In the January 9, 2008 Issue:

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 Tech Talkin’ Govs, Part I
SSTI’s eighth annual Tech Talkin’ Govs series highlights new and expanded TBED proposals from governors’ state-of-the-state, budget and inaugural addresses. With mounting budget deficits spanning the nation, this year’s anticipated overarching theme is proposals aimed at mending states’ finances with less focus on the introduction of new initiatives. The first installment of the series includes excerpts from California and New York.
 
California
Gov. Arnold Schwarzenegger, State-of-the-State Address, Jan. 8, 2007
“California leads the nation in biotechnology ... nanotechnology ... medical technology ... information technology. And we will soon be recognized as the leader in clean technology.
 
“Worldwide, clean-tech investments are up by 50 percent in the first nine months alone last year… so I have asked myself, what must we do in this chamber to help fulfill this future? ...
 
“... Let me tell you about some of the ideas of our legislative leaders. Speaker Nunez has made research into alternative energy and transportation fuels a top priority this year. Speaker Nunez, I will work with you on that.”
 
New York
Gov. Eliot Spitzer, State-of-the-State Address, Jan. 9, 2008
"We must focus with a singular purpose on an agenda for economic growth and opportunity. To do this, we need a world-class education system from Pre-K to graduate school. …
 
“... Without world class education, we cannot have a world class economy. Last year we focused on pre-school to grade twelve. This year, we must also look beyond high school to our colleges and universities. ...
 
“... If you want to participate in the innovation economy, a high school diploma is not always enough – you’re going to need a college diploma, or better yet, an advanced degree. We can’t strengthen our economy without the best colleges producing the best-prepared graduates. That’s why our goal must be to make an outstanding higher education affordable for every New Yorker.
 
“Last year, I convened a Commission on Higher Education to recommend what we need to do to make America’s largest public system of higher education one of its very best [see the Dec. 19, 2007 issue of the Digest]. Last month, they spoke. Today, you and I need to begin acting on their recommendations.
 
“Over the next five years, we must hire 2,000 new full-time faculty members for SUNY and CUNY, including 250 eminent scholars – the type of professors whose research draws grants and collaboration from around the globe, and whose stature lifts entire campuses.
 
“We must create an Innovation Fund for cutting-edge research at New York’s public and private colleges, similar to the National Science Foundation, and the National Institutes of Health. Supercharging cutting-edge academic research will also supercharge our innovation economy.
 
“We must invest in our community colleges, which train New Yorkers for high-skilled jobs and serve as the gateway to four-year colleges. ...
 
“... We will move forward on the University of Buffalo’s “2020” expansion as a centerpiece of our strategy to reinvigorate the economy of Western New York… we will create a flagship at the other end our state as well. We will help bring together the University at Stony Brook, and the world renowned Brookhaven and Cold Spring Harbor laboratories. The result will be a peerless cross-disciplinary research engine in the areas of cancer, neurobiology, plant genetics and bioinformatics. …
 
“... But none of this is possible unless we figure out a way to pay for it. And to do that, we need a new funding source. The finest private and public colleges and universities in America use the funds from permanent endowments to achieve excellence. If we are to join their ranks, we must do so as well. …
 
“... Given the investments we must make and the sheer size of our higher education system, this endowment initially should be at least $4 billion, which would generate $200 million in operating funds each year.
 
“... We should unlock some of the value of the New York State Lottery, either by taking in private investment or looking at other financing alternatives. As we do this, we will assure that the State continues to regulate all lottery games, and that we continue to receive the more than $2 billion annually for K to 12 education that the lottery now provides.
 
“... As our health care reforms embrace common sense, they must also embrace the cutting edge. Last year, working together with both houses of the Legislature and guided by the leadership of Lieutenant Governor Paterson, we created a $600 million Stem Cell Research Fund. He and I share the belief that, yes, stem cell research is an economic development opportunity, but it is also a moral imperative. I am pleased to report that, this week, the first round of grants went out, making New York’s stem cell fund the fastest in the country to go from green light to grant making.”

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Federal Spending Bills Contain 2,526 R&D Earmarks, AAAS Analysis Finds
A new AAAS analysis of the disappointing federal budget for 2008 reveals Congress’s obsession with earmarks is back with a vengeance, guaranteeing that competition for the remaining federal funds for R&D will be even more fierce.
 
While lower than 2006, earmarks consumed $4.5 billion of the federal R&D budget, scattered among 2,526 projects AAAS was able to identify.
 
Congressional earmarks amounted to $939 million in the omnibus appropriations bill signed last month by President Bush and $3.5 billion in the Department of Defense appropriations bill enacted in November, said Kei Koizumi, head of the AAAS R&D Budget and Policy Program.
 
"Although earmarked R&D funding declines in 2008 compared to previous years," Koizumi said, "in a tight budget environment, earmarks once again crowd out hoped-for increases in competitively awarded research programs."
 
Koizumi's analysis found that the Department of Energy and the Department of Agriculture are the most heavily earmarked domestic R&D agencies, with nearly 10 percent of Energy’s R&D portfolio siphoned off and 18 percent of USDA’s. After being earmark-free for the first years of its existence, the Department of Homeland Security is slated to get $82 million in R&D earmarks in 2008.
 
On the positive front, the National Institutes of Health and the National Science Foundation remain earmark-free.
 
Earmarks tend to be geographically concentrated. The top 10 state recipients of earmarks­led by California with $294 million­account for 44 percent of all earmarked funds, Koizumi found. The top 10 states are a mixture of the most populous states and states with politically powerful congressional appropriators.
 
The complete AAAS earmark analysis includes a link to a spreadsheet of all 2008 R&D earmarks by amount, state, performer or project, and agency. The AAAS R&D Budget and Policy Program site also includes details of all R&D funding in the omnibus bill for the top R&D agencies.
 
Few Washington pundits hold any prospects for much of the 2009 budget passing before the fiscal year begins Oct. 1 – or even before the presidential election in November. Given that scenario, the full budget is not likely to be considered before the January inaugural and next session of the “new” Congress. Earmarks cannot be attached to Continuing Resolutions (yet) so 2009, like 2007, could be a pork-free budget year.

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Two New Initiatives Aim to ‘Innovate’ and ‘Accelerate’ Wisconsin
Gov. Jim Doyle announced two new initiatives focusing on investments in manufacturing R&D and increasing angel and venture capital investment to grow new businesses.
 
With the goal of remaining globally competitive, the governor’s new Innovate Wisconsin initiative offers tax incentives to encourage manufacturers to increase R&D. Specifically, the plan calls for new ‘Innovate’ tax credits that are given to companies who increase spending on R&D by 25 percent over their three-year average. Companies would receive a $1 tax credit for every $1 spent above this threshold, which is capped at 50 percent of its tax liability, according to the governor’s office. Additionally, the plan calls for machines and equipment used in manufacturing R&D to be exempt from sales and property tax.
 
Gov. Doyle also announced the creation of Accelerate Wisconsin, an initiative to encourage new start-up businesses through grants, loans and tax credits. This initiative builds upon Act 255, a measure to expand angel and seed tax credits by $5 million, which was widely debated but ultimately approved during last year’s legislative session (see the Oct. 31, 2007 issue of the Digest).  By 2015, the total amount of tax credits is expected to reach $100 million, leveraging a minimum of $400 million in private investment, according to the governor’s office. The Accelerate Wisconsin initiative also comprises three new components:

Both initiatives are part of the next phase of the governor’s Grow Wisconsin Agenda, a plan to jumpstart the state’s economy through investments in TBED (see the Sept. 19, 2003 issue of the Digest). The plan was updated and expanded in 2005 to include a number of additional investments, including seed funding for the Biomedical Technology Alliance to promote research, tax incentives for businesses to locate high-wage jobs in distressed areas, establishing a Manufacturing Competitiveness Council, and increasing the minimum number of math and science credits required for high school graduation (see the Sept. 26, 2005 issue of the Digest). 
 
More information on the Innovate Wisconsin initiative is available from the governor’s press office at: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3081
 
For more information on Accelerate Wisconsin, please visit: http://www.wisgov.state.wi.us/journal_media_detail.asp?locid=19&prid=3078

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Illinois Boosts TBED Strategy with New Entrepreneurship Initiatives
With rumors of recession building, several of the nation’s governors are announcing new TBED-focused initiatives in 2008 – many of which will be presented to lawmakers for funding in the coming months. In Illinois, Gov. Rod Blagojevich unveiled two new initiatives encouraging entrepreneurship to grow high-technology businesses throughout the state.
 
Both initiatives focus on supporting new and serial entrepreneurs with developing and commercializing technologies. The Entrepreneurship in Residence Program (EIR) provides mentorship by pairing experienced entrepreneurs with young entrepreneurs to help them start new businesses. The Chicagoland Entrepreneurial Center (CEC) will administer the program through a grant totaling $860,000 awarded by the Illinois Department of Commerce and Economic Opportunity. The CEC will select qualified entrepreneurs to enroll in the EIR program who, in turn, will identify promising technologies and match them with young entrepreneurs. The goal is to help them start a business and move toward a first round of financing. Each EIR-approved business is eligible to receive up to $80,000 for prototype development, technology assessments, intellectual property protection and market assessments.  
 
The second initiative, called the IL-Celerate Program, will guide young entrepreneurs as they develop technology companies through a 12-week process that ends with the completion of a prototype-stage product or service. The Illinois Technology Association (ITA) will initially sponsor five seed-stage companies through the process, awarding grants of up to $15,000. IL-Celerate participants also receive incubation services such as office space, furniture, Internet access, phone service, and conference facilities in ITA’s 26,000-square-foot technology community center, TechNexus. Total funding for the program is $120,000.
 
Elsewhere in the country, states have announced similar initiatives supporting entrepreneurship as part of an overall TBED strategy. Hoping to garner support from lawmakers in the coming legislative session, Minnesota Gov. Tim Pawlenty unveiled a $70 million rural entrepreneurship initiative to facilitate new business development through networks, seed funding and tax exemptions (see the Oct. 3, 2007 issue of the Digest).
 
In Ohio, the TechLift initiative was created earlier this year through the state’s Third Frontier Program to provide direct services to entrepreneurs in five signature technologies throughout the northeast region, including advanced materials, biosciences, electronics, information and communication technologies, and advanced energy (see the Oct. 10, 2007 issue of the Digest).
 
More information on the Entrepreneur in Residence and IL-Celerate programs are available at: http://www.commerce.state.il.us/dceo/News/homepage_pr12132007.htm

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Report Identifies Benefits to U.S. Biopharmaceutical Industry through Investments in Technology Infrastructure
The average cost of bringing a Food and Drug Administration-approved drug to market could be cut by 25 percent to 48 percent by making targeted investments in the national biopharmaceutical R&D technology infrastructure, according to a recent report from the National Institutes of Standards and Technology. Economic Analysis of the Technological Infrastructure Needs of the U.S. Biopharmaceutical Industry cites current costs as averaging $560 million per drug, but could drop to between $289 million and $421 million. Furthermore, these improvements can reduce the time from drug identification to clinical trial completion from a current average of 11 years to sometime between 8-10 years.
 
The report describes the growing complexity of biopharmaceutical drug discovery, as a transition is underway from the standard trial-and-error research process geared towards the treatment of symptoms, to using computer modeling and knowledge of the body’s biochemistry to create drugs that target the functionality of cellular processes. To increase the efficiency and quality of new drug production, infrastructure such as new equipment, software and technology platforms, operating protocols, and manufacturing processes will need to be further developed throughout the industry. Additionally, the standardization of these developments will allow data and knowledge to be shared through all stages of drug development, from basic research to clinical trials and commercial manufacturing.
 
The report’s authors surveyed individual researchers and technical experts involved in biopharmaceutical R&D to provide quantitative estimates on how the advancement of the technical infrastructure can reduce cost and development times and improve the quality of drug development. Their analysis concentrated on the intricacies of four specific areas of technology infrastructure:

Two other components of drug production were targeted within the report: the commercial manufacturing of drugs, including the scale-up from clinical trial production, processing and quality control; and post-market analysis, including safety tracking, post-market clinical trials and determining cost-effectiveness to alternative treatments.
 
The report finds the biopharmaceutical industry invested $1.2 billion on infrastructure-related products and services in 2005 (compared to $21 billion in total R&D spending), spread throughout technology infrastructure, commercial manufacturing and post-market analysis. Of this amount, $884 million was spent on technology infrastructure alone. The largest component of investments was concentrated on gene expression analysis (30 percent of total infrastructure spending), followed by biomarkers (24 percent), bioinformatics (22 percent) and bioimaging (15 percent). In addition to the benefits on the time and cost savings in R&D from investing in this infrastructure, the report estimates the industry’s annual manufacturing costs can be reduced by $1.5 billion, or about 23 percent.
 
Economic Analysis of the Technological Infrastructure Needs of the U.S. Biopharmaceutical Industry provides in greater detail the specific emerging technologies and scientific discoveries available in the field. It can be accessed at: http://www.nist.gov/director/prog-ofc/report07-1.pdf

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Save the Dates!
SSTI's Annual Conference Set for Oct. 14-16, 2008
As you begin to fill in your 2008 calendar, remember to mark Oct. 14-16, 2008, to attend SSTI's 12th annual conference in Cleveland! Past attendees know SSTI's conference is the premiere professional development event for the TBED community. And 2008 will be no exception. Back by popular demand, we will be offering an array of pre-conference workshops on Oct. 14.

The InterContinental Hotel Cleveland, site of this year's conference, is built with state-of-the-art conference technology, including an automated response system to maximize the interaction between the audience and speakers. The hotel is located in the heart of the Cleveland Clinic, which is ranked among America's top three hospitals by U.S.News & World Report.

Keeping with years past, the conference agenda will be set by SSTI members to ensure the most timely and relevant topics for transforming regional economies. Look for more information on SSTI's conference website soon. Please contact Noelle Sheets, director of membership services, at sheets @ ssti.org for sponsorship opportunities and if you have any questions. 

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SSTI Job Corner
Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm.

The BioBusiness Alliance of Minnesota, a nonprofit organization that represents Minnesota companies, academia and government, is seeking a bio-network specialist. This position will report to the BioBusiness Alliance CEO but will work in close partnership with the Southern Minnesota Initiative Foundation and other statewide constituents to support the growth of biobusiness in greater Minnesota. A bachelor’s degree is required; a master’s or Ph.D. degree is preferred.

The University of Missouri-Columbia (MU) is seeking an innovative, energetic and experienced individual to serve as director of its Office of Technology Management and Industry Relations. The director will report to the vice chancellor for research at MU and will be responsible for stimulating the development and commercialization of advanced technology, protecting university intellectual property, and transforming technology into successful enterprises. The university is looking for an individual with a Ph.D. in science or engineering or a master’s degree in science or engineering, plus a law degree.

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People

Bill Bradley is the new executive director of the Jay County Development Corp. Bradley fills the vacancy left by the late Bob Quadrozzi.

Traci Hancock was named executive director of BioNebraska.

Peter Hermann was selected as the N.C. Technology Association's new CEO. Hermann replaces Joan Myers, who took a position with a software company.

John McIver is serving as interim vice president for research and economic development at the University of New Mexico while the school searches for a permanent replacement to Terry Yates, who passed away in December.

Gary Margules was appointed vice president for research and technology transfer at Nova Southeastern University.

New Carolina, South Carolina's Council on Competitiveness, has formed the South Carolina Engineering Cluster. Lee Stogner will lead the cluster and its steering committee, which represents government, economic develoment, academia, engineering companies and professional societies aiming to promote engineering in South Carolina.

Dr. James Weyhenmeyer will become senior vice president for the State University of New York (SUNY) Research Foundation and SUNY senior vice provost for research, effective March 3, 2008.

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