SSTI Digest

SSTI looks at Milken's State Technology & Science Index During a presidential election year, perhaps more than any other time, the public is bombarded with statistics: voter surveys, polls, budget deficits, climate change, changes in employment or stock markets or trade, and others. It becomes difficult to determine which figures are true and which have been spun or manipulated for a particular purpose. The value of a statistic should be directly related to its quality. Unfortunately, how widely particular statistics are disseminated and repeated more often determines their acceptance or "truth." Numerous statistics and rankings are often used in the marketing and promotional efforts of state and local economic development agencies and regional chambers of commerce. As a result, an observer has to look closely at what is being measured when multiple states or communities proudly claim to be first in something. They obviously are not all number one, unless, for instance, City A's claim is on an absolute basis, City B tops the list on a per capita basis, and City C has looked at the data as a percent…

The launch of a targeted small business development program designed to foster the success of new high growth, high-tech firms in Vermont was announced last month at a press conference by Sen. Patrick Leahy, Gov. James Douglas and University of Vermont (UVM) President Daniel Fogel. The Vermont Center for Emerging Technologies (VCET) is a key component of Gov. Douglas’ strategy to support business innovation and growth in Vermont. Since the governor has taken office, $500,000 in state funding has been appropriated to support incubator initiatives and an additional $125,000 in the fiscal year 2005 budget has been requested specifically for VCET. VCET is intended to bring together the resources of existing and planned business incubators in Vermont. The center will tap the technology potential in Vermont and transform that into jobs, Sen. Leahy said. Also benefiting from the initiative is UVM’s research and development department, which has experienced a steep rise in federal funding in recent years. With the VCET structure in place, research at the university could present significant…

Hydrogen and fuel cell technologies in Illinois could produce sustainable economic growth and environmental benefits for years to come, suggests a report recently released by the Illinois Coalition. Prepared by the Illinois 2 H2 Partnership, The Hydrogen Highway: Illinois’ Path to a Sustainable Economy and Environment looks to establish the state as an international leader in the fuel cell industry. A true hydrogen economy for Illinois may be years into the future, the report explains, but incremental steps taken today may accelerate and define that future, specifically the hydrogen highway. An area of approximately 120 miles along interstate 90, the hydrogen highway would be a corridor of hydrogen energy demonstration projects with a fueling station situated about every 20 miles. The highway's purpose is twofold -- stimulate the economy while protecting the environment. Illinois already possesses some advantages over technology-driven states such as California, Connecticut, Michigan and Ohio, the report argues. For example, Illinois has utilized its universities, federal labs, nonprofit…

The jury's still out on the appropriate role or effectiveness of most tax credits to encourage tech-based economic development (TBED), but most politicians and economic development practitioners believe their state is at a competitive disadvantage without at least a few breaks. With Gov. Bob Wise's recent signature on two bills, West Virginia becomes the latest state to add two tax credits of potential value for the state's growing tech community. Both the High Growth Business Investment Tax Credit and the Strategic Research and Development Tax Credit offer incentives for investment in growth-oriented research and development (R&D) businesses and assisting R&D companies in the early stages of operation. Guidelines for the High Growth Business Investment Tax Credit include: Individuals or businesses investing in other businesses eligible for the Strategic R&D Tax Credit may receive a credit of up to 50 percent of their angel or seed investment. Unused credit may be carried forward for up to four years after the initial investment. Investors or investor groups…

Separate reports from the Foundation Center and The Chronicle of Philanthropy indicate that foundations will continue to see their assets recover in 2004. The studies provide differing views on estimated growth in giving for the upcoming year, however. A notable increase in funding will be seen as foundations’ assets recover, according to the Foundation Center’s annual report, Foundation Growth and Giving Estimates 2003 Preview. The persistent decline of the stock market in 2002 and into early 2003 is cited as a central reason why foundation giving experienced by an overall 2.5 percent decrease in 2003. However, the percentage decline in giving was less than expected considering the loss of more than 10 percent in foundation assets between 2000 and 2002. The center's study indicates that independent foundations, including family foundations and new health foundations, comprise the vast majority of funding. Their total giving declined by an estimated 3.3 percent in 2003, following a 7.6 percent drop in independent fund assets in 2002. Corporate foundations, the next largest sector to provide…

America loves lists of the top "fill in a number" for almost anything. When the almost anything is actually useful information, then a community or state's ranking can help guide public policy discussion toward moving up or down the list as would be deemed most desirable. Some rankings, however, tend to serve the lists' developers more than public good (such as those based on ad sales in magazines or poorly constructed samples, formulae or data). Other rankings, because of their wide distribution or coverage in the media, can have unintended negative consequences for policy development. AEA's Cyberstates report is perhaps a good example of how, for many, the definition of high-tech is now limited to or synonymous with businesses in information and communications technologies. The "Most Unwired Cities and Colleges" lists developed by Intel Corp., makers of the Centrino™ mobile technology, seems to cross list types. Wireless Internet accessibility does allow greater freedom for communication and web-based productivity, but it also requires currently the purchase of broadband service, a router…

Best practices and a how to guide written by real practitioners of angel financing are just two of the new resources available through the Angel Capital Association (ACA). The following papers for understanding and growing a local seed capital activity within a region are available through the association's website: Business Angel Groups Growing in North America - white paper establishing trends, organizational structures and general best practices for operating angel groups, established as a result of Angel Organization Summit I. Angel Investing Group Best Practices - Managing Members, Guiding Presentations and Finding the Right Deals - white paper produced as a result of Angel Organization Summit II. Primer for Angel Investment in Canada - National Angel Organization (NAO), led by Chair Henry Vehovec - project compiling best practices, research and ideas intended to encourage competitiveness on Canadian angel investors. Published by NAO with financial support from RBC Financial Group. In addition, ACA provides a number of tools to guide communities as they develop local angel…

Several staff changes occur within the U.S. Department of Commerce: President Bush is nominating Al Frink to serve as the department's assistant secretary for manufacturing and services. Theodore Kassinger was confirmed by the Senate Commerce Committee to become deputy secretary. And, Benjamin Wu, the deputy undersecretary for technology, will be nominated to fill Bruce Mehlman's former position as assistant secretary for technology policy. Scott Davis will be the new director for the University of Arizona Office of Economic Development. Dave Eater has announced his departure from the New Jersey Science and Technology Commission. Jill Felix, chief executive officer of the University City Science Center in Philadelphia, has announced she is stepping down. Marye Ann Fox, chancellor of North Carolina State University, is moving on to become chancellor of the University of California, San Diego. Don Gentry, vice provost for engagement at Purdue University, has announced his retirement. South Dakota Gov. Mike Rounds has appointed Jim Hagen…

Several staff changes occur within the U.S. Department of Commerce: President Bush is nominating Al Frink to serve as the department's assistant secretary for manufacturing and services. Theodore Kassinger was confirmed by the Senate Commerce Committee to become deputy secretary. And, Benjamin Wu, the deputy undersecretary for technology, will be nominated to fill Bruce Mehlman's former position as assistant secretary for technology policy.

Scott Davis will be the new director for the University of Arizona Office of Economic Development.

Dave Eater has announced his departure from the New Jersey Science and Technology Commission.

Jill Felix, chief executive officer of the University City Science Center in Philadelphia, has announced she is stepping down.