SSTI Digest

South Dakota shows a $3 million TBED investment in strategic research areas can yield impressive results for a state strengthening its position in an innovation-based economy. 

Since 2004, South Dakota's five research centers have had a $111 million impact on the state economy, according to new data released by the South Dakota Tourism and State Development's Office of Commercialization. This impact represents a substantial return on investment for the state's initial $3 million investment five years ago. The impact numbers are being released as the state concludes its funding for the original five centers and prepares to launch several new centers, which will be supported by the state through 2014.

The $111 million impact includes more than $77 million in research spending and the activities of the 12 companies that have expanded or launched as a result of the centers. The centers also have helped create 550 new jobs and eight patent applications.

The expansion of undergraduate science programs within foreign countries positively affects the number of students from these same countries seeking advanced degrees at U.S. academic institutions. However, as foreign countries experience the maturation and growth of their doctoral-level programs, combined with growing employment opportunities in their economies, the flow of students to the U.S. changes. These insights, among others on the determinants of the supply of PhD students and the demand for PhD degrees, are discussed in the recent working paper, "Internationalization of U.S. Doctorate Education" by John Bound, Sarah Turner, and Patrick Walsh.

Useful stats columns in recent issues of the Digest have characterized academic R&D expenditures from two different angles: those expenditures made from industrial sources of funding (April 1) and total academic R&D expenditures (Mar 25). The primary source for the data was the National Science Foundation's Academic R&D Expenditures series, the compilation of an annual survey NSF conducts of the 680 largest academic institutions in the country.

The  complete description of this opportunity and others are available at http://www.ssti.org/posting.htm.

Penn State seeks a director for the newly formed Economic Engagement Initiatives unit in the Office of Economic and Workforce Development. The director will work collaboratively with academic, outreach, research, and other centers and units to present a unified point of entry to resources in support of economic development. The director is expected to generate significant grant-funded initiatives to Penn State. Qualifications include a master's degree (PhD preferred) or equivalent, plus five years of work-related experience in economic and workforce development or related fields that include evidence of organizational leadership and supervisory roles.

SSTI has an effective new learning tool for TBED policymakers and practitioners seeking guidance in approaches to building and sustaining tech-based economies. Through exclusive interviews with Excellence in TBED Award recipients, find out first-hand how these award winning initiatives successfully responded to a critical need by applying innovative approaches to generate substantial economic gains for their region. Technology 2020 2007 Winner for the Building Entrepreneurial Capacity category

The need for state and local support for tech-based economic development grows more critical in the current recession, based on recent unemployment reports for key technology sectors. Layoffs at high-tech companies during the first quarter of 2009 were at their highest point since 2002, according to outplacement firm Challenger, Gray and Christmas. Reported job losses at tech companies totaled 84,217, up 27 percent over the fourth quarter of 2008 and up 485 percent over the first quarter last year. The job loss figures for the first quarter of 2009 already exceed the first two quarters of 2008 combined.

Though the report does not take new hires into account, the news is discouraging for the high-tech sector, which has now endured its fifth consecutive quarter of increasing layoffs. Only the automotive sector and retail incurred more job losses in the first months of 2009.

Congress has been debating the need to revise U.S. patent law for years, and, while the debate certainly is not over, a significant hurdle was passed last week when the Senate Judiciary Committee voted 15-4 to move S.515, as amended, for full Senate consideration. 

Several provisions in the bill as introduced had met opposition from vocally significant groups, such as the biotech and academic communities. On the other side of the issue have been equally powerful players such as large information technology & communications companies.

With a $25 million funding opportunity currently on the streets for manufacturing and infrastructure research projects, the Technology Innovation Program (TIP) has added three more locations and dates for proposers' conferences next week. The free public meetings will provide general information regarding TIP, guidance on preparing proposals, and the opportunity for questions and answers. NIST/TIP staff will answer questions about the TIP eligibility and cost-sharing requirements, evaluation and award criteria, selection process, and the general characteristics of a competitive TIP proposal at the Proposers' Conferences and by phone and email.

Monday, April 13, 2009 Boston Massachusetts 1PM - 5PM Eastern Time Marriott Boston Cambridge

Wednesday, April 15, 2009 Detroit Michigan 1PM - 5PM Eastern Time Detroit Marriott at the Renaissance Center

Growth is most noticeable in dogs, cats and humans when they are puppies, kittens and infants. A new analysis by the Kauffman Foundation looking at the Census Bureau's Business Dynamics Statistics reveals the same phenomenon in businesses: growth, as measured by net employment, is most significant for younger companies compared to their more mature counterparts.  Infant mortality of young firms is very high, though - nearly 20 percent of all jobs at very young startups are lost due to the businesses failing within the first year.

Nevertheless, net employment growth in the firms that survive their first birthday is 15 percent. The net employment growth gradually tapers off as firms mature, but so, too, does the risk of failure and closing.  The Kauffman Foundation terms this an "up or out" pattern.

In 2006, three Arizona CEO groups joined forces to create Science Foundation Arizona (SFAz), a nonprofit public-private partnership charged with making strategic investments to support university research, new high-tech businesses, K-12 STEM education and to leverage outside investment. The state provided public support for these efforts through the 21st Century Fund, which in its first year included $35 million for SFAz's grant programs.

Recently, however, Arizona has begun cutting back their TBED investments through SFAz. Originally, the state had planned to allocate $25 million a year to the 21st Century Fund through FY10, but reduced the allocation in its second year and eliminated funding for FY09 (see the February 4, 2009 issue). Legislators are now considering omitting SFAz funding from the FY10 budget.

Last week the South Carolina Higher Education Study Committee, formed by the General Assembly in 2007, released its action plan to improve postsecondary education and economic opportunity within the state. Leveraging Higher Education for a Stronger South Carolina outlines more than 100 recommendations distributed among the following four goals: making South Carolina one of the most educated states in the nation; increasing innovation and research; improving workforce training and educational services; and, realizing the state's potential.

The recommendations target workforce improvement for industry sectors expected to grow by 15 percent by 2016. The report identifies these sectors as information, health care, utilities, administrative support, waste management and remediation, educational services, real estate, and management of companies.

Karl Fooks, a past managing director for J.P. Morgan & Co. in Asia, is the new president of the Hawaii Strategic Development Corporation. Fooks replaces John Chock who retired last year.

The U.S. Senate confirmed by unanimous consent President Barack Obama's nomination of Karen Gordon Mills as the 23rd Administrator of the U.S. Small Business Administration.