SSTI Digest

With 26 percent more of its workforce involved in information technology (IT) than the national average and with IT-producing industries growing faster in the state than the national average, Connecticut has possibly felt the pinch of the IT worker shortage more than other parts of the country. Add to that the fact that the number of IT-related graduates from the state’s universities and community colleges declined during the late 1990s.



As a result, last year the state legislature ordered the development of a statewide IT workforce development strategy. Responsibility for the plan was given to the state Office for Workforce Competitiveness (OWC) and the Connecticut Economic Resource Center, Inc. (CERC). CERC is a private, not-for-profit 501(C)(6) corporation formed through a partnership of utility/telecommunications companies and state government in 1992.

The 2000 session of the Connecticut legislature proved to be an active and favorable one for the state’s technology community and Connecticut Innovations, Inc. The Connecticut Technology Council summarized the session this way, “For the first time in recent memory, the debate at the Capitol was not over whether legislation affecting tech companies would pass, but which legislation affecting tech companies would pass.”

A shift in legislature focus to broader strategic policies rather than bills that incrementally modify programs gets much of the credit, according to the Council. “The 2000 session was marked by an increased level of understanding of technology issues by the General Assembly and to their importance in the state’s cluster-based economic development strategy, ” according to the Council's summary of the session.

Bills affecting science and technology approved by the legislature include:

After only ten years of investments, Connecticut Innovations, Inc. achieved a net income of $21.4 million in 1999, according to Connecticut Innovations’ latest annual report. The corporation reversed a deficit of over $20 million in retained earnings accumulated through 1995 to a positive $24.7 million by June 30, 1999. The corporation's record provides one of the strongest examples of successful state-funded, technology-based seed and venture capital investment to date.

Surpassing another significant milestone, total fund equity for Connecticut Innovations grew to slightly more than $103 million. The return on fund equity was 20.8 percent in 1999, also a new best for the corporation. Connecticut Innovations reported an internal rate of return on its equity and near-equity portfolio of 40 percent since inception.

Senators Bill Frist (R-TN) and Joe Lieberman (D-CT), Co-chairs of the Science & Technology Caucus, issued a joint statement reacting to the Clinton Administration’s FY 2000 budget request for R&D. Calling the President’s request a "mixed blessing," the senators praised the commitment to civilian R&D, while disagreeing with proposed cuts for defense research of nearly six percent.

The senators also raised concern that in future years, according to the President’s projections and citing spending caps, appropriations for much of the civilian R&D program would see only modest increases, remain static or even face reductions. Earlier this month, Senator Frist introduced S 726, legislation calling for doubling federal civilian R&D spending over the next twelve years; Senator Lieberman was a co-sponsor of the bill (see related article).

Connecticut Innovations, Inc. (CII) is seeking a manager for its Renewable Energy Investment Fund. Responsibilities of the position include providing strategic planning and program direction for the Renewable Energy Investment Fund program. The full position description can be found on the SSTI website at http://www.ssti.org/posting.htm