SSTI Digest

Speaking to a joint session of the House and Senate, Illinois Governor Rod Blagojevich recently presented his first budget, one that addresses a $5 billion budget crisis.

In economic development, while Governor Blagojevich wants the state to be proactive in keeping Illinois competitive in the global economy, the $1.77 billion planned for the Department of Commerce and Economic Opportunity (DCEO) reflects a $576 million, or 25 percent, decrease over the FY 2003 level. Central to the governor's plans are creation of the $200 million Illinois Opportunity Fund that would use private investments to bring venture capital to the state; development of six new Centers for Entrepreneurship around the state to provide, training, tools and resources to help businesses get started; and the consolidation of 30 economic development and job training programs within DCEO, which is projected to save $16 million.

The FY 2004 budget passed by the Georgia Senate last week eliminates all $32 million the House approved for the OneGeorgia Authority, the state's loan and grant program targeting rural tech-based and traditional economic development. Created in 2000, the OneGeorgia Authority was anticipated to spend $1.6 billion over 25 years (one-third of the state's tobacco settlement funds) to assist the state's most economically challenged areas based on unemployment and poverty rates. Governor Sonny Perdue had requested $70.8 million for OneGeorgia in his FY04 request.

The authority's two primary funding vehicles – the Economic Development, Growth and Expansion (EDGE) Fund and Equity Fund – already have supported projects across the state for high tech manufacturing business expansion, life science and other technology-based incubators, traditional infrastructure, research and industrial parks, and speculative facilities.

The Pittsburgh Technology Council recently issued its annual State of the Industry Report, which reveals that in spite of an extended national recession that began in 2000, the region’s technology industries have held their own, at least through the mid-point of the current economic downturn. The report covers the 13-county southwestern Pennsylvania region and presents industry statistics for 2001, the last year for which complete data is available from government and other sources.

A Blueprint for Prosperity and Jobs, a comprehensive strategic plan to foster and sustain job growth, business success and community vitality in Missouri, has been released by the Missouri Department of Economic Development. The product of two years of research, the plan addresses Missouri's need to focus its resources on building a knowledge-based economy, with emphasis on businesses that generate key technologies and have tremendous growth potential.

The Missouri blueprint began with Governor Bob Holden's Economic Prosperity Summit in April 2001. Since that time, the department gathered input and recommendations from business and community leaders, educators and citizens from across Missouri. A series of roundtable discussions were held with leaders from three industries that hold promise for long-term growth – life sciences, advanced manufacturing and information technology – and additional insight was contributed through six regional dialogues.

Layoffs are an expected, yet difficult, aspect of the U.S. economy as companies shift employment needs to reflect changes in demand, technology, competition and trade. During a down economy, the number of workers facing layoffs can be particularly difficult for a region to reabsorb. Research has shown that experienced workers with long tenures in a particular job or sector endure substantial long-term earning losses once they find new work. In other words, the jobs older, more experienced workers take after being laid off typically pay substantially less than their original positions.

Academic R&D expenditures grew 8.9 percent in 2001, according to the National Science Foundation's FY 2001 survey of research and development expenditures at universities and colleges. Reported in Academic Research and Development Expenditures: Fiscal Year 2001, the survey finds 609 institutions of higher education in the U.S. collectively spent $32.732 billion in FY 2001. The figure for FY 2000 was $30.042 billion.

NorTech is interested in hiring an Associate Director who will be responsible for all activities associated with one or more initiatives and ongoing high level support for the initiatives. The mission of NorTech is to ensure economic growth and leadership in Northeast Ohio by promoting entrepreneurially based globally competitive technology development and commercialization. For each assignment, the Associate Director would be responsible for planning; convening and coalescing support from CEOs; advocacy at the local and state levels; launching the initiatives; and maintaining an active governance or advisory role post launch. NorTech seeks highly qualified individuals who have demonstrated success as entrepreneurs, senior business development assignments in growth organizations, or leadership experience in public-private initiatives. More information is available at http://www.ssti.org/posting.htm.