SSTI Digest

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).

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.

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.

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.

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.

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.

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.

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.

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.