In the September 12, 2005 Issue:

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Two Items to Do by Sept. 20
Whether you use Outlook, Palm, Day-Timer, Filofax, or Post-Its to keep track of the items on your "To Do" list, make sure these two items on your lists to be wrapped up by next Tuesday, Sept. 20:

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First Genetically Modified 'Superweed' Confirmed by UK Govt.
While biotechnology focused on medical applications garners most of the attention, agricultural biotechnology is a high priority for a number of states. But ag biotech has generated significant concerns in some regions because of its emphasis on genetically modified organisms (GMOs). While three counties in California have banned the use of GMOs, three others rejected a ban in last November's elections; Sonoma County voters will decide whether to enact a moratorium in November.

Those concerns were sure to be heightened when the government of the United Kingdom confirmed earlier this week the existence of the first genetically modified (GM) superweed. The superweed is a result of GM oilseed rape crossbreeding with a common weed in a farm scale trial.

According to the Institute of Environmental Management and Assessment (IEMA), the study monitored gene flow from Bayer's herbicide-resistant GM oilseed rape to related wild plants during government-sponsored farm scale evaluations of GM crops. Researchers found a GM version of the common weed charlock (Sinapis arvenis) growing in the field the year after the GM trial, IEMA said.

Results indicated that the plant was resistant to the weed killer used in the GM trial and contained the gene inserted into the GM oilseed rape, the first known case of such an occurrence in the UK. The finding also overturned previous scientific assumptions that charlock was unlikely to crossbreed with GM oilseed rape, according to IEMA. Although the study identified hybridization between oil seed rape and charlock, the frequency of such an event in the field is said to be very low, the study indicates.

The Department for Environment, Food and Rural Affairs (DEFRA) funded the three-year project to examine the extent to which transfer of herbicide tolerance from the oilseed rape crops to wild relatives in the vicinity occurred. A 'split-field' design was used with one-half of the field sown with the GM crop and the other half sown with the conventional equivalent crop.

One of the concerns of GM crop plants is that the gene construct may move from the modified crop into wild relatives of that crop, the study says. Once within wild populations, a selective advantage could be conferred on the recipients, thus altering their biology and influencing their ecological relationship with native genotypes and other species. Also, if GM oilseed were to be grown commercially, herbicide resistant weeds could become more prevalent requiring the use of more damaging weed killers, resulting in increased environmental impacts. Because of such concerns, a ban on growing GM oilseed rape in the UK and surrounding countries was put into place in 1998.

Bayer and UK Environmental Minister Elliot Morley have since tried to have the ban lifted. Bayer has submitted two applications with the European Commission for approval to grow GM oilseed rape in the UK, and earlier this year, Minister Morley tried to persuade other European countries to lift their own bans on growing the crop.

Growing opposition from the environmental campaign group Friends of Earth has mounted in response to the study. In a press release, campaign manager Emily Diamand said, "The government's trials have already shown that growing GM crops can harm wildlife...The government must stop acting as a cheerleader for GM crops, and start paying attention to its own research."

In response, Minister Morley said that no one can state conclusively that GM technology is either wholly good or wholly bad and that the government does not promote GMs. He added that there are no current trials of GM oilseed rape in the UK and no consents for commercial cultivation in the EU have been issued.

The report is available through DEFRA at: http://www.defra.gov.uk/environment/gm/research/epg-1-5-151.htm

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Report Indicates Fiscal Pressures for Cities On the Rise
Over the past few years, annual surveys from the National League of Cities (NLC) have reported grim findings on the fiscal status of cities across the nation with little hope for turnaround in the near future.

In 2003, the NLC survey found that cities faced the worst fiscal conditions for municipalities since NLC began its survey of city finance managers in 1985 (see the May 30, 2003 issue of the Digest). And in 2004, the survey found a majority of cities still suffering from the recession, with 75 percent of respondents from the West and 74 percent of respondents from the Midwest reporting deteriorating fiscal conditions (see the Oct. 4, 2004 issue of the Digest).

Homeland security, public safety, education and health care remain top priority for cities, leaving little left over for anything else. As budgets are continually squeezed and expenditures increase, where will municipalities find future funding to finance tech-based economic development?

A new report from the Brookings Institution Metropolitan Policy Program finds the challenges to city finance are both structural and cyclical. Without the deficit financing option available at the federal level, and lacking the revenue options and broader base of state government, city officials face a difficult balancing act, the report says.

Budgeting for Basics: The Changing Landscape of City Finances examines the finances of 162 cities from 1977 through 2000. The years of measurement are significant because it begins the year before 1978, which marked the passage of California's Proposition 13 that spawned a modern day tax revolt aimed primarily at the property tax, the report says. Also, 1978 was the peak year for federal aid to cities. Key findings include:

The second half of the report looks at how 54 sample cities have responded to fiscal pressures generated by the recession of 2001. Although cities increased spending in the 1990s, they also built reserves, according to the report. Reductions in state aid were the leading source of fiscal pressure, and to cope, cities most frequently cut general government expenses followed by education. Responding finance officers indicated that from fiscal year 2003 to 2004, their cities' fiscal conditions declined while budget pressures increased. The problem was characterized mostly as a structural one, despite the recent economic downturn.

A majority of city officials would like to see their revenue base diversified. However, this diversification has both an upside and a downside, the report notes. While increasing user fees may be a good way to collect additional revenue, an over-reliance on fees limits the flexibility of city officials to use these resources for general expenditure needs. Rather than proposing a solution, the report seeks to inform several groups including federal and state legislators responsible for designing urban policy, city officials, and taxpayers.

Budgeting for Basics: The Changing Landscape of City Finances is available at: http://www.brookings.edu/metro/pubs/20050823_budgetingbasics.htm

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Local ED Already Squeezed, According to ACCRA Survey
The average budgets for local and regional economic development organizations fell nearly 3 percent between 2004 and 2005, according to the second annual survey by ACCRA. The vast majority of the 750 respondents are involved in economic/community development research and traditional economic development activities, including facility and site development marketing, infrastructure development and planning, and community marketing.

As economic development organizations (EDOs) continue to broaden the definition of their role in supporting a variety of economic development activities, they will need to develop a greater revenue base and more diverse lines of financial resources. EDOs continue to focus on their core competencies of marketing communities and facilities to businesses. However, data suggests that small organizations do not have adequate resources to implement these efforts effectively. The survey revealed that substantial change is occurring in the profession as economic developers are limited in their access to resources, encouraged to collaborate, and pressured to adopt new techniques for economic development.

Staffing levels for those surveyed services and activities most closely tied to tech-based economic development were mixed. One-third of the respondents dedicate at least 0.5 full-time equivalent staff hours to increasing private access, up from 29 percent in 2004. Efforts toward technology and product adoption/development, on the other hand, dropped from 14.9 percent of the EDOs in 2004 to 12.2 percent in 2005.

ACCRA’s survey of Economic Development Organizations (EDOs) reports and analyzes feedback from over 750 economic development organizations to better understand scope of services and structure, including staffing requirements, budget information, salary details, and size of area served.

In addition to staff activity, the survey results offer details on salaries at all levels, a comparison of salaries for 2004 and 2005 and an analysis of salaries by geography. The report also discusses differences in salary due to experience, gender, job title and education.

The full results of the survey are available in the ACCRA store for $45. Members can view the results by logging in to the Member Area. Please visit www.accra.org to order the results or call 703-522-4980.

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NSF Releases 2003 Academic R&D Data
University R&D is considered a fundamental element of innovation and technological competitiveness. If R&D spending equates to more R&D, then the 10 percent increase between 2002 and 2003 as reported by the nation's academic community to the National Science Foundation (NSF) would be a rosy sign for America's future.

Aggregate academic R&D expenditures in 2003 totalled $40.077 billion, up from $36.37 billion in 2002. The burden of funding for academic research continues its shift toward government and away from the nation's industrial community.

Reaching a level not seen since 1985, the federal total of $24.734 billion represents 61.7 percent of the 2003 total, up from 60.1 percent in 2002. State government-supported R&D rose 5.9 percent between 2002 and 2003, but only represents 6.6 percent of the total.

While total state support has increased over the years, the states' share of total academic R&D has continued a generally downward trend since 1950, when it contributed 15.1 percent.

Total industrial support for academic R&D in 2003, on the other hand, declined for the second consecutive year. Industrial R&D funding totalled only $2.162 billion in 2003, down $25 million from the 2002 figure. Industry's share of the total declined from 6 percent in 2002 to only 5.4 percent in 2003.

Whether or not the 2003 decline in industrial R&D support in academic parallels an overall decline in industrial R&D expenditures is unknown. The latest NSF data available for the annual industrial R&D expenditures survey is for 2001 (released in May of 2005).

The 65 detailed statistical tables for NSF's Academic Research and Development Expenditures: Fiscal Year 2003 are available at: http://www.nsf.gov/statistics/nsf05320/htmstart.htm

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Useful Stats
2003 Industrial Support for Academic R&D by State
Over the period 1998-2003, Oregon saw the largest percent change in its academic R&D expenditures funded by industry sources, according to the National Science Foundation's latest survey (see the above story). The northwest state, which had more than one-and-a-half times the amount of such expenditures funded by industry sources in 2003 as it had in 1998, was joined by only Maryland and South Carolina as states experiencing a greater than 100 percent increase over the period.

Twenty-eight other states showed increases, while the remaining states and the District of Columbia all reflected a decrease in the amount of their industry-financed academic R&D expenditures. For 2003, the U.S. as a whole had $2.16 billion in the measure. While that figure reflects a greater than 14 percent increase over its 1998 counterpart, it marks the second consecutive year that the U.S. total has slipped from the previous year.

SSTI has prepared a table characterizing the above data for all 50 states, the District of Columbia, and outlying areas (i.e. Guam, Puerto Rico, and the Virgin Islands), which are grouped together. The table is available at: http://www.ssti.org/Digest/Tables/091205t.htm

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SSTI Job Corner
For more information on the positions below, visit SSTI's online Job Corner at http://www.ssti.org/posting.htm.

Research Specialist, Senior - University of Arizona
Collect and analyze data and prepare reports on technology-based economy in the Tucson region and in the state of Arizona. Salary: DOE plus University of Arizona benefits. Review begins Sept. 21, 2005, and continues until filled. The University of Arizona is an EEO/AA - M/W/D/V Employer.

Executive Director - Arizona Virtual Water University
The Arizona Virtual Water University (AVWU) is a proposed collaboration of the Arizona Board of Regents, Arizona State University, Northern Arizona University and the University of Arizona. The AVWU Executive Committee is seeking an executive director to coordinate the development and implementation of the strategic plan for AVWU, working initially with one or more associate directors, who will serve as liaison(s) to the Arizona Department of Water Resources, the Arizona Department of Environmental Quality, and the Arizona Department of Commerce. Thereafter, the executive director will coordinate the AVWU-related activities of the three universities by working with coordinators at each university and three associate directors via telephone, Internet, meetings and other formats. Position requires someone with an advanced degree in planning, management, hydrology or other field related to water and a strong orientation to innovation. The position also requires a minimum of five years of experience in water research, education or technology development. Salary is DOE with benefits.

Director - PENNTAP
PENNTAP, a statewide program based on Penn State's Campus, University Park, Pa., is seeking a full-time director. PENNTAP supports technology-based economic development by helping companies improve competitiveness through providing a limited amount of free technology assistance to help resolve specific technical needs. The director of PENNTAP provides leadership and expertise in building effective relationships with state and federal agencies, identifying and securing funding to support program growth, manages the university's industrial extension program and promotes PENNTAP's services. Requirements include a master's degree or equivalent knowledge, five years of work-related experience in a technology-based economic development program or related field, success in identifying and securing funding, excellent communication skills, and managing staff and budgets. A demonstrated commitment to diversity is required. Applications are due Sept. 15, 2005. Penn State is committed to affirmative action, equal opportunity and the diversity of its workforce.

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People

Automation Alley has named Thomas Anderson as president of the Automation Alley Education & Research Institute. Mr. Anderson also is director of the consortium's Technology Center.

President Bush has nominated Santanu Baruah to be Assistant Secretary for Economic Development for the U.S. Department of Commerce. Mr. Baruah's responsibilities include oversight of the Economic Development Administration.

John Gardner has been named the first vice president for research and economic development for the University of Missouri system.

David Goodrich announced he will leave his position as CEO of the Central Indiana Corporate Partnership at the end of the year.

Mike Kazmierski is the new president of the Greater Colorado Springs Economic Development Corp.

Sue Strommer has joined the National Association of Seed and Venture Funds as Chief Executive Officer (NASVF) as CEO. Charlie Spies, the former president and CEO, will remain as president of NASVF.

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