SSTI Digest

Boise Gains First Angel Investor Network The Boise Angel Alliance, the city's first angel investor network, was launched in June drawing about 50 investors to its first session, The Idaho Statesman reported. The Idaho Office of Science & Technology and the venture capital committee of the Boise Metro Economic Development Council, which together formed the alliance, said they expect to run the network on their own. A screening committee reviews the plans set forth by companies that must then make a 10-minute presentation at the angel meetings, followed by a five-minute question-and-answer session. Investors may privately contact the companies afterwards if they are interested. Illinois Commits $50 Million for VC Fund Although a modest amount compared to other state initiatives, Illinois will invest $50 million in venture capital funds that the state treasury department promises will create jobs and provide a good return. The Technology Development Fund will not invest directly in companies, but rather in venture funds based in the state to minimize risk, the Chicago Tribune reports. According to the Tribune, former Gov. George Ryan…

Citing the input of participants in a series of public hearings among other reasons, U.S. Department of Commerce Under Secretary of Technology Phil Bond announced in a conference call today that a systemwide recompetition for the Manufacturing Extension Partnership (MEP) would not be held “at this time.” Instead, MEP will use a re-application process that will be integrated into the current review process. The Administration in January issued Manufacturing in America: A Comprehensive Strategy to Address the Challenges to U.S. Manufacturers that called for a "recompetition for all MEP centers, with a focus on effectiveness and cost-efficiency" (see our coverage of the report at http://www.ssti.org/Digest/2004/012304.htm). At a series of public hearings held during July and August that focused on forming the next generation MEP and the plans for recompetition, opposition to the recompetition was strong. Opponents were particularly critical of holding a recompetition when the amount of funding available is unknown because of Congress’ inaction on the FY05 budget and argued that the process would force…

The steady upward trend in venture capital (VC) investments continued in the second quarter of 2004, with $5.6 billion going to 761 companies, according to the latest PricewaterhouseCoopers/Thomson Venture Economics/National Venture Capital Association MoneyTree™ Survey. The Q2 2004 figure compares to $5 billion invested in the year's first quarter and $5.4 billion in the fourth quarter of 2003.. The Life Sciences sector outpaced other industries for the eighth consecutive quarter, among MoneyTree™ Survey highlights. Investments in the sector totaled $1.41 billion, or 25 percent of all venture capital. Biotechnology and Medical Devices, the sector's two components, accounted for $922.8 million and $485.3 million, respectively. A total of 85 biotech and 70 medical device companies were funded during the quarter. Software, with 212 companies securing $1.2 billion in Q2 2004, remained the single-largest industry category for the second consecutive quarter. The Telecommunications Industry showed a decline from the prior quarter, with $518 million going to 59 companies. Detailed information…

With the President's signature on the fiscal year 2005 Defense Appropriations Bill last week, the Pentagon received nearly $70 billion for research and development spending, a $4.3 billion increase over that of last year. Much of the increase is absorbed by congressional earmarks, according to The Chronicle of Higher Education. Spending on basic defense research is up 7.8 percent ($109 million) from the FY 2004 level,  including increases for the Air Force ($31 million), the Army ($27 million), and the Navy ($12 million). Funding for applied research also is up 12 percent, or $525 million, over the FY 2004 amount. The Army will receive a $118 million increase, the Navy $102 million, and the Air Force $61 million. The Defense Appropriations Act, as passed by Congress in late July, calls for a total of $416.2 billion in FY 2005 spending, approximately $25 billion over FY 2004 spending. Included in the Act is $25 billion to cover war-related expenses in Iraq and Afghanistan. Despite the increases from the previous year, the budget is still $1.6 billion below the President’s…

Capturing students’ interest in science and mathematics during the middle school years is crucial to America’s future workforce and the nation’s security, according to U.S. Secretary of Energy Spencer Abraham. To help foster the next generation of American scientists and engineers, the Department of Energy (DOE) announced the Scientists Teaching and Reaching Students (STARS) initiative involving both students and teachers in grades K-12. Abraham outlined the STARS initiative, launched by DOE and its national laboratories, earlier this month at the Stanford Linear Accelerator Center in Paolo Alto, Calif. Citing disappointing results from the 1999 Third International Mathematics and Science Study, which reported that 12th-graders in the U.S. performed among the lowest of 21 nations in math and science, Abraham emphasized the importance of addressing the problem of math and science literacy in the nation. The report indicated that U.S. students in the fourth grade ranked at or near the top in science and math globally; however, by 12th grade they fell behind nearly every industrialized…

China is focusing on the newest and most promising areas of technology to expand economic growth through the development of high-tech industries, suggests a new report released by the nation's government. The report, 2004 Guidelines for Priority on Key Technology Areas, indicates China will channel investments to 134 key sectors and promote exports, according to an article in The Scientist. Key areas include biotechnology and new medicines, new materials, information technology, environmental protection, aeronautics, astronautics, and agriculture. The report was created with input from 200 experts in domestic and international high-tech trends, the National Development and Reform Commission (NDRC), and the Ministry of Commerce, the article states. NDRC reported that high-tech output climbed from $132 billion (US) in 1999 to $326 billion (US) last year, having an annual average growth rate of 25.5 percent. The Scientist states China’s High-tech Research and Development (863) Programme, established in 1986, has enabled some of these key areas to begin approaching international standards. The…

Academic research and development expenditures grew 11 percent in fiscal year 2002, according to new data released by the National Science Foundation (NSF). An NSF report, Academic Research and Development Expenditures: Fiscal Year 2002, finds 625 institutions of higher education in the U.S. collectively spent $36.332 billion in FY 2002. The figure for FY 2001 was $32.723 billion. Federal sources of R&D funds accounted for a significant majority of the growth, climbing to $21.834 billion in FY 2002 ­- 13.8 percent higher than the $19.191 billion reported for the previous year. State and local sources of R&D expenditures at academic institutions went up 8 percent, with a $2.501 billion share of the nation's total. Funding from industry sources, accounting for $2.188 billion, experienced a 2 percent decrease over the previous year. Institutional funds rose nearly 8.5 percent to $7.109 billion in FY 2002. Other sources such as foundations or individuals provided $2.701 billion in FY 2002, a growth rate of 11.1 percent. With 72 detailed statistical tables, Academic Research and…

Arkansas Biotech Research Threatened With 20% Cut In order to meet the higher priority needs of the state, the Arkansas Tobacco Settlement Commission should reduce its medical research funding by 20 percent, according to an independent report from the RAND Corp. Although the report praised the Arkansas Biosciences Institute for its success in attracting nearly $3 for every dollar of tobacco settlement money spent, it recommends that the commission reallocate 20 percent of its funding to programs aimed at reducing obesity, physical inactivity and cancer. The Arkansas Biosciences Institute currently receives 22.8 percent of the state’s annual share of tobacco-settlement funds or roughly $11 million to $12 million per year, according to an article in the Arkansas Democrat-Gazette. However, the 24 percent of the institute’s share received by Arkansas State University should remain the same, the report states. Commissioner John Ahlen, director of the Arkansas Science and Technology Authority, criticized the report for recommending reduced funding to a successful program, the Democrat-…

Peter Abramo has been named executive director of Cameron University’s Center of Emerging Technologies and Entrepreneurial Studies, effective Aug. 30. Maryland Gov. Robert Ehrlich has appointed Robert Brennan to succeed Hans Mayer as executive director of the Maryland Economic Development Corporation. Mayer retired after holding the position for 17 years. James Greenwood will take over as president of the Biotechnology Industry Organization from outgoing president, Carl Feldbaum. Congressman Greenwood has represented the Eighth Congressional District since 1993. Florence Mendelson has resigned as president and CEO of Pittsburgh-based Innovation Works. She will remain in her position through the end of the year, helping to identify her successor and implement plans for fiscal year 2005. The Purdue Research Foundation has appointed Robert J. Wichlinski as executive director of the new Purdue Technology Center of Northwest Indiana and Kathy DeGuilio-Fox as the center’s business development manager.

Peter Abramo has been named executive director of Cameron University’s Center of Emerging Technologies and Entrepreneurial Studies, effective Aug. 30.

Maryland Gov. Robert Ehrlich has appointed Robert Brennan to succeed Hans Mayer as executive director of the Maryland Economic Development Corporation. Mayer retired after holding the position for 17 years.

James Greenwood will take over as president of the Biotechnology Industry Organization from outgoing president, Carl Feldbaum. Congressman Greenwood has represented the Eighth Congressional District since 1993.