SSTI Digest

While cities such as Boston and San Francisco, not surprisingly, are home to many high-growth companies, a recent report from the National Commission on Entrepreneurship (NCOE) reveals large concentrations of high-growth companies in less familiar areas such as Elkhart, IN, and Provo, UT.



High Growth Companies: Mapping America’s Entrepreneurial Landscape provides a detailed picture of the regions where businesses have shown rapid growth. The report was released July 11 as a starting point for understanding the economic development in the nation’s 394 Labor Market Areas (LMAs), as designated by the U.S. Departments of Labor and Agriculture.



The key findings of the report include:

The William and Phyllis Mack Center for Technological Innovation was founded last month at the Wharton School of the University of Pennsylvania. The center is the product of a $10 million gift from William L. Mack, the president and senior managing partner of the Mack Organization — a national owner, investor and developer of warehouse facilities.



The center serves to house all of Wharton's technology management initiatives, including Wharton faculty members' research and publishing activities, an endowed professorship and a student-run conference. The Mack Professorship honors a senior faculty member whose primary commitment is to teaching and research in technological innovation management.

Aggregated venture capital investments are commonly used by state and local policymakers to assess the “health” of their tech-based economies. As a result, some of the most accessed pages of the SSTI Weekly Digest web archives have been the state-by-state tables SSTI generates with the release of each quarter’s Moneytree™ venture capital survey results.



The merger of the PricewaterhouseCoopers and Venture One surveys late last year into a single Moneytree™ survey, however, made long-term analysis inaccurate, if not impossible, for practitioners and researchers alike.

Math and science students exposed to high expectations, challenging curriculum and sound instructional methods may hold an advantage over their peers, suggests a report funded by the National Science Foundation (NSF).



Academic Excellence for All Urban Students presents data from a study of 22 urban school districts comprising the NSF's Urban Systemic Initiatives (USI), showing great gains in student achievement by school districts that participated in the USI program for the longest period of time. The report is the result of eight years of research under the USI program, which began in 1993. It also is part of a larger ongoing study by Systemic Research, Inc., How Reform Works: An Evaluative Study of National Science Foundation's Urban Systemic Initiatives.

Public and private efforts to attract more women into high-tech fields of information technology have a significant hurdle to overcome: 60 percent of women already in IT jobs wouldn’t choose the same career path if starting over, according to Women In Technology, a recent survey by DeLoitte & Touche. Many of the reasons women cited for the dissatisfaction – pay equity, glass ceiling for promotions, and few role models – are already long-standing and too-common issues for women in more traditional industries. Findings include:



Is there a glass ceiling in the high tech industry?

Nearly two-thirds of women surveyed believe a glass ceiling is a reality for women in the high technology industry (62 percent), whereas 62 percent of men felt that this barrier is a non-issue for women in the high tech industry. High tech is defined as computer hardware or software, telecommunications, dot-coms, or e-commerce departments.

Camden, Arkansas

The June 19, 2001 issue of The Bond Buyer reported that Camden, with a population just over 13,000, approved a one-cent sales tax to raise $6 million over four years to support downtown business revitalization efforts. Plans include construction of a business incubator and development of a 500-acre business park.



Missouri

Washington has the second highest employment growth rate in the U.S., according to the 2001 Index of Innovation and Technology for Washington — a report released by the Washington Technology Center. The state's 33 percent increase in employment growth rate over the last five years allowed it to move up four positions, second only to Utah. 



The report reinforces numerous trends found in the 2000 Index. Among them is the growth of capital investment in Washington companies. Washington's overall rate of growth in venture investment during the past two years has grown at more than half the rate of other major regions. However, Washington's rate is much smaller than that of most other areas of the country. The report suggests that this trend could cause the state to fall behind other regions. 

On Tuesday, President Bush announced the nomination of Phillip Bond to be Under Secretary of Commerce for Technology. The position oversees the Technology Administration which includes the National Institute of Standards & Technology (NIST), the Office of Technology Policy, and the National Technical Information Service. The Manufacturing Extension Partnership and the Advanced Technology Program are part of NIST. 

The Small Business Technology Transfer Program (STTR) received unanimous endorsement by four federal agencies during a recent House committee hearing, although two federal witnesses emphasized the Administration’s opposition to expanding the program. Language to gradually double the size of STTR, which supports small business-university research projects that could lead to commercializable technologies, is included in S. 856, the reauthorization bill working its way through Congress. 



Currently limited to 0.15 percent of the extramural R&D budgets of five federal agencies, STTR’s set-aside would increase to 0.3 percent in 2004, and 0.5 percent in 2007, if Senate Bill 856 passes in its introduced form.



STTR was first created in 1992 as a pilot companion program to the Small Business Innovation Research (SBIR) Program. The set-aside for STTR has not changed since its inception. SBIR, on the other hand, grew to 1.25 percent during the initial four years from 1982-1986. 

The latest semi-annual state fiscal survey, released jointly this week by the National Association of State Budget Officers and the National Governors' Association, reconfirms the increasing pressure on state coffers found six months ago. Slowing revenues and increasing Medicare and health care costs have resulted in 16 states reducing expenditures in the current fiscal year by $1.6 billion. Eleven states also are reducing their FY 2002 revenue projections. An average of only 1.3 percent growth in state revenues is estimated from 2001 to 2002. Budget officials in seven states are preparing for declining expenditures in FY 2002.



The survey can be downloaded at http://www.nasbo.org/Publications/PDFs/FSJUN2001.pdf

On June 25, President Bush named John H. Marburger, III, as Director of the White House Office of Science and Technology Policy (OSTP).



Marburger, 60, currently is the Director of the U.S. Department of Energy's Brookhaven National Laboratory and President of Brookhaven Science Associates. Presently, however, he is on a leave of absence from the State University of New York at Stony Brook, where he served as President and Professor from 1980 to 1994 and as a University Professor of Physics and Electrical Engineering from 1994 to 1997.



Among Marburger's tasks will be to review the nation's energy efficiency. As President Bush's science advisor, he will make recommendations on numerous issues including stem cell research, the human genome, nuclear weapons, bioterrorism, space, endangered species, the Internet and the training of scientists. Marburger also will assist the President in filling roughly 75 high-level scientific jobs in the federal government.

After nearly two years of discussion between the state legislature and the Governor’s office, Pennsylvania has enacted a plan for its $11 billion share of the national tobacco settlement. The final plan includes $160 million in one-time outlays for research and commercialization of life science technologies and a formula ensuring research gets nearly one-fifth of the total money received over the 25-year span of the settlement agreement.



Highlights include: