SSTI Digest

The legal ban on non-compete contracts may have played a role in and continues to affect the development of the high tech sector in California. This is the conclusion of Rob Valletta, Research Advisor, in the August 16, 2002, edition of the Federal Reserve Bank of San Francisco Economic Letter. The article, On the Move: California Employment Law and High-Tech Development analyzes the relationship between high tech development and states that do not legally allow non-compete contracts.

Using at- least squares statistical analysis, Valletta concludes that when non-compete contracts are prohibited, employee mobility and knowledge transfer are enhanced. While employees may not be able to share specific trade secrets, general industry knowledge can be shared readily. This freedom can then play an important role in the advancement of innovating technology sectors.

Arizona was one of the first states to embrace cluster-based economic development in the early 1990s. While the formal clusters have had varying degrees of success since then, one of the challenges of a cluster-based approach to technology-based economic development is the fractionalized focus across sectors. Because of this, clusters can end up competing against each other for limited public resources, making cross-sector strategies difficult to identify or implement.

Research and studies also are usually concentrated on a particular sector rather than looking at the similar needs and issues that arise in several clusters or span many clusters.

The Environmental Protection Agency has posted its selections for the FY 2002 Phase I solicitation of the Small Business Innovation Research (SBIR) Program.

The Scientific Consulting Group, Inc., which provides contracted support for the EPA SBIR program, made available to SSTI the program's FY 2002 proposal statistics, allowing SSTI to generate a table presenting the state-by-state distribution of awards and proposals by number of each and number of firms. The statistical table presents how competitive the EPA SBIR program is — only 9.5 percent of the 370 proposals were selected for funding.

SSTI's table is available at: http://www.ssti.org/Digest/Tables/081602t.htm

The Council on Competitiveness, a non-profit, Washington-based organization, is seeking an executive director for its new National Center on Regional Innovation and Competitiveness. The new center will identify and advance innovation-based regional development strategies, conduct regional workshops, and disseminate best practices in managing regional innovation. The successful candidate will have the vision and management experience to launch this new center.

Responsibilities for the position will include setting agenda, overseeing funding, and working with a high-level advisory committee. Candidates should be able to interact effectively with private sector leaders and high-ranking federal, state and local officials. An advanced degree and a minimum of 10 years in economic development are preferred. Experience working with state and local government is a plus.

Charlotte A. Hayes, president of DCTech, the Washington DC Technology Council, has resigned to return to the private sector. John Sanders has been named interim president, while the council seeks a permanent replacement.

Jim Hayes is serving as interim president of the Economic Development Partnership of Alabama as the group works to fill the position. Hayes was a former director of the Alabama Development Office.

William Parsons is serving as acting executive director of the Rhode Island Economic Development Corp. Parsons is the vice president of operations.

Correction: Lara Vande Walle is the director of membership and business development for the Maryland Technology Council, not Maryland's TEDCO as was previously reported.

Charlotte A. Hayes, president of DCTech, the Washington DC Technology Council, has resigned to return to the private sector. John Sanders has been named interim president, while the council seeks a permanent replacement.

Jim Hayes is serving as interim president of the Economic Development Partnership of Alabama as the group works to fill the position. Hayes was a former director of the Alabama Development Office.

William Parsons is serving as acting executive director of the Rhode Island Economic Development Corp. Parsons is the vice president of operations.

Correction: Lara Vande Walle is the director of membership and business development for the Maryland Technology Council, not Maryland's TEDCO as was previously reported.

A draft report from the President's Council of Advisors on Science and Technology (PCAST) recommends the Department for Homeland Security include a centralized office for research and technology development and the senior-level position of undersecretary for science and technology, according to several published reports. The final version of Maximizing the Contribution of Science and Technology Within the New Department of Homeland Security, which was available on the PCAST website temporarily, is to be given to the President next week.

The St. Louis region lags behind a number of metropolitan areas including Austin, Portland, Atlanta, and Indianapolis in attracting 20- to 34-year olds to live and work in the region, according to a report released this month by the regional, nonprofit organization, FOCUS St. Louis.

Preparing St. Louis for Leadership in the 21st Century Economy is the result of a year-long effort by a citizen-based FOCUS St. Louis task force. The 27-member group concluded the St. Louis region must be more effective in attracting and retaining young knowledge workers in order for the region to thrive and compete in the 21st Century economy.

University partnerships lead to diversity in teaching and research, highlight the importance of university research and lead to the development of special expertise, concludes a policy brief by the Conseil Superieur De L’Education in Quebec.

Universities: Working In Partnership, prepared for the Minister of Education, examines the effects of partnerships with outside entities on elements of the university mission in Canada, particularly Quebec. The brief outlines the positive effects of partnerships, as well as the counterproductive and undefined effects.

The brief focuses on the university viewpoint of partnerships and identifies concerns and tensions by universities when engaging in these agreements. These concerns and tensions are parlayed into five key questions to be asked. From these questions, the Counsel outlines five guidelines for partnerships: