SSTI Digest

Governors will be forced to make cuts in education, health care and transportation budgets in light of the recently passed stimulus package that will reduce state revenues but provide no financial assistance for states facing increasing health care costs, says the National Governors' Association (NGA).



H.R. 3090 contains a three-year, 30 percent bonus depreciation provision that would cost the 45 states with corporate income taxes calculated under federal rules an additional $14.6 billion over three years, according to the nonpartisan Congressional Research Service. This comes as the states, nearly all of which are required by law to balance their budgets, are facing a cumulative $50 billion budget shortfall.

Louisiana Governor Mike Foster's economic development plan calls for $37 million for a Biosciences Initiative, at the state's top research universities, $15 million to support industry clusters for regional universities, and $8.4 million to spur enrollment growth in community and technical colleges. Coupled by a $150 million bond issue, funding for bioscience endeavors would equal a $187 million investment.

Because knowledge-based services can be supplied anywhere across the world due to increased international investment in IT infrastructure, future U.S. competitiveness hinges on diversification and broadening of the technology-based manufacturing sector, according to NIST Senior Economist George Tassey.



Tassey's lastest report, R&D and Long-Term Competitiveness: Manufacturing's Central Role in a Knowledge-based Economy, lays out the critical role manufacturing and manufacturing R&D plays in the U.S. economy, presents the dire forecast for low-R&D intensive manufacturers, and presents a framework for analyzing federal R&D investment strategies consistent with a national innovation system.



Tassey also argues that the zeal or enthusiasm for information technology that dominated policy discussion during the past few years and overshadowed and "induced and unbalanced perspective" on the appropriate strategies to secure economic competitiveness.

To shed light on the strengths and weaknesses of the region's biotechnology cluster, Carnegie Mellon University's Center for Economic Development (CED) has published A Biotechnology Action Plan for Southwestern Pennsylvania. The CED report says the Pittsburgh biotechnology cluster largely depends on the amount of available venture capital and the development of new technologies and that total funding levels must be increased to continue biotech development.



Dividing the biotechnology/biomedical cluster into three sub-clusters — pharmaceuticals, instruments and devices, and tissue engineering — the report draws a comparison with other regions, including Boston, Philadelphia, San Jose and Chicago, and observes that Pittsburgh ranked 165th nationally in 1998 in biotechnology patents per biotechnology employee.

President Bush has nominated Elias Zerhouni, executive vice dean of the Johns Hopkins University School of Medicine, as the new director of the National Institutes of Health.



San Diego Community College Chancellor Augie Gallego has been selected as the new chairman of the American Council of Education, only the second community college executive to hold the position since the organization's founding more than 80 years ago.



Rod Linton has been tapped to lead Utah's new Office of Science & Technology within the Dept. of Community & Economic Development. Mike Keene is the new State Science Advisor and Director of the Centers of Excellence Program.



Shaye Mandle has resigned as president of the Illinois Coalition to accept a position as the new executive director of the East West Corporate Corridor Association in DuPage County.

President Bush has nominated Elias Zerhouni, executive vice dean of the Johns Hopkins University School of Medicine, as the new director of the National Institutes of Health.