SSTI Digest

The metaphor of a pipeline is often used for describing the innovation process and, specifically, the health of a regional innovation system. Sustaining knowledge-based growth requires a steady flow of ideas, people and capital. Often, the flow can be weak in one of these areas -- or clogged by other factors such as lack of key resources or programs.

A new program by the Kansas Technology Enterprise Corporation (KTEC) moves the pipeline metaphor toward a more tangible reality to help nurture the entrepreneurship climate in the state. The new program, KTEC Pipeline, will "identify talented and entrepreneurial Kansans, match them with best-in-class training, resources and mentors and encourage them to pursue a career as a technology entrepreneur in Kansas," KTEC President and CEO Tracy Taylor said.

For the third consecutive year, industrial support of U.S. academic research dropped, according to an April 2006 InfoBrief by the National Science Foundation (NSF). The 2.6 percent decrease in fiscal year 2004 from the previous year is the sharpest yet in the three-year trend, following a 1.1 percent reduction in FY 2003 and 1.6 percent in FY 2002. Author Ronda Britt notes "the industrial sector is the first source of academic R&D funding to show a multiyear decline" since the survey inception in 1953. At only 4.9 percent of the total academic R&D in FY 04, the industrial share now parallels its FY 83 levels.

While the recession and dot-com crash may explain some of the drop, NSF does not offer any conclusions regarding potential causes for the drop. Others have offered globalization as a potential explanation. They see industry R&D migrating toward the markedly improved capabilities within the international academic community.

France President Jacques Chirac announced last month plans to invest nearly 600 million euros ($758.6 million US) into five high-tech government-industry projects. The projects center on making France a European leader in innovation, as well as restoring national pride, which is currently low, according to Global Insight. The five initial projects were selected by France's Agency for Industrial Innovation (AII), which was launched last year with an investment budget of 2 billion euros ($2.5 billion US). Following is a description of each project and funding levels:

[Editor’s Note: The following discussion regarding the research’s relevance to state and regional TBED policy is SSTI’s. It will not be found in the working paper, nor do we mean to suggest these conclusions were drawn by professors Zucker and Darby.]

Like moths to a flame, tech firms over the past 24 years appear to have migrated toward star scientists and engineers, according to a new working paper from Lynne Zucker and Michael Darby. The latest findings by the two UCLA professors suggests the mere presence of star researchers is sufficient power to attract technology businesses to certain regions of the country – regardless of the discoveries made by these scientific superstars or their field of research.

The United States Patent and Trademark Office (USPTO) provides online reports presenting the number of patents filed within each state distributed across technology sector or organization. Patent activity is considered an important indicator for measuring innovation and understanding economic growth.

Using USPTO data, SSTI has compiled a table showing the most recent patent activity per 10,000 residents from 2001-2004. Idaho, which ranked first between 1998-2001, continued its reign on patent activity by holding the top spot throughout the four-year period. Kansas showed the greatest increase in patents per 10,000 residents, moving up 10 positions from 39th in 2001 to 29th in 2004. Nevada and the District of Columbia tied for the second-largest increase, moving up six positions over the four years.

The Birmingham News reports Michael Alder, executive director of the Biotechnology Association of Alabama, is leaving to become director of technology finance at Brigham Young University.

Tino Breithaupt, formerly vice president of Technology Tri-Corridor with the Michigan Economic Development Corporation (MEDC), is the new senior vice president of economic development for the Traverse City Chamber of Commerce. Vince Nystrom has been named Director, Technology Business Development of MEDC.

The Birmingham News reports Michael Alder, executive director of the Biotechnology Association of Alabama, is leaving to become director of technology finance at Brigham Young University.

Tino Breithaupt, formerly vice president of Technology Tri-Corridor with the Michigan Economic Development Corporation (MEDC), is the new senior vice president of economic development for the Traverse City Chamber of Commerce. Vince Nystrom has been named Director, Technology Business Development of MEDC.

Rhode Island Gov. Donald Carcieri promoted Saul Kaplan to serve as the new director of the Rhode Island Economic Development Corp. Kaplan replaces three-year veteran Michael McMahon, who left to launch a new equity firm.

Keith Ridley was named manager of the Tennessee Valley Authority's (TVA) Valley Business Ventures, a new division created to increase jobs and capital investment in high-growth industries and in companies owned by women and minorities in the TVA region.

Just four months into the job, In-Q-Tel's CEO, Amit Yoran, resigned for personal reasons. In-Q-Tel is the venture capital arm of the Central Intelligence Agency.

120 Other Metro Areas included in Analysis for Northeast Ohio A study of the Northeast Ohio economy provides a different way of analyzing and tracking the impact of economic development initiatives by mathematically analyzing economic data and determining there are eight key factors of regional economic growth. Dashboard Indicators for the Northeast Ohio Economy, released by the Fund for Our Economic Future, establishes statistical correlations between economic growth in jobs, output, worker productivity and per capita income, and the eight key factors (skilled workforce, urban assimilation, racial inclusion, legacy of place, income equality, locational amenities, business dynamics, and urbanization/metro structure).

The study demonstrates that when regional economies chart strong growth, they tend to score well in most or many of the eight categories, and when regional economies chart weak growth, they tend to score poorly in the eight categories.