SSTI Digest

When given a list of seven technology categories to possibly target and invest money and resources over the next 10 years, 37 percent of U.S. respondents selected “fuel efficiency and alternative fuels” as their leading choice, according to a national survey commissioned by the Fairfax County Economic Development Authority (FCEDA) in Virginia. The remaining choices provided by the survey, which was conducted in March 2008, were as follows (ranked by overall popularity): Medical – 30 percent; Environment – 14 percent; Security and defense – 10 percent; Transportation – 3 percent; Space exploration – 3 percent; Telecommunications and media – 2 percent; and,

SSTI Gives Readers Closer Look at the Data With U.S. venture capital (VC) investment reaching its highest level since 2000, many are excited about the potential growth of investments in states that have received historically smaller amounts of VC. In the March 19, 2008 issue of the Digest, SSTI covered analysis from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers that highlighted the five U.S. regions that have experienced the greatest growth since 1997. These regions, including the state of New Mexico and Pittsburgh metro area, have posted remarkable gains.   Others, looking at the data from different perspectives, disagreed with the NVCA conclusion and argued national trends do not appear to be especially favorable to nontraditional venture regions or select states.  

A growing number of state governments face revenue uncertainties in the near future. More than half now expect budget deficits and shortfalls in the upcoming fiscal year and beyond. Despite the bleak outlook, however, legislators nationwide are continuing to invest in science and technology with many lawmakers projecting high returns to their state in the coming years. Following are highlights of TBED investments and reductions in recently approved budgets in Kentucky, Maine and Nebraska.   Kentucky Recognizing the statewide economic benefits of strategic investments in university research, Kentucky legislators concurred with Gov. Steve Beshear’s proposal to continue support for the Bucks for Brains initiative. Lawmakers approved $60 million in bonds under the fiscal year 2008-10 biennial budget agreement to expand the state’s endowment matching program used to attract high-quality researchers.   

Legislators passed the fiscal year 2008-09 budget last week, increasing spending by 4.9 percent over last year and investing in New York’s Upstate economy despite projected shortfalls for several years to come.   Lawmakers approved $700 million for the Upstate Revitalization Fund, an initiative that Gov. David Patterson continued to push forward following the resignation of Gov. Eliot Spitzer last month. In January, former Gov. Spitzer unveiled the Upstate proposal, asking lawmakers for $1 billion to encourage economic growth through targeted investments in high-technology development, agriculture, housing, transportation, and state parks (see the Jan. 23, 2008 issue of the Digest). Many of Gov. Spitzer’s initial requests for funding were fulfilled, including $120 million for the Regional Blueprint Fund - $200 million less than Gov. Spitzer’s recommendation - and $180 million for City-by-City investments, which was $65 million above the governor’s original recommendation. Additional components of the approved fund include:

In a deal ironed out earlier this month by Gov. Ted Strickland and legislative leaders, the state will move forward with an economic stimulus plan that borrows far less than the governor’s original proposal while using existing state revenue such as tobacco settlement funds to supplement the plan – a move that has prompted legislative action to secure control of the tobacco funds.

The declining value of the U.S. dollar and other business cost considerations are giving the U.S. a favorable cost advantage compared to other industrialized nations in Europe, Japan and Australia, according to a new biennial report from KPMG. The 2008 Edition of KPMG’s Competitive Alternatives collects data over a range of industries, such as precision manufacturing and biomedical R&D, to compare 136 metro areas in 10 countries. When looking at aggregate national business costs across various sectors, Japan and Germany are 14.3 percent and 16.8 percent higher, respectively, than the U.S. Canada’s overall business costs are 0.6 percent lower than the U.S., and Mexico’s costs are 20.5 percent lower than those of the U.S.   To create the U.S. business costs comparisons, KPMG examined 59 metropolitan areas throughout all 50 states and Puerto Rico. The report delved into the varied business costs over a 10-year planning horizon for 17 different operations in each metro, which were grouped into the following four industry clusters:

Many state and regional TBED organizations see federal laboratories as an integral partner in their efforts to promote technology development and commercialization. At least 22 of the leading state TBED organizations across the country have established partnerships with at least one federal laboratory to address a broad range of goals, according to a recent SSTI survey. Advancing collaborative research, strengthening industry clusters, transferring technology to/from federal labs and companies, and assisting in education and outreach were the most commonly cited reasons for pursuing closer relationships with the nation's network of 700 federal labs and research centers.

The survey also found state TBED-federal lab collaboration crosses state boundaries more easily than some may expect: SSTI discovered one-third of all relationships state TBED organizations have with federal laboratories take place at laboratories outside of their state. In addition, more state and local TBED organizations are looking to form new partnerships or expanding existing arrangements based on the successes seen from their initial efforts.

John Austin is the newly appointed executive director of the New Economy Initiative for Southeast Michigan.

Tom Cech announced he will return to the University of Colorado at Boulder next year to pursue laboratory research and teaching after eight years as president of the Howard Hughes Medical Institute.

Sarah Djamshidi was selected as executive director of the Chesapeake Innovation Center.

John Hardin was named the acting executive director for the North Carolina Board of Science and Technology.

Wayne Hicks announced he is stepping down as the president and CEO of the Cincinnati Business Incubator to focus on other interests, including his work as executive director of the BDPA Education and Technology Foundation.

Regional and industry cries of a highly skilled worker shortage, particularly for scientists and engineers appear well grounded based on a recent InfoBrief from the National Science Foundation (NSF). The Foundation reports in 2006, the unemployment rate for scientists and engineers in the U.S. fell to 2.5 percent. Decreasing from 3.2 percent in 2003, the figure is the lowest unemployment rate measured since the early 1990s using the Scientists and Engineers Statistical Data System, NSF reports.   The findings are quite sobering when paired with this week’s release of the widely covered report by America’s Promise Alliance that reveals more than 1.1 million children in the U.S. drop out of high school each year.

This week's issue of Southern Compass, the electronic newsletter published by the Southern Growth Policies Board, suggested its readers check out the March 27, 2008, edition of Education Week, which is dedicated to examining what states are doing to improve science, technology, engineering and math education (STEM). STEM education is considered one of the highest priorities by many groups for the U.S. to maintain its global leadership in innovation and competitiveness.

Lexington, Ky., Mayor Jim Newberry announced last week a college scholarship plan targeting students pursing degrees in science, technology, engineering and math (STEM) fields as a means to transform the local economy into a globally competitive community by investing in the city’s youth.   The proposed Lexington First Fund would provide full tuition to every Fayette County high school graduate for up to four years at any institution of higher education located within an hour’s drive of Lexington. The only requirement is that students must pursue an associate or bachelor’s degree in a STEM field or a teaching degree in one of these fields. The idea is that by encouraging residents to pursue STEM fields, the local economy will reap the benefits of a highly skilled workforce. The plan also aims to promote attendance at local institutes of higher education and attract high-tech industries to the city.  

A growing number of academic researchers and TBED practitioners are taking interest in the emerging subject of open innovation. Like all new concepts and business practices, open innovation is not well understood by broader audiences and under-researched in the academic community. Tobias Fredberg, Maria Elmquist and Susanne Ollila from Chamlers University of Technology in Sweden attempt to address both needs in a recent paper, Managing Open Innovation – Present Findings and Future Directions.