SSTI Digest

Within the past hour, SSTI has learned that Congress zeroed out the $3.5 million for two programs that supported state SBIR/STTR technical assistance efforts. The omission of any mention in the FY 2003 Omnibus Appropriations Conference Report of funding for the Federal and State Technology Partnership (FAST) and Rural Outreach Program (ROP) was not a mistake in the draft as originally thought by the programs' proponents.

In FY 2002, FAST provided $100,000 matching grants to 27 state SBIR outreach and assistance programs. The ROP, which is targeted to those states that historically have under performed in the SBIR program, has provided support to 25 states since its creation only three years ago. Lists of recipients for both programs are available at: http://www.sba.gov/sbir/indexfast.html

In SSTI's final look at the 2003 State of the State Addresses and Inaugural Addresses, we find the importance of building technology-based economies continues to be emphasized by governors across the country, despite – or because of – the down economy. Below are excerpts from speeches given in Michigan, Minnesota, Oklahoma, Rhode Island and Texas.

Michigan Governor Jennifer M. Granholm, State of the State Address, Feb. 5, 2003

State budget gaps have grown by 50 percent in the last two months and state policymakers will work to resolve unprecedented budget shortfalls for the next 15 months, according to findings from the latest budget survey released by the National Conference of State Legislatures (NCSL).

Based on information collected from legislative fiscal directors in late January 2003, NCSL reports that two-thirds of the states must reduce their budgets by nearly $26 billion between now and June 30, which ends the current fiscal year in most states. In November, when NCSL issued its last report, states projected a cumulative gap of $17.5 billion. States already had addressed a $49.1 billion shortfall as they crafted their fiscal year 2003 budgets.

With nearly $1 billion in federal R&D funding proposed for the new Department of Homeland Security, many states, universities and companies are exploring ways to be actively involved as R&D partners. Already home to several military and intelligence research activities, with proximity to Washington, D.C. in its favor, Virginia recently announced an effort to further strengthen its competitive position in the funding race.

Last Friday, Governor Mark R. Warner announced the creation of the Virginia Institute for Defense and Homeland Security (IDHS), a university and industry research consortium dedicated to delivering solutions to support U.S. homeland security and defense objectives. More than 20 companies have already signed on as founding members to work with the 12 Virginia universities in the consortium.

Governor Tom Vilsack has announced a plan to invest $50 million into the creation of a life sciences initiative to help establish Iowa as a leader in the life sciences. Developed with the Regents Universities, Iowa Business Council and leaders in Iowa's biotechnology industry, the biotech plan's success hinges on a three-part strategy:

NJCST Out, Cancer Research In

Tight fiscal times are the norm for state and local governments across the country. While the federal government can ponder record-busting deficits for FY 2004, declining revenues are forcing state leaders to take scalpels, knives, axes and in some cases even chain saws to their budgets. Most budget proposals for 2004 include some sort of revenue enhancement measures – new taxes, eliminating loopholes and credits, increasing user and service fees – but none of the states are relying completely on increasing revenues to deal with their shortfalls. There are also spending reductions.

Governor John Baldacci used his February 5 budget address to outline a proposal to float a $70 million economic development bond, the majority of which would be dedicated to research and development projects. Citing the successful results of several R&D bond packages approved by voters over the past five years – with last summer's $35 million bond being the most recent – Gov. Baldacci wants the state to take advantage of historically low interest rates and the state's good bond rating to commit an additional $43 million for R&D projects.

The Governor says the funds will support the joint biomedical research efforts of the University of Maine System, Jackson Laboratory, and the other biomedical research organizations around the state. Other funds will continue research in natural resource based industries in the university system.

Rural economic development policies must build upon the natural assets of rural America, advises the latest issue brief from the National Governors' Association (NGA) Center for Best Practices. Innovative State Policy Options to Promote Rural Economic Development suggests rural strengths include natural resources, local business networks, and an under-exploited entrepreneurial culture.

Rural economic development presents distinct challenges as well, including poor links to markets, geographic isolation, a lack of infrastructure and tools for business development and growth, and the out-migration of human capital. The recent economic downturn in the U.S. also has hit rural areas harder than urban and suburban areas, intensifying the challenges for rural communities.

To help formulate the best approach for the state to deploy to help build a stronger technology sector, Arizona Governor Janet Napolitano has established a state advisory group of consisting entirely of high tech business leaders. Created by executive order, the Governor's Council on Innovation and Technology will recommend ideas for energizing the industry.  The Council will include committees on capital formation, technology transfer and infrastructure and supply chain development.

The Council on Innovation and Technology will focus on implementing a statewide strategy for a smooth transfer of technology from universities to the private sector; attracting more venture capital to the state to assist growing and new tech-based businesses; and developing Arizona's infrastructure so it can support tech growth. Additionally, the Council will provide ongoing long-term policy input to the Governor.

The State of Maine's Experimental Program to Stimulate Competitive Research (EPSCoR) Committee is seeking a Statewide EPSCoR Director to provide leadership and vision for the State's EPSCoR Committee, called the Research Capacity Committee (RCC), and the state's research enterprise. Working directly with the RCC, the Director participates in the development and implementation of the state's EPSCoR strategy. The Director also reports to the Chair of the RCC. For more information, visit http://www.ssti.org/posting.htm or access the full job description at http://www.mstf.org.

Certified economic development professionals have an extra reason to attend Building Tech-based Economies: From Policy to Practice, the nation's premier educational and networking experience for the TBED community. The 2003 SSTI Annual Conference will be recognized by the International Economic Development Council (IEDC) as a professional development event that counts toward the recertification of Certified Economic Developers (CEcD).

The IEDC CEcD program is designed to unite the economic development profession around a core level of professional competency in eight topic areas. To sit for the certification exam, prospective candidates must have 10 years of professional experience, or at least four consecutive years of paid experience, and a series of professional development training courses across at least six of the eight competency areas.

With more than 20 new governors and hundreds of newly elected state legislators, mayors and city council members across the country, many states and communities are seeing fresh faces in key positions that will influence the shape and direction of tech-based economic development policy, funding and program implementation. SSTI encourages its readership to get issues of the SSTI Weekly Digest in their hands to help bring your new partners into the larger tech-based ED community as soon as possible. If the Digest doesn't forward well, back issues, including this one, and the subscription form are available online for your convenience: http://www.ssti.org/Digest/digest.htm