SSTI Digest

Policymakers and researchers in the U.S. continue to debate the effectiveness and value of providing R&D subsidies to firms in the hope of spurring technological developments and wealth generation. At the national level, several organizations have called to make the federal R&D tax credit, also known as the Research and Experimentation Tax Credit (RETC), a permanent incentive program. Researchers centered in countries outside of the U.S. are looking at the effectiveness of R&D subsidies in their nations, as well.

 

Three recent papers, which separately review Canadian, Catalonian (a region of Spain), and Norwegian efforts to support industrial R&D, find subsidies do influence company performance, mostly positively. In the Norwegian paper, however, not all impacts at the firm level are the desired ones. All three papers are highlighted below.

 

An expected explosion of health-related expenditures combined with no new policy changes will likely result in fiscal challenges for state and local governments within the next decade, says a new report from the Government Accountability Office (GAO). The result could put downward pressure on public funding available to support TBED initiatives.

 

The expected continued rise in health care costs poses a fiscal challenge not just to government budgets, but to American business and society as a whole, according to the report. Using data from the National Income and Product Accounts, GAO ran long-term simulations extending until 2050 that indicate the combined effects of demographic changes and growing health care costs drive increasing federal deficits and debt levels. GAO’s fiscal model of the state and local sector projects the level of recipients and expenditures in future years based on historical spending and revenue patterns.

 

In today’s world, a trip to the doctor may entail your test results to be analyzed in India, your specialist to be called in Canada, and your billing information to be processed in South Africa. Given the prevalence and speed of modern forms of communication, information can be sent around the globe at a moment’s notice, hastening the speed of business.

 

With this in mind, from an economic development standpoint, is it still important to organize ourselves, our businesses and our economic development strategies within the confines of cities?

 

The answer is a resounding “yes”, according to a recent working paper by Glenn Athey, Max Nathan, and Chris Webber titled What Role Do Cities Play in Innovation, and to What Extent Do We Need City-Based Innovation Policies and Approaches? The authors make the compelling case that cities are extremely important in the context of innovation production and economic development. They contend attraction to cities is dependent on three basic advantages: proximity, density and variety.

 

Every year, the National Science Foundation releases its Academic R&D Expenditures report, filled with statistics related to the characteristics of R&D at U.S. colleges and universities. Using these reports, SSTI has prepared two tables detailing the funds provided by industry in fiscal year 2005 for the 100 institutions with the highest amount of industry-financed R&D.



The first table displays FY 2005 data by the amount of R&D funding from industry and by total R&D expenditures for the institutions, with rankings for each measure. Topping the list for the amount of its industry-financed R&D was Duke University with $135 million. This was followed by all campuses of Pennsylvania State University and Ohio State University at $88 million and $81 million, respectively. MIT and the University of Maryland Baltimore rounded out the top five.

SSTI is wrapping up the conference brochure for our 11th annual conference, Transforming Regional Economies, a mailing that goes to more than 12,000 TBED practitioners. Your organization could be included if you become a conference partner by August 17. Contact Noelle Sheets, director of membership services, to discuss which partnership opportunity best fits your marketing strategy.



SSTI’s annual conference provides the opportunity to place your organization at the center of the most dynamic and influential community of tech-based economic development professionals, reinforce your brand, and build relationships in 2007 and beyond.



Your organization will enjoy outstanding exposure. In all the right company.

North Canton, Ohio, has been chosen as the site for the nation's newest Department of Defense (DoD) Center of Excellence. Centers of Excellence deal with specific military technology needs that are deemed critical to the nation's defense and security.



The Defense Metals Technology Center (DMTC), to be located at Stark State College, will become the principal repository of data and coordination of the various academic, government and industrial entities involved with highly specialized and strategic metals, including titanium.



The result of the vision and creative effort led by Congressman Ralph Regula (R-OH), the DMTC is being funded by the 2006 National Defense Appropriation Bill and the State of Ohio Department of Development. The center's executive director will be Charlie Clark, who previously served as director of government relations for the University of Akron.

Complete descriptions of the position openings described below are available at http://www.ssti.org/posting.htm.



The Life Sciences Discovery Fund (LSDF), a Washington State agency that functions like a foundation, is seeking a grants administrator to help shape the organization during its start-up phase. The LSDF supports innovative research in Washington State to promote life sciences competitiveness, enhance economic vitality, and improve health and health care. The grants administrator will manage aspects of a grants portfolio of approximately $35 million per year and will be responsible for information management regarding LSDF’s grant administration processes. He or she also will report to the LSDF Director of Programs. A bachelor’s degree and five years of experience in grant-making or grants administration, or an equivalent combination of education and experience, are required.

David Boncosky will become the director of Indiana Economic Development Corporation's life sciences initiative Aug. 6.



Arizona Technology Enterprises, the organization responsible for overseeing licensing and commercialization activities at Arizona State University, has selected Augustine Cheng as its new managing director.



Tom Clarkson is the new chief executive officer of Wake Forest University's Babcock Demon incubator. Clarkson replaces Paul Briggs, who retired.



The Four-County Economic Development Corp. in Portland, Ore., has changed its name to Greenlight Greater Portland.