SSTI Digest

Promoting the policies and harnessing the habits that will make innovation central to a Southern way of life requires a fundamental shift in the approach to knowledge itself, says the latest report by the Southern Growth Policies Board. The report, Innovation with a Southern Accent: The 2006 Report on the Future of the South, offers recommendations for 13 states and Puerto Rico to transition the region into a more knowledgeable, innovative and prosperous South. In preparing the report, Southern Growth hosted retreats, community forums, policy dialogues and surveys involving about 4,000 southern residents. In a section titled, "Listening to the South", the report provides details on the concerns voiced by participants regarding technology and innovation. According to the report, six major themes emerged from the discussions, including:

[Editor's Note: SSTI is excited to welcome Phillip Battle to its staff as a policy analyst. The author of this article, Phil recently received his Master in Public Affairs degree from the LBJ School at the University of Texas at Austin. His area of research interest is technology policy and economic development.] A forthcoming article from Regional Studies suggests that despite the rise of the Internet as a global medium for the distribution of knowledge, location still matters within the innovation community. Proximity and industry networks speed the transmission of new technologies, which in turn accelerates regional growth.

The U.S. Bureau of Economic Analysis (BEA) recently released advanced real gross state product (GSP) estimates for 2005. According to the data, real GSP grew in all 50 states and the District of Columbia from 2001-2005. Western states dominated the lead in U.S. economic growth, with Nevada incurring the largest increase in real GSP growing from $75.1 billion in 2001 to $96.6 billion in 2005 -- a 28.56 percent change. Along with Nevada, four other states experienced an increase of more than 20 percent in real GSP over the five years: Oregon, Idaho, Florida and Arizona.   Nationally, real U.S. GSP grew by 12.19 percent over the most recent five years, up 2.23 percent from the period 2000-2004. Twenty-four states experienced real GSP growth less than the national average, including Louisiana with the lowest in the nation at 4.74 percent, followed by Michigan (4.83 percent), Connecticut (7.36 percent), Illinois (7.43 percent), and Ohio (7.98 percent). The minimal increase in real GSP for Louisiana was directly related to the effects of Hurricanes Katrina and Rita, according to the BEA.

Stuart Arnett announced he will step down as the director of economic development in the New Hampshire Department of Economic Development and Resources, effective Aug. 1, to pursue work in private sector. Connecticut Innovations has named Kevin Crowley as its director of investments. The South Dakota Board of Regents announced that Scott Meyer will become system vice president of research, effective June 26. Jeff Nesbit was appointed director of the National Science Foundation's Office of Legislative and Public Affairs.

Stuart Arnett announced he will step down as the director of economic development in the New Hampshire Department of Economic Development and Resources, effective Aug. 1, to pursue work in private sector.

Connecticut Innovations has named Kevin Crowley as its director of investments.

The South Dakota Board of Regents announced that Scott Meyer will become system vice president of research, effective June 26.

Jeff Nesbit was appointed director of the National Science Foundation's Office of Legislative and Public Affairs.

Complete descriptions of the position openings described below are available at http://www.ssti.org/posting.htm. The Delaware Economic Development Office (DEDO) is seeking someone to serve as its capital resource director. The incumbent will provide financial incentives and tools to assist businesses in creating, expanding or retaining employees, among other responsibilities. Toward that effort, the director will work with various other financial sources, external partners and resource centers to provide more opportunities to all clusters, entrepreneurs and various individuals. He or she should have a bachelor's degree, with 3-5 years in specific industry experience. A Master in Business Administration degree is preferred.

The third installment to Walkin' the Tech Talkin' Gov Walk (see the April 17 and May 8 issues of the Digest) covers the outcomes of the 2006 legislative sessions for two states, Illinois and Wisconsin. 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. Illinois

With assets totalling more than $15 billion, the Indiana Public Employees Retirement Fund (PERF) has decided to place $100 million into higher-risk equity placements through its first Indiana Investment Fund. The fund will exclusively target venture capital deals within Indiana, according to the PERF news release. Like pension funds in many states, PERF has a requirement to place a certain percentage of its assets in private equity. The PERF goal is 5 percent and includes real estate deals as well. The new fund will help, as only one-half percent of PERF assets presently are invested in a manner to meet the requirement. The Indiana Investment Fund I will be managed by Credit Suisse, which is chipping in $5 million to raise the total available for placement to $100 million. Indiana business investment opportunities in the $1 million to $15 million range will be targeted. PERF's traditional investment decisions, for comparison, are typically in the $50 million to $100 million range.

The opportunity for innovation and the need for angel capital are not limited to the major metropolitan areas and large research universities, as the board of trustees for Taylor University and leaders of the Grant County Economic Growth Council in rural Indiana will attest. The east-central Indiana county is home to just over 70,500 residents and, soon, two angel funds. Taylor University, a Christian-based liberal arts college with an enrollment of 1,875 students, recently created an angel fund to encourage and support an entrepreneurial climate at the university and the Upland, In., community. In addition, the Grant County Economic Growth Council, based in Marion, In., is in the early stages of establishing a local angel fund to be a part of the Indiana Venture Network.