SSTI Digest

Manufacturing is a robust driver of California's economy according to a Manufacturing Matters: California's Performance and Prospects, a new report prepared by the Milken Institute. The analysis was prepared for the California Manufacturing and Technology Association.

Milken found that the share of wages dependent upon manufacturing is above the national average. Average manufacturing wage and income was $54,600 in 2000 for California; the national average was only $43,400. Average California wages in computers and machinery is almost double the national average. Milken concludes these variances make California manufacturers targets for other state's industrial recruitment efforts.

The legal ban on non-compete contracts may have played a role in and continues to affect the development of the high tech sector in California. This is the conclusion of Rob Valletta, Research Advisor, in the August 16, 2002, edition of the Federal Reserve Bank of San Francisco Economic Letter. The article, On the Move: California Employment Law and High-Tech Development analyzes the relationship between high tech development and states that do not legally allow non-compete contracts.

Using at- least squares statistical analysis, Valletta concludes that when non-compete contracts are prohibited, employee mobility and knowledge transfer are enhanced. While employees may not be able to share specific trade secrets, general industry knowledge can be shared readily. This freedom can then play an important role in the advancement of innovating technology sectors.

Michael Anastasio is the new director of the Lawrence Livermore National Laboratory, effective July 1. He was serving as deputy director of strategic operations for the lab.

John Dixon, director of the University of Michigan's Life Sciences Institute, a cornerstone in the state's life sciences initiative, has resigned to join the School of Medicine at the University of California at San Diego.

The National Science Foundation (NSF) is establishing three new research institutes that are designed to help strengthen the mathematical sciences as the backbone for U.S. scientific and engineering research. The three centers are expected to receive $24 million over five years. A fourth $9 million award renews for six years the operation of an existing mathematical center that integrates education with research.

An award to Ohio State University in Columbus will lead to a Mathematical Biosciences Institute for interdisciplinary work on problems such as neuroscience and cell processes. This institute will develop the quantitative culture within the life sciences by bringing together people from both mathematical and biological backgrounds. Postdoctoral scientists will be jointly mentored by a bioscientist and a mathematical scientist, and seminars and courses will be aimed at a joint audience.

Joe Raguso has left the California Technology, Trade and Commerce Agency to become vice president for strategic and corporate partnerships for SRI International. Raguso served the agency as Deputy Secretary for the Division of Science, Technology and Innovation.

The California Technology, Trade and Commerce Agency (TTCA) has released A County Level Analysis of California's R&D Activity 1993-1999, which, for the first time, offers California state and regional policymakers a county-by-county, instead of statewide or national, analysis of research and development trends.

The Analysis identifies $50.24 billion that California institutions secured in federal research support between the years 1993-99 (the latest data available). The Analysis includes unclassified research funding from 17 federal agencies on a county-by-county basis and details who performs the research including individual business, public and private educational institutions, federal government, nonprofit institutions, and state or local government.

California

A $30 million tax break tentatively approved by the state Board of Equalization will benefit the software industry but hurt other groups, the San Jose Mercury News reported Tuesday. Software companies, which have lobbied for years with state tax officials on the tax code covering maintenance contacts, has wanted the tax on the contracts eliminated, the article states. Under existing law, entire contracts are taxed.

Lewis Attardo is the first director of the new Sacramento Regional Technology Alliance. Attardo formerly was a Florida-based private business and economic development consultant.

Ohio Proposes to Join Race With the growing need to identify cleaner sources of power, coupled with recent advances in alternative energy technologies, many states are targeting science and technology investments toward fuel cells. California, Connecticut, Massachusetts and New York all have made investments in fuel cell research demonstration or commercialization projects through energy related research funds. Michigan launched its fuel cell strategy in April (see the April 19, 2002 edition of the SSTI Weekly Digest).

Examples of specific fuel cell activities within the states include:

With a large land mass and a population surpassing the 21 least populated states and the District of Columbia combined, California has scores of public programs and nonprofit organizations dedicated to encouraging technology-based economic development on the state, regional, local and sub-local levels. Best practices in the field, then, could have applications in a number of other states and communities.

Sacramento's economic development director, Andy Plescia, is moving on to become a private development consultant.