SSTI Digest

In recent years, Iowa, like many midwestern states, has experienced a boom in ethanol production. Iowa's natural competitive advantage in growing and processing corn has helped it to move to the forefront of the emerging biofuels industry. The state provides numerous incentives and assistance programs through its Department of Natural Resources to help spur the creation of ethanol-related companies and jobs. A new report by Iowa State University economist David Swenson, however, argues that even if these programs are successful at building a strong ethanol industry, the overall economic impact of this success would be smaller than predicted.   Swenson argues in The Economic Impact of Ethanol Production in Iowa that many projections of the economic impact of corn ethanol suffer from improper input-output modeling and frequently overestimate the number of jobs that could be created by the industry. He found that the ethanol boom that occurred between 2000 and 2005 did not lead to the creation of many construction jobs. Instead, much of that construction work was undertaken by out-of-state firms that brought specialized workers with them. …

The North Carolina Board of Science and Technology, for a long time serving mostly in an advisory capacity to Gov. Mike Easley, increasingly is more involved in the direct delivery of technology-based economic development programs. The latest addition to its growing portfolio of programs is a $1 million Green Business Fund to help small businesses commercialize promising green and alternative energy technologies.   Under the new program, the Board will provide grants of up to $100,000 to North Carolina-based small businesses with 100 or fewer employees. The award process will be competitive, with priority given to proposals that aid in the following: Development of the biofuels industry in the state; Development of the green building industry in the state; and/or, Attraction and leverage of private sector investments and entrepreneurial growth in environmentally conscious clean technology and renewable energy products and businesses. The current solicitation for applications, set to close April 30, 2008, is the first for the program authorized by the North Carolina General Assembly during the 2006-2007 session. More…

New Mexico’s 2008 legislative session wrapped up last week, resulting in no final action on several TBED-related bills and leading Gov. Bill Richardson to call a special legislative session to address his health care reform agenda.   Gov. Richardson signed the General Appropriations Act of 2009 and the Junior Budget Bill with minimal vetoes but vetoed a Capital Outlay package, which included $2 million to the board of regents of Northern New Mexico for a proposed solar energy research park ($1 million less than requested) and $3.5 million for clean energy grants to public entities for innovative energy projects within the Energy, Minerals and Natural Resources Department. The legislature passed the capital bill again, giving the governor until March 5 to approve it with individual line-item vetoes, if he deems necessary.   Lawmakers approved $14 million last year for the state’s new Supercomputer – $11 million to purchase the computer and $3 million to set up gateways at the state’s research universities. This year, $2.5 million was appropriated for staffing and operating expenses for the New Mexico Computing…

Research-based companies draw much of their advantage in the market from their investment in technology development and the knowledge capital they have accumulated over time. Since this knowledge represents potential revenue, many companies jealously guard their intellectual property (IP) with non-compete clauses and other legal contracts with their employees. No company, however, can completely stop the outward flow of information. One of the most important means by which information can escape is through the movement of employees from one job to another. Reputations for Toughness in Patent Enforcement: Implications for Knowledge Spillovers via Inventor Mobility, a recent paper by Rajshree Agarwal, Martin Ganco and Rosemarie Ziedonis, states that a company’s reputation for intellectual property enforcement can significantly reduce the value lost through employee movement.   In their examination of IP enforcement and "job hopping" in the semiconductor industry, Agarwal et al. find that a firm's reputation for litigiousness plays a major role in the decision-making process of ex-employees. A strong reputation can effectively prevent former employees…

A consistent claim in many competitiveness reports and economic development strategies is the need to increase the number of scientists and engineers in a given geographic area. But are there other factors, when coupled with the presence of scientists and engineers, that influence local long-term employment growth more than others?   A recent paper from Desmond Beckstead, W. Mark Brown and Guy Gellatly explores this question and examines the factors that influence the number of scientists and engineers in cities. In Cities and Growth: The Left Brain of North American Cities: Scientists and Engineers and Urban Growth, Beckstead et al. find that cities concentrated with diverse mixtures of people with degrees, combined with science and engineering employment, experience the highest rates of long-term employment growth.   The authors use census data on 242 Canadian and U.S. cities to track employment numbers from the early 1980s to the early 2000s. According to their research, the concentration of people in a city with a “cultural” background is comparatively less influential than the concentration of people with a broad…

Using its Occupational Employment Statistics Survey, the Bureau of Labor Statistics estimates the number of employees in about 800 separate occupations for every metropolitan area in the U.S. In the most recent version of its Science and Engineering Indicators series, the National Science Board compiled a chart organizing the number of employees in S&E occupations in 2006, the most recent data available. As a whole, science and engineering occupations include all varieties of engineers, as well as scientists from the computer, mathematical, life, physical and social sciences.   SSTI has prepared a table showing the number of S&E employees and the percent of employees in S&E occupations for the 100 U.S. metropolitan areas with the largest number of employed people. For the U.S. as a whole, in 2006, just over 5.4 million had jobs in S&E occupations, which represents 4.1 percent of the working population. In the table, the metropolitan areas are organized by the size of their total employee base.   The metropolitan area with the highest concentration of S&E employees was San Jose, whose 126,000 S&E…

A complete description of this opportunity and others is available at http://www.ssti.org/posting.htm. The University of Toledo is seeking someone to serve as director of the University Clean Energy Alliance of Ohio (UCEAO) in the university's Department of Research. The director will be an experienced administrator who will serve as a major spokesperson in Ohio on advanced energy and who can move UCEAO from its present developmental stage to a robust organization that will provide leadership statewide. The incumbent will have significant professional experience in an energy-related field, as well as significant relevant administrative, leadership, and management experience. A bachelor's degree is required; an advanced degree or a Ph.D. is preferred.

Responding to a statewide economic downturn, Gov. Ted Strickland announced two major TBED initiatives, injecting more than $1 billion into job creation and offering a free year of tuition at Ohio public universities for high school seniors.   During his State of the State Address last week, Gov. Strickland outlined his Building Ohio Jobs proposal, a $1.7 billion stimulus package focusing on the creation of high-quality jobs in the fields of renewable energy and biomedicine. The plan would be financed through bonds, which requires legislative approval. Gov. Strickland asked lawmakers to put the initiative on the ballot for a fall vote, and if approved, funds would be allocated starting next year across the following sectors: $250 million in the advanced and renewable energy economy, including solar, wind and clean coal; $200 million to establish the Ohio Main Streets Renewal Initiative to spur redevelopment in downtown neighborhoods; $200 million in the biomedical industry; $150 million for infrastructure projects; and, $100 million in bioproducts that use renewable sources to create plastics and other products. Another $800 million…

Gov. Jennifer Granholm unveiled her fiscal year 2009 budget last week, proposing to refinance a portion of the state’s general obligation and taxable tobacco bonds and reduce spending across nearly all state departments in order to finance new proposals without raising taxes.   In addition to the proposed use of $150 million in pension funds for Invest Michigan! (see related article in this issue), Gov. Granholm outlined several other TBED-focused during her State of the State Address (see the Jan. 30, 2008 issue of the Digest). One of those initiatives – the Michigan Job Creation Incentive – would be paid for by capitalizing on the sale of state bonds. Under the proposal, new businesses in the top 50 growing sectors are not required to pay any taxes the first year of the tax cut, and existing top 50 growth-sector businesses will get a triple tax credit on their Michigan Business tax.   To support the alternative energy industry throughout the state, Gov. Granholm recommends: The creation of four Centers of Excellence linking a university with a job-creating alternative energy company; Tax credits for wind…

The fifth installment of the Tech Talkin’ Gov’s series includes highlights from State of the State Addresses delivered in Alabama, Connecticut, Minnesota and Wyoming.   Alabama Gov. Bob Riley, State of the State Address, Feb. 6, 2008 “We can and must accelerate the growth of broadband service, especially to the rural areas of our state. And so tonight I am announcing the Alabama Internet Initiative with a goal of ensuring that every home and every business in our state has high-speed Internet access and will have it within the next four years.”   Connecticut Gov. Jodi Rell, State of the State Address, Feb. 6, 2008 “The creation of jobs is always one of our top priorities. And at a time like this, with economic storm clouds on the horizon, it’s more important than ever that we focus on economic development. For that reason, I am recommending $500,000 in operating funds and $5 million in capital funds to support the field of nanotechnology. Nanotechnology draws upon our strengths in the fields of biology and chemistry and is an economic driver in manufacturing and…

One of the continuing challenges for TBED organizations is successfully documenting how their investments and activities influence the economic landscape of their states and regions. SSTI has selected a few recent state reports as examples of impact assessment, each identifying and utilizing certain measurements to help them tell their story. Their approaches may be of interest to other TBED organizations looking to gauge and share their impact with others. A starting point for many organizations going down the road of impact analysis is determining what they should measure and why they should measure it. The Pennsylvania Department of Community and Economic Development is an example of an organization looking into new ways to evaluate their TBED efforts, to complement the traditional economic development metrics they have used in the past. Measuring Up: Enhanced Metrics for a New Economy steps through Pennsylvania’s four focus areas of TBED activity (research and technology commercialization, company financing, business and technical assistance, workforce development and education) and identifies the metrics associated with the inputs, activities,…

State venture capital programs are an integral part of many state’s technology-based economic development portfolio. These programs can strategically target state investments towards promising high-tech companies at the critical early stages of business development and in areas where private capital is scarce. Venture programs, however, are not always easy to implement. By definition, they require a large fund of investment capital and sufficient manpower to assist and monitor their portfolio companies. Facing these difficulties, some states have turned to other methods of making state investment capital available to entrepreneurs.    One option is to target a portion of public pension fund investments toward in-state businesses. Most retirement systems already dedicate some of their investments to venture capital. Placing geographic restrictions or considerations on investments occurs less frequently, however, in respect for “prudent person” rules for investment (e.g., finding the greatest return at least level of exposure) and the monies belong to future and existing retirees, rather than the public sector.   Few…