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September 13, 2004 -- SSTI Weekly Digest

In the September 13, 2004 Issue:

Copyright State Science & Technology Institute 2004. 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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New Jersey Commits $25M for Innovation Zones
Location-based tax incentives to encourage the clustering of technology companies in distressed areas or around research universities has grown in popularity since Michigan's smart zones were created several years ago.

Last week, New Jersey Gov. James McGreevey signed an Executive Order creating three Innovation Zones – industry clusters centered around and including the campuses of the New Jersey Institute of Technology, Rutgers University, and the University of Medicine and Dentistry of New Jersey.

The concept underlying the Innovation Zones is to create an innovation triangle – a partnership among tech-based companies, the state’s research universities, and state government. Mutual proximity is expected to lead to partnerships between businesses and universities to better meet research and development needs.

The Executive Order directs the New Jersey Economic Development Authority (NJ EDA) and the New Jersey Commission on Science and Technology (CST) to work cooperatively with other state agencies to direct resources that will support financial, infrastructure, workforce and housing needs at the zones.

Businesses in the zones will be eligible for a range of targeted financial incentives from the state – including Business Employment Incentive Program grants, the Springboard Fund, and Technology Tax Certificate Transfer funding programs, which offer enhanced benefits to tech-based businesses in the zones.

In addition, New Jersey's Innovation Zones will offer new Commercialization Centers – multi-tenant facilities featuring labs or office space to be built and managed by the NJ EDA. These facilities, along with business incubators funded by the CST, will provide critical space and support services for early-stage and start-up businesses to conduct joint research and help move ideas from the lab to the marketplace.

“In addition to these enhanced incentives and coordinated state effort, the NJ EDA will continue to work closely with the business community to make all of our financing programs – including bonds, loans and guarantees – available to the emerging technology firms of New Jersey,” said NJ EDA Chief Executive Officer Caren S. Franzini.  [Note: Ms. Franzini is among the impressive slate of 50-plus presenters and panelists for SSTI's annual conference Oct. 13-15 in Philadelphia. More details are available at: http://www.ssti.org/conference04.htm]

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North Dakota TBED Efforts Receive $1.2M from EDA
Securing the multi-year funding needed to properly ramp up technology-based economic development (TBED) initiatives can be difficult in states with annual budget cycles and tight revenue streams. Fortunately, there is one federal agency that provides financial assistance increasingly toward local and regional projects matching the interests of the nation's TBED community.

Unfortunately, annual appropriations for the U.S. Economic Development Administration (EDA) have dropped by nearly 20 percent over the past four years, making competition for the federal matching grants that much more fierce as the nation's economy heightened the need to encourage innovation-based growth.

Two separate EDA grants awarded last week in North Dakota, totalling $1.2 million, provide examples of how states and local communities can direct the funding toward TBED programs.

The agency awarded the Center for Innovation and the University of North Dakota $750,000 toward completion of a second technology incubator, the Ina Mae Rude Entrepreneur Center. The new 20,000-square-foot facility will cost $3.8 million when completed in December and will be located within the 60-acre university technology park.

The second grant is a $465,000 three-year award, to help market and commercialize research and technology developed at the University of North Dakota (UND) and North Dakota State University (NDSU). The project is a partnership among the research institutions, the North Dakota Department of Commerce and the Center for Innovation.

The funds will be used to develop research-related industry clusters, provide entrepreneurial assistance and coaching, and launch business recruitment and start-up efforts primarily at UND's Center for Innovation and NDSU's 55-acre Research and Technology Park. NDSU's Center for Community Vitality also will be connected to the pilot rural outreach effort to link new start-up ventures into other parts of the state.

[Conference Note: Tapping EDA for Tech-based Economic Growth, one of 30 breakout sessions at SSTI's 8th Annual Conference, will provide an insider's look at EDA funding priorities, how to navigate the proposal process, and increase your chances of capturing a portion of this important federal funding pool for your state or local tech-based strategies. More information is available at: http://www.ssti.org/conference04.htm (expired)]

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NIH Awards $20M for Studies in Ethical, Legal and Social Aspects of Genomics
As part of a new initiative to address pressing ethical, legal and social questions raised by recent advances in genetic and genomic research, the National Human Genome Research Institute (NHGRI) has awarded approximately $20 million in grants to fund interdisciplinary centers within universities around the country over the next five years. NHGRI is one of the National Institutes of Health (NIH).

According to NIH, each of the centers will assemble a team of experts in several disciplines such as bioethics, law, behavioral and social sciences, clinical research, theology, public policy and genetic and genomic research to develop innovative research approaches focused on specific sets of issues related to genomic research. The centers’ output, according to NIH, will be critical in formulating and implementing effective and equitable health and social polices related to genomic research.

The Department of Energy and the National Institute of Child Health and Human Development both contributed significant funding to the effort, which has established the first four centers within the following universities:

  • Case Western Reserve University’s Center for Genetic Research Ethics and Law has been awarded $5.3 million to study the ethical issues in the design and conduct of human genetic research. The center also will conduct research and development resources that will contribute to stronger policies and guidelines in genetic research;
  • The Duke Center for the Study of Public Genomics received $4.8 million to assemble a team to gather and analyze information regarding the role of publication, data and materials sharing, patenting, database protection, and other practices that may affect the flow in information in genetics research;
  • Stanford University School of Medicine’s Center for Integration of Research on Genetics and Ethics was awarded $3.8 million to study the ethical, legal and social consequences of uncovering the genomic contributions that may contribute to behavioral and neurological conditions; and
  • University of Washington’s Center for Genomic Health Care and the Medically Underserved won $4.7 million to conduct research on the ethical, legal and social factors that influence the translation of genetic information to improved human health.

An additional $1.7 million in exploratory grants was awarded to three investigators for support in planning and developing potential new centers within their institutes. The grants were awarded to researchers at Georgetown University, Howard University and University of North Carolina at Chapel Hill.

NHGRI’s Ethical, Legal and Social Implications program was established in 1990 as part of the Human Genome Project to foster basic and applied research ant to support education and outreach activities. More information is available at: http://www.nhgri.nih.gov

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NSF Identifies Best Minority SMET Programs
The need for programs to encourage science, math and technology education (SMET) among most minority groups becomes evident when one consider the nation’s need for a high skilled workforce, the growing portion of the total population divided among minority groups, and the low percentage most minorities represent of science and engineering professionals. The Louis Stokes Alliances for Minority Participation (LSAMP) program in the National Science Foundation (NSF) is one of three federal programs attempting to address the issue.

Different in its approach from the NASA and NIH efforts, the NSF program strives to increase the number of minority students completing a baccalaureate degree in a SMET-related field and enrolling in related graduate program by financially supporting partnerships among academic institutions, industry, government agencies, laboratories and professional organizations. Twenty-eight LSAMPs have been funded in 24 states since the program was created in 1991.

A new report from the NSF program reviews the performance of a selected group of the oldest LSAMPs and identifies best practices that could be replicated outside the program. Increases in graduation rates among the seven LSAMPs profiled in the report ranged from 68 percent to 140 percent. The select group shared several keys to success:

  • Summer bridge programs between high school and the first year of college, which were found to be the most successful feature;
  • Research experience, throughout college career;
  • Mentors, both peer and research;
  • Drop-in center for assistance and social structure;
  • Caring staff; and,
  • Alliance structure nurturing community of peers.

The report, A Description and Analysis of Best Practice Finding of Programs promoting participation of underrepresented undergraduate student in Science, Mathematics, Engineering and Technology, is available at: http://www.nsf.gov/pubs/2001/nsf0131/nsf0131.pdf

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NWBC Offers Insight for Minority Women Entrepreneurs
Measured over a three-year period, minority women-owned businesses had similar survival rates and employment growth compared to all women-owned firms, according to a recent series of federal reports. However, when measured against other minority women-owned firms, African American women-owned businesses showed greater job loss and lower survival rates.

The National Women’s Business Council (NWBC) released last month five Issues in Brief, providing a state-by-state analysis of trends in survival rates and employment growth among minority women. The briefs are separate reports focusing on African American, Asian American, Latina, and Native American women, along with a minority summary report that provides detailed tables by both state and industry. The reports accompany an earlier brief that examined 923,000 women-owned firms between 1997 and 2000.

Overall, 75.1 percent of all women-owned companies were still operating after the three-year period, compared to 75.5 percent of all employer business locations in existence, the report indicated. Therefore, according to NWBC, women-owned businesses exhibited the same tenacity and survival rates as the average U.S. employer firm. Asian American women-owned businesses showed the strongest survival rate, with 77 percent of companies still in operation while African American women-owned businesses fared the worst with 68 percent still in business.

In terms of employment growth, Native American women-owned companies experienced the strongest workforce expansion, with a 36 percent increase. According to NWBC, much of the group's increase was due in part to significant employment growth in Texas and California. The other three groups each experienced a decline in employment, with African American women-owned businesses treading far above the rest at a 21.8 percent decline, followed by Latina women-owned businesses reporting a 4.6 percent decline and Asian American women-owned businesses showing the lowest employment decline of 1.7 percent.

States varied substantially among the four minority groups and across the two measures in terms of stability and growth of minority women-owned firms, according to NWBC. However, Maryland, Nebraska, and Washington were most likely to appear among the top 10 across all four minority groups. Alaska, Massachusetts, and Oregon appeared most frequently among the bottom 10.

Michigan ranked in the top 10 states for survival rates among African American, Asian American, and Latina women-owned businesses, while Kentucky and New Jersey showed above average survival rates across all four groups. Colorado and Iowa were among the bottom 10 states for survival rates of African American, Latina, and Native American women-owned businesses. States that ranked highest in employment growth for three of the four groups include Iowa, Minnesota, Virginia and Wisconsin. California was the only state that showed above average growth among all four groups.

Understanding differences in business survival and growth among segments of the women-owned business population is vital to making informed policy and program decisions, according to NWBC, and the reports provide useful information to the women’s business community and to public policymakers. In order to provide a better understanding of establishment dynamics and sources of employment gains and losses, NWBC recommends that new firm creation should be examined between census years.

The National Women's Business Council (NWBC) is a bipartisan federal advisory serving as an independent source of advice and policy recommendations to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. The Issues in Brief are available in full from NWBC at http://www.nwbc.gov.

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Useful Stats: State Median Household Income, 2002-2003
Real median household income remained unchanged between 2002 and 2003 at $43,318, according to a report released last week by the U.S. Census Bureau. The report, Income, Poverty, and Health Insurance Coverage in the United States: 2003, includes data collected from the 2004 Annual Social and Economic Supplement to the Current Population Survey.

In conjunction with the report, the 2003 American Community Survey (ACS) also was released. The ACS is the largest household survey in the U.S., having considered 800,000 housing units per year during its 2000-2004 test phase. Similar to the decennial census long form it is designed to replace, the ACS provides information on money income, poverty and other social and economic indicators. ACS data for 2003 are shown for 116 metropolitan areas, 233 counties and 68 cities, all with populations of 250,000 or more.

Rhode Island had the highest percent change in median household income over 2002-2003, at 7.06 percent, based on ACS results. Thirty-five other states experienced positive change in the measure, with Idaho, Wyoming, Colorado and Nebraska rounding out the top five. Alaska, whose median household income declined by 7.14 percent, experienced the sharpest negative change over the two-year period. SSTI has prepared a table showing how all states, the District of Columbia and the U.S., overall, fared in this measure at http://www.ssti.org/Digest/Tables/091304t.htm.

Starting in 2006, the Census Bureau expects data will be available for all areas with populations of 65,000 or more. In addition, by 2010, data will be available down to the census tract and block group levels. The Census Bureau's 2003 report is available at: http://www.census.gov/hhes/www/income.html

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BFTP Seeks Director of Investment, Entrepreneurial Services
Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP), a nonprofit economic development organization based in Philadelphia, seeks someone to serve as director of its investment and entrepreneurial services. Established in 1982, BFTP exists to stimulate economic growth through innovation, entrepreneurship and the development and adoption of new technologies. The selected candidate will direct the planning, coordination and execution of activities associated with the sourcing and evaluation of BFTP's applicants, among other responsibilities. The candidate also will oversee the client management of portfolio companies in the manufacturing and nanotechnology sectors. Qualifications include having a B.S. or B.A. in Engineering or other technology discipline, preferably with an MBA. Inquiries should be directed to Katie Rotella, manager of administrative services for the Ben Franklin Technology Partners of Southeastern Pennsylvania, at katie@sep.benfranklin.org. A complete position description is available at: http://www.ssti.org/posting.htm

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Final Week for SSTI Conference Discounts
The discounts ending this week on registration and accommodations for SSTI's annual conference will pay for much, if not all, of your round trip airfare to Philadelphia, so we encourage you to act soon on both. Or you can use the savings toward having one of your colleagues attend as well!

Building Tech-based Economies: Preparing for Tomorrow's Challenges will be held at the Loews Philadelphia Hotel on Oct. 14-15, 2004. Three optional, intensive pre-conference workshops and a tour are offered on Wednesday, Oct. 13. The full conference offers 30 timely and focused breakout session options.

The early registration period to attend the premier professional development opportunity of the year ends Friday, Sept. 17. Conference details, including the complete program, slate of participants, and registration form, are available at: http://www.ssti.org/conference04.htm [expired]

SSTI has negotiated for its guests an incredible single/double sleeping room rate for the event of $124/night plus tax at the exquisite Loews Philadelphia Hotel. The rate is only good for reservations made by the end of the day today.

To make reservations, call the Loews Philadelphia directly at 215-627-1200. Mention you'll be attending SSTI's annual conference and confirm the rate. More information about the hotel is available on its website: http://www.loewshotels.com/hotels/philadelphia/default.asp

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People
Utah State University named J. Michael Brooks as director of its Innovation Campus. He will also serve as associate vice president for research and economic development, beginning Sept. 20.

A two-year grant from the Pennsylvania Dept. of Community and Economic Development enabled Lehigh University to announce last week the appointments of Glenn Doell and Graham Mitchell to serve respectively as director of the office of technology transfer and director of the entrepreneurship program.

Effective Jan. 1, Donald Kuratko will be executive director for Indiana University's Johnson Center for Entrepreneurship and Innovation. Kuratko is currently runs Ball State University's entrepreneurship program.

Reports suggest New Jersey Gov. James McGreevey, resigning his office in mid-November, will be named the first director of the Stem Cell Institute of New Jersey. Securing funding for the center has been a legislative priority for the Governor this year.

David Winwood is the new director of North Carolina State University's Centennial Campus.

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