SSTI Digest

Jack Faris is the new president of the Washington Biotechnology & Biomedical Association.

On Friday, President Bush announced his intention to nominate Michael D. Griffin, of Virginia, to be administrator of the National Aeronautics and Space Administration. Dr. Griffin currently serves as Space Department Head at Johns Hopkins University Applied Physics Laboratory. Prior to that, he was president and chief operating officer of In-Q-Tel, Inc.

George "Mick" Stadler is the new CEO for the incubator at the Rochester Institute of Technology.

Last week's Digest reported on three reports that have been issued recently raising concerns about America's standing in the world in encouraging innovation. Each of the reports suggested stronger action on the part of the public and the private sector to ensure the U.S. will remain competitive.

Since the beginning of the year, the Digest has reported through its Tech Talkin' Govs series that the states are making investments for the future. This week, we devote this edition of the Digest to a sampling of how the governors are proposing to put money up to match their rhetoric.

SSTI, like other organizations, found few S&T winners in the Administration's FY 2006 federal budget proposal (download SSTI's special budget issue at http://www.ssti.org/Digest/2005/FY06_Federal_Budget.pdf). Now, two organizations are sounding the alarm that the U.S.'s standing as the world leader in innovation is in danger of slipping, if it has not already begun.

An initiative aimed at creating 2,500 new jobs throughout New Hampshire will offer low-interest loans to companies who commit to creating new jobs or expanding their current employment base in the state.

Gov. John Lynch, along with Citizens Bank New Hampshire President and CEO Thomas Metzger, recently announced the Citizens Job Bank Program, a $100 million fund that will offer loans at 2 percent below prime for a fixed rate of 3.5 percent.

According to the governor's office, borrowers must create at least one full-time job for every $40,000 borrowed. The terms of the loan will require that the specified jobs be created within three years after the funds are borrowed. The New Hampshire Department of Resources and Economic Development will administer the program and certify that borrowers fulfill their job creation commitment.

Gov. Sonny Perdue recently announced the creation of the state's fourth Center of Innovation. Located in Augusta, the Life Sciences Innovation Center (LSIC) will assist with business incubation and securing matching grants for applied R&D with industry partners through the Georgia Research Alliance.

A joint partnership between the state and the Life Sciences Business Development Center of the Medical College of Georgia, LSIC will enhance the likelihood of success for Georgia life sciences companies, according to the governor's office. The center will provide expertise and counsel for life science entrepreneurs, serve as an incubator facility for bio-business, and foster opportunities for joint university and private applied research work.

While wider market opportunities have led to increased exporting and lower costs for business operations in some Minnesota companies, others are facing difficult operational challenges as a result of the rapid integration of global business practices, according to a new Issue Brief from the Minnesota Department of Employment and Economic Development (DEED) and Minnesota Technology, Inc.

The same benefits of higher education to society and individuals found on a national level also are evident at the individual state level and need to be taken into account in state policy discussions, including those on state funding, says a new report from the Institute for Higher Education Policy (IHEP).

Using data from the U.S. Census Bureau, The Investment Payoff: A 50-State Analysis of Public and Private Benefits of Higher Education, measures societal and individual benefits of higher education on a state-by-state basis across six indicators. For each state, benefits are documented for residents by education level, ranging from those with a high school diploma to those with a bachelor's degree or higher. The report concludes that almost every state benefits from higher education in all indicators measured, although some states reap more than others.

Funding research and development (R&D) is risky business. Using the popular baseball analogies, venture capitalists count on one home run to make up for all of the strikeouts and pop flies. Public support for R&D in private firms, then, could be considered a gamble if policymakers are not patient or understanding of that risk. These programs also must be well managed, with an eye on the market or business aspect of any resulting technologies, to minimize the public's risk.

What happens, then, when projects or companies fail? Does a state or community reap any tangible benefits for their investments? One common assumption is value may be gained from knowledge diffusion. For instance, employees of the failed venture perpetuate growth by continuing their R&D work with other firms or in new spin-off efforts. Tracking such assertions is difficult, however, often relying heavily on anecdotal evidence and individual case studies of corporate genealogy in Silicon Valley and Route 128.

The National Institutes of Health (NIH) data on the top 100 cities for NIH awards in FY 2003 indicates Boston reasserted its leadership over New York for the top spot by increasing its spread by $401 million. Philadelphia and Baltimore remain in third and fourth place for the second year.

The fourth year NIH has made the information available, FY 2003 shows the most shift in rankings for many cities. Seattle moved up to fifth place after three consecutive years at sixth. San Diego continued its three-year fall in the rankings, dropping from third place in FY 2001 to eighth place in the latest available data. (Note: One possible explanation could be the addition of La Jolla as a distinct city in the rankings in FY 2002 and FY 2003. Funding to La Jolla institutions doubled between the two years, pushing the city's ranking from 21st in FY 2002 to 7th in 2003).

The complete four-year stats are available at:

The University of Toledo and its partners are seeking a director for the Toledo Science and Technology Corridor. The Corridor is an initiative to enhance the region's innovation-based economy through investments that promote linkages and collaboration among academic institutions, business industries and government entities. Responsibilities will include developing and implementing a plan that is aligned with the university's various educational missions, obtaining support from community leaders and members of local neighborhoods, preparing proposals and other initiatives to gain external funding, and coordinating joint Corridor projects and activities with partners, as well as technology business recruitment activities. The preferred candidate will hold a Bachelor's degree and, preferably, an advanced degree in a relevant field, among other qualifications. A full description, including contact information, is available through the SSTI Job Corner, http://www.ssti.org/posting.htm.