million in his capital budget to begin the first phase of the project. The Institute would not focus exclusively on embryonic stem cell research, but would include specialists in biochemistry, nanotechnology, computer engineering and bioinformatics and be located on the University of Wisconsin-Madison campus.

The Assembly recently passed a tax credit bill which was amended at the last minute amendment to exclude companies involved in stem cell research. Under A.B. 206, a corporation may claim an income and franchise tax credit equal to the amount of its qualified research expenses in excess of 150 percent of the company's average research spending in the prior three tax years. The amendment, however, would restrict eligibility for the credit only to companies that use existing embryonic stem cell lines and do not engage in human cloning. According to an article in the Capital Times, Rep. Steve Kestell (R-Elkhart Lake) said the bill was a compromise to encourage research using existing stem cell lines and that it mirrors existing federal policy. Gov. Jim Doyle said the move would close the door on new research and send the wrong message to biotech businesses seeking to locate in the state, according to the article. Gov. Doyle also said he would veto any bill that restricts stem cell research or affects companies that are making investments in stem cell research. The bill was referred to the Senate Committee on Job Creation, Economic Development and Consumer Affairs on April 12.

Federal Legislation
Introduced by Rep. Mike Castle (R-DE) and Diana DeGette (D-CO), the Stem Cell Research Enhancement Act of 2005 would ease current restrictions on federal funding for stem cell research by allowing the Secretary of Health and Human Services to conduct and support research on embryonic stem cells, regardless of the date on which they were derived from a human embryo.

To address ethical concerns, the legislation requires the following provisions: stem cells must be derived from embryos donated from in vitro fertilization clinics; the embryos would not be implanted in a woman and would otherwise be discarded; and the individuals donating the embryos do so with written consent and receive no financial incentives. As of today, the bipartisan legislation has 195 cosponsors, according to the Juvenile Diabetes Association, and a similar bill, S. 471, was introduced in the Senate. Congressional leadership has promised bill sponsors that the measure will be brought to a floor vote this session.

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Ontario Launches Youth Entrepreneurship Program
Recognizing the economic benefits of engaging young people in science and technology, Ontario's McGuinty government recently launched the Youth Science and Technology Outreach Program. The new program links high school students with researchers to support in-depth mentorship experience and postsecondary career advice.

The Provincial government will provide $3 million over three years to fund projects that include speaking engagements, workshops and demonstration projects, short-term projects in a lab or field research site, student science competitions, expert-in-residence programs, and lab mentorships. According to the Ministry of Economic Development and Trade, the goals of the program are to:

Nonprofit organizations including postsecondary institutions, science awareness organizations, research institutes, and industry and professional associations are eligible to apply for program funding. More information is available at: http://www.ontariocanada.com/ontcan/en/youth/youth_science_outreach.jsp

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Transportation Outlines Research, Development & Technology Priorities
The Research and Innovative Technology Administration (RITA) of the U.S. Department of Transportation (DOT) recently released Research Activities of the Department of Transportation: A Report to Congress, identifying DOT’s current and projected research, development and technology priorities.

A newly formed DOT agency as of November 2004, RITA will lead cross-departmental efforts to identify and implement research priorities, and ensure that those investments are effective and align with DOT’s objectives. In addition, RITA will manage the University Transportation Centers program, which invests in university-based centers of excellence to advance innovation, research, education, and technology transfer.

According to the report, there are five DOT objectives that guide the agency's research priorities: safety, mobility, global connectivity, environmental stewardship, and security. Most DOT priorities address more than one objective and are supported by several departmental programs. In a speech to the American Society for Engineering Educators Panel, RITA Administrator Samuel Bonasso summarized some of the agency's top concerns:

DOT has requested $1.1 billion for FY 2006 to fund the department’s research, development and technology programs. A complete list of DOT’s priorities, programs and budget can be found on the RITA website at: http://www.rita.dot.gov/publications/research_activities_of_the_department_of_transportation_a_report_to_congress

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SBA Releases Regional Entrepreneurship Index
Glenwood Springs, Colo., is the nation’s most entrepreneurial region, according to a study recently released by the U.S. Small Business Administration's Office of Advocacy and the Edward Lowe Foundation. The region's ranking is based on the Regional Entrepreneurship Index, a measure intended to standardize assessment of entrepreneurship within and across regions.

The study, The Innovation-Entrepreneurship NEXUS, attempts to show that innovation without entrepreneurship yields minimal economic impact. The authors note, “Whether they are building new firms or reinventing existing ones, entrepreneurs, through the application of new ideas to products and services, capture locally the economic benefits of innovation.”

The Regional Entrepreneurship Index used by the study ranks a total of 394 regions according to their entrepreneurial and innovation activities. The study finds the more entrepreneurial regions were associated with higher levels of technology than the less entrepreneurial ones. The leading regions expended nearly 54 percent more on R&D and recorded 67 percent more patents per labor force participant.

Glenwood Springs, Provo, Utah, and Springfield, Mass., respectively, topped all regions in the index's three entrepreneurship categories -- number of new firms per 1,000 labor force participants, percent of rapidly-growing firms, and average annual change in the number of new firms. Innovation measures such as R&D expenditures, number of patents, and high tech's share of the local economy also are considered by the index.

The index draws data from the U.S. Census Bureau's Statistics of U.S. Business Data program, the National Science Foundation's Survey of R&D Expenditures, U.S. Patent and Trademark Office, U.S. Bureau of Economic Analysis, and econometric models. Regions scoring high are said to be the most active in creating new firms, supporting the growth of those firms, and building a strong base of support for entrepreneurs.

The Innovation-Entrepreneurship NEXUS, which includes the complete list of cities and their rank on the Regional Entrepreneurship Index, is available for download at: http://www.sba.gov/advo/research/rs256tot.pdf

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Useful Stats
SBIR Awards, Proposals by State for FY 2004
The Small Business Administration (SBA) is anticipated to release its latest summary statistics for Small Business Innovation Research (SBIR) awards soon. Unfortunately, the data typically do not include proposal figures, a useful measure of the general effectiveness or need for SBIR technical assistance and outreach in any given state. For several years, the Useful Stats column of the SSTI Weekly Digest has attempted to rectify this omission and FY 2004 is no exception.

For FY04, SSTI has aggregated Phase I award, proposal and award-to-proposal conversion percentages for all 50 states and the District of Columbia for 10 of the 11 participating agencies. (The Commerce Department's National Oceanic and Atmospheric Administration refused to provide proposal statistics.) The table is available at: http://www.ssti.org/Digest/Tables/042505t.htm

SSTI also has compiled similar tables for 2001 and 2002. An announcement of the 2003 table's availability will be made in an upcoming issue of the Digest. Links to the Phase I tables for other years are provided below:

FY 2002: http://www.ssti.org/Digest/Tables/090503t.htm
FY 2001: http://www.ssti.org/Digest/Tables/051002t.htm
FY 2000 (no proposal figures): http://www.ssti.org/Digest/Tables/030901t.htm

As anyone involved in the SBIR program knows, obtaining these types of statistics from some of the federal agencies can tax anyone's patience. It is fortunate for state and local SBIR outreach programs across the country that Chris Busch, formerly a consultant to the SBIR program of the Idaho EPSCoR office, was able to obtain much of the FY 2004 data for the Idaho SBIR Competition News (archived issues no longer available online). Other information SSTI obtained directly from the federal agencies.

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