SSTI Weekly Digest
Wednesday May 15, 2013  |  Volume 18, Issue 17 > Print Version   > Archive   > Subscribe

In This Week's Issue


SSTI News and Analysis

Federal Agencies Release Information on Manufacturing Institutes, Manufacturing Partnership
Last week, the Obama administration announced that it would commit $200 million to establish three new manufacturing innovation institutions in 2013 (see the May 8, 2013 issue of the digest). The announcement was followed by the release of a funding announcement for the first of those proposed institutes — the Department of Energy-administered Clean Energy Manufacturing Innovation Institute. The Department of Defense released requests for information on the two proposed institutes focused on digital manufacturing and design and lightweight and modern metals manufacturing. The Economic Development Administration (EDA) also released a funding announcement for the Investing in Manufacturing Communities Partnership (see the April 24, 2013 issue of the digest).

The Department of Energy's (DOE) Clean Manufacturing Innovation Institute will focus on wide bandgap (WBG) semiconductors for power electronic devices, highly efficient and reliable semiconductors that can produce low-cost, better performing electronics to increase energy efficiency. The DOE intends to make one award of up to $14 million in 2013 with a potential $70 million in total funding over five years. A required letter of intent is due July 11, 2013, and full applications are due August 29. More information is avaialble at: http://www.eda.gov/pdf/imcp.pdf

The Department of Defense (DOD) released two requests for information (RFIs) intended to help DOD address issues related to the proposed manufacturing institutes on digital manufacturing and design and lightweight and modern metals. Administered by the Army Contracting Command, the proposed digital manufacturing and design institute would support R&D that addresses the life cycle of digital data interchanged among myriad design, engineering, manufacturing/maintenance systems and across a networked supply chain. Public comments are due June 6 for the digital manufacturing and design institute. The lightweight and modern metals institute would accelerate the introduction and expand the use of more affordable products made with high strength-to-weight alloys that improve performance and reduce energy consumption. Public comments for this RFI are due June 3.

Last week, the EDA also released a solicitation for the Investing in Manufacturing Communities Partnership (IMCP), a multi-agency initiative that will award up to $4 million to support the development of up to 25 regional implementation-ready strategies to attract and expand private investment in the manufacturing sector and increasing international trade and exports. Each region will receive up to $200,000 in funding to develop their plan. Applications must be received by June 13. Read the announcement...

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Private Sector Partnerships Emphasized in North Dakota's Centers of Excellence Successor Program
A new program that builds upon the successes of North Dakota's Centers of Excellence and Research Excellence programs will fund up to half of the cost of R&D and commercialization projects conducted by the state's research universities. Under Research North Dakota (RND), the development and commercialization of new products will be achieved on a project-by-project basis and state funds will be matched with private-sector cash investment.

Just two years ago, the eight-year old Centers of Excellence program was restructured as the Centers of Research Excellence to place a greater focus on R&D and commercialization activities. In their initial 2005 incarnation, the Centers of Excellence were more broadly focused in areas spanning energy and advanced manufacturing to workforce development and tourism (see the May 2, 2005 issue of the Digest). As part of a statewide effort to identify opportunities for growth in the coming years, a task force unveiled in November a recommendation to establish the Research North Dakota program as the successor to the centers program in its report North Dakota 2020 & Beyond.

Under the RND program, no new centers will be created. RND grants will be used to fund the research university's work in assisting private companies with R&D and commercialization projects. Through this new model, the development and commercialization of new products will be achieved on a project-by-project basis, with the assistance of state research and expertise. Lawmakers included $12 million in the recently enacted 2013-15 biennial budget, the same amount approved for the centers program last biennium. Unlike its predecessor, the state funds will be matched with private-sector cash investment, where prior matches could also include in-kind match.

The Department of Commerce will establish and administer the RND grant program with input from the Centers of Excellence Commission on grant award determinations. Commerce may use up to $6 million for RND grants, $4 million for RND grants focused on biotechnology, and $2 million for venture grants focused on commercializing university technologies. This is a new component of the program modeled after the Georgia Research Alliance VentureLab program.

The centers program has reported an economic impact of $634.6 million since its creation in 2005. Additionally, the program has produced $14 in economic impact for every $1 invested, according to an annual report.

The Department of Commerce budget also includes $2 million for Innovate North Dakota and $1.5 million to expand the Operation Intern program, which provides internships, cooperative work experiences and apprenticeship positions with employers. Innovate ND is a public-private program that began in 2006 and helps entrepreneurs create new businesses through an education-based competition. Commerce recently set up a review process to help improve the program and has since put the competition aspect on hold for a year to study whether it could be more effective, reports The Bismarck Tribune. An entrepreneurship program manager also was hired and charged with helping educate the public about entrepreneurial programs offered in the state. Since its inception, the program has resulted in 135 operating businesses.

The North Dakota Department of Commerce budget bill is SB 2018.

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What Makes a TBED Initiative the Most Promising?
Around the country, practitioners have gotten creative in their efforts to solve problems seen as barriers to economic growth. In Arizona, BioAccel has developed an innovative approach to funding and serves as a promising model for organizations dedicated to technology driven economic development by working with universities, medical centers and entrepreneurs to translate late stage discovery research into commercial products. Similarly, NorTech, located in northeast Ohio, has developed a Regional Innovation Cluster Model that puts theory into practice to overcome challenges and accelerate successful clusters to create jobs and attract capital. The goal of SSTI's Most Promising award category is to highlight programs that have demonstrated an innovative approach in design or implementation to serve as models for other states and regions. If your organization has a great story to share, please consider applying for the 2013 Excellence in TBED awards and capture national recognition for your efforts. Applications are due June 11. More information is available at: http://www.sstiawards.org.

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Regions Target Education Partnerships to Develop Next Generation Workforce
A recent report from Brookings suggests that, for a variety of reasons, the value of a traditional four-year degree is diminishing. At the same time, U.S. employers continue to reference a general lack of employable skills as a major obstacle to employment growth. Across the country, regions are using new, innovative approaches to develop their local workforce while also educating students to compete in a 21st century global economy.

Should Everyone Go To College? published by Stephanie Owen and Isabel Sawhill of the Brookings Institution's Center on Children and Families, suggests there is a diminishing return-on-investment for bachelor's degrees. The skyrocketing cost of college tuition, combined with the rapid accumulation of national student debt and decreasing value of traditional educational skills in the modern workplace account for a widening degree of value in traditional degrees.

These trends point to the need for regions to develop new forms of educational training for K-12 students that teaches them marketable skills and provides local high-growth businesses with a well-trained workforce. Regions across the country are responding by using new, innovative approaches to develop their local workforce, boost regional competitiveness, and prepare youth to compete in the 21st century global economy. Examples are provided from New York City and the suburbs of Austin, Texas.

Global Technology Preparatory school in East Harlem, New York City, has partnered with a program called Citizen Schools, which aims to enhance the curriculum in urban public schools by inviting members of the private sector to share their knowledge and skills with students in after-school programs.

An article from Atlantic Cities reports that Citizen Schools brings volunteers from corporations such as Google, Microsoft, and Raytheon into over 30 middle schools in low-income neighborhoods around the country. Professionals teach 10-week apprenticeships, most of which focus on learning STEM skills. Students are learning to make video games, build computers, and create and market products, from a cadre of volunteer teachers.

Another example in the Christian Science Monitor comes from Manor, Texas. On his recent Middle Class Jobs & Opportunity Tour, President Obama visited Manor New Tech High School. The school is part of the New Tech Network (NTN), a nonprofit that works with 120 schools nationwide, 90 percent of which are in public school districts. NTN builds curriculum by working with local businesses and nonprofits to develop student-centered projects that foster teamwork and problem-solving.

Unlike traditional educational models that split vocational and college-prep education, New Tech curriculum teaches vocational skills on a college-prep level to prepare students for high-skill jobs in high-growth, tech-based industries. Students lead consulting projects for local corporate partners and have used crowdfunding portals to raise money for school projects. And in the case of schools like New Manor, NTN also services a diverse group of students, with a majority qualifying for free or reduced-price lunches, and most hoping to become first-generation college students.

These initiatives represent a fraction of the programs that regions are experimenting with across the country, and the federal government is actively seeking to promote these efforts. The Obama administration's 2014 budget included a proposal for $300 million for a High School Redesign competitive grant program for districts that partner with colleges, businesses, and nonprofits to develop the skills needed for future jobs. The program would bolster existing efforts to support K-12 workforce development. For example, with assistance from federal grants, including the Investing in Innovation (i3) initiative, some states have integrated NTN schools into their plans for improving education and economic development. Indiana, a leader in education innovation, now has 23 NTN schools.

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NOAA Aims to Improve Research Partnerships to Achieve Five-Year Goals
Earlier this month, National Oceanic and Atmospheric Administration (NOAA) released their five-year plan for R&D activities that align with the agency's long-term goals within a rapidly changing society and environment. The plan, entitled Research and Development at NOAA: Environmental Understanding to Ensure America's Vital and Sustainable Future, calls for expanding socioeconomic and integrated ecosystems research and improving its internal and external technology development partnerships. NOAA offers guidance to stakeholders concerning the agency's specific research objectives and plans for effective R&D management practices. Click here for access to the plan...

In recent years, R&D accounted for 12 to 17 percent of the NOAA's total agency budget, more than the 11 percent average for non-defense related agencies. Moving forward, the agency is shifting its focus to address societal challenges like population growth, migration, climate change, and changing water supply. The majority of the plan is composed of general goals that NOAA hopes to achieve to better the global society and environment, and enterprise objectives or desired outcomes for the agency specifically, including: climate adaptation and mitigation, a weather ready nation, healthy oceans, resilient coastal communities and economies; stakeholder engagement, accurate and reliable data, and an integrated environmental modeling system. Efforts in climate adaptation and mitigation receive the largest investment when compared to other agency goals.

Earlier this year, NOAA's Science Advisory Board published an assessment of the agency's portfolio and management of its R&D efforts. Based on surveys conducted by an agency task force, many participants felt that there are research areas that are not adequately represented in the agency's long-term goals. Respondents noted that research often is not focused on the agency's long-term goals and that there is a need for a more effective social science R&D effort. They also pointed to a need for operational improvement within the agency in regards to internal and external communication, funding continuity for long-term projects, and increased agency flexibility.

In addition to recommending agency expansion in underrepresented topic areas, the advisory board also pushes for changes to the organization and management of the agency's R&D strategy to foster flexibility and achieve its long-term R&D goals. In particular, the advisory board recommends that NOAA should:

  • Expand its capacity in the socioeconomic and integrated ecosystem sciences;
  • Emphasize, highlight, and provide incentives to support the seamless integration of research and services in both its Research to Operations (R2O) and Operations to Research (O2R) enterprises;
  • Work in partnership with its Science Advisory Board to form a scientific task force to review existing observing capabilities, examine options for more cost-effective observation and data sharing strategies, and discuss evolving needs and sustainable approaches for new observations and technologies;
  • Enhance the responsibilities and authorities of the chief scientist position to provide the tools to ensure that the total R&D effort of NOAA is efficiently implemented and aligned with the agency's strategic priorities;
  • Maintain a strong and productive internal scientific staff in its laboratories and centers;
  • Assess the Cooperative Institutes in terms of their scientific focus, funding and staffing levels to ensure that they have sufficient support to adequately leverage agency investments and align with agency priorities;
  • Critically examine its distribution of R&D funds and allocation of scientific staff within the agency to better align with the Next Generation Strategic Plan;
  • Capitalize on the support and skills of the extramural research community by developing carefully targeted initiatives that meet the needs of the Next Generation Strategic plan, that are stable and consistent over time to enable year to year planning, and that ensure the rsults are integrated into NOAA's operations;
  • Make the most of its existing talent and find ways to accelerate and enhance learning and professional development of that talent in light of the current federal budget situation; and
  • Work closely with the Department of Commerce, the OMB, and with Congress to create ways to manage its R&D funds more flexibly and efficiently and to implement its new research priorities over a period of several years.

Click here to view the NOAA Science and Advisory Board's assessment . . .

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Community Initiatives Helping Overcome Persistent Digital Divide
A recent study by the Pew Research Center suggests that the United States continues to suffer from a digital divide in Internet usage, a gap in accessibility and digital literacy between rich and poor and urban and rural. While corporate investment in national broadband infrastructure has increased the quality of service for affluent urban populations over the past decade, the expansion of service to disadvantaged communities has been left to the public sector. Local communities across the country are using new, innovative approaches to address the issue.

The Pew Internet & American Life Project has been conducting studies on national broadband accessibility and connectivity since 2000. Initial findings suggested a stark digital divide between populations across the country, with high percentages of inner-city and rural populations lacking either basic access or affordable access to broadband. The Pew Center's latest report, released in April, claims that although there has been significant improvement in broadband connectivity, a national digital divide still persists. In June 2000, 47 percent of American adults were Internet users, compared with 78 percent as of August 2011. Twenty-eight percent of households making $30,000 per year or less were Internet users compared to 62 percent today; and 16 percent of Americans without high school diplomas were Internet users compared to 43 percent today. While those numbers mark a serious improvement in national connectivity, it is important to note that high-speed connections become ubiquitous in more affluent households, with 97 percent connectivity for households that make $75,000 per year and 94 percent connectivity for Americans who have graduated college.

A report from the Information Technology and Innovation Foundation suggests that corporate investment in U.S. broadband infrastructure is driving the general increase in national broadband connectivity. Without significant federal or state investment in broadband infrastructure, the U.S. has risen sharply in global competitiveness rankings for connectivity, speed, and Internet usage. Other countries that rank higher in global indices, such as Singapore, Sweden, and South Korea, are densely populated and do not contend with the same geographic barriers to broadband rollout that are faced by U.S. service providers.

While corporate-driven rollout of U.S. broadband infrastructure generally has increased access and connectivity for American consumers, there are lingering inequalities in service delivery that impede the economic competitiveness of low-income Americans. The digital divide has long-term consequences for national economic growth and local policymakers across the country are stepping in to address the issue. The Brookings Institution argues that broad-based, national economic growth has not materialized in the aftermath of the Great Recession in part because of an entrenched digital divide defined by a national patchwork of corporate broadband coverage and lack of large-scale, public investment (see SSTI's December 2012 Digest article).

The Institute for Local Self Reliance has published a map detailing the efforts of 342 communities across the country that are providing publicly owned and operated broadband access. Publicly owned broadband networks often are provided free of charge or below-market rates and, as illustrated in a new Institute for Local Self Reliance report, the fastest broadband networks in the country are being built by local governments. Cities like Chattanooga, TN, and Lafayette, LA, are operating of the fastest connections in the country.

The move towards community-owned, public broadband networks has not gone unnoticed in the corporate world. Google has partnered with a select group of communities across the U.S. (Kansas City, Austin, and Provo, UT) to initiate the city-wide rollout of its ultra-fast Google Fiber service. Google's partner cities have been advertising the 100 Gigabit service both as an investment to attract tech entrepreneurs and, as Austin community leaders have noted in a recent PRI story, a public resource for underserved communities that will promote digital inclusion.

As communities continue to experiment with the provision of city-owned broadband services, state lawmakers will be faced with tough decisions over how to regulate broadband networks. Many states have current laws that either prohibit or establish significant barriers to the provision of Internet service as a public utility. The FCC so far has refused to intervene in states to allow public ownership of Internet services. Without large-scale federal investment or intervention in state regulatory markets the digital divide for U.S. households may continue to persist.

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Useful Stats

Patents and Patents Per 100k Residents by State, 2007-2012
Between 2007 and 2012, the U.S. recovered from a temporary patenting lull in the wake of the economic crisis, jumping more than 43 percent. Most states shared in this patent resurgence, though activity continues to be concentrated in a few states. About one quarter of 2012 U.S. patents were awarded in California, the leading patenting state. About half of all patents were awarded in the top five states, California, Texas, New York, Massachusetts and Washington.

SSTI has prepared tables showing total patents and patents per 100,000 residents by state for 2007-2012. These tables include updated data from USPTO for 2007-2010, and include utility, design, plant and reissue patents (less statutory invention registration). Download the tables in Excel format to get access to all of the data.

Over the past five years, patenting steadily recovered from the 2007 stagnation, taking a major jump in 2010. Despite the fluxuation, the list of leading states has remained constant. Several states outside the top five made major gains during the 2007-2012 period. Kansas, Washington, D.C., Wyoming, South Dakota and Alaska all more than or nearly doubled their number of awarded patents. Kansas, where patents jumped 110 percent in five years, benefitted from a large increase in patent awards to Sprint, the state's leading patenting organization. The other states, and D.C., had more general increases and relatively low numbers of annual patents across all years.

Massachusetts and California also lead in patents per 100,000 residents, with a nearly identical per capita rate. In 2012, Massachusetts lead with 92 per 100,000 (California had 91), but over the past five years, the states have alternated in the top spot. Washington followed close behind in 2012 with 87, followed by Vermont and Minnesota.

Mapping the U.S. per capita patenting rate reveals high levels of patenting activity on the West Coast, New England and the northern Mid-Atlantic states. In the middle of the country, only Minnesota, Colorado and Idaho rise to the top quartile. The lowest patenting states are congregated in the northern Mountain and Plains states (Montana, North Dakota, South Dakota, Nebraska), the middle, western and Gulf South (Alabama, Mississippi, Louisiana, Arkansas, Oklahoma, Arkansas, Tennessee, Kentucky and West Virginia) and Alaska and Hawaii. The highest patenting state in the South, North Carolina, ranks 23rd in the country.

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TBED People & Job Opportunities

TBED People and Orgs

Sean Greene has joined the Case Foundation as entrepreneur in residence. Greene most recently served as associate administrator for Investment and special advisor for Innovation at the U.S. Small Business Administration.

Jane Oates, assistant secretary for the Employment and Training Administration, which oversees the Job Corps program for the U.S. Department of Labor, has announced her resignation effective at the end of the month.

Euan Robertson has been appointed president and COO of MaRS Discovery District. Robertson joins MaRS from the New York City Economic Development Corporation

Doug Hockstad has been named the director of Tech Launch Arizona, the revitalized Office of Technology Transfer at the University of Arizona.

Sudarsanam Suresh Babu has been named the 11th University of Tennessee-Oak Ridge National Laboratory Governor's Chair. Babu will serve as Governor's Chair for Advanced Manufacturing. He begins on July 1.

Kalliat Vasaraj has been selected as Louisiana State University's vice chancellor of research and economic development.

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Job Corner
King Abdullah University of Science and Technology is hiring a director of technology transfer and innovation. This position reports directly to the VP for Economic & Technology Development. This person will lead the KAUST Innovation Ecosystem, comprised of partner universities and

Read more job postings...

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Staff Picks

Keeping America Safe through a Strong Manufacturing Sector
Guardian Six Consulting LLC prepared a report for the Alliance for American Manufacturing recommending 10 actions to identify supply chain vulnerabilities and strengthen the U.S. Defense Industrial Base. The number one recommendation is to increase federal investment in high-tech industries. Read the report...

Coalition to Double Charitable Funding for Basic Research over Next 10 Years
The American Association for the Advancement of Science announced that a new coalition aims to boost philanthropic giving from a current average of $4 million annually to $8 billion in the next 10 years. The seven members of the coalition consist of five foundations and two research organizations. Read more...

Which Companies Actually Matter?
A recent Kauffman report shows that scalable companies that are disproportionate creators of jobs and wealth matter to cities, states and countries. Anywhere from 125 to 250 of these U.S. companies per year reach $100 million in revenue in a reasonable amount of time without plateauing. Read more...

MTU Trumps the 3D Printed Gun
This week, the Michigan Technological University announced a 3D Printers For Peace contest to challenge people to figure out ways 3D printing can be used to benefit humanity. All designs must be open source and will be judged based on innovation, feasibility, presentation and overall effectiveness. Read more...

GenXers Focused on Lifelong Learning
A new study by the University of Michigan found that one in every 10 members of Generation X are enrolled in classes to continue their formal educations, and 48 percent of the generation take continuing education courses, in-service training and/or workshops. Read more...

Kansas City Broke World Record for Business Speed Networking
A total of 357 entrepreneurs, business owners, mentors and supporters attended Kansas City's kickoff for Global Entrepreneurship Week, breaking the previous record of 328 attendees held by Toronto. Organizers recently were notified that Guinness officially set the record. Read more...

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