SSTI Digest

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.

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.

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.  

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).

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.  

Virginia could capitalize on its strong energy R&D foundation of universities, federal laboratories and businesses through coordination among research activities and by creating a consistent funding stream for federal R&D funding and technology commercialization, finds a new state energy plan released last week.   Mandated by SB 262 from the 2006 General Assembly, the Virginia Energy Plan outlines specific goals and recommendations that set forth energy policy for the Commonwealth over the next 10 years. Under the plan, the state will reduce the rate of growth in energy use by 40 percent, reduce greenhouse gas emissions by 30 percent and seek to increase in-state energy production by 20 percent. The plan also calls for expanding consumer energy education and increased R&D within the areas of nuclear technologies, alternate transportation fuels, coastal energy production, and carbon capture and storage.

As with every public policy or program to promote economic development, TBED initiatives can fall victim to critics’ concerns regarding the value of these approaches if performance measurement is not an integral component of your efforts. Fair assessment of impact, though, remains a thorny issue for many TBED strategies because of the early stage of investment (e.g. support for university research, entrepreneurship education or even seed capital).   Even when one does measure the impact of a specific program or policy, additional potentially legitimate concerns can be raised for how well your performance compares to similar efforts in other parts of the state or country. Or, the lack of any sense of a control group of companies or entrepreneurs who did not participate in the initiative to use to benchmark the difference made by the effort can lead to unwarranted criticism from skeptics.  

Each year, Southern Growth Policies Board honors Southern initiatives that are improving the quality of life in the region through its Innovator Awards. The Awards are presented annually to one organization in each of Southern Growth’s member states ­ Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Virginia and West Virginia. In 2008, the Awards will be chosen from initiatives that promote youth engagement and leadership in the region. Each nominated initiative must fulfill these and other criteria:

Complete descriptions of these opportunities and others are available at http://www.ssti.org/posting.htm. The Office of Extension, Engagement and Economic Development at North Carolina State University (NCSU) is seeking someone for the position of director of the NC Economic Development Partnership. This position will have primary responsibility for building alliances for economic development and connecting the unique strengths of NCSU to appropriate agencies and industry clusters. These alliances include a significant partnership the North Carolina Department of Commerce. An M.A.or M.S. degree in an appropriate discipline and three years of experience in economic development program delivery in extension, outreach or public service, or a combination of suitable educational background and professional certification in economic development are required.

Nonprofit entities in Alabama, Arkansas, Connecticut, Kentucky, Massachusetts, Virginia, and Washington will receive $13.2 million over six years for training and incentive programs for Advanced Placement (AP) and Pre-Advanced Placement Programs. The grants will be used for extensive training of teachers, identification of lead teachers, additional "time on task" for students, and financial incentives based on academic results. The funding is coming from the National Math and Science Initiative (NMSI), which was launched in March 2007 in response to the National Academies Rising Above the Gathering Storm report that calls for improving American students' performance in math and science to increase global competitiveness. In addition to the AP grants, NMSI is expected to award funds to up to 10 universities for UTeach programs, which encourage math and science majors to pursue teaching credentials during their undergraduate course study.

While dozens of states have instituted clean-tech strategies in order to cash in on the high-tech wave of the future, some are looking even further ahead. In several western states, private space travel and companies are drawing the attention of political leaders, researchers and investors eager to pioneer an industry that may still be many years away from creating dividends. California has long been involved in promoting space technology companies through the California Space Authority, which offers workforce training and business support opportunities. In New Mexico, Virgin Galactic plans to begin construction on Spaceport America next year with $67 million in state funds once the project is approved by the Federal Aviation Administration (see the Dec. 19, 2005 issue of the Digest).  

One of the many challenges for tech-based economic development organizations and private firms is to access and take advantage of the wealth of knowledge produced throughout the nation’s federal laboratory system. With the hope of making their intellectual property more accessible for commercialization, four research facilities within the Department of Energy’s National Nuclear Security Administration (NNSA) recently signed a cooperative agreement to pool together their patents.   The Innovation Bundling Initiative aligns the intellectual property of Los Alamos National Laboratory, Sandia National Laboratory, the Nevada Test Site, and Lawrence Livermore National Laboratory. Under the initiative, patents originating from these facilities will be sorted into groups by subject matter and similarity of technologies, which can then be marketed in this organized manner to the private sector. Additionally, the bundling will enable collaborators to negotiate with a single entity for patent access, as opposed to dealing with the individual facilities that own each particular patent.