SSTI Digest

America’s laurels for its record of innovation and entrepreneurship are great but there is no time to rest on those past accomplishments given the changing global economy, a recent paper by the Council on Competitiveness concludes. Where America Stands: Entrepreneurship draws from dozens of other research papers, studies and articles to provide an overview of the current entrepreneurial climate in the U.S.   In addition to pointing out some of the challenges presented by globalization, the paper cites others’ findings of many missed opportunities for even greater returns: Only 10 percent of patents are commercialized (Lemelson-MIT Program); Only seven out of every 1,000 business plans receive external funding (Hill and Power, 2001); and, Sixty-six percent of VC investments occur in four regions of the country (Dow Jones VentureOne). Regional inequality of successful entrepreneurship is singled out in Where America States as a great challenge and opportunity to increase the nation’s economic output. The paper calls attention to three approaches adopted by successful regions to encourage entrepreneurial growth: 1) creating…

In the global competition to create the best markets for entrepreneurs, Hong Kong moved up from second place in 2005 to reclaim the top spot, according to the Milken Institute's 2006 Capital Access Index. Hong Kong was first in the 2004 edition of the index.    In 2006, Singapore rose from third to second place. The United Kingdom, ranking first in 2005, slipped back to third for the 2006 rankings, while the U.S. dropped from fourth to fifth because of an increase in the lending rate.   The big story is Canada, which rose from 10th place in 2005 to fourth on the latest index and shows the most improvement in scores for alternative sources of capital (moving from 30th place to 15th) and access to international capital (from 40th place to 18th).   First developed in 1998, the Milken Institute Capital Access Index ranks countries around the world in terms of the financial infrastructures that support entrepreneurial activity by providing access to capital. Factors in the ranking include macroeconomic environments, financial and banking institutions, the development of the equity and bond…

The National Institute of Standards and Technology (NIST) recently announced the Advanced Technology Program (ATP) will conduct a new competition in fiscal year 2007 for cost-shared awards to support high-risk industrial R&D. The ATP provides brief support to single companies or to industry-led joint ventures to accelerate the development of innovative technologies for broad national benefit through partnership with the private sector. ATP projects are selected in a competitive, peer-reviewed process. Further details will be available when the competition is formally announced in the Federal Register this spring. Proposals will not be accepted before that time. Notices containing specific information, such as anticipated funding, eligibility criteria and proposal deadlines, also will be posted to www.atp.nist.gov and www.grants.gov. Additionally, all of those on the ATP mailing list will receive a competition announcement and the ATP Proposal Preparation Kit. Those interested in registering for the ATP mailing list may do so at www.atp.nist.gov/atp/atpform.htm.

Whether you call it an incubator, accelerator, technology center or innovation zone, most communities actively engaged in promoting tech entrepreneurship can point to a building or group of buildings that houses some of those efforts. These facilities increase the success of budding tech firms by providing some combination of low-cost space, shared resources, business assistance, intellectual property assistance, and access to capital.    For incubators alone, the National Business Incubation Association tallied more than 1,400 public and private facilities as of October, 2006.   And each month there are more announcements of construction of a new center or expansion of an existing effort. Here are just four recent examples of the cornerstone of many TBED strategies: The Colorado Springs Technology Incubator will be moving into its new 23,000 sq. ft. facility, thanks in large part to a $450,000 grant from the federal Economic Development Administration. The center formerly had only 4,000 sq. ft. available for tech firm tenants. Louisiana Tech University is using $250,000 from the University of Louisiana…

When it comes to new firm survival in the service sector, do regions that have above-average high school dropout rates fare worse than regions with higher percentages of their adult populations earning college degrees? The answer, according to a recent discussion paper by Zoltan Acs, Catherine Armington, and Ting Zhang, is it depends.   In The Determinants of New-firm Survival across Regional Economies, the authors find, that regardless of whether the economy is in recession or growth, the higher a region’s high school dropout rates, the lower its new-firm survival rate in the service sector. [Note: High school dropouts are such a drain on state and regional economies, in fact, that many states are raising the legal age from 16 to 18 before a student can excuse himself from school permanently. For example, several governors used their State of the State Addresses this year to call for the change.]   But what about all of those college grads? The answer depends on the health of the overall economy, the authors say. During times of economic growth, the higher a region’s percentage of college graduates, the higher its new-…

This week's issue of the SSTI Weekly Digest exposes just the tip of the iceberg of information available on entrepreneurship. That's where the TBED Resource Center comes in handy. The TBED Resource Center, developed by SSTI in cooperation with the U.S. Department of Commerce's Office of Technology Policy, is an interactive website providing a wealth of information for practitioners, policymakers, university faculty, and researchers alike. With links to more than 4,500 reports, the website features information in a variety of TBED-critical topics in the U.S. and abroad. More than 290 reports can be found on the TBED Resource Center when the topic entrepreneurship is selected.   SSTI staff selections include: Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth by Pamela Mueller Entrepreneurship Capital: A Regional, Organizational, Team, and Individual Phenomenon by David Audretsch and Erik Monsen What Determines Entrepreneurial Clusters? by Luigi Guiso and Fabiano Schivardi

Nineteen states that applied for assistance under the Small Business Innovation Research (SBIR) Program in fiscal year 2005 saw an award-to-proposal conversion rate greater than the national average of 16.4 percent. Of those states, five experienced rates of greater than 20 percent ­- Nebraska (29%), Maine (27.3%), District of Columbia (25%), Montana (21.8%), and Washington (20%). The top 10 states with the most awards in FY 2005 were California (816), Massachusetts (508), Virginia (242), Colorado (205), Maryland (204), Texas (198), Ohio (191), New York (186), Pennsylvania (176) and Michigan (111).   SSTI has compiled a table that presents this FY 2005 Phase I SBIR data for all 50 states, Puerto Rico, and the District of Columbia. Statistics show awards, proposals and award-to-proposal conversion rates from 10 of the 12 participating agencies (the Department of Education and the Commerce Department's National Oceanic and Atmospheric Administration declined to provide proposal statistics). The table is available at: http://www.ssti.org/Digest/Tables/022607t.htm   SSTI’s FY01-05 SBIR statistics…

With Entrepreneurship Week, you and your colleagues may be more inspired to take steps to encourage entrepreneurship. But where to begin? What approaches should you consider? Or perhaps you are having problems developing an entrepreneurial culture? Wouldn't it be great if there was one guide that you could turn to that captures the wisdom and experience of more than 50 experienced practitioners? One publication that would describe more than 14 ways that are being used across the country to encourage entrepreneurship? One publication that offers these suggestions from one seasoned practitioner: "First, start identifying who the entrepreneurial leaders are who can influence a paradigm shift or culture change within a region. They need to be added to boards of economic development organizations, angel groups, commercialization corporations, and so forth so the word can be spread. ... "... Identify leaders who will be involved at the state level because education within the state legislature, with a governor, and with governors' administrations is extremely important. It's not that the efforts need to be government led, but the…

The Georgia Department of Economic Development (GDEcD) is seeking a director to run its Innovation and Technology Office. The director is responsible for implementing and expanding a statewide technology and innovation-based economic development program that encompasses a full range of sales, marketing, business recruitment, business development, community development and public relations activities. A bachelor's degree in the life sciences, engineering or a closely related field is required; a master's degree in these fields is preferred. A full description of this opportunity and others is available through the SSTI Job Corner at http://www.ssti.org/posting.htm.

Sheri Stickley, vice president of SSTI, will be leaving SSTI on March 2 to accept a position with the Oklahoma Department of Commerce. Sheri was one of the primary authors of A Resource Guide for Technology-based Economic Development, and we wish her well in her new position. Oklahoma's gain is our loss, but we look forward to benefiting from her advice and wisdom as she enters a new chapter of her career. Willem Bakker was named president of the Technology Entrepreneur Center and executive director of the Information Technology Coalition, both in St. Louis. Jan Lesher was named director of the Arizona Department of Commerce, replacing outgoing Gilbert Jimenez. Dick Munson is stepping down as executive director of the Northeast Midwest Institute to help start Recycled Energy Development, LLC. Sherrie Preische resigned as executive director of the New Jersey Commission on Science and Technology to accept a position in the private sector. Connecticut Innovations appointed Dr. David Reed to the position of executive in residence.…

Sheri Stickley, vice president of SSTI, will be leaving SSTI on March 2 to accept a position with the Oklahoma Department of Commerce. Sheri was one of the primary authors of A Resource Guide for Technology-based Economic Development, and we wish her well in her new position. Oklahoma's gain is our loss, but we look forward to benefiting from her advice and wisdom as she enters a new chapter of her career.

Willem Bakker was named president of the Technology Entrepreneur Center and executive director of the Information Technology Coalition, both in St. Louis.