In the May 2, 2005 Issue:

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European Commission Commits $5.4B (US) toward Innovation
While Congress and the Administration are looking for ways to flatten or even reduce spending for research, entrepreneurship and innovation, leaders on the other side of the pond are committing hard currency to strengthening Europe's position in the global, tech-based economy.

In April, the Commission of the European Communities adopted a proposal to invest $4.2 billion Euros ($5.4 billion US) over seven years in the Competitiveness and Innovation Framework Programme (CIP).

The creation of the CIP first took root in 2000, when the Lisbon European Council set the objective of making Europe the most competitive and dynamic knowledge-based economy in the world. In 2004, in response to the council's renewed strategy on "delivering stronger and lasting growth and creating more and better jobs," the European Commission prepared an analysis that eventually led to the Framework Programme.

According to the commission, the CIP will bring together specific Community support programs critical to boosting productivity, innovation capacity and sustainable growth, while also addressing complementary environmental concerns. Funding will be divided among the framework's three specific programs beginning in 2007, which include:

In addition to building upon successful existing programs, new elements also will be included, according to the commission. The elements consist of a risk capital instrument of high-growth and innovative companies; securitization of banks' portfolios of loans to small and medium-sized enterprises; an enhanced role for innovation and business support networks; demonstrators of technological and organizational solutions to European-ICT services; and a twinning program for policymakers.

The proposal for the framework program was adopted last month and will be transmitted to the council, the European Parliament, the European Economic and Social Committee, and the Committee of the Regions. More information is available at: http://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htm

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North Dakota Legislature Commits $50M for Centers of Excellence
With the recent passage of the state's biennial budget, North Dakota's universities and colleges can now compete for a share of $20 million in matching funds to create Centers of Excellence. The money is the first installment of the state legislature's $50 million commitment to the Centers program, which is the centerpiece of Gov. John Hoeven's initiatives to transform the state's economy toward science and technology.

The initiative, unveiled during Gov. Hoeven's 2004 State-of-the-State Address, is designed to pursue academic excellence and spur R&D, new technology, and job creation. Centers will be located on university campuses throughout the state and will focus on technology, aerospace, value-added agriculture, energy, advanced manufacturing, and tourism. Centers must match each state dollar invested with private or non-state public funds.

For the 2006-07 biennium, the legislature set aside $16 million of the permanent oil tax trust fund to establish the university-based centers. Senate Bill 2018 also grants authority to borrow up to $5 million more this biennium if the original money is exhausted. The remaining $30 million will be appropriated in future bienniums, according to the bill.

To elicit input and engagement in the centers concept, the governor's office and program proponents held forums to discuss the future of the program at each of the 11 university campuses beginning in March. According to Gov. Hoeven, the plan is to encourage each campus, in partnership with its business community, to map its future and to begin a dialogue on fostering research excellence and technology commercialization.

More information is available at: http://www.governor.state.nd.us/2004-excellence.html

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Ohio's Third Frontier to Make Second Pass on Quasi-Transportation/Economic Development Ballot Initiative
A ballot initiative designed to bolster the Ohio economy and create jobs by continuing the state’s public works infrastructure program and supporting the commercialization of science and technology-based research was announced last week by Gov. Bob Taft and other legislative leaders. The initiative, to appear on the Nov. 8 ballot, is a second attempt to pass funding for part of the state’s Third Frontier Project, which failed in its first go-round in 2003 (see the Nov. 7, 2003 issue of the Digest).

If approved, the ballot initiative would provide operating dollars to bolster the Third Frontier Project, prepare job-ready sites for industrial development, and renew the public works bond fund, including:

Gov. Taft, Senate President Bill Harris and House Speaker Jon Husted introduced the major components as separate resolutions at the start of Ohio's current legislative session. After discussions with local government officials and other stakeholders, the three leaders decided that a combined ballot issue gives voters the most effective opportunity to help create jobs.

The Third Frontier Project includes a portfolio of programs such as the Biomedical Research and Technology Transfer Trust Fund, the Wright Centers of Innovation, Wright Projects, and the Third Frontier Action Fund (see the June 14, 2004 issue of the Digest). In his biennial budget request earlier this year, Gov. Taft called for $134 million in investments in Third Frontier to help make Ohio a leader in fuel cell development (see the March 7, 2005 issue of the Digest).

More information on the Third Frontier Project is available at http://www.thirdfrontier.com/.

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Rhode Island Gov. Establishes S&T Advisory Council and Manufacturing Partnership
Gov. Donald Carcieri last month announced two new initiatives targeting Rhode Island's science and technology (S&T) and manufacturing industries. On April 12, Gov. Carcieri signed an Executive Order creating the Science & Technology Advisory Council. The council, staffed by a team of tech leaders from local academia, private business and government communities, will advise the governor and General Assembly on the state's S&T priorities, as well as address issues that impact the support and growth of an innovation economy.

The council's first task will be to assess the state's current capacity for innovation in S&T and suggest recommendations to strengthen its capabilities. In addition, the council will support the state's pursuit of federal research funding such as the National Science Foundation's Experimental Program to Stimulate Competitive Research.

Additionally, Gov. Carcieri announced a new public-private partnership of the Rhode Island Economic Development Corporation (RIEDC) and the Rhode Island Manufacturing Summit. The purpose of the partnership is to develop and implement a business strategy to ensure the success of the state's manufacturing sector, which has lost nearly 44 percent of its employees since 1990, according to the Rhode Island Department of Labor and Training.

To successfully move the manufacturing sector forward, said RIEDC Executive Director Michael McMahon, the partnership will take an active role in assisting the manufacturing community by raising awareness of existing programs aimed at assisting small manufacturers, having successful leaders within the manufacturing sector serving as mentors, and re-branding the state's manufacturing image.

For more information, visit RIEDC at http://www.riedc.com .

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$120M Investment Fund Fails in Hawaii Legislature
Efforts to capitalize Hawaii's $120 million State Private Investment Fund (SPIF) collapsed Friday as a joint conference committee of the state legislature could not reconcile differences between House and Senate versions of the measure. Passage of Senate Bill 1695 was one of Gov. Linda Lingle's top economic development priorities for this legislative session.

The SPIF, created by the Hawaii legislature last year but left unfunded, is intended to encourage venture capital investments in state-based tech businesses using the Oklahoma Capital Investment Fund model of state-backed guarantees on private investments. Established in 1993, the Oklahoma program has been widely replicated in recent years.

The joint conference committee of the Hawaii legislature met to discuss Senate Bill 1695 six times during the past 10 days before deferring the measure. With the legislature expected to adjourn on May 5, the fund is "on hold indefinitely," reports the April 30 edition of the Honolulu Advertiser.

More information on S.B. 1695 is available at: http://www.capitol.hawaii.gov

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OCAST Report Measures Success in TBED Efforts
States such as Oklahoma must leverage scarce resources if they hope to attract top scientists, stimulate development, and achieve measurable economic impact, says the latest impact report from the Oklahoma Center for the Advancement of Science and Technology (OCAST).

Over the past 17 years, OCAST has been successful in leveraging federal and private funds through its eight major program areas. Since its inception in 1987, OCAST has invested $118 million in R&D, technology commercialization and manufacturing modernization, which was used to attract more than $1.4 billion in private investments and federal funding, according to the report.

The 2005 impact report, From Concept to Commercialization, outlines fiscal year 2004 accomplishments and highlights the success of various organizations and companies that have utilized OCAST services. During FY 2004, OCAST awarded $10.4 million through six of the eight programs, leveraging $199 million in private and federal funds. Programs with their FY04 impacts include:

The 2005 impact report, From Concept to Commercialization, is available from OCAST at: http://www.ocast.state.ok.us/

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Index Reveals South Lags Overall U.S. Workforce
As low-skill, labor intensive jobs are increasingly replaced by technology or outsourced in the emerging knowledge-based economy, a two-tiered labor market has emerged, thus presenting a challenge for workers to either work cheaper or work smarter, says a new report from the Southern Growth Policies Board. Only one of those options is appealing for those trying to improve your standard of living.

Refusing to have the region left behind, Southern Growth developed a goal to create the talent pool needed to meet ongoing market needs and opportunities. The Southern Workforce Index is a working plan for tracking the South's progress in developing a knowledge-economy workforce and is intended as a guide for states to pursue their own individualized strategies.

The index uses 15 indicators to compare the region and individual states to overall U.S. statistics. It also contains state-by-state data and summaries of workforce initiatives within the region. To guide the regions' progress toward realizing their goal, Southern Growth approved three major objectives:

The index reveals the South slightly lags in several indicators when compared to overall U.S. averages. For example, only 31 percent of working adults in the South have an associate's degree or higher, compared to 36 percent nationwide. Also, the South has lower Hispanic high school graduation rates, higher incarceration rates, and a smaller percentage of eighth graders who are enrolled in Algebra I. One positive indicator shows the South has a higher proportion of postsecondary institutions that provide dual enrollment opportunities, which is often seen as an effective strategy to increase high school graduation, college enrollment and completion, according to the report.

The Southern Workforce Index is available at http://www.southern.org/.

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People

Phil Bond, Under Secretary for Technology in the U.S. Department of Commerce, announced his resignation, effective May 13. A strong supporter of NIST and tech-based economic development, Bond will be missed as he becomes Senior Vice President for Government Affairs at Monster Worldwide.

Diane Duff, former director of economic development and commerce for the National Governors Association, is the new executive director of the Southern Governors' Association.

Gov. Bill Richardson appointed William Enloe, CEO of Los Alamos National Bank, to serve as chairman of the New Mexico Economic Development Partnership.

Randa Hayes is the new director of the business development and trade division of the Missouri Department of Economic Development.

The new Vice President for Business Ventures at the Mississippi Technology Alliance is Jim Lowery.

TechNet named Lezlee Westine, White House Director of Public Liaison, to serve as its new director.

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Publisher's Note
During the months of May and June, the SSTI Weekly Digest and Funding Supplement will be published every other week. SSTI staff over the next two months will be completing work on two major projects that require focused concentration. We look forward to resuming the Digest and Funding Supplement on a weekly basis in July. The next issue of the Digest will be May 16.

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