SSTI Digest

The Connecticut Technology Council has named Matthew Nemerson as its new President and CEO, replacing Michael Theodore.

Connecticut-based bioscience research and development (R&D) investment in 2001 totaled $3.6 billion, an 18 percent increase over 2000, according to the Seventh Annual Economic Report of Connecticut United for Research Excellence (CURE), Connecticut's bioscience Cluster.



2001 Gains and Future Opportunities, released last week at Yale University, highlights several economic indicators that demonstrate the growth of the bioscience industry in Connecticut, including:

This is the fifth installment in the "Tech-talkin' Govs" series which provides highlights of programs, policies, and issues included in the Governors' addresses related to tech-based economic development.



Connecticut

John G. Rowland, Budget Address, February 6, 2002

http://www.state.ct.us/governor/news/budget2002.htm

They may be separated by more than 6,000 miles, but tech-based economic development initiatives in Hawaii and Connecticut have adopted similar strategies to encourage the commercialization of alternative energy technologies: they're buying them. 



Using the purchasing power of the public sector to affect change has been an effective tool in the past for socio-political projects ranging from helping topple the apartheid regime in South Africa to addressing environmental goals such as providing a large enough market for recycled paper products to warrant the substantial private investment needed in pulp mill construction and refurbishment. 



Combining public purse strings with the need to demonstrate commercially unproven-yet-promising technologies such as all-electric cars and fuel cells, however, is a less commonly applied strategy. Public transportation projects, such as buses run on natural gas, provide perhaps the most widely known application of the concept. 



An advantage to technology demonstration projects using public acquisition programs is the relative cost savings. Tech-based economic development initiatives can pay the "surcharge" or increment a new technology costs over the regular government purchase schedule, maximizing the tech program's budget to support feasibility and demonstration projects. 



Another advantage is the government's ability to negotiate through multiple levels of regulation and bureaucracy with greater ease than the general public outside the system. Tech-based economic development programs – with the support and endorsement of the Governor – are able to facilitate and create inter-agency partnerships and public-private coordination. 



The stories in Hawaii and Connecticut provide two examples in practice. 



Hawaii 

This summer, the Hawaii High Technology Development Corporation (HTDC) and the State of Hawaii took delivery of the first 15 battery-powered Hyundai Santa Fe Sport Utility Vehicles. In 1998, HTDC initiated a program to make Hawaii the first "Electric Vehicle-ready" state in the country through the installation of rapid charging stations. The goal of this initiative was to show Hawaii's commitment to provide the needed infrastructure for consumer acceptance of battery-powered vehicles. 



HTDC will use the test vehicles, donated by Hyundai and valued at $100,000 each, to demonstrate and evaluate the charging infrastructure that has been set in place. To date, seven rapid chargers have been installed on Oahu, with another 13 planned installations by the end of this year. The SUVs will be used by four participating sectors on Oahu — Hickam Air Force Base, the Hawaii Electric Company, the City & County of Honolulu, and the State of Hawaii. 



According to Nola Miyasaki, Executive Director & CEO of HTDC, the corporation's Hawaii Electric Vehicle Demonstration Project has secured more than $20 million in federal funds over the past eight years and, in turn, funded 15 Hawaii-based organizations, working towards the goal of growing an electric vehicle industry in Hawaii. 



More information on the initiative is available on the HTDC website at http://www.htdc.org/010710Hyundai.html

After seven years of serving as the first president of the Connecticut Technology Council, Laura Kent is resigning her position at the end of June. The Council now boasts over 400 members.

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 challenge for the state, according to the draft plan, is to integrate IT workforce skills development “in a practical manner across the full knowledge supply chain” of K-12, colleges, universities, and public and private workforce training and retraining providers. Addressing the Digital Divide within the state also is seen as a critical priority to protect and expand Connecticut’s competitive position in IT.



To ensure the IT efforts remain focused on meeting current and future industry needs, a new business-led Connecticut Digital Compact is proposed to oversee most of the plan’s implementation. Staffing for the Compact would be provided by the Office of Workforce Competitiveness.



Funding for many of the 26 strategic action items outlined in the plan would be provided by a new Digital Strategic Fund, to be managed by the Compact. The level of new state money required for the Fund’s initial capitalization is not identified in the plan. Intentions are to focus as many existing resources and additional industrial and foundation contributions as possible toward the plan’s implementation.



In addition to analysis of the state’s IT industry and presenting specific recommendations, Part I of the plan also benchmarks the competitive position in IT workforce development for six other states: Maryland, Massachusetts, Minnesota, New Jersey, New York and Virginia. Part II, which describes Connecticut’s IT occupations, has been released as a separate document.



Both sections of Connecticut’s IT Workforce Development Strategy are available for download by clicking on “OWC IT/High Ed.” under Featured Programs at: http://www.cerc.com

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.”

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.

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.

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

The Role of Technology in the Connecticut Economy, a new report produced by the Connecticut Technology Council (CTC), provides a comprehensive analysis of the role of technology in the state's economy. Overall, the report reveals both a strong technology contribution to the Connecticut economy, as well as the state's dependence on technology for achieving its economic potential.