SSTI Digest

The Coopers & Lybrand Money Tree Report, reported on in the March 7 issue of the Digest, inadvertently omitted Ohio from its list of the top states receiving venture capital investments in 1996. The Survey should have ranked Ohio tenth with $279.0 million in investments. This revised information drops Virginia to 11th with $275.7 million, New Jersey to 12th with $264.3 million, and Tennessee to 13th with $261.5 million.

The present organizational structure for science and technology advice in the White House should be retained and its operations fine-tuned to better serve the needs of the President, according to recommendations of the Carnegie Commission on Science, Technology, and Government. The Commission suggests integrating the various S&T advisory organizations more fully into the operations of the White House and Executive Office and to focus the S&T advice on presidential priorities and initiatives. For example, the Commission recommends that the Assistant to the President for Science and Technology should give primary attention to serving the President and should play a policy and advisory role similar to that of other Assistants to the President. The Commission's recommendations include: The appointment of a chief of staff for the Office of Science and Technology Policy (OSTP), so the Director of OSTP will have more time to perform the duties of Assistant to the President. The National Science and Technology Council (NSTC) should concentrate its resources on a small…

NASA selected the Baylor College of Medicine in Houston to lead a consortium for its new National Space Biomedical Research Institute. The space agency started the selection process last spring when it announced its intent to establish science institutes as a means of maintaining the scientific excellence of its applied biomedical research through greater involvement of the scientific community in NASA's overall research program. (SSTI Weekly Digest, May 3, 1996). The National Space Biomedical Research Institute is the first such organization to be formed. The Institute will conduct biomedical research to support human health in the exploration and development of space, with the support of the Johnson Space Center. It will define and direct the required basic and applied research to ensure the overall health and performance of crew members involved in long-duration space flight. The Institute will also focus on how the technologies and techniques it develops may be applied to earth health care issues. The specific objectives of the Institute include: Implementation of a…

New York Governor George Pataki amended his proposed FY 1997-98 budget to restore funding for the state's technology programs. Pataki's revised budget calls for more than $20 million for technology programs, almost twice what was originally submitted to the legislature in January. The new request calls for more than $16 million for university-industry projects, including Centers for Advanced Technology (CATs). Funding was also restored for the Industrial Technology Extension Service (ITES) and the Technology Development Organizations (TDOs) which operate New York's Manufacturing Extension Program (MEP). ITES and the TDOs had been eliminated from the Governor's Executive Budget. Under New York law, the governor submits his proposed state budget at the start of the legislative session, but has an additional 30 days to amend the budget before its consideration by the legislature. Even if the legislature accepts the governor's amendments, the $20.4 million proposal would be a 10 percent decrease from FY 1996-97 funding for similar programs. In recent years, however, the New York legislature…

Results are in from a new nationwide survey of 2,000 manufacturing executives conducted by the National Association of Manufacturing (NAM). Nearly two-thirds of the respondents to the 1997 Survey on Economic Growth believe that a lack of skilled workers is hindering their ability to grow. Sixty-four percent of those surveyed report that a significant number of their entry level employees do not have the skills needed to help increase productivity and growth. NAM also reports that 65 percent of the respondents invest between one and five percent of annual payroll in worker education and training. Eleven percent invested between six and ten percent of payroll while twenty-two percent spend less than one percent of annual payroll on worker development. When asked what three federal government initiatives have the greatest positive impact on their companies, the respondents indicated comprehensive regulatory reform (54 percent) and less restrictive monetary policy (54 percent). The top vote-getter (57 percent) was "Other" than the nine choices provided in the survey. "Measures to increase the…

Nominations of individuals to serve on the Sea Grant Review panel are being solicited. The panel advises the National Sea Grant College Program on the operations of the program, including review of applications or proposals for grants and contracts and the designation and operation of sea grant colleges and sea grant regional consortia. Resumes should be sent to Dr. Ronald Baird, National Sea Grant College Program, 1315 East-West Highway, Room 11716, Silver Spring, MD 20910 by March 26. A copy of the full Federal Register notice describing the panel can be obtained by calling SSTI at 614/421-SSTI (7784).

Arati Prabhakar, director of the Commerce Department's National Institute of Standards and Technology (NIST), announced this week that she will be leaving NIST to become senior vice president and chief technology officer of the Raychem Corporation, Menlo Park, Calif. Robert Hebner, who has been NIST acting director since late January 1997 when Prabhakar began maternity leave, will continue to serve as acting director. Hebner became acting deputy director of NIST in 1996, where he has been responsible for the day-to-day operation of the agency and for long-range planning and policy development.

Two recent reports indicate the amount of venture capital financing increased in 1996, although the two reports differ on the amount of financing and the most active investors. Both surveys agreed that California and Massachusetts were the lead states in attracting venture capital.

Price Waterhouse, in conjunction with the National Venture Capital Association, recently published the results of the 1996 National Venture Capital Survey. Venture capitalists reported investing $9.5 billion in 1996, a 25% increase over 1995. Approximately 2,000 companies received venture backing with funds going to companies in all stages of growth, from start-up to turnaround. More than one-quarter of all companies received early stage financing: either initial/seed or first round. Follow-on investments accounted for 15% of companies and 10% of funds. Price Waterhouse, which reports its information by region rather than by state, reported Silicon Valley remained the leader of venture capital with 552 companies attracting $2.29 billion. New England retained the number two position with 330 companies garnering $1.27 billion. The Southeast received $1.08 billion, followed by the Midwest with $895.8 million, Texas with $668.8 million, and the New York Metro area with $662.5 million. The industry sectors receiving the most venture capital in 1996, according to Price Waterhouse were…

In its annual Money Tree Survey of venture firms, Coopers & Lybrand, which also tracks venture capital activity, reported greater growth in 1996 than Price Waterhouse did. According to this survey, venture capital investment reached $10.1 billion in 1996. Surveyed venture firms participated in 2,163 deals during 1996. The average size of each financing rose in 1996 to $4.7 million, up from the $4.3 million average investment reported in 1995. Coopers & Lybrand, which reported information only for the top 12 states, ranked the states in the following order: State (millions of $) California 3,211.3 Massachusetts 1,067.4 Texas 595.3 Colorado 392.7 Florida 375.9 Illinois 343.9 Connecticut 314.7 Pennsylvania 307.0 Washington 294.7 Virginia 275.7 New Jersey 264.3 Tennessee 261.5 …

The Rhode Island Economic Policy Council has concluded a year-long examination of the state's economy with a call for nine recommendations to be implemented. The Council found,"Our economy has performed poorly in this decade. We have lost population every year because large numbers of people have moved out of state in search of economic opportunity. Five years into a nationwide economic recovery, key economic indicators in Rhode Island...are all still below their peak from the late 1980s." To strengthen the state's economy, the Council suggests that several steps be taken, including: Creating the Samuel Slater Technology Corporation to help existing firms move forward technologically and new firms commercialize technology Establishing a privately-operated early stage equity capital fund Increasing the R&D tax credit to 22.5% Expanding and merging multiple technical assistance organizations into an effective, coherent industrial modernization service The Economic Policy Council is a non-profit corporation equally funded…

Nominations are being accepted through April 4 for the annual Entrepreneur Of The Year awards. Nominees must be owners/managers primarily responsible for the recent performance of a company that is at least two years old. Founders of public companies are also eligible provided the founder is still active in upper management. Regional award recipients will be selected in several award categories by independent judging panels and presentations will be made at 46 regional award banquets in June. A national judging panel will choose finalists and award recipients for five National awards and The Entrepreneur Of The Year award. All regional award recipients are eligible, including those from previous years. The awards are sponsored nationally by the Entrepreneur Of The Year Institute, Ernst & Young LLP, the Center for Entrepreneurial Leadership Inc. at the Ewing Marion Kauffman Foundation, USA TODAY, and the Nasdaq Stock Market. For more information, call 1-800-755-AWARD (2927).