SSTI Digest

A $1.46 million grant from the Economic Development Administration to the Sirti Foundation is making possible a $3 million loan fund to technology companies within a 10-county region of Eastern Washington. The program provides another example of the non-traditional use of EDA funds to support tech-based economic development strategies. In addition, the deal structure may serve as a model to help other public agencies encourage TBED activities typically outside the scope or possibility of many public entities.

Despite industry claims to the contrary, the recovery of the U.S. information technology (IT) sector has not created enough new jobs for IT workers, according to a new report from the Washington Alliance of Technology Workers. Information Technology Labor Markets: Rebounding, but Slowly reveals that the recent increase in IT spending has not led to a full recovery in the labor market. The Alliance worked with the University of Illinois at Chicago's Center for Urban Economic Development (CUED) to prepare the report. CUED finds that only 76,300 IT jobs have been created in the U.S. since April 2003. This represents less than a quarter of the 383,100 jobs lost during the 2001-2003 recession. IT employment growth remains sluggish and well below pre-recession levels.

The federal government distributed $26.7 billion to universities in the U.S. in fiscal year 2003 - a 9.4 percent increase from the FY 2002 total of $24.4 billion, a recently released National Science Foundation report reveals. Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions: Fiscal Year 2003 details federal science & engineering (S&E) activities to the nation's institutions of higher education. The NSF report divides federal S&E obligations to universities into six categories: R&D; R&D plant; facilities and equipment for S&E instruction; fellowships, traineeships and training grants; general support for S&E; and other S&E activities.

Southern Growth Policies Board, in partnership with the National Institute of Standards and Technology (NIST), has designed a survey to identify the needs of small and medium-sized manufacturers in the area of information technology. The 20-question survey takes only a few minutes to complete and the results will be used to develop new programs to help small and medium-sized manufacturers. To participate, visit http://www.surveymonkey.com/s.asp?u=358482117916. For more information, contact Charity Pennock at cpennock@southern.org.

Phil Bond will become president and CEO of the Information Technology Association of America in August. Bond formerly was undersecretary for technology in the U.S. Department of Commerce. Joni Cobb is the first president of KTEC Pipeline, Kansas's new technology entrepreneurship fellowship program. John Hanson has joined the staff of the University of Connecticut Office of Technology Commercialization to serve as director for the new Tech-Knowledge Portal. Rob Jaffe, director of federal funding programs with Innovation Philadelphia, is resigning to become a senior underwriter for Institutional Lending at Commerce Bank.

Phil Bond will become president and CEO of the Information Technology Association of America in August. Bond formerly was undersecretary for technology in the U.S. Department of Commerce.

Joni Cobb is the first president of KTEC Pipeline, Kansas's new technology entrepreneurship fellowship program.

John Hanson has joined the staff of the University of Connecticut Office of Technology Commercialization to serve as director for the new Tech-Knowledge Portal.

Rob Jaffe, director of federal funding programs with Innovation Philadelphia, is resigning to become a senior underwriter for Institutional Lending at Commerce Bank.

Brian Thompson, formerly a managing director of Wisconsin's TechStar, is now senior advisor for research and strategic initiatives at the University of Wisconsin - Milwaukee Foundation.

The fourth installment to Walkin' the Tech Talkin' Gov Walk (see the April 17 , May 8 and June 5 issues of the Digest) covers the outcomes of the 2006 legislative sessions within Colorado, Iowa, Minnesota and Vermont. Following is a synopsis of bills passed and budget appropriations relevant to tech-based economic development and the priorities outlined in respective gubernatorial addresses at the beginning of 2006. Colorado Gov. Bill Owens signed into law a $26.5 million economic development package, which includes investments in bioscience and job creation. While the bulk of the funds are slated for increasing tourism ($19 million), two of the bills include funds aimed at increasing science and technology research and creating better jobs in the state.

Does increasing a university or community college's involvement in tech-based economic development - through technology incubators or early-stage capital programs - detract from the nonprofit, educational purpose of the institution? Fortunately, for many state and regional TBED strategies, the Internal Revenue Service (IRS) says no. The IRS recently released a ruling affirming the nonprofit status of a college foundation planning to unveil a new high-tech incubator and pre-seed capital fund. The potential benefit of this investment to the college protects the organization's 501(c)(3) status, and the deductibility of its outside contributions, the ruling states.