SSTI Digest

Citing a reorganizing, the Delaware Economic Development Office fired 20 percent of its staff (10 positions) last Thursday. According to the Associated Press and local news sources, among those relieved of their duties were Janet Wurtzel, chief operating officer, and Rob Propes, entrepreneurial and small business support director.

The U.S. can watch as another country significantly expands its investments in innovation. This time it's France, as newly appointed Prime Minister Dominique de Villepin last month announced that the national government will double its funding from €500 million to €1 billion for the Industrial Innovation Agency (IIA), and give €350 million to the National Research Agency (ANR).

Just over two months ago, Acting Gov. Richard Codey announced budget shortfalls were delaying the state's $380 million stem cell research initiative (see the April 25 issue of the Digest). Good news for at least part of the initiative, however, came last month in the form of legislation passed by the Senate, which allocated $150 million for construction of the planned world-class stem cell research facility.

In its third special session of the year, Mississippi legislators passed House Bill 3, an economic development package of grants and loans for high-tech and existing industry, including Gov. Barbour’s Momentum Mississippi Initiative.

Within days of taking office in January, Utah Gov. Jon Huntsman Jr. dismantled the Department of Community and Economic Development and promised to make significant changes to how Utah approaches wealth generation and economic growth.

Six months into his first term, the governor kept that promise by unveiling a new cluster-based strategy targeting state efforts in seven industry sectors: life sciences; software development and information technology; aerospace; defense and homeland security; financial services; energy and natural resources; and competitive accelerators, such as nanotechnology and advanced manufacturing.

The latest Fiscal Survey of States reveals that many states still face tough budget challenges, despite the fact that extreme revenue shortfalls of the past have subsided. The survey, which measures the fiscal health of states, is conducted semi-annually by the National Association of State Budget Officers (NASBO) and the National Governors Association (NGA).

Forty-two states saw revenues exceed original budget obligations in fiscal year 2005. Five - Indiana, Michigan, Missouri, Ohio and Rhode Island - fell below budget projections and made mid- or end-year corrections.

Ten are projecting negative growth in FY 2006: Alaska, Maine, Massachusetts, Mississippi, Missouri, New Hampshire, New Jersey, Nevada, West Virginia and Wyoming.

Research continues to point to universities and public research organizations as the engines of innovation. But how does one build bridges between academics and industry that result in formal research agreements and specific problem-solving approaches? Two French studies suggest academic research with links to industry and across disciplines enhance the transfer of knowledge, focusing on directly applicable outcomes.

Factors Affecting University-Industry R&D Collaboration

In Factors Affecting University-Industry R&D Collaboration: The importance of screening and signalling, authors Roberto Fontana, Aldo Geuna, and Mirelle Matt identify common characteristics of industrial firms with formal R&D agreements and successful collaborations with universities and other public research organizations. Their findings include:

Recently released U.S. Bureau of Economic Analysis (BEA) data show Nevada outpaced all other states in the percent growth of its real gross state product (GSP) over the period 2000-2004. The western state's real GSP grew from nearly $74.8 billion in 2000 to more than $90 billion in 2004, a 20.8 percent change, based on 2004 estimates.

BEA, which indicates it will provide further detail in its next Survey of Current Business issue, derives 2004 estimates from a "prototype methodology" used to speed up the release of reference year data from past release schedules. The 2004 estimates arrived six months after the reference year, or 12 months ahead of prior schedules. Estimates for 2003 and earlier are based on BEA's regular GSP methodology.

Building high-quality communities is the underpinning of long-term economic development, suggests new Southern Growth Policies Board research. A report published by Southern Growth, The New Architecture of Rural Prosperity, states that although measurable progress has been made in the past several decades, the rural South continues to lag the nation in educational achievement, health care and economic performance.

The inclusiveness in the development of the report's recommendations is a credit to Southern Growth. More than 2,200 southerners participated in focus groups, forums and surveys to provide input. Participants indicated that lack of job opportunities for educated young people and quality of education are the biggest barriers to economic prosperity in their communities.

Gov. Tom Vilsack announced that Mary Lawyer will serve as acting director of the Iowa Department of Economic Development. Mike Blouin resigned from the position last week to launch his campaign to become the state's next governor.

After nine years as deputy director of the National Science Foundation, Dr. Joseph Bordogna is resigning. He will return to the University of Pennsylvania as Alfred Fitler Moore Professor of Engineering.

Gov. Tom Vilsack announced that Mary Lawyer will serve as acting director of the Iowa Department of Economic Development. Mike Blouin resigned from the position last week to launch his campaign to become the state's next governor.

After nine years as deputy director of the National Science Foundation, Dr. Joseph Bordogna is resigning. He will return to the University of Pennsylvania as Alfred Fitler Moore Professor of Engineering.