SSTI Digest

Increasing federal funding for life science research is one of the most significant ingredients for improving a state’s position in building a strong biotech and biomedical sector. As appropriations for the National Institutes of Health (NIH) were increasing annually – as they did in the last half of the 1990s and the first few years of this decade – this was not a zero-sum game. All states could win.

 

That is less likely to be the case if increases in NIH appropriations barely keep pace with inflation as Congress and the Administration shift research priorities toward other areas of science and engineering.

 

So how did everyone do during times of plenty? To answer this, SSTI has compiled a table of the National Institutes of Health (NIH) awards in total dollars and state rankings from fiscal years 2001-05. The states, ranked by percent change over the five-year period, show South Dakota (132.28), Louisiana (115.52), Montana (113.13), Indiana (96.61) and North Dakota (96.60) posted the greatest gains.

 

Those posting the top five largest dollar amounts in FY 2005 - California, Massachusetts, New York, Maryland, and Pennsylvania - remained unchanged from FY 2004. Overall, total NIH awards grew by 38.39 percent over the five-year period. Every state, including the District of Columbia exhibited an increase of total dollars except Wyoming, which incurred a $1.23 million decrease.



SSTI's table is available at: http://www.ssti.org/Digest/Tables/021207t.htm

 

NIH awards and statistics are available at: http://grants.nih.gov/grants/award/awardtr.htm

Gov. Martin O'Malley has appointed Clarence Bishop to serve as interim secretary of the Maryland Department of Business and Economic Development, replacing Aris Melissaratos.

As you begin to fill in your 2007 calendar, remember to mark Oct. 18-19, 2007 to attend SSTI's 11th annual conference in Baltimore! Past attendees know SSTI's conference is the perennial premiere professional development event for the TBED community. And 2007 will be no exception. The conference will be held at the Renaissance Baltimore Harborplace Hotel, right on the city's exciting waterfront. As in past years, the conference agenda will be set by our members and affiliates to ensure the most timely and relevant topics for transforming regional economies. Look for more information on SSTI's website soon. Please contact Noelle Sheets, director of membership services, at 614.901.1690 if you have any questions.

Wes Blakeslee is the new acting director of the Office of Licensing and Technology Development at Johns Hopkins University. Blakeslee replaces Jill Sorensen, who resigned last month.

Ray Dizon is the new managing director of the Maryland Venture Fund, replacing Elizabeth Good.

For the third year, the Maryland Technology Development Corporation (TEDCO) has been named the nations most active source of early-stage or angel capital. TEDCO leads the list of the 100 top venture capital firms, based on the quarterly MoneyTree survey published by PriceWaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association (NVCA). The 2005 list appears in the July issue of Entrepreneur magazine.



Each venture capital firm on the list reported at least three deals in 2005. Because of ties, this years ranking includes 120 firms. Maryland TEDCO improved on its figure of 15 deals in 2004 to fund 23 early-stage firms.



TEDCO bucked the national trend, which showed the number of initial venture capital deals dropping significantly. Entrepreneur reports the total number of companies that won initial capital fell from 654 in 2004 to 608 last year. On average, these companies received $4.8 million, for a total of $2.9 billion. Both figures are at their highest point in four years.



Five organizations on the list managed to complete more than 10 deals last year. California is again the most active state for funding with 56 of the ranked venture capital sources, 12 of which were in the top 25 percent.



Several funds on the list make use of public funds in their capital pools; however, a few are directly supported or administered by state and local tech-based economic development organizations. By making the list, these organizations are highlighting the work and success of public venture capital funds. Examples, with their ranking, include:

Supporters of NIST's Advanced Technology Program (ATP) have weathered years of attempts by members of the House and the Bush Administration to eliminate the program, but this may be the biggest hurdle yet: The Senate Appropriations Committee approved language calling for the program's termination as part of the Department of Commerce fiscal year 2007 appropriations. The first of only two ATP-related sentences included in the Senate Committee report 109-580 accompanying H.R. 5672 conveys the weariness of the battle as the Committee conveys their defeat: "The Committee will allow for the phase out of activities for ATP. No funds are provided in fiscal year 2007 for ATP, and the Committee believes that sufficient funds were provided as part of fiscal year 2006 under this title to cover all necessary close out costs associated with ATP."



The Bush Administration has repeatedly called for the program's termination and the House of Representatives has often agreed. Program supporters have always counted on some funding in the Senate's version of the bill and strong pressure in conference to continue the program. It would now take an amendment to restore funding in H.R. 5672 if and when the full Senate considers the bill, possibly in September. Far more remotely, funding could be reinserted in conference. The likelihood of anything more than a continuing resolution being passed to keep the government running after Oct. 1 grows stronger with each passing day, which also moves the program into shutdown mode.



Complicating the matter and perhaps offering another avenue of hope for ATP proponents is the possibility of leadership of one or both of the chambers switching political parties with November's election. The lame duck session could be quite lame if the Democrats gain control in January. It is unknown if Democrats would attempt to resurrect the program, however.



ATP was created in 1990 to provide matching funds for industry-led research that accelerates the development of innovative technologies for broad national benefit. ATP has invested in risky, challenging technologies that have the potential for a big payoff for the nation's economy. These technologies create opportunities for new, world-class products, services and industrial processes, benefiting the ATP participants, other companies and industries, and ultimately consumers and taxpayers. By reducing the early-stage R&D risks for individual companies, ATP enables industry to pursue promising technologies which otherwise would be ignored or developed too slowly to compete in rapidly changing world markets.



The Senate Report accompanying H.R. 5672 is available at: http://thomas.loc.gov/home/approp/app07.html



More information on NIST's Advanced Technology Program, including information on the 760-plus projects approved, is available at: http://www.atp.nist.gov

Maryland General Assembly approval of a $1 million boost for the Maryland Industrial Partnerships (MIPS) Program, one of the nation's oldest continually run programs to support university-industry research projects leading to technology commercialization, marks a 74 percent increase above the $1.35 million program budget for 2006. The increase was proposed by Gov. Robert Ehrlich in his fiscal year 2007 supplemental budget.



MIPS was authorized by the state in 1987 to promote the development and commercialization of products and processes through industry-university research partnerships. The program provides funds to Maryland companies to pay for university research. Since its inception in 1987 through 2003, 32 rounds of awards were completed.



Grants are awarded on a competitive basis for projects submitted by companies and researchers from any of the 13 University System of Maryland (USM) institutions. Types of projects funded include R&D in high-tech fields such as engineering, computer science, and physical and life sciences. MIPS also supports education and training projects designed to help companies plan and develop industrial training for employees.



Martha Connolly, director of MIPS, presented an overview of the program during SSTI's annual conference last year in the session, "Building Effective University-Industry Partnerships." According to the presentation, proposals are evaluated on technical merit and economic development potential. MIPS offers up to $200,000 in matching funds for research projects, and there is a 60-day turn around from application to award.



In reviewing "lessons learned" from the program, Ms. Connolly pointed out that testimonials are effective, offering several examples of successful products manufactured under the MIPS program. For example, the program has supported popular biotech drugs, a leading broadband by satellite service, and a kit to detect E. coli contamination in fresh produce and food services.



According to the presentation, the program's contribution to the state's economy has been widespread. Not only does the program create current high-paying jobs at the universities and companies, but it also has the potential to create future jobs with each investment. Additionally, the program opens direct company access to faculty experts at all USM institutions and is the only organized university R&D program in which commercialization is a primary factor for award.



More information about the MIPS Program is available at: http://www.mips.umd.edu/

The Maryland Department of Business and Economic Development appointed Christine Plater as its new director of small business programs.

The State of Maryland has created a new Small Business Programs unit as part of the Governor's Office of Business Advocacy and Small Business Assistance.

Aaron Greenfield will serve as the new director of the Anne Arundel County Economic Development Corp. in Maryland.

Roger Kilmer was appointed director of the Hollings Manufacturing Extension Partnership program at the National Institute of Standards and Technology. Kilmer served as acting director since Kevin Carr's departure last June.