In the March 27, 2006 Issue:

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Tech Talkin' Govs 2006, Part Five
The first four installments of SSTI's look at how tech-based economic development (TBED) will play in the 2006 legislative priorities of the governors can be found in the Digest archives at: http://www.ssti.org/Digest/digest.htm

Louisiana
Gov. Kathleen Blanco, State-of-the-State Address, Mar. 27, 2006
"I also propose a $31 million investment to retain higher education faculty. ... We can plug the brain drain of displaced professors taking higher-paying jobs elsewhere.  Any loss of educators will be followed by a brain drain of students. ...

"... Education feeds into workforce training. Preparing our citizens for good jobs is another important step on the ladder out of poverty. It is also a key step on our road to recovery. Training a quality workforce influences economic development by attracting new businesses and industries to the state. ... This is why I ask you to support a $15 million investment to expand and retrain our workforce. ... We can partner our businesses and industries with our colleges and training programs."

Minnesota
Gov. Tim Pawlenty, State-of-the-State Address, Mar. 9, 2006
"We also need to realize that science and math are the currency of our new economy. We need more rigor in these areas. We should upgrade our school standards to require Algebra One by eighth grade and Algebra Two and Chemistry to graduate from high school.

"And while we're at it, let's bring a lesson from the game room into the classroom, by including digital literacy as part of our school standards so that our kids know how to access and use technology as a basic skill.

"Advanced Placement and International Baccalaureate programs provide the rigor and relevance we need to prepare our students for the future. But they're not available to most of them. I'm proposing that we provide seven million dollars in financial incentives for at least ten pioneering districts to use AP or IB for all students, in all grades.

"In addition, we need to transform our high schools so we are better preparing our young people for the economy of the future. Academic progress in our secondary schools has flattened out. Let's provide funding so up to five pioneering high schools can show the way by fundamentally overhauling their structure to focus on college preparedness or technical training that is relevant and rigorous for all students."

New Jersey
Gov. Jon Corzine, Budget Address, Mar. 21, 2006
"And lastly, economic growth should be the engine to expand revenues, not taxes. To achieve strong growth, we need a favorable investment climate for business.

"We must carefully make strategic investments to attract and retain business. Even in this tough budget climate, we must promote economic growth, we must make investments that will help our state prosper. Moving the Business Employment Incentive Program, or BEIP, grants onto a pay as you go basis, for example, is appropriate. But there are also long-term investments funded by long-term borrowing that are both appropriate and necessary to support a growing economy, investments in an economy that will support future taxpayers as well as today’s.

"Restoring guaranteed funding to the transportation trust fund was one such initiative. Funding stem cell research is another. If we are to be a leader in cutting-edge biotechnology and acquire the accompanying high-paying jobs, we will need to prime the pump. On this issue, it’s time to act."

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U.S. Graduate Schools See Large Increase in Applications from Foreigners
Numbers Remain Below 2003 Levels
Graduate applications from international students increased 11 percent from 2005 to 2006, the Council of Graduate Schools (CGS) recently reported. This growth follows a two-year cumulative decline of 32 percent.

There has been considerable concern since 9/11, the dot-com crash and the flourishing of globalization that the U.S. was losing its ability to rely on the emigration of future scientists and engineers from foreign nations for graduate programs in the U.S. The Science and Engineering Workforce: Realizing America’s Potential, the 2005 report by the National Science Board, reminded readers just how much the country had grown to count on foreign talent to drive innovation. “For all degree levels, the share of U.S. S&E occupations filled by scientists and engineers who were born abroad increased from 14 to 22 percent” between 1990 and 2000, the report states. For doctoral degrees, the increase was even greater, from 24 percent in 1990 to 38 percent 10 years later.

Fears of an emerging crisis grew, beginning in 2003, as consecutive years of declines in foreign enrollment for graduate school were reported. While not all students stay in the country after graduation, a significant percentage do if opportunities exist for them to remain.

The new CGS report on applications for fall 2006 shows large gains in the volume of graduate applications from China (21 percent increase) and India (23 percent increase) to the Council's U.S. member institutions. Annually, China and India are the two largest-sending countries of students to the U.S., CGS reports. Korea and the Middle East also experienced increases of 3 percent and 4 percent, respectively.

Applications increased across all broad fields of study, including engineering (17 percent), life sciences (16 percent), physical sciences (10 percent), and social sciences (10 percent).

Overall, despite the increases, the number of international applications is still down 23 percent since 2003 for institutions that responded each of the last three years. While 65 percent of responding institutions reported increases greater than 5 percent, 35 percent reported either no significant increase or a decline, CGS indicates.

“This increase in applications from international students is good news and is a result of sustained efforts by both the federal government and graduate schools,” CGS President Debra Stewart said. “The federal government has made considerable progress in reducing delays in visa processing, and graduate institutions continue to improve their admissions systems and enhance efforts to attract international applicants. But the lower volume compared to three years ago bears watching.”

Findings from 2006 CGS International Graduate Admissions Survey, Phase I: Applications are based on the first phase of a three-part annual survey of international graduate student admissions among CGS U.S. member institutions. More than 150 schools responded, including more than 80 percent of the 25 institutions with the largest international student enrollments. Last year, CGS reported a 3 percent increase in international graduate admissions followed by a 1 percent increase in international first-time enrollment for fall 2005. CGS is comprised of more than 450 institutions of higher education. Its report is available at http://www.cgsnet.org.

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South Dakota Sees Progress as Clock Ticks on 2010 Initiative
While many states will lay out strategic plans with quantifiable goals to measure success, South Dakota in 2003 was one of the first SSTI noticed to use a specific target for its gross state product (GSP) as one of the measures. According to the latest annual review, South Dakota officials feel they are making significant strides in its goal of adding $10 billion to its GSP by 2010.

Using the latest data available from the U.S. Department of Commerce, the 2005 progress report reveals the state's GSP increased by 21.9 percent between 2001-2004 and, from 2003-2004, the state experienced an increase of 7.6 percent, or $5.4 billion. Comparatively, South Dakota is among the top states to increase GSP over the 2003-2004 period. Only 13 other states saw higher increases. At the top was Nevada, with an increase of 11.8 percent, followed by Arizona at 9 percent and Arkansas at 8.5 percent. Michigan had the lowest increase, 3.5 percent.

Additionally, South Dakota's employment growth was twice that of the nation in 2005, according to Jafar Karim, director of the Governor's Office of Economic Development. The state's per capita personal income also increased by 5.3 percent, which is above the national average of 4.9 percent.

Gov. Mike Rounds unveiled the economic stimulus plan in 2003, which outlines a series of specific goals for economic growth and visitor spending in the state by the year 2010. Research and technology development play central roles to the strategy. The third goal of the initiative is to become a leader in research and technology by 2010. Measurements within this group include National Science Foundation and National Institutes of Health funding to the state, academic R&D expenditures, annual patents issued, science and engineering (S&E) doctorate awards granted, and educational attainment. Within this category, the state produced mixed results. Annual patents decreased by 1.1 percent over 2003-2004 and S&E doctoral awards decreased by 8.3 percent. However, educational attainment - the percentage of the population age 25 or older to hold a bachelor's degree or higher - increased by 10.4 percent.

Mel Ustad, director of commercialization and research, said there was significant progress in this goal through the establishment of funding for the state's four research centers (see the July 26, 2004 issue of the Digest). These centers attract more external funding and produce innovations with commercial potential, Ustad said.

More information on the 2010 Initiative is available at: http://www.2010initiative.com/

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Two Looks at Improving Cross-Border Collaboration
Regardless of their potentially arbitrary nature, the political lines separating jurisdictions can wreak havoc on a region's ability to support innovation. Whether it's a boundary between two communities, two states or two countries, these imaginary lines define real rules of commerce (e.g. by the taxes levied, property values, etc.) as well as intangible concerns and perceptions. In many places, intercommunity rivalries seem to almost spill over from the high school football fields and incapacitate the ability to achieve real change throughout a region. The spillovers of significant economic development investments often pay little attention to political boundaries.

The ritual of states chasing large automotive plants is demonstrative. The latest example is provided by Kia with Georgia shelling out $160,000 per job (one-third of which are expected to go to Alabama residents because the plant will be located within five miles of the border.) Both states were competing for the plant; some analysts argue Alabama won since it ponied up nothing to get up to 800 jobs. A collaborative approach between the two states for wooing Kia might have yielded the same choice in locations, with lower public incentive costs. Perhaps, that in turn would have freed up more funds to support education and economic development projects to sustain economic growth.

Two recent projects on opposite sides of the country are exploring ways to foster cross-border collaboration, an increasingly important requirement for competing in a global economy. We look first at the efforts of e-NC in North Carolina, then jump to San Diego and its work across international borders.

Crossing Counties and State Lines
By leveraging assets on both sides of the state line, border counties in North Carolina can become more attractive and competitive locations in technology-driven, knowledge-based economies, says a new report from e-NC Authority.

The study identifies best practices and outlines recommendations to promote collaboration and create additional wealth among neighboring regions in three rural North Carolina counties. Some of the problems facing these counties are, in part, caused by economic barriers intensified by political boundaries, the report states. This may include the historical culture and practice of states directly competing for business locations, R&D facilities and federal funding. Such challenges faced by border counties are not unique to North Carolina, the report adds.

Through a series of interviews and facilitated meetings with leaders in business, government, economic development, and higher education throughout North Carolina, South Carolina and Virginia, the authors identified hurdles and developed a set of recommendations. Over the course of the interviews, three categories of initiatives that focus on technology access and innovation emerged. These include information and communication technology access, training and education, and innovation development. Existing cross-border activities on technology access and training in other states and countries were surveyed as well.

For many participants, funding was reported as a major hurdle for cross-border programs. Having a pilot phase was essential to securing an initial round of funding for several of the programs the authors reviewed. This also gave the program time to garner political support while refining program activities and goals. Participants also recommended securing funding from a variety of sources, including state, local and federal government, foundations, the private sector, and universities.

A key issue for the design of cross-border programs is the inclusion of various stakeholders, according to the study. Other lessons learned include effective leadership over a coordinated team, having formal legal entities to confront tax and infrastructure challenges, and multi-year project commitments.

The study is part of e-NC's Cross-Borders Initiative to address barriers to economic development specific to border counties. The goal is "to help facilitate and encourage the emergence of knowledgeable cross-border stakeholders, including policymakers, who can help translate new ideas for collaboration into operational pilot programs and initiatives."

The report, Creating Wealth: Regional Development Through Cross-Border Collaboration, is available at: http://www.e-nc.org/pdf/Creating_Wealth_Cross_Border_Report.pdf

Links to this paper and more than 3,000 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/.

When Boundaries are Between Nations
Borderless Innovation outlines 10 recommendations designed to enable the San Diego-Baja California region to spur local growth and prosperity. The bottom line requires a broad coalition of interests to overcome previously fragmented efforts and take the steps necessary to collaborate in creating a new Innovation Corridor of the Californias. Borderless Innovation is part of a larger effort called the Crossborder Innovation and Competitive Initiative, the current focus of the San Diego Dialogue. The Dialaogue is a program of University of California-San Diego (UCSD) Extended Studies and Public Programs.

The report analyzes parallel growth trends in specific industries on both sides of the border and seeks to explain the minimal efforts to collaborate and jointly market significant competitive clusters in high technology, science and other sectors. Borderless Innovation identifies a number of untapped capabilities and opportunities on both sides of the border, including biomedical devices, software, marine biotechnology, and aerospace and defense. The report describes the complementary institutions, organizations, technology clusters, and other elements that, when properly coordinated and leveraged, could be the impetus for even greater economic growth.

Three major findings emerged from the nearly two years of research involved in the report:

San Diego-Baja collaboration faces some challenges that are unique to international boundaries but others that can be quite common: security at the border and the cost of delays due to wait times; expansion of the global economy; infrastructure, including ports; the need to increase the number of science and engineering degrees in the region; and, perhaps most important, the challenge of trust.

“Were the region to develop a strategy to support an Innovation Corridor of the Californias, it would require a significant amount of collegiality and trust among civic leaders, policy makers, educational institutions and the private sector,” the report notes. “This means sharing timely and relevant information, frequent interactions and a commitment to one another’s future and quality of life … only with this level of trust can the region achieve its deepest integration and most promising competitive opportunities.”

To address these challenges, the report closes with 10 recommendations for redefining the crossborder region as one with the potential for borderless innovation and catalyzing a new vision for “transforming clusters of opportunity into clusters of prosperity, which improves the quality of life for all.” The recommendations are:

A copy of the 53-page report is available from the Dialogue’s website, www.sandiegodialogue.org. It was made possible by funding from the State of Baja California; CENTRIS, an economic development collaborative in Tijuana; CICESE, a federally funded science and technology research center in Ensenada; the City of Chula Vista; Wells Fargo Bank; and program and development funds from UCSD’s Division of Extended Studies and Public Programs.

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Useful Stats
2004 S&E Doctorate Awards by State
The National Science Foundation (NSF) has released its 2004 annual statistical report on science and engineering (S&E) doctorate awards. Report data show trends in doctorate awards by S&E field and recipient characteristics, institutions awarding doctorates, and postgraduation plans of recipients.

Using NSF and U.S. Census Bureau data, SSTI has prepared a table providing state ranking for doctorate awards by major field and state rankings for the total S&E doctorates awarded per 100,000 residents.

SSTI's table is available at: http://www.ssti.org/Digest/Tables/032706t.htm

NSF’s Science and Engineering Doctorate Awards: 2004 is available at: http://www.nsf.gov/statistics/nsf06308/

U.S. Census Bureau population data is available at: http://www.census.gov/popest/states/NST-ann-est.html

SSTI’s previously published S&E doctorate awards tables:

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Job Corner
Rice Seeks Baker Institute Fellow
Rice University invites applications for a Baker Institute Fellow (postdoctoral researcher) to lead a new and potentially long-term project sponsored by the Baker Institute of Public Policy, the Computer and Information Technology Institute, and the Fondren Library. This interdisciplinary effort, involving faculty in social sciences, humanities, natural sciences, and engineering, will focus on the nature and implications of the transformational effects of technology on many sectors of public and private life. The successful candidate will enjoy broad latitude in coordinating and developing a holistic program involving research seminars, research collaboration with faculty in multiple disciplines, and an on-campus workshop series. A full description of this opportunity and others is available through the SSTI Job Corner: http://www.ssti.org/posting.htm

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