SSTI Digest

As many states are striving to increase their academic research capacity in areas that will strengthen long-term economic competitiveness, the governor of the Lone Star State is pursuing an alternate course that closely resembles traditional business recruitment and retention models.

Using his line-item veto power, Texas Governor Rick Perry signed on June 22 a state budget that eliminates $54.5 million for programs designed to encourage university research. Texas' state budget now is void of the $22.5 million that was appropriated for each of the Texas Excellence Fund (TEF) and University Research Fund (URF) and the $9.5 million allocated for the state's Advanced Research Program (ARP).

For Texas, the appropriate role for the state to serve in fostering economic development continues to evolve. With the passage of Senate Bill 275 earlier this month, the third organization in seven years will take the lead to encourage economic growth — this time with a strong focus on clusters and technology-based economic development.

The act abolishes the Texas Department of Economic Development (TDED) and creates an Economic Development and Tourism Office within the Governor's Office. Accompanying the transfer of duties will be just over 100 of the 127 TDED employees.

The Arlington Technology Incubator (Texas) has selected Geoffrey Grant to serve as the new director beginning July 1.

Richard Greene, director of the Arlington Technology Incubator and former mayor of Arlington Texas, has been appointed regional administrator of the U.S. EPA.

During the past two years, efforts have been launched in the Dallas-Fort Worth metroplex to boost its capacity for building a technology-based economy. The efforts have been directed toward increasing public-private cooperation, especially across organizations and jurisdictions that traditionally have thought of themselves as competitors, and conducting a critical review of the area's strengths and weaknesses.

Carolyn Stark is the new director of the Austin Technology Council, filling the position vacated by Paul Toprac.

Last week, Texas Governor Rick Perry announced the formation of the Governor's Council on Science and Biotechnology Development. The Council will strive to create a seamless system of innovation from the laboratory to the marketplace in rapidly developing areas of biotechnology — such as biopharmaceutical development, bioinformatics, genomics and nanotechnology. Governor Perry described the Council's mission as one that will ultimately bring more research dollars to Texas higher education institutions, encourage university researchers to get products that advance the quality of life to the market, and create biotechnology jobs — and growing companies — across Texas. Among its responsibilities, the 36-member Council will work to identify ways institutions of higher learning can coordinate efforts to attract federal research funds. Currently, Texas ranks sixth in research funds received from the National Institute of Health and third overall in research expenditures.

If one were asked to identify localized examples of the economic spectacle that was the late 1990s, the metro region of Austin, Texas would be on most short lists. A recently completed economic development plan from the tech-soaked Austin suburb of Round Rock, however, reflects the fundamental upheaval or disruption that characterizes the economies of many regions of the country. Round Rock has grown quickly, doubling in population during the last decade to become the second largest city in the Austin-San Marcos metro area. It is experiencing for the first time, like many other cities emerging in a decade marked by rapid urban sprawl, the challenges of a recession.

More than $800 million for science, engineering, research, and commercialization activities Each year a few state legislatures are more active than others on issues affecting efforts to grow tech-based economies. With $385 million for research infrastructure, $45 million committed to commercialization and seed financing, nearly $150 million for university and life science research, more than $300 million for college scholarships, authorization to create university commercialization centers, a series of tax credits, and $20 million for a biotech park, the recently concluded 77th legislative session in Texas was one of the busiest and most aggressive proponents nationally for technology-based economic development (TBED).

Stefanie Sanford has joined Texas Governor Perry's office as Policy Director for Technology & Telecommunications

With his past efforts to strengthen the state’s position in the tech-based economy, new Texas Governor Rick Perry’s budget priorities — $251 million in new spending for college scholarships and math & science programs — should come as no surprise. According to a recent article in the Austin American Statesman, Governor Perry’s budget recommendations will include $211 million in increased funding for college scholarships for lower-income students and $40 million for a new Master Math Teacher program to encourage more K-12 math instruction. Governor Perry cited a technically skilled workforce, built on a strong math and science education, as being needed for the state’s technology economy. The move, consistent with Perry’s activities while serving as Lieutenant Governor, may foreshadow the Lone Star State taking a more active role in encouraging tech-based economic development.

Joel Bauman, Senior Policy Analyst with the Southern Technology Council, is leaving to attend the University of Texas - Austin. Joel has been a great resource for SSTI over the past few years and we wish him success in business school