SSTI Digest

Tuesday’s Republican victories in the gubernatorial races for New Jersey and Virginia mean a shift in political power for both states. With current fiscal conditions continuing to press state revenues lower and unemployment rolls higher, much of the new governors’ attentions could pass over tech-based economic development policies. Alternately, increased investments in TBED may be exactly what are needed right now to help create high-wage jobs in both states.

A look at the posted campaign platforms for the two successful gubernatorial candidates suggests changes are afoot in both states, if actions follow the campaign rhetoric when they take office in January. Highlights for both states follow (energy-related policies will be covered in next week’s Digest).

Virginia
The website for the campaign of Bob McDonnell, a 55- year-old former state attorney general, states the governor-elect will focus heavily on traditional business recruitment/retention strategies, regionalization of job training and university research investments, and increasing higher education graduation rates.

Marking the first decline in a decade and despite a then-healthy economy, federal R&D for the Department of Energy (DOE) declined from FY05 to FY06. The percentage of total federal R&D obligations dedicated to DOE R&D also declined from FY05 to FY06.

SSTI has prepared a table displaying the amount of R&D obligations associated with the DOE for each state from FY02 to FY06, the five most recent fiscal years for which data is available. The table also shows the percentage of each state's total federal R&D obligations that come from DOE for each of the five fiscal years. This statistic shows the critical importance of energy research for some states, or for states with large amounts of federal R&D coming in, the degree of diversification in the state's R&D portfolio.

Complete descriptions of this opportunity and others are available at http://www.ssti.org/posting.htm.

The Software and Information Technology Association of Kansas (SITAKS), a state-wide trade association dedicated to strengthening and expanding Kansas’ software and IT sector, is recruiting for a President/CEO to provide overall leadership and management for the daily operation of SITAKS to insure its viability, growth and adherence to its vision, mission and strategic plan. This position is responsible for the organization’s administration, marketing, financial management, community relations, program development/execution, fundraising and strategic direction.

Capturing national attention for initiating successful programs to sustain the nation’s position as a global leader for innovation and competitiveness, six organizations were named recipients of SSTI’s 2009 Excellence in TBED Award. The third annual awards follow a nationwide competition recognizing outstanding achievements in tech-based economic development (TBED) emphasizing impact, strategic value and replicability.

“The impressive stories behind each of these six initiatives illustrate how strategic TBED investments work to promote regional growth through science and innovation,” said Dan Berglund, SSTI President and CEO. “These organizations serve as best practice models in the field for their demonstrated leadership and meaningful impact to state and regional economies.”

Recipients were honored today during a ceremony at SSTI’s 13th Annual Conference in Overland Park, KS, attended by top economic development professionals from across the nation. The following initiatives were selected to receive the Excellence in TBED Award for 2009:

Using the interest earned from $400 million in state savings, Alaska Gov. Sean Parnell announced a plan that would provide Alaska high-school students with scholarship funds to attend the University of Alaska or in-state vocational institutions based on academic performance.

The Governor’s Performance Scholarship would be awarded to students based on grade average. Students with an A grade average would receive a 100 percent tuition scholarship, students with a B average would receive a 75 percent tuition scholarship, and C students would receive a 50 percent tuition scholarship.

In an effort to promote college preparedness, the governor’s plan also stipulates that high-school students take four years of math, science, and language arts, and three years of social studies to be eligible for the scholarships.

Gov. Parnell will seek approval from the legislature in the upcoming session to set aside $400 million of nearly $8 billion currently in the Constitutional Budget Reserve Fund and Statutory Budget Reserve Fund to initiate the program.

While New York City's universities and research centers are among the country's top institutions for performing scientific research, the city’s institutions have not become the drivers of entrepreneurship and economic development witnessed in other regions of the U.S, according to a new report from the Center for an Urban Future. Additionally, the high cost of real estate and lack of affordable laboratory space inhibits local entrepreneurs from succeeding and deters high-tech investment. Building New York City's Innovation Economy authors Jim O'Grady and Jonathan Bowles incorporate data from an innovation index examining 48 comparative metrics of NYC's five boroughs and the greater New York City metro region.

Southwestern Pennsylvania is on course to add 11,640 green jobs to its economy by 2015, according to a new report commissioned by two local organizations, the Green Building Alliance and Growing Technology through Energy and Community Health (GTECH) . The region’s green services sector is on the verge of a major boom and will be the driving force in the growth of the green economy, according to the report. The report is bullish about the future of Pittsburgh’s green economy, though it relies on a methodology intended to produce a more conservative estimate of green jobs than other approaches, the authors contend.

In order to maximize the growth of green sectors, the authors recommend that Pittsburgh implement a more coordinated and comprehensive strategy to prepare and train workers for green jobs.

Federal R&D obligations to U.S. universities and colleges between FY 2003 and 2007 did not keep pace with inflation, according to the latest federal data from the National Science Foundation. Obligations were $25.3 billion in FY 2007, an increase of 11.1 percent from FY 2003 totals. The aggregate annual inflation rate for the country was nearly 12.7 percent, according to the Bureau of Labor Statistics.

NSF’s Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions found 40 states experienced an increase in their total federal obligations measured in current dollars over the five-year period. While 28 of the states had a percent increase over the same time period that bested the U.S. average, only 24 states had increases that exceeded the rate of inflation.

New Mexico had the largest percent increase over the five-year period, rising 45.7 percent to $182 million in FY07. Other states increased at least 25 percent from FY03 to FY07: West Virginia, North Dakota, and Tennessee.

The economic circumstances leading up to SSTI’s 13th annual conference make this year’s event critical. We encourage you to join us in Overland Park, Kansas, October 21 – 23, 2009 to Seize the Moment.

This year’s conference will bring together distinguished speakers like Josh Lerner of Harvard Business School and Rob Atkinson of the Information Technology and Innovation Foundation who will challenge conventional thinking; experienced practitioners who will share best practices; and, leading individuals who are breaking new ground in their attempts to build a tech-based economies. Plus, we’ll have four stimulating roundtable discussions examining some of the thorniest issues we’re facing—improving metrics that are being used, re-examining equity programs, and engaging universities.

If we have no map, does that mean we’re lost? Hardly. But given the economic turmoil affecting every crossroad of the country, some folks may be having a hard time seeing which road leads in the right direction. This year’s conference will feature two speakers at the forefront of TBED research who will share their insight on how states and regions can prepare themselves for the challenges ahead.

Information Technology and Innovation Foundation founder and president Rob Atkinson will examine the choices we face in strengthening American competitiveness. Atkinson is the author of the State New Economy Index series and the book, The Past And Future Of America’s Economy: Long Waves Of Innovation That Power Cycles Of Growth. He has an extensive background in technology policy, has conducted ground-breaking research projects on technology and innovation, is a valued adviser to state and national policymakers, and a popular speaker on innovation policy nationally and internationally.

SSTI’s pre-conference workshops have received high praise from past participants because of their personalized nature, their dedication to sharing knowledge, and their opportunities to forge worthwhile relationships with other participants. The two pre-conference sessions scheduled on Wednesday, October 21 are no different and will provide plenty of value for those in attendance.

Our extremely popular “Where Do We Start?: Introduction to Technology-Based Economic Development” all-day pre-conference workshop is tailored to professionals new to the field of tech-based economic development. In a format that is engaging, educational and enjoyable, you will discover proven building blocks and programs for creating technology companies, financing high-tech firms, commercializing technology, and developing productive university-industry partnerships.

One of the best takeaways from the SSTI Annual Conference is the personal contacts one can make over the course of the event. Whether it’s chatting with a peer who has led successful economic development initiatives, breaking bread with fund managers at our scheduled Dine-A-Rounds, exchanging contact information with our conference speakers, or playing tennis with a myriad of people in the Wii Room, the upcoming conference will provide plenty of opportunities to make friends and meet other leaders who share your background and hopes for the future.

The SSTI Annual Conference is the tech-based economic development community’s premier event of the year because it brings together hundreds of the practitioners interested in tech-based economic development in one location.

Practitioners just like you.