SSTI Digest

Two new grants, each greater than $1 million, have been awarded by the National Science Foundation (NSF) to study the societal implications of nanotechnology — the emerging discipline that seeks to control and manipulate matter on a molecular scale. The grants are the largest awards the foundation has ever devoted exclusively to research in societal implications.

Nanotech has been considered by many in the tech-based economic development community to be a "transformative" technology, one that could change the way we live and work as profoundly as did the microchip or the automobile. To speed the development along, NSF and 16 other federal agencies are supporting a nearly $1 billion-a-year National Nanotechnology Initiative.

Tight budgets are causing many state and local tech-based economic development (TBED) programs to delay new initiatives, even forcing some to scale back on the services already provided. But mottos like "getting more bang for the buck" and "doing more with less" are fast becoming tired, transparent clichés.

Given the economic restructuring underway (economists call it a jobless recovery), some states are beginning to rethink their whole economic development portfolio. During the past few weeks, alone, governors have created new commissions, committees or advisory councils to explore ways to foster better times. Everything is on the table. Elected stakeholders, policy makers, program practitioners and clients must feel the investments made toward building more prosperous economies are the right ones for their community — and that they are paying off.

Through an editorial glitch between browsers, the two external links were inoperable in the lead story in last week's issue of the SSTI Weekly Digest, "President Wants Point Person on Manufacturing." Corrected links are available below and on the Web version of last week's issue (http://www.ssti.org/Digest/2003/090503.htm).

The article by the Federal Reserve Bank of New York, "Has Structural Change Contributed to a Jobless Recovery?" is available at: http://www.newyorkfed.org/rmaghome/curr_iss/ci9-8.html

President Bush announced on Monday that he has told Commerce Secretary Don Evans that he wants him to appoint an assistant secretary “to focus on the needs of manufacturers, to make sure our manufacturing job base is strong and vibrant.”  The President made the announcement saying, “I understand for a full recovery, to make sure people can find work, that manufacturing must do better...We’ve lost thousands of jobs in manufacturing, some of it because of productivity gains...but some of it because production moved overseas.”

No additional details were provided on the responsibilities of the position, but according to a Commerce press release, the new Assistant Secretary for Manufacturing and Services "will help address the competitive challenges and opportunities facing the U.S. manufacturing sector."

On Thursday, the Senate Appropriations Committee approved $106.6 million for the Manufacturing Extension Partnership (MEP) for FY 2004, according to the Modernization Forum. The Bush Administration had proposed funding MEP at $12.6 million, effectively eliminating the national program.

The Committee action would maintain funding at the FY 2003 level provided by the 108th Congress earlier this year. The House appropriations bill passed in July would provide only $39.6 million for MEP. Earlier in the year, 246 House members sent letters to House CJS Appropriations Subcommittees leaders supporting $110 million for MEP in FY 2004.

Manufacturers continue to shed thousands of American jobs — at a rate of 80,000 per month over the past three years, according to the New York Times. The realities of globalization are settling in as small and mid-sized manufacturers are hit hard with competition from around the world.

Local communities in every state in every region across the country are feeling the impact of plant closures, mass layoffs and downsizing. The economic indicators point toward recovery while unemployment lines grow. Economists are now suggesting the U.S. is losing high-paying, skilled jobs that will never return.

What is manufacturing's future in America, and how do states, regions and communities prepare for it?

States cut aid to cities and towns by a total of $2.3 billion in the current fiscal year, according to a new report from the National League of Cities (NLC). Comparing 2004 to 2003 figures, the $2.3 billion in state cuts represents a 9.2 percent decline in state revenues for cities.

NLC released its report, Fiscal Crisis Trickles Down as States Cut Aid to Cities, at a roundtable held on Tuesday at the National Press Club in Washington, D.C. City leaders believe shifts in federal policy are weakening the federal role in the nation’s inter-governmental system, NLC states. They also are concerned that the fundamental changes in the federal-state-local partnership will hurt state and local governments and, ultimately, the people they serve. NLC offers these findings in its analysis:

In a move to integrate technology and traditional learning, New Hampshire Governor Craig Benson introduced on Tuesday a four-year pilot program to bring laptop computers into classrooms. The program, Technology Promoting Student Excellence, is intended to provide wireless connectivity to all 7th-grade students and teachers from selected schools.

Numerous corporate donors have contributed nearly half of the $1.2 million estimated cost to implement the program, according to the Associated Press. Up to five schools will be selected from a pool of 19 school districts being asked to submit proposals. Installation of the wireless network will begin in November 2003, following an announcement of winning schools.

Citing the goals of expanding its impact and stabilizing funding, the member-based TechAlliance has given up its political independence to become a nonprofit agency under the auspices of the Nevada Commission on Economic Development. With the change comes a new name for the 4-year-old entity, which had served the Reno area from its Carson City offices — the Nevada Center for Entrepreneurship and Technology (CET).

Alison Estee, retaining the title of executive director, will gain a new boss as she now reports to the director of the state’s lead economic development agency. The Commission also will appoint a statewide advisory board for the new center.

Biotechnology is one of the few tech-sectors in which jobs still seem to be in strong demand despite the weak economy, according to local news reports from around the country. As a result, many states, communities and universities have directed a portion of their economic development efforts toward encouraging life sciences research and biotech commercialization. Two of the more recent initiatives launched in Michigan and Maryland have the similar goal of encouraging recent and future college graduates to pursue careers locally in the growing fields.

During the course of each year, SSTI collects Small Business Innovation Research (SBIR) award and proposal data as it becomes publicly available. For FY 2002, SSTI has aggregated Phase I award, proposal and award-to-proposal conversion percentages for all 50 states and the District of Columbia for eight of the 10 participating agencies. (The Department of Education and the Environmental Protection Agency were unable to provide proposal statistics.)

The Phase I award-to-proposal percentages vary greatly across the eight agencies reporting complete information:

Merideth Andreucci has succeeded Michael Wilton as president of the USA Niagara Development Corp. Wilton was nominated by Governor George Pataki to serve as President of the New York State Higher Education Services Corp.

Richard Baier has been appointed director of the Nebraska Department of Economic Development.

The Bullitt County Economic Development Authority of Kentucky has named Bob Fouts as interim director.

The Connecticut Technology Council has named Matthew Nemerson as its new President and CEO, replacing Michael Theodore.