SSTI Digest

Most practitioners who have been in the tech-based economic development field long enough know the presence of a strong research university can make the job much easier. New innovations and technologies to commercialize through licensing and spinoff companies, research facilities and experts to partner with local companies, and a constant supply of fresh graduates for the workforce are just a few of the benefits a research institution can offer the local and regional economy.

Massachusetts Governor Mitt Romney recently announced a plan to spur job growth in the state by tapping the expertise of area business, community and education leaders through Regional Competitiveness Councils. Six such councils will represent the Berkshires, Cape and Islands, Central, Northeast, Pioneer Valley and the Southeast regions of the state. The Greater Boston area, due its size and diversity, will be approached on a cluster basis by working through existing technology-focused organizations, such as the Massachusetts Biotechnology Council.

Each of the six councils is comprised of about 25 members from fields ranging from financial services and health care to manufacturing and tourism. In addition, key elected officials have been named as ex-officio members. The councils have been charged with a set of first tasks to perform, including:

Many states and communities are focusing their limited technology-based economic development funds toward cluster development, concentrating on those sectors in which some assemblage already exists within the jurisdiction. Proponents of the approach suggest the public sector is able to maximize its investments in those areas already showing some strength.

But what does a state with a new governor do when it is one of the top states in the country for two of the sexier tech sectors – biotechnology and information technology – and public resources are growing more scarce?

Massachusetts' high tech economy was hammered by the economic equivalent of a nor’easter throughout much of 2002, according to a report released by the Massachusetts Technology Collaborative (MTC). The Index of the Massachusetts Innovation Economy tracks nine industry clusters and 30 economic indicators and documents the declines experienced in the Massachusetts Innovation Economy, which is responsible for one quarter of all jobs in the state.

The data show that compared to last year unemployment is up, the state’s consumer confidence index is down having dropped more than 14 percent, and Massachusetts had only one initial public offering in 2002. Venture capital investments in Massachusetts also fell 36 percent in the first six months of 2002 compared to the first six months of 2001, dropping from $2.2 billion to $1.4 billion.

In an era of tight public budgets, sources of seed funding for early stage and developmental research projects with potential for commercialization is getting harder to come by. Many state initiatives to support these endeavors are subject to the same budget cuts as other areas, and small firms' interests in the federal Small Business Innovation Research (SBIR) program are increasing pressure for these already competitive grants.

Using at least $15 million of a $20 million gift from the co-founder and chairman of Sycamore Networks, the Massachusetts Institute of Technology (MIT) has taken matters into its own hands for its faculity and students by launching Ignition and Innovation Program Grants through the new Deshpande Center for Technological Innovation. The $15 million is expected to be allocated to dozens of different projects over a five-year period.

With more than 1,000 links to socio-economic data sources, EconData.Net provides a convenient and valuable starting point for gathering information to understand regional economies. Funded by the Economic Development Administration, EconData.Net is a 100 percent free website offering easy access to state and sub-state socio-economic data for practitioners, researchers, students and data users in general.

EconData.Net provides eight sections on its website to help locate data:

A Massachusetts Institute of Technology faculty committee has suggested that the university provide off-campus facilities to help faculty perform classified public service or research involving the nation’s security. In the Public Interest, a report of the Ad Hoc Faculty Committee on Access To and Disclosure of Scientific Information of MIT, presents recommendations for the university in handling classified work in the wake of the September 11 attacks.

Appointed by Provost Robert A. Brown and Professor Stephen C. Graves, the panel stresses that MIT is firmly committed to it long-standing policy of the intellectual openness of the campus. The panel expresses concern that allowing classified research on university grounds would create two classes of individuals and would restrict faculty and student interaction on campus. It also states that students should not be required to have security clearance for thesis research.

The Massachusetts Technology Council named Carol Meier as its new Executive Director, succeeding Katherine Raphaelson who is relocating to Washington D.C.

Columbus Tech Councils Merge To establish more clout, eliminate confusion and duplication, and cut costs, the Columbus Technology Leadership Council and the Industry & Technology Council of Central Ohio are merging into a new entity, according to the Columbus Dispatch. The details for the new organization, including its new name, will be announced later this year.

Louis Soares, project manager for workforce development at the Rhode Island Technology Council (RITEC), is leaving to accept a fellowship at the JFK School of Government at Harvard University.

The Institute for Government Innovation at Harvard University's John F. Kennedy School of Government recently announced open competition for its 2002 annual awards program. The Innovations in American Government Awards focuses on the quality and responsiveness of U.S. government at all levels and promotes innovative approaches to meeting challenges. Begun in 1986, the program has recognized 295 innovative programs that have received $17.9 million in grants. Of these programs, 150 have been named winners and received $100,000 grants while 145 have been named finalists and received $20,000 grants. Five initiatives were chosen among 15 finalists in the 2001 competition, including California’s Mathematics, Engineering, Science Achievement (MESA) program. MESA has built a network of support for disadvantaged students by teaming educators with corporate activists. The program's accomplishments are many:

As a means of highlighting the performance and composition of state economies, Harvard's Institute for Strategy and Competitiveness, led by Dr. Michael Porter, has published profiles on all 50 states and the District of Columbia. The profiles, available at http://www.people.hbs.edu/mporter/stateprofiles.htm, include data based on the Cluster Mapping project — a multi-year effort to statistically define clusters and analyze regional economies in the U.S. Relevant economic areas for companies and metropolitan areas, as defined by the Bureau of Economic Analysis, are outlined. The profiles are arranged by the following topics: