In the December 10, 2008 Issue:
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State Science & Technology Institute 2008. Redistribution to all
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North Dakota Surplus Prompts Additional Spending for TBED Initiatives As
governor of one of only a handful of states to project a surplus for
the upcoming fiscal year, Gov. John Hoeven outlined additional funding
for several initiatives supporting North Dakota’s TBED strategy in the
FY 2009-11 biennium. Investments centered on diversifying the state’s
economy through agricultural and energy research, 21st century
workforce training, and higher education support in Science,
Technology, Engineering and Mathematics (STEM) fields are prominent in
the governor’s budget recommendations. Anticipating
growth in agricultural-based renewable energy development, Gov.
Hoeven’s budget provides $25 million to augment existing programs and
support new initiatives in agricultural R&D. This includes $11.5
million for the second phase of the Agricultural Research Greenhouse on
the North Dakota State University campus ($4.5 million above the FY
2007-09 appropriation) and $2.9 million for additions and renovations
to the state’s Agricultural Experiment Stations. The
governor’s budget for the Industrial Commission combines the biomass
research incentive fund with the renewable energy development fund and
authorizes $5 million from the general fund for biomass and renewable
energy projects. Additionally, $1.4 million is included for the
biofuels PACE program, a Bank of North Dakota program that buys down
interest loans on biodiesel and ethanol production facilities, bringing
its total to $5 million for the biennium. Another $2 million is
included in the Commerce department budget for installation of biofuel
blender pumps at fuel stations throughout the state. Other
energy-related economic development opportunities slated for funding in
the governor’s budget include raising the cap on the Oil and Gas
Research Fund from $3 million to $5 million, which will allow for more
opportunities in horizontal drilling and tertiary oil recovery,
according to the governor’s office, and further development of methods
for carbon capture and sequestration. Gov.
Hoeven’s budget recommends $24 million for workforce development
initiatives aimed at growing high-wage jobs in STEM fields and helping
older workers re-train for jobs in the new economy. Specifically, the
governor proposes $10 million for a STEM grant program, providing up to
$2,000 per year for five years for students seeking a degree in a STEM
field. Within
the North Dakota University System, the governor recommends $2 million
for a student loan forgiveness program. Eligible students can receive
up to $10,000 over five years to pay off student loans if they remain
in the state and work in a STEM-related occupation. The budget also
includes an $800,000 increase for EPSCoR research. The governor
recommends an additional $1.2 million to expand broadband and cover the
increased costs within the university system and an additional $100,000
($400,000 total) for the North Dakota Space Grant Consortium. To
enable more entrepreneurs to participate in the Innovate ND program, a
business competition providing funds for innovative start-up ideas,
Gov. Hoeven is asking lawmakers to double the funding level ($200,000
total) in the next biennium. The FY 2009-11 budget also maintains level funding of $20 million for the state’s Centers of Excellence Program. North
Dakota will begin the next fiscal year with $608 million in reserves
and may see further growth in its reserve fund as a result of
additional oil tax revenues generated during the next biennium. Gov. Hoeven’s FY 2009-11 budget recommendation is available at: http://www.nd.gov/fiscal/docs/budget/execbudgetsummary2009-11.pdf. return to the top of the page
National Bio and Agro-Defense Facility Impact Report Released, Kansas Preferred Site
This
week, the Department of Homeland Security released its environmental
impact statement comparing several locations nationwide regarding the
future site of the National Bio and Agro-Defense Facility (NBAF).
After considering factors such as environmental, economic, technical,
security and safety concerns, the preferred site is situated on the
campus of Kansas State University in Manhattan, Kansas.
The
report estimates around 1,500 temporary jobs producing between $138 and
$184 million in labor income will be generated during construction. A
further 250 to 350 jobs of researchers, technical support, and
operation specialists will be employed when the NBAF is functioning.
The
NBAF will house research, diagnostic testing and training programs
associated with diseases that affect livestock, especially viruses and
bacteria that can harm agriculture and public health in the U.S. The
facility will have the capacity to handle the deadliest and most
infectious microscopic entities, as categorized at the highest
biosafety levels.
The selection process to identify the Kansas
site has taken several years, beginning with 26 submissions from across
the U.S. in March 2006, winnowing eventually to five final sites in
July 2007, including locations within Georgia, Mississippi, North
Carolina, and Texas. Earlier this year, the Kansas Legislature approved
up to $105 million in revenue bonds to support capital improvements at
its site (see the May 21, 2008 issue of the Digest).
Also included in the recent impact report was an assessment of the
facility’s existing site (built in the 1950s on Plum Island off of
Long Island in New York) and a consideration of a no-build option.
The final decision to base the NBAF in Kansas will come at the earliest
in mid-January of 2009, with a thirty-day period required for comments.
Construction on the facility would begin in 2010 and take approximately
four years to complete.
The environmental impact report for the NBAF can be accessed at:
http://www.dhs.gov/xres/labs/gc_1187734676776.shtm.
Budget Proposals Focus on States’ Investment in Research, Workforce Training Despite
projected deficits in several Western and Great Plains states,
governors in Montana, South Dakota, and Wyoming recently unveiled
budget proposals for the upcoming fiscal year, providing level or
increased funds for research priorities and workforce training central
to each state’s economic vitality. The following is an overview of the
budget recommendations outlined by the respective governors. Montana Last
month, Gov. Brian Schweitzer unveiled a two-year budget that provides
several one-time appropriations for workforce training to ensure the
state remains competitive in the global economy and sets aside $250
million in reserves. The
fiscal year 2010-11 budget proposal includes $73.2 million over the
biennium for the Department of Commerce. Included in the governor’s
request is $100,000 each fiscal year to seed the Montana Fund of Funds,
which was created in 2005 under the Montana Equity Capital Act but
never funded (see the Dec. 19, 2007 issue of the Digest).
New proposals within the Department of Commerce include $8 million over
the biennium to provide workforce training grants under the New Worker
Training program and $1.6 million over the biennium to support tribal
business development projects, workforce training projects, and
entrepreneurial training. To
ensure Montana’s workforce is up to par in emerging technology fields,
the governor is recommending $1.9 million over the biennium for a
dual-faceted approach that reorganizes the Department of Labor and
Industry. The proposal also will identify gaps and respond to emerging
workforce demands by helping workers receive necessary training in a
variety of circumstances, according to budget documents. Under
the plan, the Jobs for Montana Graduates program, the Apprenticeship
and Training Program, the WIRED program and the Statewide Workforce
Investment Board is moved into the 21st Century Workforce Technology,
Apprenticeship, and Training Bureau. The proposal adds $950,000 over
the biennium for administration of a Worker Development and Training
Fund, which includes a community college student growth account to
quickly respond to rapid growth in high demand fields. Gov. Schweitzer’s FY 2010-11budget is available at: http://www.mt.gov/budget/budgets/2011_budget/2011_budget.asp. South Dakota With
projected revenues falling $6.3 million short in the current fiscal
year, Gov. Mike Rounds urged South Dakota lawmakers not to promise new
or expanded state programs without identifying additional revenue
sources, according to a Rapid City Journal article. Likewise,
the governor is not recommending new funds in the FY10 budget to
support key economic development initiatives, including $6 million to
advance the state’s mission to become a recognized leader in research
and technology under goal three of the South Dakota 2010 Initiative. An
advisory council convened last spring by the governor outlined its
recommendations earlier this year, calling for $6 million in state
spending to recruit and develop researchers, develop shared user
facilities and resources supporting the state’s R&D efforts,
provide matching funds for commercialization in targeted sectors, and
support for the Dakota Seed internship program. Spending for these
initiatives was included in a list of priorities that are unable to be
funded in FY10 as a result of the state’s projected deficit.
Additionally, the governor left out $2.5 million for year four of the
Classroom Connections program, which provides laptop computers to high
school students. The
governor’s budget proposal maintains current funding for economic
development initiatives within the Department of Tourism and State
Development, including $25.5 million in total funds for the Division of
Economic Development – a slight increase over last year’s appropriation
(see the March 12, 2008 issue of the Digest)
and $4 million for the Division of Research Commerce. The South Dakota
Science and Technology Authority would receive an increase of $7.7
million ($27.7 million total) under the governor’s proposal. To view Gov. Rounds’ FY10 budget, please visit: http://www.state.sd.us/bfm/budget/rec10/SD_Gov_Rec_2010_Entire.pdf. Wyoming Gov.
Dave Freudenthal outlined additional spending for university-based
research initiatives and entrepreneurship in his FY 2009-10
supplemental budget proposal presented to lawmakers last month.
Specifically, the supplemental budget appropriates $440 million in
existing carry-over revenues, rather than relying on estimates of
future revenues, according to the governor’s office. The
governor’s budget directs continued spending of federal Abandoned Mine
Lands (AML) funds to support research and implementation efforts
involving the state’s energy resources put into place last legislative
session (see the March 12, 2008 issue of the Digest). Gov.
Freudenthal recommends using $30 million in carry-over funding for the
University of Wyoming (UW) School of Energy Resources (SER) partnership
with General Electric to complete the High Plains Gasification Advanced
Technology Center. In total, $70.6 million in AML funds will be
available for appropriations during the 2009 legislature session.
Additional recommendations outlined by the governor include: - $13.6 million to the SER for the Clean Coal Task Force to provide matching funds for research;
- $10 million for carbon dioxide sequestration research and demonstration projects in partnership with industry;
- $2
million for the UW College of Agriculture Reclamation Ecology program,
of which $1.5 million will be used to seed a proposed $20 million
endowment;
- $1.9 million for the SER’s Uranium Production Program; and
- $734,616 to continue the efforts of the Wyoming State Geological Survey to identify potential carbon dioxide storage sites.
The
supplemental budget recommendation includes $17 million in one-time
funds for UW’s Endowment Match program and $100,000 outside the UW
block grant for a brucellosis vaccine R&D program at the
university. This initial funding will be used to identify key
participants in the research project and establish an agenda, according
to budget documents. The
Wyoming Business Council is slated to receive an additional $287,500 in
FY10 for entrepreneurial development, business expansion and
recruitment efforts. Gov. Freudenthal’s FY 2009-10 supplemental budget is available for download in two volumes at: http://ai.state.wy.us/budget/. return to the top of the page
India Plans to Double Investment in Scientific Research
Last
week, Indian Prime Minister Dr. Manmohan Singh announced that the
country would form a quasi-independent panel modeled on the U.S.
National Science Foundation (NSF) to promote research in science and
engineering. The new National Science and Engineering Research Board
(NSERB) would make decisions regarding research funding and the
creation of research centers around India.
The new board
will oversee the distribution of funds associated with an unprecedented
boost in Indian funding for scientific research. Prime Minister Singh
announced that the country would double its investment in research from
one percent to two percent of India’s gross domestic product (GDP).
In his announcement, the Prime Minister emphasized that the new panel
would be autonomous and would seek a balance between the immediate
needs of industry and the pursuit of basic scientific discovery.
Industry is becoming a more important source of research funding in
India, but the NSERB would have the flexibility to focus on less
market-oriented and short-term ends.
Researchers also hope
that the NSERB will be able to reduce some of the bureaucracy
associated with research funding in India. Existing agencies, such as
the University Grants Commission, often take months to clear project
proposals resulting in missed opportunities, according to Calcutta’s The Telegraph.
The announcement comes at the end of a year in which India has tried to
increase its reputation for scientific research, particularly through
its space program. In October the Indian Space Research Organization
(ISRO) launched its first moon mission, deploying a satellite that will
orbit the moon for two years and drop a probe to the lunar surface.
Prime Minister Singh praised the mission as a “first step” milestone in
the development of the country’s space program.
For more information about the Indian initiative, read the Indian Prime Minister’s announcement at: http://pmindia.nic.in/lspeech.asp?id=762.
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Novel Metrics Incorporated into 2008 Version of State New Economy Index Two weeks ago, SSTI reviewed the TBED strategies states are advised to pursue as presented in the 2008 State New Economy Index released by the Information Technology and Innovation Foundation (ITIF) and the Kauffman Foundation (see the Nov. 19, 2008 issue of the Digest).
The report compares numerous indicators that concentrate on the
economic structure of states and the characteristics of new waves in
the economy, opposed to measuring only state economic performance or
state policies. As in previous editions of the Index, the measures are
divided into five categories: knowledge jobs, globalization, economic
dynamism, the digital economy, and innovation capacity. An example of an innovative metric is the Index’s
measure of IT jobs, defined not by counting employees working at
information technology companies, but as the “employment in IT
occupations in non-IT industries as a share of total jobs.” That
is, gauging how IT is permeating various fields within the state
economies, which in turn improve productivity and push along the
development of new products and services. As compared to the 2007
version of the Index, this year’s report drops the “package
exports” indicator due to data availability, and adds the four new
measures described below – bringing the 2008 total to 29 indicators. The
first of these four new indicators is the “U.S. Migration of Knowledge
Workers,” which uses data from the census’ latest American Community
Survey to follow people moving from state-to-state, and the average
years of attained education of those moving. For example, people moving
into Massachusetts have been educated an average of 14.6 years, whereas
in Arkansas this value is 11.5 years. The average U.S. value of someone
moving from one state to another is 13.1 years of schooling. As the
country’s labor force has become more mobile, especially for those
seeking tech-based employment that requires higher levels of education,
this measure is particularly interesting because education is tied to
per-capita income growth. Besides Massachusetts, Vermont, New York,
Hawaii, and Connecticut lead the nation in the measure. Another
new metric attempts to gauge the level of IT incorporated into the
state’s health sector. In this case, the percentage of medical
prescriptions routed electronically from the total number of
prescriptions is used as a proxy of overall IT health adoption.
Massachusetts tops the country with 13.4 of prescriptions routed
electronically, but then these percentages drop quickly, with only five
states having a percentage larger than 4.0 percent and 18 states having
a percentage lower than 1.0 percent. The Index contends the
incorporation of IT will improve the quality and efficiency of the
health care sector. A
third new metric for this year is measuring “Movement Towards a Green
Economy,” which uses energy consumption data from the Department of
Energy’s Annual Energy Review. Specifically, the Index creates
a score that bundles the change in each state’s energy consumption per
capita and the change in each state’s renewable energy compared to
total energy expended. Washington, Vermont, New Hampshire, Oregon and
Maine lead the country in this category. The report states that as the
likelihood of some type of emissions regulations move forward on a
national scale, the states leading this category may be better
positioned economically for these standards. Finally, the Index
this year uses NSF data to track R&D funding from non-industry
sources as a proportion of state GDP. This non-industry R&D
intensity was highest in New Mexico at 7.3 percent (10 times the U.S.
average) and 4.6 percent in Maryland, due to the large presence of
federal laboratories in those states. The third highest state was
Massachusetts, but the level of non-industry R&D funding was lower,
at 1.3 percent. Non-industry R&D funding was seen in the report as
preparing a state for future private-sector research. For more information on the variety of indicators used in the 2008 Index, the report is available at: http://www.itif.org/files/2008_State_New_Economy_Index.pdf. return to the top of the page
Useful Stats Job Churning at Businesses with Fewer than Ten Employees by State, 2005 The
U.S. Census Bureau has released a new data series tracking employment
changes at the establishment level. This data allows users to track the
expansion and contraction of employment within existing businesses and
creation and destruction of jobs through the birth and death of firms.
In addition, the Census Bureau has broken down the data by firm size,
age, sector and state. Using
the data available through these new Business Dynamics Statistics, SSTI
has assembled a table presenting the job churning rate of very small
businesses by state for 2005. For the purposes of this table, very
small businesses include establishments with fewer than ten employees.
Across the country, businesses of this size account for about 60
percent of all firms and just over 10 percent of all employment. These
firms are younger than other businesses on average and tend to be more
volatile in their employment numbers. Examining
this data by state gives a clearer picture of the relative influence of
these firms in different state economies and their relative growth
within a particular year. Florida, Wyoming and Vermont stand out as
states with an unusually high percentage of firms with fewer than ten
employees. The District of Columbia had the lowest percentage of these
firms with 49.5 percent. Wyoming and Montana have a much higher
percentage of employment tied to very small firms, with both having
almost double the national rate. Both
job creation and destruction were higher among very small businesses
than among businesses overall. In 2005, U.S. businesses with fewer than
ten employees created 3.5 million new jobs, equal to about a quarter
(26.7 percent) of employment at these firms. The job-creation
rate at all U.S. firms was only 15.9 percent. Across the states the job
creation rate at smaller firms ranged between 37 percent in Nevada and
22.4 percent in Vermont. In all states however, the job-creation rate
for smaller firms surpassed that of the overall population of
businesses. The trend was similar for job destruction, reflective of
the greater volatility of smaller businesses. View the summary table at: http://www.ssti.org/Digest/Tables/121008t.htm. The full table is available for download in an Excel spreadsheet at: http://www.ssti.org/Digest/Tables/121008.xls. SSTI will prepare additional explorations of this new data set in future issues of the Digest. return to the top of the page
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SSTI Job Postings The Complete description of this opportunity and others are available at http://www.ssti.org/posting.htm.
The Ben Franklin Technology Partners of Southeastern Pennsylvania is
seeking a manager of program analyst development (PAD). This management
position is responsible for performing economic research, developing
metrics and other ad hoc reporting, managing database and PAD Unit
staff members, and providing support for execution of new program
initiatives. The position also is responsible for monitoring and
knowledge of new funding opportunities, and for economic development
proposal generation. Requirements include a BS/BA, preferable MBA or
Masters degree in a related field and a minimum of two years experience
in small business lending, investment or other financially-related
experience.
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