SSTI Digest

An important aspect of all indices, regardless of their geographic orientation, is that each is created with a different purpose or goal in mind. As a result, each index has an inherent or implicit bias toward the data collected, the manner in which the data is manipulated and presented, and the conclusions drawn or policy recommendations made. When considering the various indices that have been prepared, it is important to be aware that differences do exist and not to think all the indices are interchangeable. Indices will have some common elements and measurements to them; however, subtle and substantial differences may also exist. For instance, since California holds one-quarter of the nation's population, it can be expected to be number one among the states in most categories that use raw values such as population, gross state product, number of business starts, number of college graduates, etc. If the goal is to present California in such light or to highlight the difference between California and another state with less population, then use of raw numbers can be very powerful. Only…

Seven indices introduced below are followed by a sample of the similarities and differences that exist among them. Progressive Policy Institute (PPI) The Progressive Policy Institute provides one of the most widely used barometers of states' relative positions in technology-based economies. State New Economy Index: Benchmarking Economic Transformation in the States offers an innovation-oriented public policy framework for the states to foster success in the New Economy. PPI contends states that overhaul traditional approaches to economic development and replace them with a new approach focused on boosting skills, entrepreneurship, technology and quality of life are best prepared to prosper in the New Economy. The 2002 index includes 21 indicators and more finely tuned measurements to assess state progress since PPI's first report in 1999. The indicators are distributed across five categories: knowledge jobs; globalization; economic dynamism and competition; the transformation to a digital economy; and technological innovation capacity. PPI's 2002 State New…

Even when indices are trying to measure the same activity or characteristic this may be done utilizing different measures and some indices may include indicators not used in others. A matrix presenting the common indicators among the national indices is available here. Examples of these differences and similarities follow: (Please note that not all indicators for all indices are mentioned.) Education All indices use some measure of the educational attainment of the workforce or population. OTP and Milken include measures of standardized test scores. Milken and CED use measures of spending on education, while OTP, Milken, CED and Beacon Hill look specifically at students and graduates in science and engineering fields. For example, OTP uses a measure of the percent of the civilian workforce with a recent bachelor’s, masters or Ph.D. in science and engineering. CED and Beacon Hill look at the overall number of science and engineering graduate students. Workforce Composition All indices except Beacon Hill and CED measure the percent of employment in high-tech…

Led by Massachusetts, which released its first innovation index in 1997, states have been creating indices in an attempt to track changes and transformations in their own economies. Many of these indices look at some of the same characteristics such as investment capital, industrial productivity, technology workforce development, business development and many others. The following outlines some of the similarities and differences in state indices. For the purpose of this comparison, indices from (Alaska, Maine, Maryland, Massachusetts, Mississippi and Washington) are used. A matrix presenting the common indicators among the state indices is available here. All indices factor high-tech employment into their indices in some way. Washington, Maryland, Mississippi, and Massachusetts measure company openings while company closings are included in the index by Washington. Fast growth or “gazelle” firms are included by Washington, Massachusetts, and Mississippi. Some sort of patent activity measure is included by all of the states except Mississippi. Mississippi, however, includes…

Indices also are created at the regional and local level as well. Once again, while there is some crossover in measures, there are also significant differences that reveal some regional variation and shifts in priorities. This section highlights: regional indices for Washington D.C. (Potomac) area, Silicon Valley, Tri-Cities area in Washington State, the Roanoke region and Philadelphia; and national metro area studies compiled by the Progressive Policy Institute, the Milken Institute, the Brookings Institution and AEA. A matrix presenting the common indicators among the local indices is available here. The Regional Indices All regional indices include some measure of workforce make-up. All but the Potomac Index measure “gazelle” firms in some manner. Silicon Valley and Tri-Cities include measures of average income and all indices look at education of the workforce or the educational system in some manner. Venture capital or investment is included by all indices as well as patent activity. All but Philadelphia include crime indices and some measure of air and water quality. All…

Some characteristics that STTI has found to represent a good index would contain some, if not all, of the following: Public involvement and wide ownership of the selection of the measures included and the weighting, if any for the indicators; Clear explanation of how factors are measured or calculated and any weighting that may be used; Explanation of the goals of the index and why certain indicators are included (and possibly why others are not); Examination of trends in the measures over time instead of one-time snapshots; Public dissemination of results; Specific recommendations for action from the study, including identification of responsible parties when appropriate; Follow-up assessment of improvement (every 2-3 years); and, Proper citation of sources.

One of the more popular sections of the SSTI Weekly Digest — according to our annual surveys of readers — are the periodic useful stats, which point to or present comparative statistics across cities or states. Fortunately, because we try to standardize the information for more meaningful interpretation, several of these tables provide useful data for developing a local or state innovation index. The following webpage provides a list of all 56 useful stats articles and tables included in SSTI Weekly Digest since the series began in May 2000: http://www.ssti.org/Digest/Indices/usefulstats.htm Additional links that can be helpful in compiling data for innovation indices and that are frequently used in the indices cited in this issue are:. EconData.Net - http://www.econdata.net SSTI Index Page - http://www.ssti.org/Digest/Indices/indices.htm EPSCoR Program State Data Pages - http://www.ehr.nsf.gov/epscor/statistics/start.cfm General Data Population Estimates - Census Bureau - http://eire.census.gov/popest/estimates.php High Technology Definition by Bureau of Labor…

More than $11 million in two New York State Assembly grants will support several new incubators for Brooklyn and Queens. The investments were recently announced by Assembly Speaker Sheldon Silver and Assembly members representing the two boroughs. A $4 million investment for the creation of a SUNY Downstate Advanced Biotechnology Incubator project aims to spur the development of a new cluster of biotechnology and medical technology companies in Brooklyn. The project will provide affordable space, services and access to resources essential to start-up companies engaged in the commercialization of technologies developed at SUNY Downstate, as well as to other biotechnology and medical start-ups and early stage companies. Once completed, the Advanced Biotechnology Incubator will accommodate approximately 32 new start-up companies that are expected to create an initial 200 jobs, with an estimated 400 new jobs within five years. The second grant, at $7.5 million, will allow the City University of New York (CUNY) to establish the first in a network of high-tech incubator facilities throughout…

Michigan's NextEnergy Center, the central component of Gov. John Engler's $50 million fuel cell initiative, will be located within Wayne State University’s Research and Technology Park in Detroit, the Michigan Economic Development Corporation (MEDC) recently announced. Wayne State is situated in the Woodward Technology Corridor, one of 11 SmartZones located across Michigan. The NextEnergy Center will serve as the nucleus for the NextEnergy Initiative — the Governor's comprehensive economic development plan to make Michigan a leader in the research, development, commercialization and manufacture of alternative energy technologies such as hydrogen fuel cells. The center will help facilitate collaborative research, incubate alternative energy technology companies, and provide industry collaboration for this new technology. “By locating within Wayne State University’s Research and Technology Park, the NextEnergy Center will take advantage of a world-class university, be within the geographical center of the North American auto industry and leverage the substantial funding the MEDC…

Innovation Philadelphia, the public-private partnership dedicated to enhancing the global innovation economy of Philadelphia, has unveiled the first Innovation and Entrepreneurial Index, a comprehensive study examining where Philadelphia stands in relation to key competitors in the Innovation Economy. The Index was compiled by measuring the Philadelphia region against seven other competitor regions: Baltimore, Boston, New York City, Pittsburgh, Research Triangle (Raleigh-Durham-Chapel Hill), San Diego, and Washington, D.C./Northern Virginia. The Philadelphia region scored in the second half of this group. Philadelphia is strongest in terms of a desirable location, due to its proximity to the Washington, D.C. — and its public investment dollars — and New York City, with its private investment capital, according to the Index. Philadelphia also scored well in patent productivity, ranking only behind Boston in number of patents produced between 1992 and 1996 and behind Boston and New York in patents between 1997 and 2001. Twenty-nine indicators were used to compare the regions in the…

With more than 700 facilities around the country, federal laboratories and research centers can provide many resources for communities to tap as they strive to develop tech-based economies: technologies available for transfer and commercialization; facilities and technical staff available to partner with companies and universities for research; and, connections to funding and procurement opportunities. Below are two recent announcements that demonstrate just a couple of the approaches that can be used to nurture a stronger partnership with nearby federal laboratories. Hampton Motorsports Technology Alliance The Hampton Motorsports Technology Alliance is a strategic partnership formed in August 2002 to promote Hampton, VA, and the region's expertise and technology resources to the automotive industry. The Hampton Department of Development, NASA Langley Research Center's Office of Technology Commercialization, Old Dominion University's (ODU) Langley Full Scale Tunnel (LFST) and the Peninsula Alliance for Economic Development comprise the alliance. The alliance saw…

The National Consortium of Entrepreneurship Centers (NCEC) presented on Tuesday the 2002 NASDAQ Entrepreneurial Excellence Awards to entrepreneurship centers at Babson College, Indiana University-Bloomington, and Saint Louis University. The award recognizes achievements and efforts of entrepreneurship centers in the following areas: entrepreneurship research, outreach to emerging ventures, entrepreneurship curriculum, community collaborations, special projects, and overall prestige and recognition in the entrepreneurship field. The award honors centers that have made and will continue to make enormous contributions in advancing entrepreneurship as the force in economic growth throughout the world. Selections are made by a panel of NASDAQ representatives, previous honorees, and distinguished professors of entrepreneurship at some of the leading programs in the country. This year's honorees include the Arthur M. Blank Center for Entrepreneurship at Babson College, Johnson Center for Entrepreneurship & Innovation at Indiana University-Bloomington, and the Jefferson Smurfit…