SSTI Digest

President Obama has named Ron Bloom as the administration's senior counselor for manufacturing policy. Since, February, Bloom has been a senior adviser to Treasury Secretary Timothy Geithner, and he sits on the president's automotive industry task force.

Detroit Renaissance and the Michigan Business Leadership Council are uniting to form a new organization called Business Leaders for Michigan. The new organization supports the Michigan Turnaround Plan.

The U.S. Senate confirmed John Fernandez as assistant secretary of commerce for economic development. A former Mayor of Bloomington, IN, Fernadez will oversee the Economic Development Administration.

Often overshadowed in the media by state budget deficit reporting, city fiscal conditions are rapidly declining and expected to worsen through 2010 and beyond, finds the National League of Cities (NLC) annual survey. Additionally, pessimism about the ability to meet city fiscal needs is at its highest level in the history of NLC's 24-year survey on city fiscal conditions.

Because of a typical time lag of 18 months to several years before economic shifts have an impact on city conditions, many cities just now are registering the effects of the national economic downturn, according to the report. It is expected that the deeper effects of the recession likely will be experienced and reported by cities beyond 2009, with the leanest years likely to be 2010 and 2011.

City finance officers responding to the survey reported a cumulative 2009 budget gap of 2.9 percent mostly due to decline of income and sales tax collections and the rising costs of providing services. Some of the key findings of the survey include:

The current fiscal pressures on regional technology-based economic development initiatives have been never greater than they are now. And, as the article above points out, things are going to get worse over 2010 and 2011 before they get better.

Additionally, since local communities became proactive partners with their universities, businesses, tech councils, civic organizations, and states to support economic growth through innovation, the need for local TBED never has been greater. Economists and policy wonks agree: the next economy is being built on innovation and technology.

So how will you sustain or jumpstart your regional TBED initiatives as traditional sources of funding contract?

SSTI is dedicating several sessions at our upcoming Annual Conference specifically to help answer that question for local, nonprofit, university and state TBED programs. Here are some highlights:

This week's Digest covers two new independent reports that separately assess two critical aspects to how well nations are prepared for the economic recovery: competitiveness and educational attainment. The news, obvious in our choice of headlines, may suggest the past year - actually several years - has not been kind to the United States relative to other nations. Reading the articles one will see, however, that it isn't time that is working against the U.S. but rather our progress on several indicators of preparedness for a future based on innovation, technology and entrepreneurship. The reports show other nations are succeeding in laying a more solid foundation for their future than the U.S. is preparing for itself.

At this moment, every aspect of the U.S. economy is in a period of transformation. And nearly every aspect of getting out of the current mess is related to one or more of the fundamental principles of tech- based economic development (TBED).

In the nation with the greatest difference in lifetime incomes between those people with college degrees and those without, it may be surprising to learn the U.S. ranking for college graduation rates has fallen from 1st in 1995 to 14th in 2007. The finding is included in Education at a Glance 2009, an indicator report looking at countries who belong to the Organization for Economic Cooperation and Development (OECD).

U.S. graduation rates have not fallen as a percentage of those students attending American colleges and universities for degrees above an associate's degree - growing from 33 percent in 1995 to 37 percent in 2007 - but rather relative to the graduation rates attained by the other 25 OECD countries included in the study. Nevertheless, the finding should be troubling for policymakers and TBED practitioners in an increasingly knowledge-based and competitive global economy.

The United States fell from its position as the most competitive national economy according to the World Economic Forum's (WEF) recently released annual Global Competitiveness Report. Switzerland took the top spot as the U.S. fell to a close second place in the weighted ranking system. The report attributed the switch in positions to a number of growing weaknesses that have plagued the U.S. over the past year, while the Swiss economy remained relatively stable. Though the U.S. continues to perform well in measures of innovation, the country declined in indices of its institutional effectiveness and macroeconomic stability. The U.S.'s persistent fiscal deficits and trade imbalances were noted as a particular threat to the nation's mid- and long-term competitiveness.

The Global Competitiveness Report ranks 133 countries based on the institutions, policies and factors that, according to WEF, determine the level of national productivity and prosperity. The indices and data compiled in the report are organized into 12 'pillars' of competitiveness. These pillars are weighted and used to determine a country's final ranking.

As economists and policymakers debate the details of how and when the nation will recover from the recession, the topic of entrepreneurship and the role it will play in shaping the new economy continually arises. In the coming years, some analysts predict a rise in entrepreneurship both as a result of massive layoffs and an aging workforce not yet ready or able to retire. Highlighting the correlation between joblessness and the uptick in entrepreneurship, several recent news articles have featured stories of the unemployed forgoing disappointing job searches and the corporate environment to pursue business ownership.

A complete description of this opportunity is available at: http://www.ssti.org/posting.htm.

The Edison Materials Technology Center (EMTEC) has a full time opportunity for a Manager Request for Help Program. EMTEC is a non-profit, collaborative R&D organization located in Dayton, Ohio helping accelerate technologies to market and specializing in advanced technologies. The primary responsibilities of this position include providing technical assistance to EMTEC members, developing member value, and other EMTEC program support. Requirements include an undergraduate degree in Engineering or Materials Science; a minimum of five years experience in industrial product development and manufacturing with strong preference to experience in instruments, controls, and electronics and/or advanced energy industrial products experience; technical sales support experience is a plus.

Offering some good news for universities and companies looking for funding, the National Science Board (NSB) has recommended the elimination of any evidence of voluntary cost share from most grant proposals to the National Science Foundation (NSF). However, the board recommended mandatory cost matching should be reinstated in a handful of initiatives, including its Engineering Research Centers (ERC) program, its Industry/University Cooperative Research Centers (I/UCRC) program, and its EPSCoR program.

The return of mandatory matching funds may present a mixed bag for state and university TBED policies in an era of shrinking financial resources. States that have programs in place to match federal research grants are well positioned strategically to support those opportunities that may provide the fit with the state's tech-based economic development goals. States without matching-grant mechanisms already established may need to expand their portfolio of programs if growing the research enterprise is one of their TBED priorities.

Much emphasis has been placed on the importance of green jobs in the next economy as the nation continues to shed jobs in traditional industries. Creating these specialized jobs is a major priority for states across the nation that will compete for renewable energy industries. Two recent announcements in California and Michigan illustrate efforts underway to recruit and prepare a workforce capable of meeting critical industry needs.

California
Leveraging $20 million in American Recovery and Reinvestment Act funding with additional public and private funds, California is investing $75 million to establish the Clean Energy Workforce Training Program. The goal is to train more than 20,000 new or re-skilled clean energy workers specifically targeting unemployed, underemployed, and new workers, according to the governor's office. Training through community colleges, workforce investment boards, and partnership academies in high schools will prepare workers for jobs as solar installers, sustainable landscapers and water systems designers, and green building designers.

SSTI believes conference sponsors deserve to stand out to attendees so exhibits are placed prominently in a highly-visible location. Only our exhibit and host partners are provided with the opportunity to exhibit.

Sponsorship increases your credibility and relevance. Today's marketplace is about belonging and staying connected. No other event brings together the nation's top players in the TBED community. As an SSTI Conference Sponsor, you have the chance to showcase your organization with the decision makers responsible for crafting and implementing local and state-level policies and programs that directly contribute to the nation's competitiveness.

Last year's conference included more than 350 representatives from 48 states and four countries.

As a conference sponsor you gain:

The Montana Department of Commerce has announced that it will provide $2.5 million in grants to support bio-medical research. Montana-based, private nonprofit research institutions are eligible to apply for the funding, which may be used to expand, renovate and purchase equipment for biomedical research. The grants also may be used to expand infrastructure that will enhance scientific collaborations within the Montana University System. The program is part of a longer-term effort in Montana to improve its research infrastructure and promote the state as a recognized center for bio-medical research.

Funding for the grant program was set aside by the Montana legislature earlier this year through the state's biennial appropriations. Similar awards have been offered in the past through the Department of Commerce, but the $2.5 million now available is a significant increase for the program. In 2007, the entire $2 million that was available was awarded to the McLaughlin Research Institute to expand its facility and research team, and to provide new educational opportunities for high school and college students.