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SSTI Digest
Proposed SBIR Policy Directive Warrants Close Examination
Editor's Note and Commentary: The changes proposed by the Small Business Administration for the policy directive governing the administration of the $1.2 billion federal Small Business Innovation Research (SBIR) program are substantial. Some of the controversial changes proposed include blending STTR and SBIR dollars during Phase II, allowing agencies greater flexibility in setting award sizes, and creating the opportunity for impropriety in award selection. Public comment on the draft changes will be accepted by the SBA until June 18, 2001.
Study Finds Diversity, Technology Go Hand-in-Hand
The leading indicator of a metropolitan area's high technology success is a large gay population, according to Technology and Tolerance: The Importance of Diversity to High-Technology Growth, a new study published by the Brookings Institution's Center on Urban & Metropolitan Policy. The study's authors are Richard Florida of Carnegie Mellon University and Gary Gates of the Urban Institute.
Nine of the top ten cities as ranked by a Gay Index developed by Florida and Gates were in the top 15 “Tech-Pole” Rankings conceived by Ross DeVol of the Milken Institute (see America's High Tech Economy). Florida and Gates conclude “[g]ays can be though of as canaries of the knowledge economy because they signal a diverse and progressive environment that fosters the creativity and innovation necessary for success in high-tech industries.”
When VC Inducements Pay Off
Encouraging local sources of capital is a common element of most tech-based economic development efforts. The broad strategies to accomplish this typically include forums, investor groups, tax credits, CAPCOs, and public seed capital to fuel fund development.
A different approach was made almost two years ago when Pennsylvania Governor Tom Ridge announced the state was giving a $200,000 grant to Redleaf Group, a West Coast venture capital group to open its Atlantic headquarters in Pittsburgh. (see the Pittsburgh story in the 7/23/99 issue of the SSTI Weekly Digest).
Besides the obvious advantage to the state's economic development strategy of increasing deal flow for local businesses by having venture capital nearby, that inducement grant appears to be producing more notable fruit for the state.
Useful Stats: Gross State Product Figures for 1999
After adjustments for inflation, Gross State Product (GSP) for the nation grew at an average annual rate of 4.0 percent from 1992 to 1999, according to estimated just released by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. GSP measures value added in production.
The fastest growth rates for 1992 through 1999 were experienced in Arizona (7.3%), Nevada (7.0%), Oregon (6.8%), Colorado (6.6%), Idaho (6.6%), New Hampshire (6.3%), Utah (6.3%), New Mexico (6.2%), Georgia (5.8%), Texas (5.4%), and North Carolina (5.1%). The BEA attributes the strong performance of these states partly to their strengths in business services and in high-tech manufacturing.
While real GSP grew in all major industries, it was notably strong in the areas of business services and high-tech manufacturing, trade, real estate, security trading, and communications.
Tech Council News
New Mexico
The New Mexico Information Technology and Software Association (NMITSA) has hired its first staff: Randy Burge is the new president, Pete Inman is vice president of policy and development, and David Sahd is vice president of operations and marketing. According to the Council of Regional Information Technology Associations, NMITSA was the last such group to change from all-volunteer staffing.
New York
Joe Magno, former Executive Director of the New York State Science & Technology Foundation, is founder and chairman of the New York State Software Network (NYSSNET). Organized in November, NYSSNET's goal is to sustain, strengthen and grow the software industry of the state. The nonprofit has secured a $1.1 million information technology training grant from the Department of Labor and is holding a SmartStart Venture Forum this fall.
People
Jim Tate has been named Science Advisor for the U.S. Department of Interior. Until his appointment, Dr. Tate served as Advisory Scientist for the Idaho National Engineering and Environmental Laboratory.
Julia Wilson is the new Executive Director of the San Diego Telecom Council. She formerly was director of corporate and foundation relations for San Diego State University.
The Maryland Department of Business & Economic Development has hired Lawrence C. Mahan to serve as the state's senior biotech executive.
Maria Estela de Rios has been named chairwoman of the New Mexico Manufacturing Extension Partnership Board of Directors. She is executive vice president of Orion International Technologies, which is based in Albuquerque.
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People
Jim Tate has been named Science Advisor for the U.S. Department of Interior. Until his appointment, Dr. Tate served as Advisory Scientist for the Idaho National Engineering and Environmental Laboratory.
People
Julia Wilson is the new Executive Director of the San Diego Telecom Council. She formerly was director of corporate and foundation relations for San Diego State University.
People
The Maryland Department of Business & Economic Development has hired Lawrence C. Mahan to serve as the state's senior biotech executive.
People
Maria Estela de Rios has been named chairwoman of the New Mexico Manufacturing Extension Partnership Board of Directors. She is executive vice president of Orion International Technologies, which is based in Albuquerque.
Findings Suggest Digital Divide Efforts Should Focus on Cities
Nearly all public schools in the U.S. are connected to the Internet, according to a survey published by the National Center for Education Statistics (NCES). The survey, Internet Access in U.S. Public Schools and Classrooms: 1994 – 2000, shows that 98 percent of public schools had access to the Internet by the fall of 2000, representing a 3 percent increase over 1999 and a 26 percent increase since 1997.
The survey also shows the number of public schools with instructional rooms possessing Internet connections is on the rise. Seventy-seven percent of such rooms were connected to the Internet in the fall of 2000–a notable increase over the 63 percent in 1999. During this time, the ratio of students to instructional computers in public schools decreased to 5 to 1, while the ratio of students to instructional computers with Internet access improved from 9 to 1 in 1999 to 7 to 1 in 2000.
Spillovers from Academic and Industrial R&D Examined
Is a strong university research component critical to local tech-based economic development? Many argue this position, including SSTI (Using Research and Development to Grow State Economies). Using data on royalties, licenses, and job creation figures, others have demonstrated the economic contributions of university R&D. (See for instance, the annual licensing survey from the Association of University Technology Managers.)
But can strong research universities contribute more to local technological innovation than large industrial research laboratories – or can communities achieve the same degree of success in building tech-based economies by concentrating resources toward attracting industrial research laboratories?