SSTI Digest

Comparing the recent release to the same report issued two years ago surfaces an unavoidable danger of relying on trends identified 13 years ago in the 1990 decennial census. The 2002 educational attainment figures released by the U.S. Census Bureau in March reports 26.7 percent of the U.S. population 25 years or older holds at least a Bachelor's degree, about one percentage point higher than the previous year. The range across the states shows the District of Columbia at 44.4 percent with the highest and West Virginia with the lowest at 15.9 percent. Washington, D.C. held first place in the Census' 2000 estimate for the same statistic, but the percentage was only 38.3 percent. This reflects an apparent 15.9 percent increase in the number of District residents with a Bachelor in just two years. More dramatically, when comparing the 2000 and 2002 reports, South Carolina, Delaware and Indiana respectively posted 22.6 percent, 22.9 percent, and a whopping 38.6 percent jump in college graduates in 24 short months. Did it really happen that fast? Not likely. One would expect a corresponding…

SSTI extends its thanks to those of you who have participated in the 2003 SSTI Weekly Digest survey. As mentioned in a separate e-mail earlier this week, the survey results help us determine the editorial direction and content of future issues of the Digest and Funding Supplement. We're also open to suggestions for our website, publication catalog, investment portfolios and hairstyles, so the survey offers a great chance to express yourself. Hundreds of you responded in the first few minutes, potentially causing a traffic strain on our little server. Four Digest recipients were nice enough to alert us to a technical glitch that involved a sordid browser-firewall relationship that we think we've resolved. If you encountered any problems, we hope you will try again. Completing the online survey form should take only a few minutes. Most are multiple choice for further simplification, although your personal comments are very helpful and most valuable. Every SSTI staff member involved in preparing the SSTI Weekly Digest and Funding Supplements will read every comment or…

The Economic Development Administration (EDA) has announced it has $228.12 million available for grants to support state, regional and community efforts to create wealth and minimize poverty by promoting a favorable business environment to attract private capital investment and high skill, high wage jobs through world-class capacity building, infrastructure, business assistance, research grants and strategic initiatives. EDA encourages only those investment proposals that will significantly benefit areas experiencing or threatened with substantial economic distress. Distress may exist in a variety of forms, including, but not limited to: high levels of unemployment, low income levels, large concentrations of low-income families, significant declines in per capita income, substantial loss of population because of the lack of employment opportunities, large numbers (or high rates) of business failures, sudden major layoffs or plant closures, military base closures, natural or other major disasters, depletion of natural resources, and/or reduced tax bases. Most of the funding ($203.7 million) is…

U.S. Senator Olympia Snow (R-Maine) recently introduced a bill to boost the flow of venture capital to small businesses by allowing tax-exempt entities, such as pension funds and university endowment funds, to invest in Small Business Investment Companies (SBIC) without incurring unrelated business taxable income. S. 855, or the Small Business Investment Company Capital Access Act of 2003, is an approach to inject needed investment money into the economy while providing a stable, diversified and secure investment vehicle for tax-exempt pension and endowment funds. Industry experts believe the bill could boost capital available for SBICs by $200 million in the first year alone, according to the National Association of Small Business Investment Companies. "Passage of this bill will dramatically increase the amount of investment capital available to America's Main Street — the sector that creates approximately two-thirds of net new jobs," said Snowe, Chair of the Senate Committee on Small Business and Entrepreneurship. Senator Kit Bond (R-Mo.), the Committee's former Chairman, and Senator…

Speaking to a joint session of the House and Senate, Illinois Governor Rod Blagojevich recently presented his first budget, one that addresses a $5 billion budget crisis. In economic development, while Governor Blagojevich wants the state to be proactive in keeping Illinois competitive in the global economy, the $1.77 billion planned for the Department of Commerce and Economic Opportunity (DCEO) reflects a $576 million, or 25 percent, decrease over the FY 2003 level. Central to the governor's plans are creation of the $200 million Illinois Opportunity Fund that would use private investments to bring venture capital to the state; development of six new Centers for Entrepreneurship around the state to provide, training, tools and resources to help businesses get started; and the consolidation of 30 economic development and job training programs within DCEO, which is projected to save $16 million. Governor Blagojevich's budget also calls for DCEO to aggressively promote the development of new technologies for renewable energy resources. The department's energy division would receive…

The FY 2004 budget passed by the Georgia Senate last week eliminates all $32 million the House approved for the OneGeorgia Authority, the state's loan and grant program targeting rural tech-based and traditional economic development. Created in 2000, the OneGeorgia Authority was anticipated to spend $1.6 billion over 25 years (one-third of the state's tobacco settlement funds) to assist the state's most economically challenged areas based on unemployment and poverty rates. Governor Sonny Perdue had requested $70.8 million for OneGeorgia in his FY04 request. The authority's two primary funding vehicles – the Economic Development, Growth and Expansion (EDGE) Fund and Equity Fund – already have supported projects across the state for high tech manufacturing business expansion, life science and other technology-based incubators, traditional infrastructure, research and industrial parks, and speculative facilities. A Senate amendment to restore at least $14 million for the Authority failed narrowly on a 26-28 vote before final passage of the state budget last Friday. The versions of the…

The Pittsburgh Technology Council recently issued its annual State of the Industry Report, which reveals that in spite of an extended national recession that began in 2000, the region’s technology industries have held their own, at least through the mid-point of the current economic downturn. The report covers the 13-county southwestern Pennsylvania region and presents industry statistics for 2001, the last year for which complete data is available from government and other sources. Commissioned by the Council and conducted by Carnegie Mellon University’s Center for Economic Development, the report examines the economic role that the technology industry clusters play in southwestern Pennsylvania. These clusters include information technology, advanced materials, biomedical and biotechnology, advanced manufacturing and environmental technology. In addition, the report reveals progress on other key indicators of economic health, such as venture capital investment and research and development (R&D). The number of technology and technology-related businesses rose 8.9 percent to 10,200…

A Blueprint for Prosperity and Jobs, a comprehensive strategic plan to foster and sustain job growth, business success and community vitality in Missouri, has been released by the Missouri Department of Economic Development. The product of two years of research, the plan addresses Missouri's need to focus its resources on building a knowledge-based economy, with emphasis on businesses that generate key technologies and have tremendous growth potential. The Missouri blueprint began with Governor Bob Holden's Economic Prosperity Summit in April 2001. Since that time, the department gathered input and recommendations from business and community leaders, educators and citizens from across Missouri. A series of roundtable discussions were held with leaders from three industries that hold promise for long-term growth – life sciences, advanced manufacturing and information technology – and additional insight was contributed through six regional dialogues. Missouri needs to strengthen “traditional” business mainstays while keeping companies in-state, the blueprint suggests. The state's…

Layoffs are an expected, yet difficult, aspect of the U.S. economy as companies shift employment needs to reflect changes in demand, technology, competition and trade. During a down economy, the number of workers facing layoffs can be particularly difficult for a region to reabsorb. Research has shown that experienced workers with long tenures in a particular job or sector endure substantial long-term earning losses once they find new work. In other words, the jobs older, more experienced workers take after being laid off typically pay substantially less than their original positions. Returning to school for even a one-year equivalent at a community college can positively change that, however, if the older worker pursues courses in science, technical and math, according to a recent working paper of the Federal Reserve Bank of Chicago. Louis Jacobson, Robert LaLonde and Daniel Sullivan, the authors of Estimating the Results of Community College Schooling for Displaced Workers, find "courses teaching quantitative or more technically oriented vocational subject matter generate earnings gains that…

Academic R&D expenditures grew 8.9 percent in 2001, according to the National Science Foundation's FY 2001 survey of research and development expenditures at universities and colleges. Reported in Academic Research and Development Expenditures: Fiscal Year 2001, the survey finds 609 institutions of higher education in the U.S. collectively spent $32.732 billion in FY 2001. The figure for FY 2000 was $30.042 billion. Federal sources of R&D funds accounted for a significant majority of the growth, climbing to $19.191 billion in FY 2001 — 9.6 percent higher than the $17.508 billion reported for the previous year. State and industry sources of R&D expenditures at academic institutions grew 5.4 and 3.8 percent, respectively, over the year and together account for just over $4.5 billion. Of the sources, institutional funds experienced the greatest percentage growth, rising nearly 10.5 percent to $6.553 billion in FY 2001. All other sources, such as foundations or individuals, provided $2.430 billion in FY 2001. With 74 detailed statistical tables, Academic Research and Development…

NorTech is interested in hiring an Associate Director who will be responsible for all activities associated with one or more initiatives and ongoing high level support for the initiatives. The mission of NorTech is to ensure economic growth and leadership in Northeast Ohio by promoting entrepreneurially based globally competitive technology development and commercialization. For each assignment, the Associate Director would be responsible for planning; convening and coalescing support from CEOs; advocacy at the local and state levels; launching the initiatives; and maintaining an active governance or advisory role post launch. NorTech seeks highly qualified individuals who have demonstrated success as entrepreneurs, senior business development assignments in growth organizations, or leadership experience in public-private initiatives. More information is available at http://www.ssti.org/posting.htm.

For the second time in three years, the Lilly Endowment is demonstrating its strong commitment to Indiana University's role in life sciences education and research by awarding $50 million to advance the Indiana Genomics Initiative (INGEN). INGEN was launched in December 2000 with a $105 million grant from the Endowment — the largest grant ever made by the Indianapolis-based philanthropic organization and the largest received by IU. The goal is to propel IU forward as a world-class biomedical research institution and to serve as the foundation for a robust life sciences enterprise. The Endowment presented the $50 million grant with the stipulation that it be used in areas of greatest need involving INGEN. "By helping IU attract top-flight researchers and strengthen its role in this highly competitive area, this grant will build the intellectual capital of our state, so vital to Indiana's future prosperity," said N. Clay Robbins, president of the Endowment. According to IU School of Medicine Dean D. Craig Brater, M.D., the most immediate need for INGEN is research space. The…