SSTI Digest

Fresno, California  The Valley Angels Investment Network soon will be administered by San Joaquin Venture Partners, a venture capital fund created in June, and California State University, Fresno, according to a recent article published in the Fresno Bee. Already, the network has nearly 20 prospective angels and 20 service providers and is set to help IQ Biometrix, a computer software company. Next to the Sierra Angels, the Sacramento Angels, the North Bay Angels, and the Tech Coast Angels, the network stands to be one of several such groups in California. Investors interested in becoming angels must have a net worth of $1 million or more or have earned at least $200,000 in each of the past two years. More information is available at: http://www.sjvp.org 

Atlanta, Georgia  A task force for the biotech industry is underway in the metro Atlanta region. The Metro Atlanta Chamber of Commerce announced the task force would be co-chaired by Dr. Michael Johns, executive vice president for health affairs and director of the health sciences center at Emory University, and Parker Petit, chairman, president and CEO of Matria Healthcare. With business and academic leaders, public health organizations and researchers, the task force is meeting monthly to develop a long-range strategy and five-year business plan to position the region as a center for biotech innovation, capital, talent and business. Implementation of the Atlanta region strategy is expected to begin later in 2002.

larta has issued its 2002 Federal Technology Funding Guide, a survey of federal funding sources for technology firms. The sixth edition of the guide provides information on more than 90 regularly scheduled programs, hundreds of links to resources on the Web, and a special section funding for technologies to fight terrorism. An index identifies program by technology area or funding emphasis.  larta is one of three regional technology alliances established and funded by the Division of Science, Technology and Innovation in the California Technology, Trade and Commerce Agency. The full guide is available for $39 from larta; an abbreviated, downloaded version is available at http://www.larta.org 

Philanthropic individuals and foundations are increasingly vital contributors for tech-based economic development, particularly for "big-ticket" initiatives. Most gifts, such as that covered in the second item below, are tied to a specific relationship with a university or field of research, working independently of the strategies or programs developed by state or local tech-based economic development organizations. The continuing work of the Heinz Endowments in Pittsburgh and single large donations, such as the $1 billion Stowers gift announced last Spring (see the May 18, 2001 issue of the SSTI Weekly Digest), are noticeable exceptions. The series of sizable gifts made by the Lilly Endowment, including the latest donation described below, also are an exception in that they collectively could influence the state's S&T strategy where single gifts would have less of an impact.

Jefferson County, Missouri  Its first economic growth strategy in more than a decade, the Jefferson County Economic Development Corp. has issued a plan aimed at attracting new businesses while supporting existing ones, an article in the St. Louis Post-Dispatch reported. The nonprofit's plan suggests acquiring land for industry and commercial development by working with farmland owners and getting municipal governments to delineate rural parcels. Among the programs detailed by the plan are a nonprofit business incubator which would offer low rent to start-up companies and a loan program for the companies. Much of the plan is geared to assist area small businesses, but it also would market the county's strengths, including its river and interstate access, to businesses across the U.S. The Economic Development Corporation presently is seeking grants to secure funding for the plan.  Los Angeles, California 

California  Capital Valley Ventures, a business accelerator with a three-month training program for tech entrepreneurs, is coming to the Sacramento region, the Sacramento Bee reported. The venture is being spearheaded by Jack Crawford Jr., founder of NetLink, NetSource, 2Publish and Campus Engine. Crawford reportedly plans to start a workshop series capable of holding 25 people interested in beginning new businesses. The series, scheduled to begin this month, will involve three-hour sessions held once a month for three months and offer training on raising capital, forming a management team and generating revenues. More information is available at: http://www.capitalvalleyventures.com 

While technological advancements occur every day, truly revolutionary technologies over the past three hundred years — those that promise so many diverse applications that they result in disruption and restructuring of several different industries — can be counted on one hand. The field of nanotechnology, with major implications for nearly every industrial sector, appears to be one of those once-in-a-lifetime breakthroughs.  At this point, only a few states are preparing on a large scale to capitalize on the research and resulting economic growth of this exciting field. A $350 million research institute taking shape in southern California at the universities of California at Los Angeles and Santa Barbara is one of the most aggressive investments to date. 

Despite many indications that show strong potential for growth, Southern California's bioscience industry still faces challenges, according to a new report from the Los Angeles Regional Technology Alliance (larta). Released July 19, Heart of Gold: The Bioscience Industry in Southern California highlights the strengths of the region's industry and honestly assesses the ways that the industry can overcome its weaknesses. The report was created to present a full  and objective overview of the industry through analysis of data from numerous sources, interviews with leaders of the biosciences industry, and insights from bioscience publications.

Cliff Numark is leaving his position as president and CEO of the San Diego Regional Technology Alliance to join a Los Angeles-based private consulting practice.

Encouraging local sources of capital is a common element of most tech-based economic development efforts. The broad strategies to accomplish this typically include forums, investor groups, tax credits, CAPCOs, and public seed capital to fuel fund development. A different approach was made almost two years ago when Pennsylvania Governor Tom Ridge announced the state was giving a $200,000 grant to Redleaf Group, a West Coast venture capital group to open its Atlantic headquarters in Pittsburgh. (see the Pittsburgh story in the 7/23/99 issue of the SSTI Weekly Digest). Besides the obvious advantage to the state's economic development strategy of increasing deal flow for local businesses by having venture capital nearby, that inducement grant appears to be producing more notable fruit for the state.

Julia Wilson is the new Executive Director of the San Diego Telecom Council. She formerly was director of corporate and foundation relations for San Diego State University.

The latest Issue Brief from the National Science Foundation (NSF) shows research and development (R&D) expenditures remain heavily concentrated in a few states. Ten states -- California, New York, Michigan, Massachusetts, New Jersey, Texas, Illinois, Pennsylvania, Washington, and Maryland -- account for nearly two-thirds of national R&D investments. With the exception of California, which can claim one-fifth of the nation's R&D activity, there has been some movement in rankings of the top ten in the last four NSF reports: