SSTI Digest

Gov. James McGreevey recently appointed Alfred Koeppe as the new Chairman of the Economic Development Authority of New Jersey.

Frank Shafroth has left his position as lobbyist for the National Governors' Association.

Bill Todd, former CEO of the Georgia Research Alliance, has joined the staff of Gov. Sonny Perdue to work on special projects.

Patrick Von Bargen has joined the leadership team in the Office of the Chairman at the U.S. Securities and Exchange Commission as Managing Executive for Policy and Staff. Mr. Von Bargen formerly was Executive Director of the National Center for Regional Innovation and Competitiveness and Vice President of the Council on Competitiveness.

A Note from the Editor

Don't panic, Mother's Day is still 10 days off. You haven't missed the opportunity to reflect on the contributions she made in your life. Most mothers, at least the good ones, try to instill some basic traits in their children that are critical for the growth and improvement of a better society. Honesty, integrity, respect, consideration, compassion, modesty, and responsibility leap to mind. Remember those struggles as a kid when you knew the right thing to do but didn't want to do it? Like, I remember my mom making me shovel the snow for the old lady who lived alone down the street for free when the rest of the gang were building forts for the best snowball fight of the blizzard of `78. My back ached as I walked up the street — just in time to be pelted by a barrage of snowballs from my buddies.

Perhaps in no other sector are efforts to grow an industry so dependent on a strong public-private partnership as they are for biotech and the life sciences. Most of the research funding for the field flows from the government to universities and research institutions. Industry then steps up for clinical studies and commercialization.

With only two months left in most fiscal years, states must still close a $21.5 billion budget gap in order to comply with their balanced budget requirements, according to a report issued today by the National Conference of State Legislatures.

Entering their third straight year of budget shortfalls, state lawmakers have had to close a cumulative $200 billion budget gap. NCSL President and Oklahoma Senator Angela Monson says state policymakers are dealing with complicating factors on both sides of the budget.

"Already plagued by anemic revenue performance, lawmakers have been besieged by spending overruns - from Medicaid to homeland security to emergency snow removal," she said. "The problems have been relentless as most states have run out of the simple, painless options."

The Senate and Congressional Manufacturing Task Forces garnered support from a majority of senators and representatives for continued funding of the Manufacturing Extension Partnership (MEP). Senators Olympia Snowe (R-ME) and Joe Lieberman (D-CT), co-chairs of the Senate Task Force, drew support from 58 Senators with both parties joining forces to support MEP. Representatives Jack Quinn (R-NY) and Marty Meehan (D-MA), co-chairs of the Congressional Task Force, spearheaded the House effort and won support from 203 colleagues. The California House delegation and Congressional Hispanic Caucus sent letters of their own bringing the total House support to 246 Representatives. The letters support $110 million for MEP in the FY 2004 appropriations bills

As in FY 2003, the Administration's FY 2004 budget request recommended phasing out federal funding for MEP to less than $13 million. In FY 2003, Congress provided $106.6 million for the program.

The Economic Development Administration (EDA) recently announced the recipients of its 2003 Excellence in Economic Development Awards. A total of eight award-winners were named across seven broad award categories. Those pocketing awards in Innovation and Technology-led Economic Development, respectively, are described below.

Innovation

Washington Governor Gary Locke signed legislation last week that will give a tax break for research and development (R&D) firms. HB 1462 – passing unanimously, 96-0, in the State House and by a majority, 41-4, in the State Senate – prohibits Washington's local governments from taxing the intellectual property of these companies.

The new law provides that "a city may not impose a gross receipts tax on intellectual property creating activities." Such activities are said to include R&D that leads to the creation of patents, trademarks or other intellectual property. However, municipalities may continue to tax research firms that occupy a certain amount of square footage or have a certain number of workers.

To help make his state a leader in research, development and innovation, New Jersey Governor James McGreevey recently signed an executive order establishing the Commission on Jobs, Growth and Economic Development. Highlighting the state's strengths but calling for it to move forward, even with a $5 billion budget shortfall looming, the governor said the commission is needed to put New Jersey in position to be more competitive.

The commission is being charged with five primary functions, including:

A recent study by Iowa State University researcher David Swenson suggests the ISU Research Park's substantial and diverse economic activity bolsters Iowa's economy. Focusing on current tenants, Swenson's research shows that the park links directly to almost $88 million in total industrial output. Businesses that provide goods and services to park customers and employees are said to generate an additional $46.3 million in economic activity.

Park administrators commissioned the Iowa State Department of Economics to complete the analysis to measure current economic value created by the park's companies and centers. The park has tracked growth by employment and new business starts for more than 10 years; however, it has never studied its overall economic impact.