SSTI Digest

While Congress debates whether or not it should fund national programs to address the Digital Divide, many communities continue their efforts to ensure all local residents have the technology training and access needed to secure high-quality employment and attain skills through lifelong learning. The City of Seattle, through its Department of Information Technology, may offer one of the more sophisticated and successful models for approaching the issue.

Emphasis in the defense research agenda would continue to shift toward advanced technology development and defense-wide programs in Fiscal Year 2003, based on the House and Senate versions of the defense authorization bills that have cleared the respective armed services committees. [Note: authorization bills set the parameters for program spending levels; Congress must pass separate appropriation bills each year to allocate funds to specific programs or agencies.]

The Institute for Competitiveness and Prosperity — the research arm of Ontario's Task Force on Competitiveness, Productivity and Economic Progress — has released a comprehensive view of Ontario's industry clusters, showing for the first time how they compare with similar clusters in other provinces and U.S. states.

NASA Administrator Sean O'Keefe and Biotechnology Industry Organization (BIO) President Carl B. Feldbaum signed a memorandum of understanding this week to expand cooperation between NASA and the biotechnology industry.

A wake-up call. That's what the final report of the Lincoln Technology Council said the city received after learning one of its top employers was expanding its operations in a nearby city instead of Lincoln because of perceived weaknesses in Lincoln's telecommunications infrastructure. The result was Mayor Don Wesely creating the Mayor's Technology Council in February last year to "enhance the community's core technology strengths and infrastructure to achieve a competitive advantage for Lincoln as a leading city for technology-based businesses and to promote economic development."

The National Science Foundation (NSF) has published the Science & Engineering State Profiles: 1999-2000, an online database. One-page statistical summaries are given for each state, the District of Columbia, and Puerto Rico, permitting calculation of per capita statistics and rankings.

In the SBIR Phase I award/proposal table SSTI released with the May 10, 2002 issue of the SSTI Weekly Digest, the figures reported under "Health" inadvertently included both Phase I and Phase II proposals for the National Institutes of Health. As a result of the adjustment, the award-to-proposal ratio also has been corrected. The revised table has been republished at: http://www.ssti.org/Digest/Tables/050302t.htm

New York's initiatives to support technology-based economic development (TBED) will share more than $520 million in state appropriations during Fiscal Year 2003. The highlight: two originally competing budget proposals to support university-based centers of excellence survived with a combined $470 million in state funds (see the Jan. 5, 2001 issue of the SSTI Weekly Digest for background). Most of New York's other TBED initiatives also fared well in the new budget, running counter to the fiscal environment facing TBED in several other states.

Senate Bill 1844, signed by Governor Jeb Bush this week, provides $30 million to create Centers of Excellence and includes several other key elements of the Florida Technology Development Initiative, proposed by Governor Bush in his State of the State speech this year.

Interest by would-be entrepreneurs to start new businesses declined in 2001 as the economic recession and lingering effects of the dot.com crash dampened enthusiasm for launching new ventures, according to the Global Entrepreneurship Monitor (GEM) 2001 National Entrepreneurship Assessment for the United States of America. The trend is expected to continue for the near term with a strong rebound later in the year.

Program expected to yield $15B in new capital for underserved communities

Earlier this month, Kansas passed legislation to encourage $40 million in private equity investment. Alabama passed a $100 million bill for CAPCOs. Similar legislation aimed to increase the amount of venture capital available locally has passed at least one chamber in the South Carolina and Ohio state legislatures. Pennsylvania pension funds, after taking a bath in the dot.com crash and current recession are increasing the percentage of their portfolios placed in venture capital.