In the October 10, 2005 Issue:

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House, Senate to Labor over Defense Budget Bill
Senate Version Adds $40M for University R&D, Scholarships
With the threat of a presidential veto looming, the U.S. Senate unanimously passed its version of the 2006 Department of Defense (DoD) Appropriations Bill on Oct. 7 at a total level $7 billion below the Administration's request. Of particular note for the tech-based economic development community was the Senate's floor passage of an amendment to provide an additional $40 million for research and scholarships.

Overall, House Resolution 2863 provides $390 billion for DoD programs and includes $7 billion less than the president's FY 2006 budget request, the Association of American Universities reports.

Co-sponsored by senators Edward Kennedy (D-MA), Susan Collins (R-ME) and nine other Democrats and Republicans, the amendment provides increases of $10 million for each of Army and Air Force University Research Initiatives over the level approved by the Senate Appropriations Committee. The Navy would receive an extra $5 million for a similar program. The SMART National Defense Education Program, an initiative piloted in 2004 and proposed by the administration to be made permanent in 2006, would total $20 million with the additional $10 million appropriated via the amendment. The DARPA University Research Program in Cybersecurity would receive an additional $5 million.

Touting the amendment, Sen. Kennedy recommended that DoD allocate 15 percent of its total available funds to science and technology each year, beginning in FY 2006. This level, according to the American Institute of Physics, would be $447 million more than last year's figure of 11.6 percent.

HR 2863 moves to a conference committee for discussion by members of both the Senate and U.S. House of Representatives. The bill, as passed by the House, does not include the amendment. AAU states that the president has said he will veto the Senate version of the bill.

The bill is available in full through Thomas Locator at: http://thomas.loc.gov/cgi-bin/bdquery/z?d109:h.r.02863:

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Oregon Governor Signs Bill to Create Innovation Council
Gov. Ted Kulongoski last month signed Senate Bill 838, creating the Oregon Innovation Council to provide him and the legislature with advice regarding business innovation in order to strengthen competitiveness in global markets. The council will include representatives from industry, education and government.

In addition, the bill recognizes the Oregon Nanoscience and Microtechnologies Institute (ONAMI) as the state's first Signature Research Center and appropriates $7 million for operations and leveraging of private and federal funds. According to the governor's office, every state dollar invested into ONAMI delivers a $30 return through private investment.

Among its key tasks, the council will work to increase Oregon universities' role in driving economic growth. The council will provide advice on enhancing educational programs for engineering, science and technology. Another primary goal is identifying and addressing business development issues in key industry sectors such as early-stage funding and entrepreneurial capacity.

Gov. Kulongoski also signed Senate Bill 853, which directs the state treasurer to establish one or more university venture development funds within the state treasury and authorizes Oregon University Systems institutions and Oregon Health and Science University to establish venture capital funds (see the July 18 issue of the Digest).

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Launch of Emerging Technology Center Completes Delaware Governor's New Economy Initiative
Gov. Ruth Minner launched over the summer the final component of her New Economy Initiative to provide a network of support and services to technology-based start-up companies.

The Emerging Technology Center will partner with private firms, regional organizations and universities to identify gaps in available services and provide access to technology development resources and laboratory facilities for product development, according to the governor's press office. The mission of the center is to seek individuals who have the capacity and desire to become tech-based entrepreneurs. Primarily, the state is interested in identifying those who have recently retired from technology-based corporations, individuals separated from their jobs due to business changes, new residents, professors, and graduate students.

Gov. Minner unveiled the New Economy Initiative in February 2004 following her State-of-the-State Address (see the Feb. 27, 2004 issue of the Digest). In July, the legislature passed a capital budget that included funding for all key components of the initiative (see the July 26, 2004 issue of the Digest). The largest component of the $30.5 million initiative is the Delaware Competitiveness Fund, which consists of a $12.5 million investment to induce Delaware manufacturers to make capital investments in order to preserve and expand productivity and competitiveness of plant sites facing decline from national and global competition.

Other services to be provided by the center include linking entrepreneurs to an existing network of business expertise, services and investors and providing assistance for tech-focused business plans. In addition, DuPont and Hercules recently donated intellectual property to the center for a new patent program currently being developed, according to the governor's press office.

More information is available at: http://www.state.de.us/dedo/news/2005/FinalEconInitiative_08_25_05.shtml

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Sacramento Region to Focus on Growing Clean Energy
A concentrated effort to support the Sacramento region's many green tech entrepreneurs could lead to Silicon Valley-style success in clean energy technology (CET), says a new report from the McClellan Technology Incubator and the Sacramento Area Regional Technology Alliance (SARTA).

California is already a leader in clean energy, according to the report. For example, a study conducted for the California Air Resources Board revealed that the state supports 180,000 jobs in environmental businesses -- 22,000 of which are in clean and renewable energy. Clean energy also is a growing sector with total worldwide market sales projected to grow by $85 billion over 10 years, and investment in global clean energy has doubled in the past four years, the report indicates.

While the Sacramento area has some of the essential "ingredients," it is lacking in others, the report states. The region leads the country in CET research and regulatory knowledge; however, it is lacking a culture of industry-university partnerships and streamlined access to resources of the holders of intellectual capital. Also, while the region has a number of potential CET start-up employees and interns, it is missing a bench of mentors and coaches familiar with CET and a pool of talented CET entrepreneurs.

The report also notes that although substantial government R&D funding is available, support for capital and pre-seed CET ventures is needed. Other problems identified are significant gaps in funding the process locally and the long process of moving technology from invention to innovation. The report suggests that business incubation can have a significant impact if implemented correctly. The authors point to Georgia Tech's Advanced Technology Development Center, one of the sponsors of SSTI's annual conference next week, as a prime example. Since ATDC's inception in 1980, 100 new client firms are generating more than $1.75 billion in revenue and adding 4,900 jobs to the local economy.

A total of 30 clean energy companies at varying stages are identified in the Sacramento region and the report predicts a growth of 52,000 to 114,000 in new jobs over the next decade. Recommendations to make the region a green powerhouse include:

To spark venture capital interest in the area, the report suggests a $50,000 business plan competition open to all clean energy businesses in the region. Another suggestion to provide a substantial boost to establishing the region is implementing a Renewable Resource Research Park. The Park would create the potential for high-paying jobs and multiple spin-offs, in addition to providing a connection to major university research centers, the report states.

The year-long study was conducted by leaders in technology investing in the area and funded by the California Energy Commission and the Sacramento Municipal Utility District. The report, Clean Energy in the Capitol Corridor: Making the Region a Green Powerhouse, is available from SARTA at: http://www.sarta.org

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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Final Registration Opportunity before SSTI's Annual Conference
Only seven days remain until the opening of SSTI's 9th Annual Conference in Atlanta. More than 330 of the nation's top thinkers and practitioners for the TBED community will convene at the InterContinental Hotel seeking guidance from their peers.

All will find answers at Investing in a Brighter Future: Building A Tech-based Economy. The only question remaining is will you be among them at the tech-based economic development community's premier opportunity for professional growth and inspiration?

More information and a registration form is available at: http://www.ssti.org/conference05.htm

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Innovation Summit Will Launch Southern Innovation Initiative
On Monday, Oct. 31, the Southern Growth Policies Board, the Southern Technology Council, Georgia Institute of Technology, the Council on Competitiveness and the Georgia Research Alliance will host a one-day Southern Technology Innovation Summit at the Georgia Tech Hotel and Conference Center in Atlanta. The meeting will review the findings from the Council on Competitiveness’ recently released National Innovation Initiative report and launch a new Southern Innovation Initiative.

The Innovation Summit will gather business executives, science and technology professionals, economic developers, and university and corporate research scientists to discuss how to promote innovation in the Southern region's economy, institutions and culture. Georgia Gov. Sonny Perdue will open the meeting, and discussion and panels will feature regional and national speakers on topics including Innovation and Investment, Innovation Infrastructure, and Innovation in a Corporate Context.

Louisiana Gov. Kathleen Blanco will close the summit with the announcement of a new Southern Innovation Initiative in 2005-2006. The Southern Innovation Initiative will include a series events promoting innovation in the South, including community discussion forums, a regional survey, focus groups, and the initiative will culminate with Southern Growth Policies Board’s 2006 Report on the Future of the South and a regional conference in New Orleans in June 2006.

Registration for the Innovation Summit is $100. To view a complete agenda, register online, or more information, visit: http://www.southern.org/main/STC/SI2/symposium.shtml

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RTI International Seeks Economic Development Analyst
RTI International, an independent, nonprofit research organization based in Research Triangle Park, N.C., is seeking someone for the position of economic development analyst. Activities include designing, managing and supporting technology-based economic development research and implementation projects; preparing strategic, economic, evaluation and policy analyses; collecting data and information from secondary sources; preparing literature reviews; and constructing protocols, complete interviews, site visits and case studies. Candidates should have a master’s degree in planning, public administration, policy or business administration, or related field, with 3-5 years of experience in technology-based economic development. For more information on this position, visit SSTI's online Job Corner at http://www.ssti.org/posting.htm.

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