SSTI Digest

The end of the space shuttle program in 2010 has many state and local governments uncertain about the future of the aerospace industry. A recent NASA report estimated that as many as 10,000 contractor jobs could be lost at spaceflight centers across the country by the time the program ceases operation. Florida's John F. Kennedy Space Center would be the hardest hit, with as many as 80 percent of its current workforce lost in the next 2-3 years. To prepare for that loss, the state has begun a campaign to reorient its aerospace industry by supporting companies focused on the next generation of spaceflight technologies. This will include leveraging Florida's significant presence in life sciences research to support the development of technologies that will be particularly vital with the rise of private, manned space launches and space tourism.   Last week, Florida Governor Charlie Crist announced a new partnership between the state and SPACEHAB Inc., a leading provider of commercial space services such as satellite launch processing and the design of modules that improve living conditions on spacecraft. SPACEHAB will collaborate with the state to support a new…

A strong research base, a climate where entrepreneurs can thrive, access to risk capital, and a network of partner organizations have long been considered by policymakers and practitioners the formula for success and sustainability in technology-based economy. The Tennessee Technology Development Corporation (TTDC) unveiled its new strategic plan last week, leveraging these resources to build the state’s economic development portfolio by strengthening the science and technology sectors.   The new plan is TTDC’s solution to creating and implementing an innovation-based competitiveness agenda with a statewide scope – a task handed down by the Tennessee Department of Economic and Community Development this year with a $5 million investment.   The strategic plan calls for the creation of four new boards, each comprised of members of the TTDC board of directors and individuals recognized as experts in scientific research, entrepreneurship, and capital formation in rural and urban communities. They include: Tennessee Strategic Research Board – This board is charged with growing Tennessee’s research base by…

When given a list of seven technology categories to possibly target and invest money and resources over the next 10 years, 37 percent of U.S. respondents selected “fuel efficiency and alternative fuels” as their leading choice, according to a national survey commissioned by the Fairfax County Economic Development Authority (FCEDA) in Virginia. The remaining choices provided by the survey, which was conducted in March 2008, were as follows (ranked by overall popularity): Medical – 30 percent; Environment – 14 percent; Security and defense – 10 percent; Transportation – 3 percent; Space exploration – 3 percent; Telecommunications and media – 2 percent; and, Don’t know/Not sure – 1 percent. While pursuing green energy strategies may be the top choice for respondents as a whole, slight differences appear within the survey’s demographic groups. About 33 percent of women selected medical technologies as their top choice, making it the highest category for women. This was followed by 30 percent of women naming fuel efficiency and alternative fuels as being the highest priority. Forty-three percent of men…

SSTI Gives Readers Closer Look at the Data With U.S. venture capital (VC) investment reaching its highest level since 2000, many are excited about the potential growth of investments in states that have received historically smaller amounts of VC. In the March 19, 2008 issue of the Digest, SSTI covered analysis from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers that highlighted the five U.S. regions that have experienced the greatest growth since 1997. These regions, including the state of New Mexico and Pittsburgh metro area, have posted remarkable gains.   Others, looking at the data from different perspectives, disagreed with the NVCA conclusion and argued national trends do not appear to be especially favorable to nontraditional venture regions or select states.   Understanding trends in the VC industry from various angles is important to ensure state policymakers propose and support the most appropriate interventions for the specific goals to be accomplished. In some cases, no public intervention may be necessary. In others, perhaps programs should be targeted to specific sectors or geographic areas. In…

A growing number of state governments face revenue uncertainties in the near future. More than half now expect budget deficits and shortfalls in the upcoming fiscal year and beyond. Despite the bleak outlook, however, legislators nationwide are continuing to invest in science and technology with many lawmakers projecting high returns to their state in the coming years. Following are highlights of TBED investments and reductions in recently approved budgets in Kentucky, Maine and Nebraska.   Kentucky Recognizing the statewide economic benefits of strategic investments in university research, Kentucky legislators concurred with Gov. Steve Beshear’s proposal to continue support for the Bucks for Brains initiative. Lawmakers approved $60 million in bonds under the fiscal year 2008-10 biennial budget agreement to expand the state’s endowment matching program used to attract high-quality researchers.    The total funds appropriation under the budget agreement for the Economic Development Cabinet is $29.3 million in FY 2008-09 and $31.8 million in FY 2009-10. The budget agreement also includes language directing interest…

Legislators passed the fiscal year 2008-09 budget last week, increasing spending by 4.9 percent over last year and investing in New York’s Upstate economy despite projected shortfalls for several years to come.   Lawmakers approved $700 million for the Upstate Revitalization Fund, an initiative that Gov. David Patterson continued to push forward following the resignation of Gov. Eliot Spitzer last month. In January, former Gov. Spitzer unveiled the Upstate proposal, asking lawmakers for $1 billion to encourage economic growth through targeted investments in high-technology development, agriculture, housing, transportation, and state parks (see the Jan. 23, 2008 issue of the Digest). Many of Gov. Spitzer’s initial requests for funding were fulfilled, including $120 million for the Regional Blueprint Fund - $200 million less than Gov. Spitzer’s recommendation - and $180 million for City-by-City investments, which was $65 million above the governor’s original recommendation. Additional components of the approved fund include: $40 million for the Agricultural Development Fund; $35 million for an Investment Opportunity Fund; $12 million…

In a deal ironed out earlier this month by Gov. Ted Strickland and legislative leaders, the state will move forward with an economic stimulus plan that borrows far less than the governor’s original proposal while using existing state revenue such as tobacco settlement funds to supplement the plan – a move that has prompted legislative action to secure control of the tobacco funds. Under the agreement, the state will invest $1.57 billion over five years in emerging industries, alternative and renewable energy, local infrastructure, logistics and distribution, and higher education workforce development. The plan would borrow $400 million in bonds with additional funding sources of $970 million from the sale of bonds, $370 million in general fund revenue projected for future years and $230 million from the Ohio Tobacco Prevention Foundation. The governor’s proposal called for an investment of $1.7 billion in bonds.   The agreed upon economic stimulus plan invests in many of the same areas outlined by the governor during his State-of-the-State Address in February (see the Feb. 14, 2008 issue of the Digest), including: $150 million ($100…

The declining value of the U.S. dollar and other business cost considerations are giving the U.S. a favorable cost advantage compared to other industrialized nations in Europe, Japan and Australia, according to a new biennial report from KPMG. The 2008 Edition of KPMG’s Competitive Alternatives collects data over a range of industries, such as precision manufacturing and biomedical R&D, to compare 136 metro areas in 10 countries. When looking at aggregate national business costs across various sectors, Japan and Germany are 14.3 percent and 16.8 percent higher, respectively, than the U.S. Canada’s overall business costs are 0.6 percent lower than the U.S., and Mexico’s costs are 20.5 percent lower than those of the U.S.   To create the U.S. business costs comparisons, KPMG examined 59 metropolitan areas throughout all 50 states and Puerto Rico. The report delved into the varied business costs over a 10-year planning horizon for 17 different operations in each metro, which were grouped into the following four industry clusters: Manufacturing (such as electronics assembly, pharmaceuticals, and medical devices); R&D (such as electronic…

Many state and regional TBED organizations see federal laboratories as an integral partner in their efforts to promote technology development and commercialization. At least 22 of the leading state TBED organizations across the country have established partnerships with at least one federal laboratory to address a broad range of goals, according to a recent SSTI survey. Advancing collaborative research, strengthening industry clusters, transferring technology to/from federal labs and companies, and assisting in education and outreach were the most commonly cited reasons for pursuing closer relationships with the nation's network of 700 federal labs and research centers. The survey also found state TBED-federal lab collaboration crosses state boundaries more easily than some may expect: SSTI discovered one-third of all relationships state TBED organizations have with federal laboratories take place at laboratories outside of their state. In addition, more state and local TBED organizations are looking to form new partnerships or expanding existing arrangements based on the successes seen from their initial efforts. Understanding the opportunity and establishing…

John Austin is the newly appointed executive director of the New Economy Initiative for Southeast Michigan. Tom Cech announced he will return to the University of Colorado at Boulder next year to pursue laboratory research and teaching after eight years as president of the Howard Hughes Medical Institute. Sarah Djamshidi was selected as executive director of the Chesapeake Innovation Center. John Hardin was named the acting executive director for the North Carolina Board of Science and Technology. Wayne Hicks announced he is stepping down as the president and CEO of the Cincinnati Business Incubator to focus on other interests, including his work as executive director of the BDPA Education and Technology Foundation. Paul Wooley will serve as R&D director for Via Christi's Orthopedic Research Institute and a faculty member in engineering and biology at Wichita State University.

Regional and industry cries of a highly skilled worker shortage, particularly for scientists and engineers appear well grounded based on a recent InfoBrief from the National Science Foundation (NSF). The Foundation reports in 2006, the unemployment rate for scientists and engineers in the U.S. fell to 2.5 percent. Decreasing from 3.2 percent in 2003, the figure is the lowest unemployment rate measured since the early 1990s using the Scientists and Engineers Statistical Data System, NSF reports.   The findings are quite sobering when paired with this week’s release of the widely covered report by America’s Promise Alliance that reveals more than 1.1 million children in the U.S. drop out of high school each year. NSF defines scientists and engineers as including people who have received a bachelor’s degree or higher in S&E or S&E-related academic fields and people without an S&E degree working in S&E or S&E-related occupations. Unemployment for the U.S. labor market as a whole was 4.7 percent in 2006, about 2.2 percentage points higher than the unemployment rate for scientists and engineers in that year. …

This week's issue of Southern Compass, the electronic newsletter published by the Southern Growth Policies Board, suggested its readers check out the March 27, 2008, edition of Education Week, which is dedicated to examining what states are doing to improve science, technology, engineering and math education (STEM). STEM education is considered one of the highest priorities by many groups for the U.S. to maintain its global leadership in innovation and competitiveness. The online Education Week is dedicated to the Technology Counts report, which looks at the states' STEM progress in the three areas of student access to technology, use of technology in student education, and institutional and teacher capacity to use technology. A joint project of Education Week and the Editorial Projects of the Educational Research Center, Technology Counts 2008 is the 11th annual assessment conducted to benchmark states against each other and the national average on 14 indicators, such as test scores, standards and policy inputs toward improving STEM education. While Technology Counts 2008 marks significant progress in several areas nationally - such as the number of states…