SSTI Digest

The annual Earth Day celebrations provide an opportunity for the least environmentally friendly corporations and politicians in America to appear green by sponsoring litter pick-ups or standing in front of hydrogen fueled cars. More often, however, the U.S. policy debate sees a "jobs versus environment" battle, or most recently, cheaper gas versus environmental integrity. A recent index prepared by Yale University and Columbia University for the World Economic Forum reveals, however, most of the world's top innovative countries are also among the highest performers on 16 environmental indicators, ahead of the U.S. More telling, is that the areas the U.S. is weakest -- renewable energy, water resources, and greenhouse gas emissions -- also provide some of the greatest opportunities or obstacles for economic growth as the 21st century unfolds.

A significant increase in venture-backed exits is signaling a new phase in the evolution of the global venture capital industry, according to a report released May 3 by Ernst & Young. Venture-backed company exits grew in value and number in 2005, as the U.S. and Israel saw increasing merger and acquisition (M&A) valuations, while Europe experienced an increase in Initial Public Offerings (IPOs) - a trend that is set to continue this year and into 2007, according to Transition, the fourth annual Ernst & Young Venture Capital Insight Report. The following summary is from the Ernst & Young press release accompanying the report:

It's probably the case that not all of your travel over the next few months will be for personal vacation. Conference excursions can stimulate new ideas, add to your professional growth, and establish or strengthen opportunities for collaboration. In addition to reserving Oct. 31-Nov. 2 for SSTI's 10th Annual Conference in Oklahoma City, we encourage you to check out our web calendar of events to scan more than 140 additional opportunities for professional development.

While most national technology-based economic development (TBED) organizations, unfortunately, limit announcements to their own events or those of members, SSTI attempts on its web calendar to include activities spanning most issues related to growing a knowledge economy. Examples of three upcoming events include:

With preparations for SSTI's 10th Annual Conference in Oklahoma City on Oct. 31-Nov. 2 well underway, we have received many questions from local, regional and state organizations wanting to host the premier event for the tech-based economic development (TBED) profession in 2007. Because of the increased interest, SSTI has bumped up its schedule for selecting the 2007 site. We are accepting nominations of host organizations and locations for SSTI's 11th Annual Conference until July 30, 2006.

Held in October to early November each year, SSTI’s annual two-and-a-half day event attracts approximately 300-400 participants from more than 40 states and several countries. The conference is especially designed for those engaged in TBED on the local, regional, state or national level. Over the past 10 years, SSTI’s annual conference has grown to become the nation’s largest and most diverse gathering of the TBED community.

Just over a year since its creation, the Indiana Economic Development Corporation (IEDC) has released a strategic plan calling for the state to potentially increase its support for several new tech-based economic development initiatives. IEDC's Accelerating Growth: Indiana's Strategic Development Plan outlines nearly two dozen action items along three themes: innovation, talent and investment.

The metaphor of a pipeline is often used for describing the innovation process and, specifically, the health of a regional innovation system. Sustaining knowledge-based growth requires a steady flow of ideas, people and capital. Often, the flow can be weak in one of these areas -- or clogged by other factors such as lack of key resources or programs.

A new program by the Kansas Technology Enterprise Corporation (KTEC) moves the pipeline metaphor toward a more tangible reality to help nurture the entrepreneurship climate in the state. The new program, KTEC Pipeline, will "identify talented and entrepreneurial Kansans, match them with best-in-class training, resources and mentors and encourage them to pursue a career as a technology entrepreneur in Kansas," KTEC President and CEO Tracy Taylor said.

For the third consecutive year, industrial support of U.S. academic research dropped, according to an April 2006 InfoBrief by the National Science Foundation (NSF). The 2.6 percent decrease in fiscal year 2004 from the previous year is the sharpest yet in the three-year trend, following a 1.1 percent reduction in FY 2003 and 1.6 percent in FY 2002. Author Ronda Britt notes "the industrial sector is the first source of academic R&D funding to show a multiyear decline" since the survey inception in 1953. At only 4.9 percent of the total academic R&D in FY 04, the industrial share now parallels its FY 83 levels.

While the recession and dot-com crash may explain some of the drop, NSF does not offer any conclusions regarding potential causes for the drop. Others have offered globalization as a potential explanation. They see industry R&D migrating toward the markedly improved capabilities within the international academic community.

France

President Jacques Chirac announced last month plans to invest nearly 600 million euros ($758.6 million US) into five high-tech government-industry projects. The projects center on making France a European leader in innovation, as well as restoring national pride, which is currently low, according to Global Insight. The five initial projects were selected by France's Agency for Industrial Innovation (AII), which was launched last year with an investment budget of 2 billion euros ($2.5 billion US). Following is a description of each project and funding levels:

[Editor’s Note: The following discussion regarding the research’s relevance to state and regional TBED policy is SSTI’s. It will not be found in the working paper, nor do we mean to suggest these conclusions were drawn by professors Zucker and Darby.]

Like moths to a flame, tech firms over the past 24 years appear to have migrated toward star scientists and engineers, according to a new working paper from Lynne Zucker and Michael Darby. The latest findings by the two UCLA professors suggests the mere presence of star researchers is sufficient power to attract technology businesses to certain regions of the country – regardless of the discoveries made by these scientific superstars or their field of research.

The United States Patent and Trademark Office (USPTO) provides online reports presenting the number of patents filed within each state distributed across technology sector or organization. Patent activity is considered an important indicator for measuring innovation and understanding economic growth.

Using USPTO data, SSTI has compiled a table showing the most recent patent activity per 10,000 residents from 2001-2004. Idaho, which ranked first between 1998-2001, continued its reign on patent activity by holding the top spot throughout the four-year period. Kansas showed the greatest increase in patents per 10,000 residents, moving up 10 positions from 39th in 2001 to 29th in 2004. Nevada and the District of Columbia tied for the second-largest increase, moving up six positions over the four years.

The Birmingham News reports Michael Alder, executive director of the Biotechnology Association of Alabama, is leaving to become director of technology finance at Brigham Young University.

Tino Breithaupt, formerly vice president of Technology Tri-Corridor with the Michigan Economic Development Corporation (MEDC), is the new senior vice president of economic development for the Traverse City Chamber of Commerce. Vince Nystrom has been named Director, Technology Business Development of MEDC.

The Birmingham News reports Michael Alder, executive director of the Biotechnology Association of Alabama, is leaving to become director of technology finance at Brigham Young University.