SSTI Digest

A higher rate of entrepreneurial activity is strongly connected with faster growth of a local economy, the U.S. Census Bureau reports in Endogenous Growth and Entrepreneurial Activity in Cities. The recent working paper, prepared by the Bureau's Center for Economic Studies, examines the connection between knowledge spillover and economic growth in a regional economy. The study concludes that variation in the level of entrepreneurial activity, a diverse mix of industries, and the amount of human capital are positively correlated to growth rates. Three major findings are presented: Firm birth rate is an important factor in regional employment growth — growth is higher in locales with greater competition and fewer obstacles to enter the market. Industrial specialization does not typically lead to higher quantities of externalities or spillovers that support growth in that particular sector. Specifically the study states that "industrial specialization has a negative effect on local employment growth, after controlling for birth rates, agglomeration effects, and differences…

Despite an economic slowdown, the Twin Cities is more competitive than it was a year ago, according to a study released by the Great North Alliance, a regional civic leadership organization. Conducted annually, the Great North Opportunity Forecast uses regional productivity and innovation to predict future competitiveness and opportunity. The 2002-03 forecast measures 58 key indicators of the regional economy of the Twin Cities and divides the indicators into four areas — current performance, development capacity, innovation capacity and resource flow. Innovation capacity, for example, includes 18 indicators measuring inspiration, invention, and entrepreneurial development. In each area, the Twin Cities' performance is compared against 11 similar sized high-growth regions around the U.S., including Atlanta, Austin, Boston, Chicago, Dallas, Denver, Orange County (CA), Phoenix, Raleigh, Salt Lake City and Seattle. The Twin Cities is capturing a larger share of resources from equity and financial markets than it has in recent years, the findings show, but the region's ranking has fallen in…

Earlier this week U.S. Department of Commerce Secretary Don Evans announced the Digital Freedom Initiative (DFI) would be piloted in Senegal, a democratic secular nation in which 94 percent of the population is Muslim. DFI is designed to promote economic growth by transferring the benefits of information and communication technology (ICT) to entrepreneurs and small businesses in the developing world. The new initiative leverages the leadership of the U.S. government, the creativity and resources of America's leading companies, and the vision and energy of entrepreneurs in developing countries. If the three-year pilot project is successful in Senegal, it could be rolled out to 20 countries in the next five years. Key elements include: Placing more than 100 volunteers in small businesses to share business knowledge and technology expertise; Promoting pro-growth regulatory and legal structures to enhance business competitiveness; and, Leveraging existing technology and communications infrastructure in new ways to help entrepreneurs and small businesses better compete in both…

The National Center for Public Policy and Higher Education recently released The Rising Price of Higher Education, which documents the rising costs of public education in the U.S. Using the data found in the report, SSTI has constructed a 50-state table presenting a comparison of the cost of tuition and fees at 2- and 4-year public institutions in 2001-02 vs 2002-03. For 4-year institutions, Massachusetts shows the greatest change, 23.7 percent, between the last two academic years. Missouri's average public tuition and fees for 4-year institutions in 2002-03 reflects a 20.1 percent increase over the previous year. In the same category, New Jersey tops all states with the highest average ($6,533), as its overall increase was 13.4 percent. New Hampshire leads all states in average 2-year public tuition and fees ($4,429), but South Carolina and Massachusetts boast the greatest change in such costs, 26.2 percent and 25.5 percent, respectively. The table is located at: http://www.ssti.org/Digest/Tables/030703t.htm The Rising Costs of Public Education report can be…

House Science Committee Chairman Sherwood Boehlert (R-NY) and Rep. Mike Honda (D-CA) recently introduced legislation that would authorize a multi-agency national nanotechnology research initiative. Nanotechnology is one of the top interagency priorities in the Administration's fiscal 2004 proposed budget for non-medical, civilian scientific and technological research and development. H.R. 766, the Nanotechnology Research and Development Act of 2003, authorizes $2.1 billion over three years for nanotechnology research and development programs at the Department of Commerce, the Department of Energy, the Environmental Protection Agency, NASA and the National Science Foundation. The bill provides a formal structure for coordination of research across the agencies, emphasizes interdisciplinary research, addresses societal concerns raised by nanotechnology, and requires outside reviews of the program. Cosponsors of the legislation include: Science Committee Ranking Democrat Ralph M. Hall (D-TX), Environment Technology and Standards (ETS) Subcommittee Chair Vernon Ehlers (R-MI), Research…

Policymakers must understand the ways in which the information technology (IT) revolution is transforming business operations across both new and traditional industries, according to Paul Sommers and Daniel Carlson, the authors of What the IT Revolution Means for Regional Economic Development, a discussion paper prepared for the Brookings Institution Center on Urban and Metropolitan Policy. By achieving this understanding, economic development officials will "be prepared to respond to the new challenges and opportunities these changes present," say Sommers and Carlson, both of the University of Washington Evans School of Public Affairs. The IT revolution, the authors state, has had far-reaching effects. Companies beyond the technology sector "are finding ways to cut costs dramatically by automating tasks, outsourcing certain functions, and linking customers to the factory floor." IT also continues to accelerate the fragmentation of large companies into separately located functional units and the number of strategic relationships among firms. Sommers and Carlson make the following…

Several recent project announcements highlight communities using incubators and research parks, some of the tools for technology-based economic development, in specialized formats to capitalize on existing strengths and nurture additional growth of clusters of related tech firms. Such targeted approaches can help to focus other TBED activities for additional benefits. For example, workforce training can be designed for the particular technology sector rather than tailored at higher costs to the needs of several unrelated technology firms in a general technology incubator or research park. Other savings can come in promotional and marketing strategies, tie-ins to university research capabilities, and specific EPA or OSHA regulations. Examples of some of the projects underway include: In Greenville, ME, an incubator specializing in wood composites was given life earlier this month when the State Senate passed a spending bill that includes $225,000 for the incubator. The authorizing legislation provides that the Greenville facility will house and support businesses seeking to commercialize wood…

The President’s Council of Advisors on Science and Technology (PCAST) drafted and approved four reports in 2002. Three of those reports are now available online at http://www.ostp.gov/PCAST/pcast2002rpt.html. Each report was submitted to President Bush and is briefly synopsized below. Building Out Broadband This report reviews the current standing of broadband demand and advocates policies that would aid the economic revival of information technology sectors. The report stresses the significant role that broadband technology plays in continuing growth and leadership of the U.S. high-tech sector. Steps are identified that the Administration should consider to aid the removal of barriers to timely broadband deployment. The following recommendations are issued: Continue emphasis on R&D in distance education and classroom technologies and collaboration with the private sector to exploit broadband technologies; Support telework and analyze how broadband can enable and expand the flexibility of these opportunities; Support telemedicine and expand coordination…

The federal role in early-stage technology development (ESTD) is much more important than may be suggested by collective R&D statistics, suggests Between Invention and Innovation: An Analysis of Funding for Early-Stage Technology Development, a report by the National Institute of Standards and Technology (NIST). Prepared to support informed public policies concerning the transition from invention to innovation, the study finds that federal technology development funds complement, rather than substitute for, private funds. The report states that economic growth will continue only with the constant pioneering of technological innovations that upset markets and generate new industries. Understanding the transition from invention-to-innovation is crucial in the creation of both public policies and private business strategies. Unfortunately, the report finds the practice in which an idea of potential commercial value is transformed into a successful product is complex, inadequately documented, and barely studied. The report attempts to fill that gap in this critical transition. Two…

Jeff Bond, former long-time manager of the BMDO SBIR program, has been named Acting DoD SBIR/STTR Administrator, replacing the retiring Ivory Fisher. The University of Nebraska Technology Park has named Steve Frayser as president. Illinois Governor Rod Blagojevich has nominated Jack Lavin to run the newly named Department of Commerce and Economic Opportunity. The agency was formerly called the Department of Commerce and Community Affairs. Lavin was chief financial officer for Rezco Enterprises. Greg Main, Oklahoma's former secretary of commerce, has been named president and CEO of the Oklahoma Technology Development Corp., which runs the Oklahoma Technology Commercialization Center. Timothy Monger is the new executive director for the Indiana Department of Commerce, Monger replaces Thomas McKenna, who has taken the position as cheif of staff to the Lieutenant Governor. Oklahoma Governor Brad Henry has named Tulsa businesswoman Kathryn Taylor to serve as Secretary of Commerce. The position oversees the state's economic development, commerce, and  tourism…

Jeff Bond, former long-time manager of the BMDO SBIR program, has been named Acting DoD SBIR/STTR Administrator, replacing the retiring Ivory Fisher.

The University of Nebraska Technology Park has named Steve Frayser as president.