SSTI Digest

Two months into the fiscal year and several federal offices of importance to the state and local tech-based economic development community are finally learning how much money they will have available in fiscal year 2004 — once the consolidated appropriations bill is signed by the President in January. Economic Development Administration (down $2 million from 2003) Public Works and Economic Development: $202.280 million Economic Adjustment Assistance: $40.9 million Planning: $24 million Trade Adjustment Assistance: $12 million Technical Assistance, including university centers: $8.435 million Research: $500,000 Administrative expenses: $30.565 million National Institute of Standards and Technology (NIST) Advanced Technology Program: $179.175  million ($60.7 million available for new awards — same as FY03) Manufacturing Extension Partnership: $39.607 million (down $67 million from FY03) Small Business Administration – SBA is barred from extracting operating funds from the following programs' appropriations: SCORE: $5 million…

Legislation that would authorize $3.7 billion over the next four years for the National Nanotechnology Initiative awaits the President's signature, having cleared Congress before the Thanksgiving Holiday recess. The 21st Century Nanotechnology Research and Development Act (S. 189) was passed by the U.S. House of Representatives on Nov. 20, following passage in the Senate two days earlier. S. 189 provides for the creation of a National Nanotechnology Coordinating Office, research centers, education and training efforts, and research into the societal and ethical consequences of nanotech. It also supports efforts to spur technology transfer and includes a series of coordination offices, advisory committees and regular program reviews. The bill's $3.7 billion authorization levels are spread over fiscal years 2005-08 to five federal agencies — the National Science Foundation ($1.73 billion), Department of Energy ($1.46 billion), National Institute of Standards and Technology ($307.2 million), NASA ($153.9 million) and the Environmental Protection Agency ($24.76 million). No appropriations were made…

The University of Southern California (USC) will serve as the first Homeland Security Center of Excellence, the U.S. Department of Homeland Security (DHS) announced last week. DHS anticipates providing USC with $12 million over the course of the next three years for studying risk analysis related to the economic consequences of terrorist threats and events. The first HS-Center is designed to address both the targets and means of terrorism, with emphasis on protecting critical infrastructure systems such as electrical power, transportation and telecommunications. As part of the agreement, USC will offer its expertise in natural disasters, system safety and nuclear threats. Two centers within USC's School of Engineering, the Integrated Media Systems Center and the Information Sciences Institute, also will contribute research in advanced computer modeling and cybersecurity. DHS and outside advisors reviewed more than 70 proposals to establish the first HS-Center. Other HS-Centers are planned for research and development areas such as agro-terrorism countermeasures and behavioral research on…

The risks of identity theft, e-mail viruses, denial-of-service attacks, system glitches and other online hazards can make the average person's reliance on computer systems more of a leap of faith than a bond of trust. To promote research into more dependable, accountable and secure computer and network systems, the National Science Foundation (NSF) has issued a solicitation for the Cyber Trust program, which expects to fund up to $30 million in awards. The Cyber Trust program will support up to three research center-level efforts as well as single-investigator and team awards, subject to NSF's merit-review process and the availability of funds. NSF expects that Cyber Trust research centers will involve collaborations among academic, industry and other partners. "Interconnected computer systems are part of the nation's critical infrastructure as well as part of people's homes, cars and offices," said computer security expert Eugene Spafford of Purdue University, who recently joined NSF as a senior advisor. "The goal for Cyber Trust research is to make these systems-and their successors-not only…

Pennsylvania's Tobacco Settlement Investment Board (TSIB) recently approved a commitment of up to $20 million to Birchmere Ventures III LP to invest in life sciences companies based in Pennsylvania. Birchmere Ventures III, a new fund jointly formed by Pittsburgh-based Birchmere Ventures and San Francisco-based Bay City Capital, will raise up to $150 million. The commitment to Birchmere Ventures/Bay City Capital will leverage the Tobacco Settlement money three-to-one by raising $30 million from other sources to match an initial $10 million made available by the TSIB. The TSIB stipulated that the total $40 million must close by March 31, 2004. Birchmere Ventures/Bay City Capital must raise an additional $30 million from other sources to leverage the total available $20 million in TSIB funds. The $30 million must be raised one year from the date of the first close. Following the $20 million TSIB contribution, Birchmere Ventures/Bay City Capital would then be expected to invest a minimum of 70 percent of $80 million, or $56 million, in Pennsylvania life sciences companies, raising another $70…

Virginia's Center for Innovative Technology (CIT) announced on Monday a new investment initiative to help close the capital gap for the state's early-stage technology businesses. CIT, a state-chartered nonprofit corporation, will launch the Growth Acceleration Program (GAP) on Dec. 15, 2003, to address the funding void created by a recent shortfall of angel capital. CIT's GAP will invest up to $100,000 in early-stage technology companies that successfully complete a seven-step investment process. All GAP investments will take the form of convertible notes with outstanding principal and interest converting to a CIT equity position in the firm at the time of a qualifying financing event. CIT may attach warrants to GAP investments as a function of loan term, interest rate and payment schedule. Under the program guidelines, any Virginia-based company involved in communications, biotechnology, information technology, nanotechnology, materials or sensors would be eligible for GAP funding. Eligible companies must have a high-potential prospect for commercialization and follow-on funding and be able…

To expand on the state's Centers of Innovation strategy, Gov. Sonny Perdue announced in November the creation of the Middle Georgia Aerospace Innovation Center (MAIC). The center is comprised of numerous partners, including the Georgia Department of Industry, Trade & Tourism's Office of Science and Technology, the University System of Georgia, private institutions and companies, and the Warner Robins Air Logistics Center (ALC). Researchers from Georgia Tech, Mercer University and Macon State College will work directly with the ALC and industry partners to develop new technologies to transform lifecycle support for aircraft. All technologies developed in MAIC will be evaluated and potentially implemented by its partner organizations. These technologies eventually will be commercialized and licensed by the state Board of Regents to corporate partners including Boeing and Lockheed-Martin. As aircraft become more complex and expensive, the challenge of extending their life cycle grows. The combined talents of academic, military and commercial organizations in Middle Georgia will develop solutions…

With $90 million already secured in state and private support, a 400-acre automotive research campus to be developed by Clemson University promises to make South Carolina a hub of the nation's automotive and motorsports industry. The Clemson University International Center for Automotive Research will house a new graduate engineering education center, distinctive research and testing facilities, and private industry research and development operations that will help support the region's growing automotive industry cluster. The first non-academic tenant on campus, BMW Manufacturing of South Carolina, plans to occupy an Information Technology Research Center to be built adjacent to Clemson's graduate school. The 84,000-square-foot center will support research focusing on improving automotive software systems and software/hardware compatibility for BMW products. The $15 million facility will be owned by Clemson and leased by BMW. State funding to build the center is part of the state incentive package offered to BMW last year when the company announced an additional investment of $400 million…

Federal laboratories' ability to contribute to local economic development efforts may depend most on the quality of technical and business assistance they can offer, suggests a new report issued by the U.S. Department of Commerce's Office of Technology Policy (OTP). The report, Partners on a Mission: Federal Laboratory Practices Contributing to Economic Development, documents nine programs that go beyond immediate laboratory missions to provide communities with greater access to lab technologies and facilities. The report was developed with information from interviews with labs interested in highlighting their local economic development efforts. The nine cases included in the report were selected as representative of other U.S. laboratories and programs conducting similar activities. Numerous issues affecting the labs' ability to actively support economic development and related activities surfaced among the nine that were visited: Representatives in some federal labs would like policymakers to clarify their intent, regarding federal lab participation in technical and business assistance and…

Steve Bryant has been named the project director for the Bloomington Life Sciences Partnership in Indiana. Patrick Rea recently was selected as administrator for the Small Business Administration's six-state region involving Indiana, Illinois, Michigan, Minnesota, Ohio and Wisconsin. The Idaho Economic Development Association has named Jan Rogers as new president. The Grand Forks Region Economic Development Corp. has named Klaus Thiessen as its new president. The Association of American Universities has selected Patrick White as the new director of federal relations.

Steve Bryant has been named the project director for the Bloomington Life Sciences Partnership in Indiana.

Patrick Rea recently was selected as administrator for the Small Business Administration's six-state region involving Indiana, Illinois, Michigan, Minnesota, Ohio and Wisconsin.