SSTI Digest

With all appropriations bills signed into law as of November 26 and the exercise of the final line item veto on December 2, the FY 1998 appropriations picture is coming into focus.

A preliminary analysis by the American Association for the Advancement of Science (AAAS) of the FY98 appropriations shows that total federal funding allocated to R&D increased to $76.3 billion, 4.1 percent more than FY97.

With the exception of Transportation and Agriculture, every major R&D funding agency received increases above the rate of inflation (2.5 percent). The Department of Commerce's R&D programs received the largest percent increase (14.8 percent) to bring the agency to $1.1 billion. Much of the increase is due to a $95 million appropriation to fund construction and renovation of NIST R&D facilities in Colorado and Maryland.

Price Waterhouse recently announced that venture capital investments hit an all time record in the third quarter of 1997. Total investments exceeded $3.5 billion, eclipsing the previous high of $3.2 billion reported in the second quarter of 1997. Compared to the third quarter of 1996, investments increased 75%, the largest percentage increase measured by the survey. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States.

A total of 675 companies received financing in the third quarter compared to 443 companies in the same period last year which is a 52% increase.

Research and development expenditures in 1997 are expected to reach $205.7 billion, a 6.5 percent increase over 1996's $193.2 billion in spending. Since 1994, R&D spending has been increasing at a rate of more than 5 percent a year, according to a recent National Science Foundation Data Brief.

The federal share of the nation's R&D expenditures is expected to continue declining -- to 30.5 percent of R&D expenditures. The federal share of the nation's R&D funds first fell below 50 percent in 1978 and was consistently between 44 and 47 percent from 1980 to 1990. Since then, the federal share has dropped steadily.

The National Science and Technology Council (NSTC) report, Transportation Science and Technology Strategy, has been released. The Strategy was written to aid Congress, the White House, and federal Agencies in establishing national transportation R&D priorities and coordinating research activities. The report highlights ongoing federal research efforts in transportation science and technology and identifies areas of new opportunity and gaps for federal support.

The report found that understanding the transportation infrastructure of the nation from a global perspective is essential to the ability of the United States to compete effectively in the future as well as to support domestic commerce. Transportation R&D must focus on innovations to help the nation cope with an expanding world population, urbanization, a rising volume of air passenger and air freight trips, growing marine traffic, and an increasing automobile population.

The State Science and Technology Institute (SSTI) recently released State Science and Technology Strategic Planning: Creating Economic Opportunity. This report is the first comprehensive study of state science and technology strategic planning processes.

Prepared under a grant from the Economic Development Administration, Creating Economic Opportunity describes the key factors that contribute to the successful development and implementation of state science and technology strategic plans.

The study found there were ten best practices for successful strategic plans:

The National Business Incubation Association (NBIA) has released a new report that confirms that business incubators are helping to build healthy, long lasting businesses, and they are doing it at minimal cost with a good return on investment to supporters.

The report was conducted by the University of Michigan, NBIA, Ohio University and the Southern Technology Council under a grant from the U. S. Department of Commerce's Economic Development Administration. It examines the impact of business incubators which house early stage companies and provide on-site management and a full array of business planning, marketing and financial services.

The study indicates that:

Raymond Kammer was sworn in as eleventh director of the National Institute of Standards and Technology (NIST) on November 12. Kammer had been NIST's deputy director since 1993. Robert Hebner had been acting director of the agency since the position was vacated by Arati Prabhakar in March.

A new industry association, the Small Business Technology Coalition (SBTC), has been organized to represent the interests of small, high technology firms in Washington, D.C. and in individual states. Since its creation, SBTCs membership has grown to 300, with members from 30 different states.

SBTCs initial objectives include: 1) becoming a strong recognized voice in the formation of public policy that is of direct interest to small, high technology firms; 2) providing a forum for executive networking and education as well as interfacing with investors; and 3) leveraging member efforts and buying power to provide cost effective business support services.

For more information about SBTC call 415/813-9124 or visit their web site at www.sbtc.org