SSTI Digest

Within economic development literature, many researchers believe the success of regional industry clusters is dependent on the strength and quantity of local “gatekeepers” – the organizations, firms and individuals that both draw knowledge from outside the region and distribute knowledge within the region. But what are the characteristics of these gatekeepers that may lead to a more productive exchange of knowledge?   In a recent paper, Gatekeepers in Regional Networks of Innovators, Holger Graf investigates the actions of these entities within four economically diverse regions of Germany. Graf gauged the relationships inside and outside of a region by analyzing information about the patents filed. He used the number of patents filed by an entity as a proxy for its size, and concluded size was not a major reason for being a gatekeeper. However, the number of distinct inventors that appear on an entity’s filed patents, known as the absorptive capacity, was found to be a very important predictor of being a gatekeeper.   Throughout the paper, the physical location of the collaborators for the filing of a patent was used to…

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm. Following its corporate mission of "turning knowledge into practice," RTI International is launching an initiative aimed at eliminating underdevelopment and unlocking opportunity in economic growth centers throughout the U.S. and worldwide. For this initiative, RTI seeks to immediately fill two important positions: (1) a program manager for innovation-based economic development who will play a key role in leading this initiative with other professionals across RTI and (2) an economic development analyst who will design, manage, and support technology-based economic development research and implementation projects. Each position has its own set of responsibilities and qualifications.

Congress may be able to use a Continuing Resolution to keep most of the federal government open after the fiscal year ends Sept. 30, but the Technology Administration (TA) will be closing forever this Sunday.   TA was established by the Stevenson-Wydler Act of 1980 to “conduct technology policy analyses to improve United States industrial productivity, technology, and innovation, and cooperate with United States industry in the improvement of its productivity, technology, and ability to compete successfully in world markets.” Besides this duty, TA was also originally charged with assisting with the implementation of the Metric Conversion Act of 1975, monitoring Japanese scientific innovations, and overseeing the collection and translation of Japanese technical reports and documents, among others.   The budget for TA has fallen over the years, with $6 million allocated for fiscal year 2006 and $1.6 million in FY 2007. The budget request for the 2008 fiscal year, which begins on Oct. 1, 2007, includes marginal funding for personnel and other costs associated with terminating the agency. The policy activities for which TA is…

Fans of sound public policy may have celebrated last year’s complete elimination of congressional earmarks on the FY 2007 budget. With the rapid growth over the past decade in the percent of discretionary federal spending arriving with strings attached, the idea there would be no more multi-million-dollar bridges to nowhere, indoor rainforests on the great plains and other gems seemed too good to be true. And it was, apparently, as draft FY08 budget bills surfacing in both chambers reveal.   The plus side of earmarks, besides keeping a small army of lobbyists employed, is that sometimes they can provide funds to support research and TBED initiatives. For example, following is an overview of recent federal earmarks from across the nation that were included in the Transportation, Housing and Urban Development Appropriations bill. Whether or not the bill actually passes the full Congress before late winter or next spring remains to be seen.   Alabama Sen. Richard Selby (R-AL) announced funding for several projects included in the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for…

With the first round of state funding not expected until April 2008, private foundations have stepped in to provide a jumpstart for the Life Sciences Discovery Fund (LSDF). Last week, six Washington-based research teams were awarded more than $4.5 million in private funding to support projects that improve health care quality and capitalize on economic development opportunities within the state.   Created in 2005, LSDF is a state agency that operates like a foundation, authorized to use $350 million in tobacco settlement funds over a 10-year period to support life science research (see the May 16, 2005 issue of the Digest). When leveraged with federal sources and private investment, the fund’s total impact is expected to exceed $1 billion.   Selected projects for the first round of funding will focus on innovative applications of technology to improve effectiveness of surgical procedures, to improve management for all patients, and to better diagnose and treat certain diseases. Major contributors include the Bill & Melinda Gates Foundation, the Paul G. Allen Family Foundation, Microsoft, Amgen, Safeco, and Regence…

Last year, nearly 17 million international passengers passed through Los Angeles International Airport (LAX). Many of those passengers were businesspeople who rely on convenient access to international flights to keep their companies in touch with partners, customers, divisions and markets all over the world. International flights out of LAX have played a key role in positioning the Los Angeles region as the largest manufacturing center in the U.S. and as a national high-tech leader. In fact, a recent report from the Los Angeles Economic Development Corporation (LAEDC) estimates that an average daily transoceanic flight out of LAX sustains 3,120 direct and indirect jobs, generates $156 million in wages, and adds $623 million to the region's economic output.   That same report, however, finds that Los Angeles' competitive advantage in access to international flights is now in danger of disappearing, as other large airports expand their overseas offerings and a handful of up-and-coming international gateways begin to offer daily international flights. Between 2000 and 2006, LAX - the country's second largest international gateway - experienced a…

The Trent Lott National Center of Excellence for Economic Development & Entrepreneurship is pleased to announce its inaugural Excellence in Technology Based Economic Development Research award will be made to Dr. Edward Feser on Oct. 19, 2007, at the SSTI 11th Annual Conference in Baltimore.   The Lott Center award recognizes outstanding research contributions to Technology Based Economic Development (TBED) which help economic development practitioners and policymakers grow their regions economies through the recruitment, expansion and start-up of high tech enterprises.   Dr. Feser’s research has reshaped the way in which TBED practitioners and policymakers take action and offers new pathways for future action. Areas of specialization include industry clustering, industry cluster analysis methods, agglomeration economies and industrial productivity, migration and regional economic distress, regional influences on process technology adoption in manufacturing, and the improvement of data and spatial-analytical techniques for local development practice. Currently, he is studying economic development policymaking…

According to the first-ever release of gross domestic product (GDP) estimates by metro area, 327 of the nation's 363 metro areas enjoyed growth in real GDP in 2005. Only 133 of the areas accelerated faster than inflation, however. The one-year percent change in 2005 GDP for metro areas ranged from 19.4 percent in Palm Coast, Fla., to -5.4 percent in New Orleans. Real GDP declined in 36 metro areas. The Bureau of Economic Analysis (BEA) made the experimental but potentially valuable statistics available to the public to receive broad evaluation and comment by users. All told, metropolitan areas of the country account for 90 percent of the nation's total GDP. That figure is heavily skewed toward the largest areas, however -- the top 5 metro areas account for 23 percent of the U.S. total, while the smallest 75 areas make up less than 2 percent of U.S. GDP. At $1.1 trillion, the New York metro area would be the second state behind California's $1.6 trillion figure and the 10th largest country. The 2005 total GDP for the U.S. is $12.4 trillion. The Sept. 26 BEA press release includes a table presenting annual GDP…

Early registration is nearly over and the conference hotel is full, but you still have the opportunity to join representatives from 47 states and Canadian provinces at SSTI's 11th Annual Conference in Baltimore, Oct. 18-19, 2007 -- the nation's premier gathering for the tech-based economic development field. SSTI conference registrants can book rooms at the Hampton Inn & Suites Baltimore Inner Harbor Hotel. This hotel is located just 1.5 blocks from the Renaissance Baltimore Harborplace Hotel, the site of this year's conference. Spacious rooms with large windows and 9-foot ceilings, complimented with rich Mahogany furniture, are available. To get the contract rate of $199 plus tax, please call the Hampton Inn & Suites at 410-539-7888 and mention you are part of the State Science and Tech Institute Block. The deadline is the end of day Thursday, Sept. 27. A Google map to the hotel is available by clicking here. The hotel can be reached at: Hampton Inn & Suites Baltimore Inner Harbor 131 East Redwood Street Baltimore, MD 21202…

Ten foundations have joined forces to create an eight-year $100 million New Economy Initiative for southeastern Michigan, with a goal of transitioning the region’s economy toward more knowledge-intensive industries. Three foundations, Ford, Kellogg and Kresge – each created from the personal fortunes made by some of the founders from the state’s historic economic bases – have contributed $25 million toward the effort. Additional support ranging from $1.5 million to $10 million is being provided by seven other community foundations.   The Community Foundation of Southeast Michigan will provide organizational management for the effort, which, according to the Sept. 14 Detroit Free Press, will be chaired by Steve Hamp, brother-in-law and former chief of staff to Ford Motor Co. Chairman Bill Ford. A search is underway to hire an executive director for the effort.   The Detroit region is not the first Midwestern manufacturing center to see private foundations step up to help finance TBED efforts, although the $100 million commitment presents one of the largest one-time injections of funds. In 2004, Northeast Ohio foundations…

Earlier this month, the U.S. House of Representatives approved patent reform legislation that would represent the most significant reform of the U.S. patent system since the Bayh-Dole Act. The Patent Reform Act of 2007 (HR 1908) would move the U.S. to a first-to-file patent system rather than the first-to-invent system that has long made the U.S. an international outlier in intellectual property (IP) protection. A first-to-file system would help organize existing patents and simplify patent searches and challenges; however, this system also could lead to a rush to file new patents, placing those small businesses and individual inventors with fewer legal and financial resources at a significant disadvantage (see the June 6, 2006 issue of the Digest). The bill has divided the tech community. For example, the Institute of Electrical and Electronic Engineers (IEEE) believes that the proposed changes would both stifle innovation and harm the ability of smaller firms to assert their intellectual property rights against large corporations. Other groups such as the Business Software Alliance believe that patent reform could help reduce frivolous suits and…

Public universities in most states compete with other state priorities for appropriations each year or two-year budget cycle. With the state’s fiscal year ending Sept. 30, no new budget passed by the legislature and a projected state revenue deficit of more than $1.5 billion for 2008, universities in Michigan may feel greater pressure to assert their importance to the state’s economy. The recent release of an independent analysis of the economic impact of the state’s three research universities, collectively known as the University Research Corridor (URC), may provide timely support for the argument to sustain or increase state investments in its higher education establishment.   Findings of the analysis indicate the URC is a major asset to the state’s economy, with contributions of $12.8 billion in 2006. The URC helped create 68,803 jobs in the state and produced 54 percent of the state’s science and engineering degrees, according to the analysis.   Released last week by Anderson Economic Group, the analysis is the first in a series of annual reports that measures the Research Corridor universities against six…