Despite, or because of, the continuing fiscal crises facing nearly every state, technology-based economic development remains high on the agendas of most governors, as demonstrated in their recent speeches. Those excerpts pertaining to state efforts to build tech-based economies are provided below.

A new strategic plan focusing on the North Carolina Department of Commerce's four cornerstones of economic development success – a globally competitive workforce, investment in science and technology, a competitive business climate, and attractive communities prepared for economic development – has been released by the state's Economic Development Board.

With the passage of HB 675, the FY 03-04 Capitol Budget Bill, the Ohio Legislature approved funding for a $100 million Innovation Ohio Revolving Loan Fund and a second $50 million installment for the Wright Brothers Capital Fund. Both measures are key components of Ohio's $1.6 billion 10-year Third Frontier Project — the state's largest-ever commitment to expanding high tech research capabilities and promoting start-up companies to build high wage jobs.

Nearly $1.5 million in grants from the OneGeorgia Authority will go toward specific initiatives promoting technology-based economic development in Georgia. The awards are part of almost $7.5 million in grants and loans being awarded to 16 of the state's most economically distressed communities.

Since reaching a high point of almost 27,300 in 1998, the number of science and engineering (S&E) doctorates has dropped by 7 percent to just over 25,500 in 2001, reports a 2001 nationwide survey conducted for the National Science Foundation (NSF). The decline since 1998 has led to a rollback of total Ph.D.s to pre-1994 levels, the report states.

Cluster-based economic development has grown in popularity, but this has not always translated well for rural regions. Many rural areas do not possess the infrastructure necessary for many high-technology industries, and most areas face two major disadvantages — an inability to achieve economies of scale and possess or create a specialized division of labor; and the relocation of the labor force away from rural areas.

Many organizations are wondering if, when and how severe their budgets could be impacted by the economy and the continuing fiscal crises in the states. While foundation endowments also have taken a hit by the stock market slump, several are increasing their contributions in building local or statewide technology-based economies. Two recent examples highlight the trend and point toward a funding path few TBED efforts have fully tapped.

The National Science Foundation (NSF) plans to fund $9 million in new FY 2003 awards under the Partnerships for Innovation (PFI) Program, according to the program solicitation's recent release. To promote PFI, NSF will sponsor 15-25 partnerships among academe, government and the private sector that explore new approaches to innovation.

The purpose of the program, as defined in the PFI solicitation, is threefold:

SSTI continues a series begun in last week's Digest, highlighting key economic development and science & technology positions being filled by some of the nation's 24 new governors. Many of these individuals are expected to help set the state's tech-based economic development agenda and determine budget cuts, reorganization plans or program eliminations.

Annually, SSTI looks at the various addresses given by the nation's governors at the beginning of the year. Over the next several weeks, the SSTI Weekly Digest will profile the excerpts concerning programs, policies and issues immediately affecting the tech-based economic development community.

The National Governors' Association (NGA) is urging leaders of the House and Senate Commerce-Justice-State (CJS) Appropriations Subcommittees "to maintain the federal government's share of support for the Manufacturing Extension Partnership (MEP) in the fiscal year (FY) 2003 appropriations."

If states are to emerge from the recession stronger than when they went in, state policymakers must make long-term investments in economic fundamentals such as a skilled workforce, technological capacities and quality amenities, reports the Corporation for Enterprise Development (CFED). They also need help from the federal government, according to the 16th annual Development Report Card for the States by CFED, a nonpartisan Washington-based think tank.

Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP/SEP), an independent nonprofit economic development organization, has announced the Commonwealth of Pennsylvania's $2 million commitment to establish the Ben Franklin Investment Partners venture guarantee revolving fund. The fund is the first such development financing vehicle of its kind in the U.S.

U.S. companies had $199.5 billion in R&D investment in 2000, a 9 percent increase over the 1999 total, according to the annual Survey of Industrial Research and Development published by the National Science Foundation (NSF). The survey data is presented in a recent NSF InfoBrief, which shows the total industrial R&D increase to be 7 percent after adjusting for inflation.

The challenges of creating a cluster of companies in related technologies, both the processes and factors for influencing cluster development, are different than the requirements for maintaining the cluster, concludes "Old Economy" Inputs for "New Economy" Outcomes: Cluster Formation in the New Silicon Valleys. The paper contests cluster development is a combination of elements of both new economic theory focusing on increasing returns and old economic theory, which concentrated

Several of the key economic development and science & technology positions have been filled by some of the nation's 24 new governors. Many of these individuals will be involved in setting the state's tech-based economic development agenda and determining budget cuts, reorganization plans or program eliminations to handle the money squeeze. In addition, a few other lead S&T agencies have announced top-level changes.

Placing a high priority on the biosciences as a measure for long-term economic development, the Baltimore Workforce Investment Board (BWIB) has released a strategic plan that aims to ensure growth, in part, by securing a highly motivated and well trained workforce for the city's bioscience sector.

Sixty-nine percent of Kentucky businesses use computer technology to handle some of their business functions, but only 36 percent use the Internet and little more than 20 percent have a website, according to a report released by Governor Paul Patton's Office for the New Economy. Kentucky Prepares for the Networked World, which details computer, Internet and website use among the state's businesses, shows more than 50 percent see "no need" to use the Internet.

The patterns of research and development (R&D) activities vary considerably among those states with the most R&D expenditures, the National Science Foundation's (NSF) latest InfoBrief reports. In 2000, 87 percent of the nation's total R&D investment of $265 billion occurred in 20 states. Only 4 percent of the U.S. R&D total was accounted for by the 20 lowest ranking states.

Ontario is performing from a base of strength in its transition to a knowledge-based economy, according to the Ontario Innovation Index recently released by the Ontario Science and Innovation Council (OSIC). Using 30 indicators, the report measures all aspects of the province's innovation system, from community awareness and support for science and technology (S&T) to levels of investment to support its infrastructure.

The U.S. General Accounting Office (GAO) has released a report describing its efforts to evaluate the New Markets Tax Credit (NMTC) Program created by Congress in 2000. The NMTC program, which has total equity of $15 billion, permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs).

Security analysts and policy makers have been concerned with information published in the open scientific literature since WWII and the Cold War. Recently the focus has shifted towards information and research in the biosciences because of the dramatic advances and potential application of this information to bioterrorism.

A new report, Just Clusters: Economic Development Strategies that Reach More People and Places, from Regional Technology Strategies, Inc. (RTS) finds that while cluster-based economic development strategies have the potential to expand opportunities for disadvantaged populations and rural regions, most current cluster strategies do not pay attention to equity issues. The project was made possible through a grant from the Ford Foundation.

Participants of the Federal Biodefense Research FY 2003 Conference recently held in Washington D.C. were given the opportunity to see how the new Department of Homeland Security (DHS) will work. With its passage in November 2002 by congressional legislation, the Homeland Security Act that created DHS initiated the largest reorganization of the federal government since the 1950s. Now, several agencies and departments will be affected by DHS, and each figures to have an important role in the biodefense arena.

Indiana Governor Frank O'Bannon unveiled a plan earlier this week to "Energize Indiana" that relies heavily on tech-based economic development.  Gov.