SSTI Digest

In the midst of a national economic downturn, coupled with stagnant to little growth in wages for even college-educated individuals, state efforts to build a qualified workforce and attract industries in emerging fields that pay above-average wages are crucial to ensuring economic growth.   A recent report on income trends issued jointly by the Center on Budget and Policy Priorities and the Economic Policy Institute finds that one in five U.S. families has a lower income today than they did at the start of the decade. Analyzing state-by-state income trends over the past 20 years, the report also finds a long-standing trend of growing inequality between families in the wealthiest income bracket and those in the middle- to lower-income brackets. In fact, while incomes have declined by 2.5 percent among the bottom fifth of U.S. families since the late 1990s, the data indicates that incomes have increased by 9.1 percent among the top fifth.

Although the U.S. broadband infrastructure has expanded rapidly over the past decade, 45 percent of rural areas still lack access to high-speed Internet services. A recent issue brief from the National Governors Association (NGA) Center for Best Practices provides a number of strategies that have proven effective in expanding broadband access, particularly in underserved rural areas.   The brief highlights a number of state efforts that have been successful in expanding and improving service in recent years. These include the California Broadband Initiative, ConnectKentucky, Maine's ConnectME Authority and the New York State Council for Universal Broadband. Together, these profiles offer an overview of how states are approaching the digital divide.   NGA also presents a number of specific strategies that can be implemented in states with high-speed Internet gaps to create a comprehensive broadband access initiative. For example, the report provides a guide to 14 state tax credit programs that have been used to increase demand for broadband services or to encourage the development of new broadband infrastructure.  

To speed the commercialization of technologies developed within the state's three public research universities, the Arizona state auditor general has made several recommendations that also may be of value to tech transfer efforts and academic institutions across the country. 

Since the inception of the HOPE scholarship program in Georgia 15 years ago, the number of state-sponsored merit-based scholarship initiatives to increase the number of students attending in-state colleges and universities has increased throughout the country. One such statewide initiative, Florida’s Bright Futures Program, was established in 1997 and has since become the second largest merit-based scholarship program in the U.S. At the recent annual forum of the Association of Institutional Research held in Seattle, Dr. Shouping Hu of Florida State University presented a paper examining the possible unintended consequences for student bachelor degree enrollment in the STEM fields before and after the implementation of Florida’s program.  

The U.S. Department of Commerce's Economic Development Administration (EDA) recently announced Ben Franklin Technology Partners (BFTP) as the winner of the "Excellence in Technology-led Economic Development" award, as part of EDA's Excellence in Economic Development Awards 2008. BFTP, created in 1983, has regional offices in Lehigh Valley, Philadelphia, Pittsburgh and State College.

Janet Harrah was named the director of a new center being started at Northern Kentucky University that is similar to Wichita State University's Center for Economic Development and Business Research, where Harrah will remain director until July 25.

Peter Hermann resigned as president of the North Carolina Technology Association.

Throughout most of the history of the U.S. venture capital industry, expanding, and not start-up companies, have been the primary focus of venture investors. Recent data from the PricewaterhouseCoopers and National Venture Capital Association (NVCA) annual MoneyTreeTM Report indicates that investors are beginning to focus on even later-stage companies, which could be a problem for entrepreneurs and states trying to attract earlier-stage dollars.   State and national investment data by stage is now available on the profile pages of the SSTI Venture Capital Dashboard for all 50 states (plus Washington, D.C., and Puerto Rico).  

Last week, NASDAQ saw the debut of the Illinois Tech Index (symbol: ILTI), currently recognized as the only technology index in the U.S. tracking publicly traded technology companies within an individual state. Based on 61 firms with their headquarters in Illinois, the Illinois Tech Index is derived from the aggregate value of the firms’ total shares outstanding. When the index officially started on Monday, May 19, the base value of the ILTI was 1000.00. As of Wednesday’s close of markets, the Index finished at 969.20.   The AeA and the Illinois Biotechnology Industry Organization (iBio) identified within certain industries the Illinois companies eligible for inclusion. The composition of the index will be updated on a semiannual basis. Besides highlighting the state’s leading tech companies, the mission of the Illinois Tech Index is to increase the state’s venture capital and technology investment activity, attract technology talent and jobs, and support entrepreneurial growth.  

Minnesota legislators established the Office of Science and Technology (OST) to develop a collaborative partnership between industry, academia and government that will coordinate federal funding procurement efforts in S&T with Minnesota. OST's efforts will focus on developing the partnership to help small help businesses access federal grants for technology development and promote contractual relationships between Minnesota small, medium and large businesses according to the governor's press office.    The Department of Employment and Economic Development will receive $400,000 for the effort in fiscal year 2009 to expand current SBIR and STTR efforts and develop a process for technology partnering and commercialization to enhance the S&T funding pipeline.   Legislators also approved:  $9 million for bioscience business development infrastructure;

Earlier this month, the governors of Oregon and New York both outlined changes to the structure of their states’ lead economic development organizations.   Before Gov. Ted Kulongoski signed Executive Order 08-11 to reorganize the Oregon Economic and Community Development Department (OECDD), it consisted of three components: The Business and Trade Development Division, which performs business recruitment and efforts to engage small business and provides international trade and regulatory assistance; The Innovation and Economic Strategies Division, which primarily develops and administers programs to promote innovation, sustainability, and clusters within the state; and, The Community Development Division, which assists public infrastructure projects, such as building portable water and wastewater systems, in addition to administering Oregon’s Community Development Block Grants.

Offering customized workspace such as wet laboratories and specialized research equipment is one of the many benefits provided by technology-focused incubators. Access to university research, business mentoring and administrative support services often accompany the reduced rent facilities with the goal of growing technology companies into successful, self-sustaining enterprises. Following are select announcements of recently launched incubators and partnerships from across the nation.    GateWay Community College recently received a recommendation from the Phoenix Parks, Education, Bioscience and Sustainability subcommittee of the Phoenix City Council to enter into an intergovernmental agreement with the college to build a bioscience incubator laboratory with wet lab space, the Arizona Republic reports. The wet lab would be a minimum of 5,000 sq. ft. and located near the Phoenix Biomedical Campus.  

Last week, Congress approved the $300 billion "farm bill" with large bipartisan majorities in both the House and Senate (318-to-106 and 81-to-15, respectively). The wide margins belie that fact that the bill remains somewhat controversial outside of Congress for its lack of reform of farm and crop subsidies. President Bush vetoed the bill today, citing concerns about its continued support of large subsidies for agricultural producers despite record profits for the farming industry. With veto-proof majorities in both houses, however, the bill is likely to survive.   Despite being dubbed the farm bill, farm programs only account for 12 percent of spending in the bill. Many TBED-related programs are expected to receive funding increases if the bill becomes law.  

As readers know, the United Kingdom is no slouch in the world’s economy. A steady rise in productivity since 1997, the pound trading at nearly twice the dollar, and the home of some of the world’s top research universities and a global financial center for centuries all attest to the United Kingdom’s strong economic position.   How it is preparing to sustain and expand its competitive position through strategies like those enumerated in the April release of Innovation Nation stands in sharp contrast to U.S. policies and investments to support science and technology-based growth.   For evidence, one needs look no further than the unit of the British government that released the strategy – the UK Department for Innovation, Universities and Skills (DIUS). DIUS has no U.S. counterpart working to coordinate advanced research investments, workforce preparedness, and tech-based economic development initiatives. U.S. efforts in these areas are scattered across several agencies and have been perennial targets and often victims for budget.