In the September 19, 2005 Issue:

Copyright State Science & Technology Institute 2005. 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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Publisher's Note
Responding to The World is Flat
The TBED community owes a huge debt of gratitude to Thomas Friedman for his 2005 book, The World is Flat. Friedman has helped elevate the issue of innovation, competitiveness, and the U.S. standing therein to the New York Times bestseller list, the Sunday talk shows, and scads of press coverage. Friedman has helped convince pundits and policymakers that the world is flat and the challenges to the U.S. are more serious than ever and are only increasing.

While the pundits talk about the issue, the most pressing issue is what we're going to do about it. To protect our future we need to increase entrepreneurship, expand access to capital, fully integrate our universities into our economic system, improve our workforce through improved education, and better involve underrepresented peoples and regions. Friedman offers a variety of policy prescriptions, but virtually all rely on federal action. But it is incumbent on every city, region, and state to take its own future into its own hands and act.

As SSTI staff read and/or listened to Friedman's book, frankly, we grew depressed. The depression grew from a sense that the challenge is overwhelming, and a sudden feeling that this must have been the way England felt after World War II as it watched its dominant position slip away (our apologies to our U.K. readers). Our depression also revolved around trying to put together a conference agenda that reflected the reality of Friedman's flat world.

But then it dawned on us that SSTI's best way of helping the U.S. deal with a flat world is to do what we do best: help practitioners and policymakers learn from each other, share best practices, and brainstorm together to come up with new solutions. We need to learn from each other as we do this. So as we designed the agenda for this year's conference, Investing in a Brighter Future: Building Tech-based Economies, it turned into an action agenda that states, regions, localities, and universities can take to cope with the flattening world.

If you want to increase entrepreneurship, you'll be interested in the entrepreneurship track that we're presenting in cooperation with conference platinum sponsor, the Kauffman Foundation. Our presenters know firsthand what it takes to implement a successful entrepreneurship strategy whether you're in a metro area of 100,000 or more than a million, and they're going to share what they've learned. Because they know we need to learn from each other.

If you want to expand access to capital, then you'll want to think broader than venture capital. We can't say it enough -- venture capital is important, but only a small number of companies will ever receive venture capital. You might be better off learning from Vic Russo of Ben Franklin Technology Partners of Central/Northern PA how they are targeting companies that may never excite the interest off venture capitalists, but will be solid performers creating plenty of quality, high-wage jobs. Or participate in an invigorating panel discussion on keeping angel investor groups active and interested. (And if you want a full indepth day on angel investor groups, be sure to sign up for the October 19 pre-conference workshop led by Sue Preston, one of the smartest people we know on angel investing.)

If you're trying to integrate your university into the economic system, then go to our session on developing successful university-industry partnerships led by two of the brightest and most experienced hands in the field, Wayne Hodges and Martha Connolly. Or learn from the experience of Georgia Tech, MIT, and others on how they're moving technology into the marketplace. Or get the inside look at what may very well be the best program in the country for building a state's research capacity, the Georgia Research Alliance. (And if you want a really close examination of how Georgia Tech is transforming their community, sign up for the Tech Square preconference workshop on October 19.)

If you believe that we need to improve our workforce, then you'll want to go two sessions on the latest developments with the workforce system and developing real partnerships with workforce boards. These sessions are led by three people who have an exceptional understanding of the nation's workforce system.

To better involve underrepresented peoples and regions, you'll want to check out the session focused on encouraging women entrepreneurship (be sure to read the below article to see the work we still have to do in that area with only 37 percent of sole proprietorships being led by females). Or participate in the roundtable discussion on how to better encourage regional cooperation. You can also learn more about the impact the Hope Scholarship program is having in transforming Georgia.

And I haven't even mentioned the sessions on broadband policy, developing global partnerships, or what promises to be a lively roundtable discussion on how we keep TBED relevant in the constantly changing environment.

You can find descriptions of each of the sessions and short bios on each of the speakers at http://www.ssti.org/conference05.htm.

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Save $100: Early Registration and Hotel Room Block End Tuesday
The early bird registration and hotel room block for Investing in a Brighter Future: Building Tech-based Economies, SSTI's Ninth Annual Conference, ends on Tuesday, September 20.  To register for the conference, which is October 20 and 21, you can visit the conference website at http://www.ssti.org/conference05.htm and select the registration form.

To book a room at the Intercontinental Buckhead-- Atlanta for the greatly reduced rate of $165 call the hotel today at 404.946.9000 and tell them you're part of the SSTI Conference. After Tuesday, we can't guarantee what the room rate will be at the hotel or room availability.

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North Carolina Research Campus Announced
Two years ago, Kannapolis, N.C., was reeling from the announcement that Pillowtex Corp, a major textile manufacturer, was filing for bankruptcy. Pillowtex's failure resulted in more than 4,500 jobs lost in just two North Carolina counties and thousands more in the Southeast U.S.

The mood had to have been better last week with an announcement by billionaire David Murdock, owner of Dole Food Company, and Molly Corbett Broad, president of the University of North Carolina system, of plans to create the North Carolina Research Campus on 250 acres at the former Cannon Mills plant and 100 acres of downtown Kannapolis. Press reports put the total investment in the complex at a billion dollars with more than one million square feet of office and laboratory space.

Plans are to turn the campus into a home for more than 100 biotechnology companies with "the most state-of-the-art laboratory space in the nation," according to a press release. The initial 330,000 square foot building will house the Core Laboratory facility, a contract manufacturing biogenic facility, the Dole Research Institute, temporary facilities for university research institutes, and more than 75,000 square feet of multi-tenant space. The Core Laboratory will be available for use by all companies located on the campus and will contain a DNA sequencing facility, micro-array facilities, and mass spectrometry facilities. The Dole Research Institute will focus on research on nutrition and fruits and vegetables.

The campus will also be home to a new private high school for girls from across the country in their junior and senior years who have excelled in math and science. Discussions are underway with the North Carolina Community College System for a 40,000 square foot building that will focus on the education and training for biotechnology jobs.

The Charlotte Observer reported that Murdock will spend $100 million of his own money for a venture capital fund to help companies get established at the campus. The project will also include 350,000 square feet of new retail space and about 700 residences.

Murdock owned the mills in the 1980s and repurchased them at auction last year. The 82-year old Murdock was quoted in the Observer as saying,"This is the most exciting day, I guess I have to say, of my entire life."

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Maryland Creates Loan Program for Incubator Tenants
Maryland has a new program to provide loans to early stage technology-oriented companies that are affiliated with the incubation network, Governor Robert Ehrlich announced earlier this month. The $500,000 Working Capital Loan Fund, administered by the Maryland Technology Development Corporation (TEDCO), will offer low-interest, flexible term loans of between $15,000 and $50,000 to companies in underserved parts of Maryland.

The U.S. Department of Commerce's Economic Development Administration (EDA) provided $325,000, which was matched by TEDCO, to capitalize the fund, provide technical assistance and support outreach efforts. The loans are specifically targeted toward incubation-affiliated businesses in Wenstern Maryland, the Lower and Mid Shore and Baltimore City. Loans can be used for working capital.

"This loan program will allow Maryland's business incubator network to be more effective in developing high-tech businesses and in promoting technology transfer to areas outside the Baltimore/Washington tech corridor, specifically Western Maryland, Southern Maryland, and on the Eastern Shore," Governor Ehrlich said in a press release.

More information on the program can be found at http://www.marylandtedco.org/programs/Working_Capital_Loan_Fund.html

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Recent Research
Study Reveals Women Sole Proprietors Outpaced Men in Growth, Lagged in Earnings
The growth rates of female sole proprietors in the numbers of businesses, gross receipts, and net income were more than double that of their male counterparts between 1985-2000. However, sole proprietorships were still male-dominated, with male sole proprietors having a larger share of the total number, receipts, and net income, according to a working paper from the Small Business Administration.

The study, U.S. Sole Proprietorships: A Gender Comparison, 1985-2000, uses U.S. sole proprietorship data tabulated by the Statistics of Income Division of the Internal Revenue Service to determine information about U.S. sole proprietorship by gender. Some of the categories measured include business size, owner's marital status, industry categories, net income, growth, and business receipts.

While women outperformed men in terms of growth, they were behind in wage earnings and total sales. Data from the study indicate that most U.S. sole proprietorships are small, and more than 50 percent of sole proprietors are simultaneously salary and wage earners. In 1999, male sole proprietors earned an average $43,022 in salary and wages and $7,863 in sole proprietorship income. In comparison, females earned half of that; $21,830 in salary and wages and $3,905 in sole proprietorship income.

In terms of total sales, women sole proprietors earned a fraction of their male counterparts, the study says. For example, in 2000 male proprietors earned gross receipts of $120,402 in the sectors of Finance, Insurance and Real Estate, compared to $42,433 in gross receipts for female sole proprietors. In Wholesale and Retail Trade, males earned gross receipts totaling $113,191, compared to $27,145 for female sole proprietors, a mere 24 percent of their counterparts' gross sales. Other highlights from the study include:

While the study may provide useful parallels to gender differences among business owners, the author notes, due to the limitations of data there have been more anecdotal assumptions and claims than solid empirically tested facts on gender differences among them.

U.S. Sole Proprietorships: A Gender Comparison, 1985-2000 is available at: http://www.sba.gov/advo/research/rs263tot.pdf Links to this paper and more than 1,000 additional TBED-related research reports, strategic plans and other papers can be found at the Tech-based Economic Development (TBED) Resource Center, jointly developed by the Technology Administration and SSTI, at http://www.tbedresourcecenter.org/.

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Deadline for 2006 National Medal of Technology Nears
Nominations for the 2006 National Medal of Technology can be made up until September 30.  The President of the U.S. presents the prestigious National Medal of Technology to individuals, teams of individuals, or companies who have improved the American economy and quality of life by their outstanding contributions through technology. The Medal honors accomplishments in the innovation, development, commercialization and management of technology as evidenced by the establishment of new or significantly improved products, processes or services.

The Department of Commerce which administers the award is encouraging nominators to consider the high-impact contributions which colleagues, mentors or associates have made in areas such as:

Established by an act of Congress in 1980, the Medal of Technology was first awarded in 1985. Past recipients include: W. Lincoln Hawkins (plastics pioneer in telecommunications systems), Stephanie Kwolek (developed Kevlar®, used in body armor), and WARF, the Wisconsin Alumni Research Foundation (noted for its success in transferring university-developed technology to the marketplace). A list of past recipients can be found at: http://www.technology.gov/Medal/Recipients.htm

Nomination forms and guidelines may be downloaded from the National Medal of Technology website at www.technology.gov/Medal/Nomination.htm and should be submitted by e-mail to the address provided below. Questions should be addressed to Mildred Porter, Director, National Medal of Technology, U.S. Department of Commerce, at 202-482-5572 or nmt@technology.gov.

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Useful Stats
2003 Industry Share of Academic R&D
If one of the keys to competing in a flat or flattening world is better integration of universities into the economic system, then one of the best ways to measure success is to examine industry's share of academic R&D expenditures. Based on the National Science Foundation's Academic Research and Development Expenditures: Fiscal Year 2003 (detailed tables available at: http://www.nsf.gov/statistics/nsf05320/htmstart.htm), SSTI has prepared a table showing industry's share of total academic R&D expenditures in 2003.

States with the greatest percentage of academic R&D coming from industry in 2003 in rank order are: Alaska, North Carolina, Nebraska, Virginia, Iowa, Massachusetts, Indiana, Vermont, Pennsylvania, and Arizona. States with the smallest percentage of academic R&D coming from industry in 2003 are (starting with the smallest percentage and going up): South Dakota, Rhode Island, West Virginia, Kentucky, Wisconsin, Utah, Oregon, Kansas, Alabama, and Delaware.

The stats provoke a number of questions that policymakers and researchers should explore in more depth. For example: while EPSCoR states dominate the lower tier of industry percentage of academic R&D, ten EPSCoR states rank in the top half; are those ten states doing something different to encourage industry funding of academic R&D? what are the long-term trends in individual states in industry percentage of academic R&D and if there are changes are they as a result of policy, personnel, or research quality? (For data from 2000-2002, see SSTI's table at http://www.ssti.org/Digest/Tables/083004t.htm)

SSTI's table showing industry's share of academic R&D expenditures can be found at: http://www.ssti.org/Digest/Tables/091905t.htm

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