SSTI Digest

Earlier this week, New York Governor George E. Pataki and NY Senate Majority Leader Joseph L. Bruno unveiled a new funding program designed to recognize and support outstanding scientists and engineers who, early in their careers, show potential for leadership and scientific discovery in the field of biotechnology.

The James D. Watson Investigator initiative is part of the $225 million Gen*NY*sis program (Generating Employment through New York State Science), which was created to maximize the R&D potential of the life sciences research being conducted at New York State's public, not-for-profit and private academic research institutions.

Two Department of Energy national laboratories and two land-grant universities announced on July 17 that they will work together to form a new research institute for the production of energy and industrial products from biomass resources. The new Northwest Bioproducts Research Institute will combine the talents of DOE's Pacific Northwest National Laboratory, DOE's Idaho National Engineering and Environmental Laboratory, Washington State University, and the University of Idaho.

On July 2, the U.S. Commerce Department’s Minority Business Development Agency (MBDA) and the Emerging Venture Network (EVN) launched the MBDA Equity Capital Access (MECA) Program to increase minority entrepreneurs access to capital.

MBDA hopes the initiative will help address the fact that minority firms receive only two percent of all private equity.

The MECA program is one of the first to offer minority entrepreneurs equity capital training of this kind at a national level. The program’s first major project will be a business plan competition organized through the five MBDA regional offices. MBDA and EVN will identify up to 200 entrepreneurs to assess and give a scored evaluation with written comments on strengths, weaknesses and areas for improvement.

“Failure to improve broadband performance could reduce U.S. productivity by 1 percent per year or more,” concludes Charles H. Ferguson in a recent Brookings Institution policy brief. The July brief addresses the pace of broadband deployment and development in the U.S. and makes several recommendations to further progress.

While Ferguson's focus is on national broadband policy, the objective is to increase access to the "last mile" services that enable, for example, videoconferencing, telecommuting, and wireless data services. Addressing last mile service capability is an area of concern for many state and local technology-based economic development initiatives, which hold future competitiveness for many regions will depend on accessibility to the nation's broadband infrastructure.

The National Center for Small Communities (NCSC) has two new free or low-cost resources for small town leaders and rural development practitioners. Based in Washington, D.C., NCSC conducts research, training and technical assistance to benefit the leaders of U.S. small communities.

Technology and Grit at the Grassroots

A 68-page guidebook, Technology and Grit at the Grassroots identifies and explores effective technology-based economic development strategies for distressed, rural communities. Concrete guidance on how to put computers, the Internet and advanced telecommunications to good use is distilled from practical research of 14 distressed rural communities and supplemented by recent articles and reports.

Columbus Tech Councils Merge

To establish more clout, eliminate confusion and duplication, and cut costs, the Columbus Technology Leadership Council and the Industry & Technology Council of Central Ohio are merging into a new entity, according to the Columbus Dispatch. The details for the new organization, including its new name, will be announced later this year.

Several recent reports and testimonies by the United States General Accounting Office (GAO) address issues of importance to many state and local technology-based economic development initiatives. Highlights of six are provided below. The full reports and testimonies can be found at http://www.gao.gov/.

You know that feeling you get when you've done something nice for no apparent reason? Or at least the grounds for being good are hidden so deeply within you that you aren't aware of the potential payoff?

Well, the annual readers' survey for the SSTI Weekly Digest presents another one of those opportunities to ignite or rekindle that warm inner glow that made the Grinch's heart grow three sizes that day.

Think we're overselling the potential positive impact of completing the survey? Only one way to tell: http://www.ssti.org/digestsurvey02.htm [expired]

State fiscal conditions continue to deteriorate dramatically, according to a report released Wednesday at the 2002 Annual Meeting of the National Conference of State Legislatures (NCSL).

In April, 43 states reported budget gaps totaling $27.3 billion collectively. By June 30, the end of the fiscal year for 46 states, the gap had risen to $35.9  billion. Budget gap estimates for FY 2003 show an increase to $57.9 billion. However, because of balanced budget requirements, gaps have been or will be resolved by the time states officially close their books.

2002 State Budget and Tax Actions showed widespread fiscal problems, according to NCSL:

Vermont’s high-tech businesses now can take advantage of new tax credits with Governor Howard Dean, M.D.’s signature on H. 239. The bill creates a set of five incentives for high-tech businesses in industries including computer hardware or software, information and communications, microelectronics, semiconductors, digital communications, medical devices, energy technologies and electric vehicles.

The high tech credits are applied to investments in machinery and equipment, renovations to provide cable, fiber or telecommunications access, workforce development, and a sales and use tax exemption for personal computers and software. Applying to investments made on or after July 1, 2002, the High Tech Tax Credit effects taxable years beginning on or after January 1, 2002.

The 20 states with the least total R&D expenditures increased their share of the total pot in 1999 to 5 percent, according to the National Science Foundation's (NSF) latest InfoBrief. In 1998, NSF found the lowest 20 states captured only 4 percent of the nation's R&D investment.

To those who argue the nation's R&D investment should be more evenly distributed across the country — particularly expenditures made by the federal government — the finding may suggest progress has been made.

Or has it?

NSF also reported, and titled the InfoBrief accordingly, that the 1999 data revealed half of the nation's total R&D investment occurred in only six states, up half a percent from 1998. The share captured by the top 10 states grew from 85 percent in 1998 to 86 percent in 1999, according to the InfoBrief.

The importance of strong academic R&D capabilities in building state and regional tech-based economies cannot be overstated. Subsequently most states, either independently or in partnership with federal EPSCoR programs, are making investments toward strengthening their academic research enterprises. Some also have invested in programs to attract, leverage or match federal R&D investments.

One of the latest InfoBriefs from the National Science Foundation outlines trends over 30 years in federal and non-federal support for academic R&D. While federal spending for academic R&D grew by an inflation adjusted 180 percent between 1972 and 2000, the findings reveal federal support played a diminishing role compared to non-federal sources, which grew by nearly 350 percent during the period. Federal R&D expenditures represented only 58.2 percent of total academic R&D support in 2000.