SSTI Digest

A new prototype website allows users to track R&D grants and awards from federal agencies. The current version provides publicly reported federal agency data from the National Science Foundation and the National Institutes of Health from 2001 to 2010. It also provides output data on patents, patent application and publication. Future updates will integrate the site with all federal agency databases and additional output data. Visit the site...

Metropolitan areas with population densities of about 4,000 people per square mile tend to produce the highest rate of patenting, according to a recent article in the American Journal of Economics and Sociology. In a study of U.S. metro areas over a ten-year period, the authors found that metro population density has a significant positive correlation with patenting rates. At about 4,000 people per square mile, the benefits of agglomeration, such as knowledge spillovers and diverse labor pools, are at their highest, compared to negative effects of congestion, such as increasing costs of real estate and other scarce resources. Few U.S. cities, however, approach this level of population density. The authors advise against taking the averaged optimal density level as a basis for policy, but use their data to suggest that cities play a vital role in the innovation economy and that increasing urban density could lead to higher innovation rates in some U.S. urban areas.

Connecticut Gov. Dannel Malloy named ING executive Catherine Smith to lead the Department of Economic and Community Development.

New York Gov. Andrew Cuomo nominated Julie Shimer, the president and CEO of Welch Allyn, a medical diagnostics equipment manufacturer, to chair the Empire State Development Corp. She would join Kenneth Adams, ESCD's president, at the agency.

Jeffrey Anderson, president and CEO of the Virginia Economic Development Partnership, has announced he will resign as soon as a successor can be found. He has led the VEDP since October 2005.

Howard Gobstein, APLU executive officer and vice president, research, innovation and STEM policy, has been named executive vice president.

The seventh installment of SSTI's Tech Talkin' Govs series includes excerpts from speeches delivered in Alabama, Florida, Ohio, Pennsylvania, and Rhode Island. The first six installments are available in the Jan. 5, Jan. 12, Jan. 19, Jan. 26, Feb. 9 and Feb. 23 issues of the Digest.

Alabama
Gov. Robert Bentley, State of the State Address, March 1, 2011
"The Education Budget I present will preserve, protect and bolster areas that should remain a priority for all of Alabama. ... We will protect the Alabama Math, Science and Technology Initiative. ...

Lawmakers approved many of Gov. Bob McDonnell's proposals aimed at growing Virginia's technology and life sciences industries by dedicating about half of the funding requested by the governor to support R&D, commercialization, SBIR matching grants, and funding for early stage equity investments. To help reach a goal of adding 100,000 college graduates to the state over the next 15 years, lawmakers also passed the Virginia Higher Education Opportunity Act of 2011, providing enrollment-based funding to increase access to higher education and enhancing science, technology, engineering and mathematics (STEM) fields of study.

The legislation and amendments to the 2010-12 budget approved by the General Assembly for attracting tech companies closely mirror components of the governor's economic development agenda presented to lawmakers earlier this year (see the Jan. 5, 2011 issue of the Digest). Specifically, lawmakers approved $10 million for an Economic Development Incentive payment, which includes:

Established to focus solely on job creation and replace the state's Department of Commerce, Wisconsin's new public-private partnership would receive nearly $200 million over the next two years for operating expenses and to administer economic development programs. Lawmakers also will consider measures to improve existing tax programs focused on enhancing angel investments and eliminating capital gains taxes during the upcoming legislative session. Gov. Scott Walker unveiled the 2011-13 biennial budget amid a turbulent political climate centered on a budget repair bill for the current fiscal year that involves a controversial provision changing collective bargaining laws.

The U.S. economic crisis spurred more Americans to become entrepreneurs than at any point in the last 15 years, according to the 2010 edition of the Kauffman Foundation's Index of Entrepreneurial Activity. The study found that 340 out of every 100,000 Americans started a new business each month in 2010, approximately the same rate as 2009, but an increase over the pre-recession period. Many of these new entrepreneurs, however, are not creating new jobs through their startups. High unemployment rates may have driven more people to start new businesses, but many are creating lower-cost startups without employees at launch.

The Kauffman Index tracks startup rates by identifying all individuals between 20 and 64 years old who do not own businesses in the first month of the survey, using Census and Bureau of Labor Statistics data. Each month, the study checks if an individual has since become the owner of a business where they work 15 hours or more a week. Kauffman also tracks historical trends in startup rates since 1996, with additional data on race, gender, age and geography.

With the number of startups on the rise, several states and cities are reaching out to entrepreneurs to connect them with the assistance and capital they need to survive.

Indiana
The Indiana Economic Development Corporation (IEDC) has launched a new initiative to connect entrepreneurs to sources of early stage capital. The INVEST Indiana initiative will use the resources of Indiana's 21st Century Research and Technology Fund to build a statewide network of entrepreneurs, private sector investors and regional stakeholders. This public-private network will provide new ventures with access to experienced entrepreneurs and will actively seek out new, non-traditional sources of capital.

A new nonprofit, Elevate Ventures, has been commissioned to engage investors and work with regional stakeholders. The group hopes to attract federal and private funding to develop regional entrepreneurial action plans across the state.

Find out more about INVEST Indiana at: http://www.in.gov/portal/news_events/67630.htm.

In a recent speech in front of China's National People's Congress, China's Premier Wen Jiabao outlined the country's 12th five-year plan (2011-2115). The plan will focus heavily on boosting consumption through sustainable growth fueled by renewable energies and state support of strategic, emerging industries. Expenditures on R&D should reach 2.2 percent of GDP. Much of this R&D investment will be targeted in three sectors — healthcare, energy and technology. Along with increased spending, the plan calls for tax-breaks and other incentives to achieve the lofty goals established by the national party. According to the Telegraph, the proposed key industries include: pharmaceuticals; biotechnology; wind energy; hydropower; nuclear power; power grid technology; information technology; and, educational services. The plan also proposes a rate of 3.3 patents be held per every 10,000 people (approximately 450,000 patents).

Basic biomedical research has a greater academic impact and clinical research a greater societal impact over a 15 to 20 years timescale, according to the findings of Project Retrosight — a multinational, four-year study from RAND Europe and the Health Economics Research Group (HERG) at Brunel University. This study was based on data collected from 29 case studies on basic biomedical and clinical cardiovascular and stroke grant-funded, research projects in Australia, Canada and the United Kingdom. In a press release, Steven Wooding, researcher leader at RAND Europe, said: "The study showed that research is important, that it has real tangible benefits for society and that how you fund it matters. If you want to make a difference to patients over a 15-20 year time-scale, clinical research is more effective. If you want to build knowledge for the longer-term, then basic research is better."

Fifteen years ago this week, the SSTI Weekly Digest launched with two pages faxed to a distribution list of 56. We faxed it on Fridays because, at the time, Sprint offered free faxing on Fridays. When we started the Digest, one of our board members expressed concern about not having enough material to produce a weekly newsletter; as it turned out, that's never been a problem. As technology has changed, so has the Digest, and we're always looking for the best ways to communicate and get out the news. It seems fitting that after 15 years of publishing the Digest, SSTI would launch a Facebook page. Betty White said on her Facebook-generated appearance on Saturday Night Live, "I didn't know what Facebook was. And now that I know what it is, I have to say it sounds like a huge waste of time." We promise that if you "like" us on Facebook, it won't be a waste of your time. It will be a primary mechanism for getting you the latest news as fast as we can.

The Department Labor (DOL) will commit $40 million to a new Green Jobs Innovation Fund (GJIF). DOL intends to support up to eight projects that will increase the number of individuals who complete training programs for employment in green jobs."This grant program is an important effort in supporting green investments and equipping workers with the knowledge, skills and abilities they need to succeed in green occupations," said Secretary of Labor Hilda L. Solis. National and statewide organizations with local affiliates that have existing career training programs are eligible to apply for GJIF grants. Proposed programs must benefit a minimum of six communities per grant. Applications are due March 29, 2011. Read the announcement