SSTI Digest

The same benefits of higher education to society and individuals found on a national level also are evident at the individual state level and need to be taken into account in state policy discussions, including those on state funding, says a new report from the Institute for Higher Education Policy (IHEP).

Using data from the U.S. Census Bureau, The Investment Payoff: A 50-State Analysis of Public and Private Benefits of Higher Education, measures societal and individual benefits of higher education on a state-by-state basis across six indicators. For each state, benefits are documented for residents by education level, ranging from those with a high school diploma to those with a bachelor's degree or higher. The report concludes that almost every state benefits from higher education in all indicators measured, although some states reap more than others.

Funding research and development (R&D) is risky business. Using the popular baseball analogies, venture capitalists count on one home run to make up for all of the strikeouts and pop flies. Public support for R&D in private firms, then, could be considered a gamble if policymakers are not patient or understanding of that risk. These programs also must be well managed, with an eye on the market or business aspect of any resulting technologies, to minimize the public's risk.

What happens, then, when projects or companies fail? Does a state or community reap any tangible benefits for their investments? One common assumption is value may be gained from knowledge diffusion. For instance, employees of the failed venture perpetuate growth by continuing their R&D work with other firms or in new spin-off efforts. Tracking such assertions is difficult, however, often relying heavily on anecdotal evidence and individual case studies of corporate genealogy in Silicon Valley and Route 128.

The National Institutes of Health (NIH) data on the top 100 cities for NIH awards in FY 2003 indicates Boston reasserted its leadership over New York for the top spot by increasing its spread by $401 million. Philadelphia and Baltimore remain in third and fourth place for the second year.

The fourth year NIH has made the information available, FY 2003 shows the most shift in rankings for many cities. Seattle moved up to fifth place after three consecutive years at sixth. San Diego continued its three-year fall in the rankings, dropping from third place in FY 2001 to eighth place in the latest available data. (Note: One possible explanation could be the addition of La Jolla as a distinct city in the rankings in FY 2002 and FY 2003. Funding to La Jolla institutions doubled between the two years, pushing the city's ranking from 21st in FY 2002 to 7th in 2003).

The complete four-year stats are available at:

The University of Toledo and its partners are seeking a director for the Toledo Science and Technology Corridor. The Corridor is an initiative to enhance the region's innovation-based economy through investments that promote linkages and collaboration among academic institutions, business industries and government entities. Responsibilities will include developing and implementing a plan that is aligned with the university's various educational missions, obtaining support from community leaders and members of local neighborhoods, preparing proposals and other initiatives to gain external funding, and coordinating joint Corridor projects and activities with partners, as well as technology business recruitment activities. The preferred candidate will hold a Bachelor's degree and, preferably, an advanced degree in a relevant field, among other qualifications. A full description, including contact information, is available through the SSTI Job Corner, http://www.ssti.org/posting.htm.

The latest in SSTI's annual "Tech Talkin' Govs" series. Five earlier installments of this 2005 review of governors' legislative priorities concerning tech-based economic development are available through the Digest online: http://www.ssti.org/Digest/digest.htm

Michigan

Gov. Jennifer Granholm, State-of-the-State Address, Feb. 8, 2005

As the only state to have a net job loss in 2004, Michigan's political leadership recognizes something must change. The state's shifting economy, from one defined principally by its manufacturing sector to one that derives growth equally from knowledge-based industries, is at the center of the matter. Michigan policymakers are challenged to create innovative proposals that preserve one facet of the economy while broadening the other.

A recent proposal by Senate Republicans in Iowa to eliminate the state income tax for residents under the age of thirty has brought the issue of the out-migration of young, educated adults once again to the forefront. In recognizing that brain drain leads to the loss of necessary skills for global competitiveness and economic development, policymakers across the nation are responding with innovative ideas.  While the Iowa Senate Republicans have dropped their proposal, a number of other states are pursuing new approaches.

To spur job creation in Ontario, the provincial government recently announced two initiatives focusing on innovation and regional economic growth -- the new Fuel Cell Innovation Program and the newly refocused Northern Ontario Heritage Fund Corporation (NOHFC).

By investing $3 million annually through 2008 into hydrogen fuel cell R&D, the Ontario Fuel Cell Innovation Program will strive to make alternative energy technologies that can be fully commercialized in Ontario and marketed globally. The program's approach will be two-pronged: linking small and medium-sized businesses in Ontario with researchers, business expertise and venture capital; and, encouraging the development, deployment and adoption of fuel cell technologies for new and existing manufacturing and commercial application.

Statewide efforts addressing all of higher education's public purposes are needed to combat the increasing competition and privatization sweeping the nation's public colleges and universities, says a new report from the Futures Project, Correcting Course: How We Can Restore the Ideals of Public Higher Education in a Market-Driven Era.

State policies have come to favor an open market with the potential to create unhealthy competition that strays from the traditional goals of public institutions, such as increased access, better instruction, lower costs and greater efficiency, the authors contend. As higher education becomes more competition-driven, they argue, academic leaders feel compelled to chase revenues and rankings rather than to focus on providing a high quality education.

Creativity and curiosity are key ingredients for innovation, so it is not too surprising that many communities are looking for ways to increase the creative spirit among their residents and businesses. The how-to of nurturing creativity does not follow a simple recipe for easy replication across the country, but a recent World Bank working paper provides a broad platform of key ingredients.

West Virginia Gov. Joe Manchin signed last week legislation establishing the Department of Commerce and streamlining the support operations for the state’s economic development efforts. Senate Bill 1002, approved during the recent special session of the West Virginia Legislature, renamed the Bureau of Commerce the Department of Commerce. The bill encompasses all of the divisions, offices, boards and commissions under the former Bureau, with the exception of the Water Development Authority and Economic Development Authority – two agencies that become independent.

S.B. 1002 also establishes the governor as chairman and board member for seven agencies: the Economic Development Authority, the Public Energy Authority, the Water Development Authority, the Jobs Investment Trust, the Infrastructure Council, the Housing Development Authority and the School Building Authority.

Galynn Beer succeeds Johnny Roy as the new chairman of the board of the Oklahoma Center for the Advancement of Science and Technology.

Jeff Brancato has been named Associate Vice President for Economic Development of University of Massachusetts.

Victor Budnick, executive director of Connecticut Innovations, has announced his retirement effective April 1.

Chris Capelli, currently director of the technology transfer office at University of Pittsburgh, is leaving to become vice president for technology transfer at the M.D. Anderson Cancer Center in Houston.