SSTI Digest

[Note: SSTI defines a technology council as a regional entity that is membership-based and independently funded with science and technology-based economic development as one of its primary goals. National trade associations and government-created technology councils which serve in an advisory or policy role are excluded from this discussion.]

San Diego Community College Chancellor Augie Gallego has been selected as the new chairman of the American Council of Education, only the second community college executive to hold the position since the organization's founding more than 80 years ago.

While Silicon Valley lost jobs last year — the first decline since 1992 — value added per employee, a measure of productivity, increased 4.6 percent to $170,000 compared to $56,000 nationally, according to the Index of Silicon Valley 2002 released in January by Joint Venture: Silicon Valley Network.



The above figures and other economic data contained in the Index measure annual progress toward the long-term goals of an innovative economy, livable environment, inclusive society and regional stewardship established by Joint Venture in Silicon Valley 2010.



The Index suggests that while the Valley faces short-term economic challenges, its long-term prospects remain strong, given continuing innovation and productivity gains. Important progress also is being made on long-term goals.



Though the slowing economy has eased some pressure, people are still under strain, the Index observes. The gap between high income and low income households narrowed for the first time in seven years, although the standard of living for the region's poorest households has not increased over 1993 levels. Since then, the cost of living has increased 20 percent. Annual average pay in Silicon Valley fell an estimated two percent but remains the highest in the nation.



Innovation continued with the awarding of 6,800 patents to Silicon Valley inventors, eight percent of those awarded to U.S. residents. Though venture capital investment tumbled from a record high of $21 billion in 2000 to $6 billion last year, 2001 investment still topped the 1998 level.



The Index follows the December 2001 release of the Joint Venture: Silicon Valley Network White Paper Next Silicon Valley: Riding the Waves of Innovation. The paper highlights several challenges facing Silicon Valley as it deals with a short-term impact of the boom/bust cycle, longer-term requirements of adjusting to new waves of innovation, and economic shocks from the September 11 terrorist attack.



Understanding opportunities presented by new innovation waves will be critical for the Valley's future success, according to the paper. Areas highlighted include:

Last week, Governor Gray Davis announced the award of three grants to support the creation of new Regional Technology Alliances (RTA) for the Inland Empire, San Joaquin Valley, and Sacramento/Capital regions. The three new non-profit organizations join existing RTAs in Los Angeles, San Diego and the San Francisco Bay area to provide decentralized business support services for innovative, California-based technology firms.



Because the RTAs are designed by the tech community within the particular service area, each RTA offers regionally-customized approaches to technical assistance, securing financing, and other business support.



The three new RTAs, expected to open by May, will receive $200,000 in state matching grants from the California Technology Investment Partnership (CalTIP). The RTA and CalTIP programs are administered by the California Technology, Trade and Commerce Agency's Division of Science, Technology and Innovation.



More information is available from the Division's website. An eight-page SSTI Program Brief focusing on the California RTAs also is available at: http://www.ssti.org/Publications/online.htm

The San Diego Work Force Partnership recently released four strategic plans as a blueprint to prepare San Diego's workforce to compete in the changing global economy. Initiated as part of a broader Regional Workforce Development Strategic Planning Initiative, the plans reflect the concerns of area businesses for developing and maintaining skilled workers.



San Diego Regional Technology Alliance, a nonprofit organization, and San Diego State University completed the plans, which evaluated workforce development trends in four local industry clusters — biosciences, computer and electronics, software and computer services, and visitor services.



To study and formulate recommendations for the clusters, the plans' focus was to identify cluster employers' current training needs, data needs for educators and employers, and strategies to improve ongoing communication between educators and employers.



Key findings suggest that regional workforce committees be created around each industry to improve communication between industry and education.



Other conclusions recommend:

The third part in a series, "Tech-talkin Govs" highlights programs, policies and issues in tech-based economic development that were considered in the following governors' State of the State and Budget addresses.



California

Gray Davis, 2002-2003 Budget proposal, January 2002

http://www.dof.ca.gov/HTML/Budget02-03/00_toc.htm

Community Science Workshops (CSW) are spreading nationwide, due to a second $3 million grant from the National Science Foundation (NSF) that will enable San Francisco State University (SFSU) and its partners to create CSWs across the U.S.

Innovation indices or S&T report cards can be useful tools for assessing the health and direction of a region or state's economy. The results can be helpful for determining appropriate policies and programs to affect change and measuring progress. Evolving over the past five years, many states, localities and national organizations have prepared indices. Links to past Digest articles covering these reports are massed on the following web page: http://www.ssti.org/Digest/Indices/indices.htm

Fresno, California 

The Valley Angels Investment Network soon will be administered by San Joaquin Venture Partners, a venture capital fund created in June, and California State University, Fresno, according to a recent article published in the Fresno Bee. Already, the network has nearly 20 prospective angels and 20 service providers and is set to help IQ Biometrix, a computer software company. Next to the Sierra Angels, the Sacramento Angels, the North Bay Angels, and the Tech Coast Angels, the network stands to be one of several such groups in California. Investors interested in becoming angels must have a net worth of $1 million or more or have earned at least $200,000 in each of the past two years. More information is available at: http://www.sjvp.org 

Atlanta, Georgia 

A task force for the biotech industry is underway in the metro Atlanta region. The Metro Atlanta Chamber of Commerce announced the task force would be co-chaired by Dr. Michael Johns, executive vice president for health affairs and director of the health sciences center at Emory University, and Parker Petit, chairman, president and CEO of Matria Healthcare. With business and academic leaders, public health organizations and researchers, the task force is meeting monthly to develop a long-range strategy and five-year business plan to position the region as a center for biotech innovation, capital, talent and business. Implementation of the Atlanta region strategy is expected to begin later in 2002.

larta has issued its 2002 Federal Technology Funding Guide, a survey of federal funding sources for technology firms. The sixth edition of the guide provides information on more than 90 regularly scheduled programs, hundreds of links to resources on the Web, and a special section funding for technologies to fight terrorism. An index identifies program by technology area or funding emphasis. 



larta is one of three regional technology alliances established and funded by the Division of Science, Technology and Innovation in the California Technology, Trade and Commerce Agency. The full guide is available for $39 from larta; an abbreviated, downloaded version is available at http://www.larta.org 

Philanthropic individuals and foundations are increasingly vital contributors for tech-based economic development, particularly for "big-ticket" initiatives. Most gifts, such as that covered in the second item below, are tied to a specific relationship with a university or field of research, working independently of the strategies or programs developed by state or local tech-based economic development organizations. The continuing work of the Heinz Endowments in Pittsburgh and single large donations, such as the $1 billion Stowers gift announced last Spring (see the May 18, 2001 issue of the SSTI Weekly Digest), are noticeable exceptions.



The series of sizable gifts made by the Lilly Endowment, including the latest donation described below, also are an exception in that they collectively could influence the state's S&T strategy where single gifts would have less of an impact.



Purdue Gets $26 M from Lilly for TBED

The Lilly Endowment has awarded Purdue University a grant of almost $26 million for its new Discovery Park, a complex for advanced interdisciplinary research, education, and entrepreneurship. The gift brings the Lilly Endowment's total recent donations toward improving Indiana's competitive position in research and tech-based economic development to more than $250 million. In September, Pervasive Technology Labs at Indiana University received a $30 million grant from the Lilly Endowment to launch three new laboratories dedicated to researching diverse aspects of computing (see also the Oct. 15, 1999 edition of the SSTI Weekly Digest)



Purdue will leverage the new grant and state funding with existing university funds, private donations and federal research support to create the $100 million park. Initial plans for the 40-acre site on the west edge of campus call for centers to house research in nanotechnology, bioscience/engineering and e-enterprises. Groundbreaking on the first of those buildings, the $51 million Birck Nanotechnology Center, occured in September.



The park also will include an entrepreneurship center to help transfer research findings into products and services. It will be the home of: