SSTI Digest

Central California's Regional Technology Alliance has changed its name to the Inland Empire techSOURCE.

Despite, or because of, the continuing fiscal crises facing nearly every state, technology-based economic development remains high on the agendas of most governors, as demonstrated in their recent speeches. Those excerpts pertaining to state efforts to build tech-based economies are provided below.

States with Inaugural Addresses during the past 10 days included Kansas, Maryland, Nebraska, New Hampshire, Oregon, South Dakota, and Vermont. Governors in Arizona, Arkansas, Colorado, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Nebraska, New Jersey, South Dakota, Washington, and Wyoming gave State of the State Addresses.

Arizona

Governor Janet Napolitano, State of the State Address, Jan. 13, 2003

A new strategic plan focusing on the North Carolina Department of Commerce's four cornerstones of economic development success – a globally competitive workforce, investment in science and technology, a competitive business climate, and attractive communities prepared for economic development – has been released by the state's Economic Development Board. We Are Changing the Way We Do Business seeks to flesh out Governor Mike Easley's vision "One North Carolina," which supports creating high quality jobs.

With the passage of HB 675, the FY 03-04 Capitol Budget Bill, the Ohio Legislature approved funding for a $100 million Innovation Ohio Revolving Loan Fund and a second $50 million installment for the Wright Brothers Capital Fund. Both measures are key components of Ohio's $1.6 billion 10-year Third Frontier Project — the state's largest-ever commitment to expanding high tech research capabilities and promoting start-up companies to build high wage jobs.

The revolving loan program is intended to benefit Ohio companies in such sectors as advanced materials, biosciences and information technology, financing up to 75 percent of a total project. Ranging from $250,000 to $5 million, the loans will fund fixed assets including machinery and equipment, building or leasehold improvements, computers and software. Companies doing business outside of Ohio that agree to locate within the state also will be eligible to receive assistance.

Nearly $1.5 million in grants from the OneGeorgia Authority will go toward specific initiatives promoting technology-based economic development in Georgia. The awards are part of almost $7.5 million in grants and loans being awarded to 16 of the state's most economically distressed communities.

Among the $1.5 million awarded was a $499,910 grant to the Georgia Medical Center Authority for the development of a 14,820-square-foot Life Sciences Incubator. Located in one of Georgia's premier medical research zones and partnering with the Medical College of Georgia, the incubator is expected to create up to 75 jobs within five years by spinning off entrepreneurial start-up medical companies to Tier 1 and 2 counties located in this economically depressed region.

Since reaching a high point of almost 27,300 in 1998, the number of science and engineering (S&E) doctorates has dropped by 7 percent to just over 25,500 in 2001, reports a 2001 nationwide survey conducted for the National Science Foundation (NSF). The decline since 1998 has led to a rollback of total Ph.D.s to pre-1994 levels, the report states.

The data from NSF's Science and Engineering Doctorate Awards: 2001 are a compilation of detailed statistical tables derived from the nationwide Survey of Earned Doctorates, a report of data collected on doctorates conferred in all academic fields at 416 universities. NSF, the National Institutes of Health and the Department of Education are the primary funding agencies for the survey, with support from NASA, the National Endowment for the Humanities and the Department of Agriculture.

Cluster-based economic development has grown in popularity, but this has not always translated well for rural regions. Many rural areas do not possess the infrastructure necessary for many high-technology industries, and most areas face two major disadvantages — an inability to achieve economies of scale and possess or create a specialized division of labor; and the relocation of the labor force away from rural areas.

Emphasizing local knowledge is a key in developing rural clusters, posits Rural Knowledge Clusters: The Challenge of Rural Economic Prosperity, a report released by the Hubert H. Humphrey Institute of Public Affairs at the University of Minnesota. The report explores rural knowledge clusters as a model for rural economies, and while the idea of rural clusters may seem a bit inconsistent, there is evidence that these clusters do exist.

Many organizations are wondering if, when and how severe their budgets could be impacted by the economy and the continuing fiscal crises in the states. While foundation endowments also have taken a hit by the stock market slump, several are increasing their contributions in building local or statewide technology-based economies. Two recent examples highlight the trend and point toward a funding path few TBED efforts have fully tapped.

The National Science Foundation (NSF) plans to fund $9 million in new FY 2003 awards under the Partnerships for Innovation (PFI) Program, according to the program solicitation's recent release. To promote PFI, NSF will sponsor 15-25 partnerships among academe, government and the private sector that explore new approaches to innovation.

The purpose of the program, as defined in the PFI solicitation, is threefold:

SSTI continues a series begun in last week's Digest, highlighting key economic development and science & technology positions being filled by some of the nation's 24 new governors. Many of these individuals are expected to help set the state's tech-based economic development agenda and determine budget cuts, reorganization plans or program eliminations.

In addition, President Bush has announced Charles McQueary of North Carolina will be his nominee to be undersecretary for science and technology at Homeland Security. Dr. McQueary is the retired President of General Dynamics and a former member of the Board of Directors of the National Defense Industrial Association.

Alabama

Neal Wade, vice president of economic development for a Florida real estate corporation, has joined the cabinet of Alabama Governor Bob Riley as director of the Alabama Development Office.

Annually, SSTI looks at the various addresses given by the nation's governors at the beginning of the year. Over the next several weeks, the SSTI Weekly Digest will profile the excerpts concerning programs, policies and issues immediately affecting the tech-based economic development community.

The states are facing their worst fiscal crises in more than 50 years — the latest combined deficit figures were a whopping $90 billion. It should not be lost on the governors the important role tech-based economic development plays in strengthening state and local economies through higher wage jobs and more competitive businesses. Do their speeches bear that out?

The National Governors' Association (NGA) is urging leaders of the House and Senate Commerce-Justice-State (CJS) Appropriations Subcommittees "to maintain the federal government's share of support for the Manufacturing Extension Partnership (MEP) in the fiscal year (FY) 2003 appropriations."

Governors Mike Johanns (R-NE) and James McGreevey (D-NJ), co-chairs of NGA's Economic Development and Commerce Committee, sent a letter on behalf of the nation's governors. They point out that MEP is a partnership supported by states, federal government and small manufacturers.