SSTI Digest

The National Business Incubation Association (NBIA) recently held its 18th International Conference in Atlanta, honoring excellence in business incubation programs, graduates and client companies. NBIA, a nonprofit organization, works to advance incubation and entrepreneurship. This year’s recipients include:

Cleveland Fed: "Innovation, Growth, and Economic Policy in an Environment of Change,"

At a time when manufacturing jobs are relenting to the pressures of an expanded service sector, foreign competition and productivity growth, the idea of economic prosperity has a renewed urgency with innovation as the greatest strength and flexibility the greatest asset, argues a new report from the Federal Reserve Bank of Cleveland.

In the 20-page essay portion of its 2003 annual report, Growth and Economic Policy in an Environment of Change, the fourth federal reserve bank district sets forth to answer, “What is the source of economic prosperity?” The report examines innovation's role in economic development, reviewing the theories that have shaped the nation's economic history with an eye on current and future challenges.

The Department of Commerce is accepting nominations for the 2005 National Medal of Technology awards, the nation’s highest honor awarded by the President to America's leading technological innovators.

The Medal was first awarded in 1985 following its creation in 1980 by Congress. It is given annually to individuals, teams or companies for accomplishments in the innovation, development, commercialization and management of technology, as evidenced by the establishment of new or significantly improved products, processes or services.

Past awards have been made in five main areas: technology product and process; technology management and policy; technology concepts; technology and technological manpower development; and environmental technology.

Cutbacks in service loom after 63 percent budget reduction

The Manufacturing Extension Partnership (MEP) is one of 15 finalists for the 17th Annual Innovations in American Government Award. Administered by the Ash Institute for Democratic Governance and Innovation at Harvard University's Kennedy School of Government in partnership with the Council for Excellence in Government, the award recognizes creativity and excellence in public sector service delivery.

MEP is the only economic development program included among this year's finalists, selected from more than 1,000 applications. MEP, a state-federal partnership, supports a network of more than 1,400 professionals in more than 300 locations around the country providing technical assistance, support services, engineering services, and business advice to small manufacturers.

With only two months to go in the 2004 fiscal year for most states, 32 are projecting small surpluses in the end - a sharp contrast to the situation they faced a year ago - according to a new report by the National Conference of State Legislatures (NCSL).

At this time last year, states were still struggling to close a cumulative $21.5 billion budget gap. Now, they are working to close a total gap of $720 million, according to State Budget Update: April 2004.

The surpluses are not large. And they did not accumulate painlessly, the report points out. These projected surpluses are the result of improved collections in major revenue categories and the difficult paring of programs. Nine states expect surpluses below 1 percent of their general fund budgets. In Florida, Nevada, Oklahoma, South Dakota and Wyoming, the surpluses are larger than 5 percent.

He may be more traditionally associated with gas-guzzling Humvees than anything remotely environmental, but Gov. Arnold Schwarznegger has become a big believer in alternative energy vehicles. The governor's recent call for creating a "Hydrogen Highway" by 2010 is, perhaps, the country's boldest commitment to getting hydrogen fuel cell vehicles on America's roadways anytime soon. It provides an example of how public-private partnerships, with the government serving as an early adopter of a potentially disruptive technology, could produce positive economic results for the state.

The U.S. Department of Homeland Security (DHS) recently selected Texas A&M University and the University of Minnesota to lead the second and third Homeland Security Centers of Excellence (HS-Centers). The department anticipates providing Texas A&M University, the University of Minnesota and their partners with a total of $33 million over the course of the next three years to address security in two key agricultural sectors -- foreign animal diseases and food security.

The selections were made from 23 proposals submitted in response to a December 2003 broad agency announcement by DHS' Science and Technology Directorate. Site visits were conducted for  seven finalists before selecting the two new HS-Centers.

Studies have shown a strong correlation between high-wage economic growth and university research activity. Examination of nearly every strong regional technology center across the country will reveal at least one research university within its boundaries. As a result, many state and local technology-based economic development (TBED) efforts strive to increase the quantity and quality of university R&D undertaken within their boundaries.

One need look no further than the local cineplex to see an analogy for the rationale of one particular TBED strategy. Hollywood knows adding a well known actor to a movie's lineup guarantees some level of ticket sales at the box office. Similarly, many state and local TBED programs are financially supporting the recruitment and retention of exceptional academic researchers through endowed chairs, faculty positions or eminent scholars.

A study released last week by the Economic Development Administration (EDA) and Carnegie Mellon University's Center for Economic Development finds that, within a region, universities are best able to affect the growth of young, emerging clusters. The study, Universities and the Development of Industry Clusters, concludes a "university must have a large base of research and development in order to significantly impact a cluster..."

For a university to have the maximum benefit for local cluster development, the institution must align services and community involvement with regional interests and industry clusters across a broad spectrum, not just in terms of technical knowledge and R&D. In other words, the university needs to actively address business, workforce and community issues in addition to developing an exceptional research capacity.

One of the differences between technology-based economic development (TBED) and more traditional approaches to promoting economic growth is TBED's orientation that while all jobs may be important, they are not created equal. Traditional economic development may provide millions of dollars for financial incentives and infrastructure construction assistance for a shopping mall or "big box" retailer that provides many poverty-level wage positions or part-time jobs.

Investment in TBED, however, may direct the public's limited resources toward creating and sustaining companies requiring higher skilled employees, paying higher wages, and increasing the standard of living for its residents. But what constitutes a high wage job?

The National Science Board recently named Mary Good to be the recipient of the 2004 Vannevar Bush Award for "her life-long contributions to science, engineering and technology, and for leadership throughout her multi-faceted career."

Sean O'Kane, a hotel manager from Manchester, N.H., has been confirmed as the new commissioner of the New Hampshire Department of Resources and Economic Development.

Robin Siss, Vermont's first commissioner for the Department of Information and Innovation, has announced her resignation. Siss began the position in August. Denise Fehr will serve as acting commissioner.

The National Science Board recently named Mary Good to be the recipient of the 2004 Vannevar Bush Award for "her life-long contributions to science, engineering and technology, and for leadership throughout her multi-faceted career."