In This Week's Issue
SSTI News and Analysis
U.S. House and Senate Subcommittees Consider FY13 Funding for
Commerce, NASA, NSF
This week, both the U.S. House and the Senate Appropriations
Subcommittees on Commerce, Justice, Science and related agencies
(CJS) approved FY13 funding legislation supporting several key TBED
agencies. Press releases from the Senate CJS subcommittee and the
House appropriations committee suggest that funding for the
Manufacturing Extension Partnership (MEP) program will likely
remain close to the level indicated in the
president's FY13 budget at $128 million or a bit
higher. FY13 funding for the Economic Development Administration
(EDA) is less certain, with the current Senate bill allocating $238
million and the House bill funding it at only $220 million.
The Senate CJS subcommittee issued a press release earlier this
week detailing appropriation levels in the Senate bill. Full
committee markup will occur on Thursday, Apr. 19, with the results
to be made public a few days afterward. The House appropriations
committee has released an outline of its own bill before CJS
subcommittee markup, which is also scheduled for Thursday.
While Congressional negotiations continue, releases from both
houses provide a glimpse at the current state of FY13
appropriations for the Department of Commerce's
National Institute of Standards and Technology (NIST), the National
Oceanic and Atmospheric Administration (NOAA), EDA, the National
Aeronautics and Space Administration (NASA) and the National
Science Foundation (NSF).
Select agency funding levels are provided below.
TBED-Related Agency FY13 Funding Level Comparison
All figures in millions of U.S. Dollars
|
|
President's
FY13 Budget
|
Senate
(current)
|
House
(current)
|
|
NIST
|
859.8
|
826
|
830
|
|
MEP
|
128
|
128.5
|
128
|
|
AMTech
|
21
|
14.5
|
*
|
|
NOAA
|
5,100
|
3,400
|
5,000
|
|
EDA
|
219.7
|
238
|
220
|
|
NASA
|
17,700
|
19.4
|
17,600
|
|
NASA Science
|
4,900
|
5,000
|
5,100
|
|
NSF
|
7,400
|
7,300
|
7,300
|
* The House press release does not cite the Advanced
Manufacturing Technology Consortia (AMTech) by name but does
describe a $21 million allocation for a NIST Advanced Manufacturing
competitive research initiative.
Within EDA, the Senate bill would fund Economic Development
Assistance Programs at $200 million, including Regional Innovation
Partnerships. The House release does not provide corresponding
figures, but does include $5 million in grant funding to attract
U.S. jobs that have been previously outsourced and $5 million in
loan guarantees to help advance innovative manufacturing
technologies.
Read the U.S. Senate Appropriations CJS Subcommittee markup
press release...
Read the U.S. House of Representatives CJS Subcommittee markup
press release...
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Maryland Fund Aims for 40 New Discoveries a Year
A new fund established to capitalize on
Maryland's leadership in R&D seeks to move
40 new discoveries and innovations out of the lab and into the
marketplace each year through a partnership between the state and
five universities. The Innovate Maryland initiative is seeded with
$5 million in the FY13 budget with additional funds from the
participating universities to provide grants to researchers. The
Maryland Technology Development Corporation (TEDCO) will administer
the fund.
The goal of the fund is to promote commercialization of
university research, encourage universities to partner with federal
labs, and facilitate tech transfer from universities to commercial
industries. Participating universities are Johns Hopkins
University, Morgan State University, University of Maryland
Baltimore, University of Maryland Baltimore County, and University
of Maryland College Park. Each university will contribute between
$100,000 and $200,000 on an annual basis.
The initiative was unveiled in January as part of Gov. Martin
O'Malley's 2012 legislative
agenda (see the Jan.
25, 2012 issue of the Digest). The bill is available at:
http://mlis.state.md.us/2012rs/bills/hb/hb0442t.pdf.
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U.S. Cities Continue to Drive Global Economic Growth,
Innovation, According to Reports
Despite the attention given to emerging metropolises in the
developing world, large U.S. cities will continue to power the
global economy over the next 15 years, according to a new report.
McKinsey and Company examined the economic performance of the 259
"large" U.S. cities, cities with
populations of 150,000 or more. In 2010, these cities generated
almost 85 percent of U.S. gross domestic product (GDP), making
large cities more important to the U.S. economy than in Asia, Latin
America or Western Europe. A separate recent effort to breakdown
the qualities of successful entrepreneurial cities ranked eight
U.S. metro areas among the top 25 global startup ecosystems.
Two U.S. cities, New York and Los Angeles, rank in the elite
tier of cities with more than 10 million inhabitants. Accordingly,
these cities contribute greatly to U.S. GDP. However, the U.S. mega
cities do not seem to be decisive in the importance of cities in
the U.S. economy. Instead, the remaining 257 large cities are the
focus of the McKinsey report, which observes that these cities
dominate the U.S. economy because they represent an inordinately
high percentage of the U.S. population (80 percent) and have a
significantly higher GDP than smaller cities and rural areas. The
ability of these cities to compete at a global level will be key to
American competitiveness through 2025, according to the report.
While individually the 257
"middleweight" large U.S. cities have
had uneven and disparate paths over the past few decades, in
aggregate they represent a remarkably diverse and robust set of
regional economies. Differences in the growth patterns of cities
seems to suggest that there is no single path to economic success,
but the authors argue that local leaders are best positioned to
create strategies at the regional level that can help cities find
the unique mix of industries and collaborations that foster
economic growth. They suggest that, because of the
country's unprecedented reliance on large
cities, the federal government find more opportunities to
collaborate with regional partners in its economic development
initiatives.
Another McKinsey report last year estimated that 2 billion
people, a quarter of the global population, would live in the
world's 600 largest cities in 2025. Today, only
about 1.5 billion people (22 percent of the global population) live
in these cities. In 2025, about 60 percent of global GDP will
derive from the top 600 urban economies. McKinsey plans to issue an
update of the Urban World report in the next few months.
Read Urban America: U.S. Cities in the Global
Economy...
A new index and research initiative is attempting to break down
the various factors that turn a large city into a thriving bastion
of new ideas, entrepreneurs and companies. The Startup Genome
Project outlined 22 factors that set strong startup
ecosystems apart from other cities, and that have positioned some
regions at the forefront of innovation for decades. By identifying
these factors, the project is attempting to distill the unique
blend of strengths that give each of these ecosystems their
character.
In a recent blog post, researchers began by laying out the top
22 global startup regions and the 22 factors. The top five startup
ecosystems include Silicon Valley (San Francisco, Palo Alto, San
Jose and Oakland), New York City, London, Toronto and Tel Aviv. Los
Angeles is ranked sixth. Other U.S. cities on the list include
Seattle, Chicago, Boston, Austin and Washington D.C.. Some of the
factors include risk profile, product types and market types.
By combining these two lists and examining the factors at work
in each city, the researchers are identifying why and how these
cities succeed. For example, Silicon Valley stands out for its
extremely high startup throughput, its plentiful early stage
funding and its high risk entrepreneurs. New York entrepreneurs are
also high risk, but more diverse and tend to focus on niche
markets.
The Startup Genome Project plans to continue collecting data on
the top 25 and other startup ecosystems, releasing regular mini
reports on this phenomenon, and eventually a more comprehensive
report on their work.
Read the Startup Genome Startup Ecosystem Index blog post...
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WA Legislature Dedicates Funds to Prepare Workers for
Aerospace Jobs
The 2012 supplemental budget approved by Washington lawmakers
includes funding for initiatives aimed at establishing a skilled
workforce, enhancing competitiveness of existing industries and
supporting university research to grow a strong aerospace cluster.
The funding is part of a $9.8 million plan proposed by Gov. Chris
Gregoire last year to enhance the state's
education system in anticipation of new jobs in the aerospace
sector (see the issue of the Nov.
16, 2011 issue of the Digest).
To pursue joint industry-university research that can be used in
aerospace firms, lawmakers passed a bill (SB
5982) creating the Center for Aerospace Technology and
Innovation. The center will be operated as a multi-institutional
education and research center under the authority of the University
of Washington (UW) and Washington State University. A board
appointed by the governor is charged with recruiting researchers,
assisting researchers and firms in guarding intellectual property
and developing non-state support for research. The center also will
work with aerospace firms to identify research needs and
opportunities for technology transfer.
The supplemental budget approved by lawmakers includes $1.5
million for UW and $65,000 for Innovate Washington (IW) in support
of the center. IW's role is to nurture the spin
off ideas, companies, and amplify the connections necessary for the
center to be successful.
In addition to supporting aerospace-related research, the
governor's plan focuses on developing a pipeline
of skilled workers through high school-to-postsecondary education
and training. Three grant programs aimed at preparing students for
careers in STEM and aerospace were approved under
HB 2159 during the regular session. Funding in support of the
initiatives ($700,000 total) was included in the recently approved
supplemental budget detailed below.
- $300,000 for 12 high schools to implement an aerospace
assembler program to train students for entry-level careers in the
field;
- $250,000 for advanced Project Lead the Way courses at 10 high
schools; and
- $150,000 for aerospace and manufacturing technical programs
housed at two skill centers.
The budget also includes $3.8 million each for UW and Washington
State University to expand engineering enrollment in FY13.
Last month, Gov. Gregoire appointed Alex Pietsch to head the new
Governor's Aerospace Office, which is
responsible for coordinating the various state agency efforts to
support the industry.
The 2012 supplemental budget bill is available at:
http://apps.leg.wa.gov/documents/billdocs/2011-12/Pdf/Bills/House%20Passed%20Legislature/2127-S.PL.pdf.
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NSF Analyzes Federal Funding for R&D from 2008 to 2010
The National Science Foundation (NSF) released a report on
federal research and development (R&D) spending
— Federal Funds for Research and Development:
Fiscal Years 2008-10. It presents data
collected from NSF surveys sent to all 27 federal agencies that
were conducting R&D programs in early 2008. Total R&D
spending is reported as both outlays and obligations for those
three fiscal years (FY). In this report, the basis for reporting is
determined by fiscal year:
- FY 2008 data are completed transactions;
- FY 2009 data are estimates of congressional appropriation
actions and apportionment and reprogramming decisions; and,
- FY 2010 data are estimates of administration budget proposals
not yet acted on.
NSF intends for subsequent volumes in the series to include
updated numbers, upon authorization, appropriation, deferral and
apportionment actions. To allow for trend
comparisons, the report also provides historical data from 1988 to
2009.
The report shows that federal R&D spending dropped almost 9
percent from 2008 (approximately $127.1 billion in R&D
spending) to 2010 (an estimated $116.2 billion). The significant
drop is due to an estimated 21 percent in federal support for
development activities. Over the same period, federal spending for
basic (10 percent) and applied research (6 percent) increased
significantly. Federal R&D obligations also are broken down by
five variables in the report:
- Character of work (i.e., basic research, applied research,
development, R&D plant);
- Federal agency;
- Field of science or engineering (for research but not for
development);
- Geographical area; and,
- Performer (e.g., Industry, University and nonprofit).
Read the
report...
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Report Examines Economic Impact of IP
in the U.S. Economy, USTPO Releases IP Assessment
Tool
Intellectual property-intensive industries contribute
approximately $5 Trillion to the U.S. economy and at least 40 million
jobs, according to a new U.S. Patent and Trademark Office (USPTO)
report — Intellectual Property and the U.S.
Economy: Industries in Focus. The report highlights 75
industries that use several forms of intellectual property (IP)
protections (i.e., patents, copyrights and trademarks) most
extensively. Using several economic impact indicators, the authors
found that these industries were key drivers of the U.S. economy in
2010 including:
- Approximately 25 percent of U.S. jobs are supported by these
industries, through both direct and indirect employment;
- IP-intensive industries accounted for about $5 trillion in
value added (34.8 percent) of U.S. gross domestic product;
- IP-intensive industries account for 60 percent of all U.S.
exports;
- For every two jobs in IP-intensive industries an additional one
job was created; and,
- Overall growth of IP-intensive industry employment grew by 2.3
percent between 1900 and 2011.
In comparison to other industries in the U.S. economy
(approximately 238 total), IP-intensive industries performed
significantly better in 2010 in several economic impact indicators
including:
- Direct employment in IP-intensive industries (1.6 percent
increase) grew faster than other private industries (1.0 percent);
and,
- Average weekly wages for IP-intensive industries ($1,156) were
42 percent higher than the other private industries ($815);
The report also highlights the importance of educational
achievement for IP-intensive industries. More than 42 percent of
workers aged 25 were college educated, compared with 34 percent on
average in non-IP intensive industries. Read
the report...
The USPTO in partnership with the Manufacturing Extension
Partnership also launched a web-based intellectual property (IP)
awareness assessment tool designed to help manufacturers, small
businesses, entrepreneurs and independent inventors easily assess
their knowledge of IP. The tool provides users a comprehensive set
of questions regarding IP relevant to their specific project and
business goals. After completing the questionnaire, the tool
provides a set of training resources tailored to specifically
identified needs. The tool is available on USPTO's
website.
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Staff Picks
The Importance of Allowing Universities to Manage Their
Technologies
This editorial in The Atlantic praises the Bayh-Dole Act
for its role in creating technology companies and criticizes recent
efforts to move technology management away from universities to
academic inventors.
Read more ...
Lessons in Manufacturing Innovation from Other
Countries
Stephen Ezell from ITIF shares his insights on how other
countries are implementing policies to attract manufacturing in
this
post. For example, innovation vouchers ranging from
$5,000-$30,000 allow SMEs to buy expertise from universities, labs
or research institutes.
Missoula Debuts Innovation Initiative
The program is geared toward helping entrepreneurs make the
right connections with a goal of launching 25 new startups.
Read more ...
Census Data Tracks Migration of Young, Single and
College-Educated
From 1965-2000 net in-migration was high in the West and South
Atlantic region while consistent net out-migration occurred in the
Midwest.
Read more ...
A Closer Look at the UK's New University
Assessments
To improve the quality of research and teaching at universities,
the British government will launch government-mandated assessments.
Shortcomings of this controversial system are highlighted in this
post.
California's Cleantech Sector Thriving, Study Finds
Cleantech investment in California rose 24 percent from 2010 to 2011 to reach $3.5 billion. The state also leads in patenting green technologies.
Read more...
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