SSTI Digest

To stimulate equity investment in America's small businesses and create jobs, the U.S. Senate introduced last week the Small Business Investment and Growth Act of 2005. The legislation creates a new venture capital program within the Small Business Investment Company (SBIC) program administered by the Small Business Administration (SBA), according to the Committee on Small Business and Entrepreneurship. Senator Olympia Snowe (R-ME), co-sponsor of the bill, said in a press release that the legislation will ensure that entrepreneurs have access to venture capital and credit markets so they can continue to drive America's economic growth and job creation. She also noted that recent studies have shown the SBIC program provides essential equity capital to small businesses that would otherwise not be able to obtain financing on equivalent terms. SBICs are privately-owned and managed venture capital investment companies that are licensed and regulated by the SBA and use their own capital, combined with funds from other private investors, to make equity and debt investments in qualifying…

Examining the components that would most likely be attributed directly to Acting Gov. Richard Codey's proposed $380 million Stem Cell Research Initiative, a Rutgers University study finds that, potentially, the state stands to benefit from an estimated $1.4 billion in new economic activity, approximately 20,000 new jobs, and $71.9 million in new state revenue over the next 20 years. The authors of the study identify six areas of economic benefits to the state, including the economic impact of public expenditures; savings in health care costs; work time and productivity savings; retention and expansion of the biotechnology industry; and royalty payments to the state. The analysis is dependent upon several variables and the largest uncertainty is whether the current promise of stem cell research will actually yield effective therapies, the authors note. To analyze how the proposed initiative will affect retention and expansion of the biotechnology and pharmaceutical industries, the authors provide data from the Economic Censuses of 1997 and 2002. The censuses offer measures for the…

To improve the way students learn and teachers teach in the areas of science and mathematics, Rhode Island Gov. Donald Carcieri's Blue Ribbon Panel on Mathematics and Science Education recommends 12 specific strategies in four key areas including governance and culture; teacher recruitment; teacher quality; and learning opportunities for students. Gov. Carcieri launched the "Making the Grade" initiative in January with a panel composed of education and business leaders from around the state. The panel heard suggestions from students, teachers, parents, administrators, and business and community leaders. The report indicates that while Rhode Island students have made some progress in mathematics, the state continues to trail the region and the country in mathematics and science test scores. An international comparison also reveals that the U.S. lags in these areas. Daniel Smith, president of Raytheon Integrated Defense Systems and co-chair of the panel, said the report is a response to a "national crisis" in education. Key recommendations include: Improving coordination among…

The Pennsylvania Department of Community and Economic Development, in concert with the Pennsylvania State University, are presenting the inaugural Creating Pennsylvania’s Future: A Higher Education, Economic and Community Development Summit, aimed at energizing institutions of higher education, business leaders, economic development organizations, investors, workforce development agencies, government officials, and community leaders to work collaboratively to create a future for Pennsylvania that leverages the Commonwealth’s college and university assets. The summit will take place at the Penn Stater Conference Center in University Park on Dec. 5 and 6, 2005. By generating greater awareness of opportunities and resources, and through learning about the nation’s “best practices,” summit participants will stimulate entrepreneurship, improve the return on investment of technology transfer activities, improve workforce development practices and enhance the quality of life in Pennsylvania’s communities. Much more information on the summit is available at www.creatingpennsylvaniasfuture.org…

Service industries once again outpaced growth in the goods-producing industries across the country in 2004, according to gross state product (GSP) figures released Oct. 26 by the U.S. Bureau of Economic Analysis (BEA). Private services-producing industries grew 5.1 percent above 2003 figures, while private goods-producing industries grew at a 3.1 percent rate. Of nine geographic subregions for the country, only the Great Lakes area failed to exceed an average annual growth rate of 2 percent for the 1997-2004 period. While the percentage change for the Great Lakes was higher for 2003-2004, government's declining contribution to the percentage change in real GSP during the period actually pulled the 2.4 percent figure down by a quarter point. The Far West region of the country, which includes Alaska, California, Hawaii, Nevada, Oregon and Washington, experienced an average annual growth rate between 1997-2003 of 4.2 percent, the highest for the country. Growth in GSP for 2003-2004, alone, averaged 5.5 percent across the six states. On the state level, the top 10 growth states for…

Jim Aanstoos is the new economic development director for the city of San Marcos, Texas. John Adams, director of the Laredo Development Foundation, will become the new director of Enterprise Florida. Steve Biggers has been promoted to Deputy Director for the Oklahoma Center for the Advancement of Science & Technology. Warren Erdman, formerly vice president of corporate affairs at Kansas City Southern, is the newly selected chairman of the board of the Economic Development Corp. of Kansas City. Michael Finney, CEO of Greater Rochester Enterprise, is leaving to become president and CEO of Ann Arbor SPARK. Dennis "Mickey" Flynn is the new president of Pennsylvania BIO. The West Virginia Venture Connection has named John Hale as executive director. Kevin Holmes returned to his alma mater, Santa Clara University, to join the Leavey School of Business as executive director of its Center for Innovation and Entrepreneurship (CIE). Bruce Kidd is the first director of entrepreneurship for…

Jim Aanstoos is the new economic development director for the city of San Marcos, Texas.

John Adams, director of the Laredo Development Foundation, will become the new director of Enterprise Florida.

Steve Biggers has been promoted to Deputy Director for the Oklahoma Center for the Advancement of Science & Technology.

Warren Erdman, formerly vice president of corporate affairs at Kansas City Southern, is the newly selected chairman of the board of the Economic Development Corp. of Kansas City.

Michael Finney, CEO of Greater Rochester Enterprise, is leaving to become president and CEO of Ann Arbor SPARK.

Dennis "Mickey" Flynn is the new president of Pennsylvania BIO.