SSTI Digest

As the development of a nation's science and technology capacity becomes a critical component for economies around the globe, it is becoming even more critical for countries to implement strategies that will enable future competitiveness. This is particularly true for the world's leading economies, which is why, for example, the European Commission increased the resources invested toward research and innovation (see May 2, 2005 and Oct. 22, 2006 issues of the Digest.)

Alternate financing schemes increasing to pay for popular TBED tool State and local strategies to assist new technology business formation often focus on three elements: helping firms secure much needed funding or capital (either private or public), lower their operating costs, or gain access to the intellectual and knowledge resources necessary to succeed. Since successful technology business incubators or accelerators usually address all three elements, the nation’s newspapers are continually reporting on the planning, construction or expansion of these useful TBED tools. A few recent announcements are highlighted below.   Arizona

In recent years, much has been said about the migration of corporate research from R&D centers in the U.S. to new sites in developing countries where many multinational companies have found large pools of skilled labor and access to the world’s fastest-growing markets. A report from Booz Allen Hamilton last year found that India and China were the fastest-growing sites for foreign-based research at U.S. multinationals and that 77 percent of all new R&D centers planned for the next three years were slated for sites in those countries (see the May 22, 2006 issue of the Digest).  

Every year, the U.S. Census Bureau releases its annual Geographic Area Statistics report, filled with detailed statistics collected from its Annual Survey of Manufacturers. The report provides data for the nation as a whole, every state, and the District of Columbia for numerous sectors within the manufacturing field. Included in the report are statistics for the number of employees, payroll, value added, value of shipments, capital expenditures, cost of materials, and cost of electric energy for heat and power. Using this data, SSTI has prepared a table showing the state rankings for the percent change between 2001 and 2005 for the total manufacturing value added, the value of shipments, and the value added per employee.

The Tennessee Technology Development Corporation (TTDC), the lead organization in Tennessee for technology-based economic development, is seeking a president and chief executive officer (CEO). This position is responsible for the overall direction and management of TTDC and its programs, including resource development, finances, contracts, compliance reporting and operational policies. He or she will work with a 22-member board of directors to establish and successfully implement a work plan that fulfills the organization's mission. At least 10 years of leadership experience and a graduate degree in business or relevant scientific field are required. For a full description of this opportunity and others, visit the SSTI Job Corner at http://www.ssti.org/posting.htm.

Deal’s Impact on Texas Operations Remains Unclear If you follow college sports, you know all how strong rivalries can be between certain schools. Bragging rights after a football game spill over into competitions over everything. Those that cross neighboring state borders seem to have even more edge sometimes.   Follow the semiconductor industry for long and you will find similar rivalries arising between two states whose capitals are 1,575 miles apart: New York and Texas. Both states’ capitals – Albany and Austin – want to be the global center for nanoelectronics.   The trophy is SEMATECH, the semiconductor industry’s research consortium. The consortium is a research partnership that includes the largest commercial producers and consumers of semiconductors, comprising more than 50 percent of the world's microchip market.   The New York and Texas state governments have demonstrated over the years that they are willing to pay handsomely for that trophy, too.  

While legislators did not agree to all of Gov. Linda Lingle’s Innovation Initiative – including a $100 million innovation fund - some of the governor’s original concepts emerged from several other bills at the close of the 2007 legislative session last week.   The legislature passed a number of measures to promote science, technology, engineering and math (STEM) education, a major priority in the governor’s innovation package. SB 885 establishes the Career and Technical Education program within the state Department of Education and provides $5 million over the biennium for several technical education initiatives. Among those are Gov. Lingle’s proposals for the Hawaii Excellence through Science and Technology (HiEST) Academy Pilot Program and a Fostering Inspiration and Relevance through Science and Technology (FIRST) Pre-Academy Program.  

In an era in which many companies maintain a web presence before their first technology hits the market, broadband access has become an essential ingredient for high-tech business and growth. In many states, however, the need for broadband access has widened the high-tech achievement gap between urban and rural areas. Without high-speed connections, many students in rural areas are unable to gain the skills needed by technology-based companies, and many rural businesses find it difficult to compete without access to advanced web-based resources.   Universal access to high-speed broadband access has become something of a holy grail, not yet attained by any state. In order to spread the benefits of high-speed connections, several states have recently launched initiatives to ensure that even businesses in the most remote regions have access to online resources.   Vermont

Region Looks to Broadband Access and IT Usage The Delta Regional Authority (DRA) lacks the access, awareness and affordability of broadband Internet service – a direct bearing on the region’s ability to participate successfully in the national and global economies, a new report from DRA and the Southern Growth Policies Board finds.   DRA and Southern Growth partnered to develop an information technology plan to improve education, enhance entrepreneurship, and improve health care through the use of information technology. The plan was presented to the president and Congress last week.    iDelta: Information Technology in the Delta consists of two volumes. The first provides data for measuring information technology usage and examines the economic factors that lead to technology barriers in the region. For example, more than 15 percent of DRA zip codes do not have a high speed Internet service provider and per capita income for the region is about 20 percent below the U.S. average.  

A continuing concern of many TBED organizations is the departure of university graduates from their communities, leaving at various stages of their lives and taking their talent and education with them. The resulting "brain drain" from this exodus leaves many states with the frustration of paying the costs to educate its citizens, but not reaping the benefits of an educated workforce. For example, a survey completed two weeks ago by the Detroit Free Press reported 53 percent of students at Michigan's three largest universities (University of Michigan, Michigan State University, and Wayne State University) were definitely planning to leave the state after graduation. The main reason for leaving, cited by 47 percent of respondents, was to go where good jobs are located. A secondary reason, named by 24 percent of departing graduates, was the desire to see what it is like somewhere else outside of Michigan. Questions facing policymakers addressing brain drain include: What are the various measurable components of the brain drain problem in my locality, and what can be done to fix it?

Manufacturing firms come in all shapes and sizes. Little ones. Big ones. Ones that need more labor from their employees to assemble components. Ones that need more R&D from their employees to design products.   And, for a variety of reasons, many manufacturing firms decide to collaborate with other entities in order to develop new and improved products. A recent discussion paper from the Center for European Economic Research sheds new light on the motives of these collaborative firms. In Motives for Co-operation: Evidence from the Canadian Survey of Innovation, Tobias Schmidt develops a typology of these firms, differentiated by their reasons to engage in collaboration.  

Last week’s release by the National Science Foundation (NSF) of the results of the 2005 survey of academic R&D expenditures reveals the nation’s investment in research through its universities and colleges rose 5.8 percent in fiscal year 2005. Academic research expenditures for FY 2005 totaled $45.75 billion.   The results permit SSTI to prepare an updated version of its statistical glance at the five-year trends by state. As in past tables, the new rankings for the percent change in a state’s share of the total over the period 2001-2005 confirms it is extremely difficult for states to change their overall ranking on a year-by-year basis.   In fact, during the past five years, only a handful of states have shifted rankings by more than one position either up or down over the five years.   The only three states to show “dramatic” improvements of more than two spots are: