SSTI Digest

Ten rural communities and the technologies being used within them are the focus of Networking the Land: Rural America in the Information Age, the latest report released by the National Telecommunications and Information Administration (NTIA) of the Department of Commerce. 



NTIA's new Technology Opportunities Program (TOP) report reveals the communities are using telecommunications and information technologies for many purposes, from developing local economies to managing natural resources to improving access to education. Case studies are presented on the 10 communities: 

Economic development leaders within the Cedar Rapids/Iowa City Technology Corridor have joined other areas of the U.S. in marketing the area as one unified region. Elected representatives from 10 cities and two counties located in the Cedar Rapids/Iowa City Technology Corridor recently signed a joint proclamation as a statement of support for the Corridor’s targeted industry cluster development regional efforts. This effort, focusing on the strength of the regional economy, is designed to attract prospective businesses and industry to the Corridor. 



For planning and marketing purposes, the Cedar Rapids/Iowa City Technology Corridor is defined as a region including the metropolitan areas of Cedar Rapids and Iowa City and adjacent communities represented by Priority One and Iowa City Area Development (ICAD). Representatives of Priority One — an economic development division of the Cedar Rapids Area Chamber of Commerce — and the nonprofit ICAD worked to define the regional economy and to determine both short- and long-term development prospects. The approach utilized industry clustering concepts outlined in a state-funded research project. 



During the spring of 2001, the Iowa Department of Economic Development approached representatives of the Cedar Rapids/Iowa City Technology Corridor with a proposal to conduct a pilot study that would explore ways to bring targeted industry clustering concepts into practice on a regional level. 



An extensive trip schedule to visit prospective target industries is planned for this year. 

In Perfectly Competitive Innovation, a March 2002 research department staff report for the Federal Reserve Bank of Minneapolis, Michele Boldrin and David K. Levine address whether current copyright, licensing and patent laws which grant monopolist rights to inventors beneficial or harmful to the innovation process. The authors suggest the latter in certain markets. 



Most modern analysis of innovation, the authors contend, is based on models assuming monopolistic competition as a prerequisite for understanding innovation and growth. Instead, Boldrin and Levine conceive a model that confers the "right of first sale" practice that was granted to entrepreneurs historically [defined loosely as before the mid-19th century]. They also argue that, contrary to prevalent opinion, idea generation and the creative effort should be viewed as sunk costs instead of as fixed costs. Models based on competitive markets can address sunk costs. 



The econometric model developed by Boldrin and Levine supports the conclusions that: 

Industrial R&D intensity — measured by the ratio of industry R&D to Gross State Product (GSP) — can be a useful S&T indicator, because it indicates the level of private sector R&D activity and standardizes the data to eliminate geographic, demographic, historical, and natural resource differences among the states. 



With the recent release of the National Science Foundation's Survey of Industrial Research and Development: 1999, SSTI has constructed a table presenting the data and state rankings for industrial R&D intensity for 1997-1999, the three latest years available. 



The top five states for each year and their scores are: 

Alabama 

To help rural Alabama communities work with existing industries toward job training and creation, Governor Don Sielgelman is creating a Center for Economic Growth within the Alabama Department Office. The new initiative is intended to help businesses in the rural communities cope with pressures to keep and retain qualified workers once the recently announced $1 billion Hyundai automotive plant begins hiring up to 2,000 employees. The center also will help the areas develop industrial recruitment strategies, according to the Associated Press. 



Arlington, Texas 

The Arlington Technology Incubator opened April 1 at the University of Texas at Arlington in cooperation with the Arlington Chamber of Commerce, according to stories in the Dallas Morning News and Fort Worth Star-Telegram. The center, to be housed in a building to be constructed in downtown Arlington, will help spin off research from the school's nanotechnology program. Former Mayor Richard Greene will serve as the first director, and the chamber's foundation will help secure grants to fund operations. 



Loudoun, Virginia 

The Loudoun County Department of Economic Development has named an official science adviser, the first such county-level position that SSTI knows of. The March 28 Washington Post reported that Terry Sharrer was named to the volunteer position in January, along with a 10-person advisory cabinet that includes several prominent science and technology leaders. The team is tasked with helping cultivate science and tech-based economic development in the largely rural county. The county has made innovation, research and tech business recruitment an integral part of its strategic plan and promotional activities. 



Massachusetts 

Acting Governor Jane Swift introduced legislation this week to create a Massachusetts advanced materials and biotechnology tax benefit certificate pilot program. An April 5 Boston Globe article reported the program would allow biotech and selected other tech firms to sell tax credits earned by increasing their R&D expenditures. The credits, applicable to corporate income taxes, would be equal to 10 percent of the increased R&D investment and could carry over for up to 15 years. The state's exposure from the pilot would be limited to $5 million annually. House Bill No. 5005 has been referred to the House Committee on Taxation. The Boston Globe points out supporters predict passage is unlikely this session since the state is facing a $2 billion deficit for the next fiscal year. 



Pennsylvania 

Governor Mark Schweiker has announced the creation of a new Ben Franklin Technology Center to serve northwest Pennsylvania from the campus of Penn State Erie. The initial focus of the fifth Ben Franklin Technology Center will be on expanding the application and development of electronic supply-chain management. The center — in cooperation with Penn State Erie, Gannon University, Allegheny College, Edinboro University and Carnegie Mellon University — also will work to establish a Center of Excellence, focusing on the development of next generation information technologies, such as remote diagnostics. The state will invest $3 million annually in the center. 



Organizational Name Changes 

The information technology council of the Charlotte Chamber of Commerce in North Carolina has been renamed Information Technology Charlotte. The press release says "the new council name was created to inextricably link the Charlotte region and the words information technology, helping to brand the region as a hotbed of IT activity, both to potentially relocating technology workers and to customers looking for IT services."



The Southwest Pennsylvania Industrial Resource Center, which provides advisory services to the region's small and medium-sized manufacturers, has changed its name to Catalyst Connection. According to the press release, the "brand-building campaign focuses on organization’s manufacturing expertise and leadership; strives to raise awareness of vitality of regional industry." 



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Want to expand broadband in your state or community? Looking to launch a biotech initiative? Getting into commercializing university research? Are tight budgets leading to more rigorous program evaluation? Or do you simply want to help your community understand the importance of technology? 



Any of these efforts should get easier with the 17 new titles added to Resources for Building Tech-based Economies, SSTI's publications catalog. A three-page PDF supplement of the new titles is available on the SSTI website as is the entire revised catalog, replete with more than 125 great resources to make your programs more effective and your job more rewarding. 



As always, SSTI sponsors and affiliates receive a 10 percent discount on all purchases. 



Both the new titles supplement and complete catalog are available at: http://www.ssti.org/Publications/publications.htm

On Wednesday, Pennsylvania Governor Mark Schweiker officially launched Pennsylvania's Life Sciences Greenhouse, an historic initiative to be spread among three regions of the state — Southeast, Southwest and Central Pennsylvania.



The Governor announced $100 million will seed the program, including $33.8 million for the Southeast region, $33.3 million for the Southwest region, and $32.8 million for Central Pennsylvania. The state's financial support, which will come from surplus tobacco settlement funds, is the largest single technology-related, economic development investment in Pennsylvania history, according to a press release issued by the Governor's office.



Pennsylvania's Life Sciences Greenhouse is designed to build on the biotechnology research at Pennsylvania's top universities. The initiative is expected to create 4,400 new jobs, attract or create 100 new biotechnology companies, and leverage more than $150 million in private capital over the next five years.



Renal Solutions Inc. (RSI), an integrated medical device and health-care service company based in Indiana, is the first company to partner with the initiative. RSI will relocate its headquarters to the Thorn Hill Industrial Park in Warrendale, Penn.



The Pennsylvania Life Sciences Greenhouse seeks to replicate the success of the Pittsburgh Digital Greenhouse, launched by former Gov. Tom Ridge in 1999.

[Note: SSTI defines a technology council as a regional entity that is membership-based and independently funded with science and technology-based economic development as one of its primary goals. National trade associations and government-created technology councils which serve in an advisory or policy role are excluded from this discussion.]

One of the biggest obstacles many communities and states face to building tech-based economies is convincing traditional businesses, institutions and the general population to embrace change, technological advance, and innovation. A common element of many strategic plans is at least one recommendation or even an entire report dedicated to changing perceptions of the community or state toward being a technology mecca — or at least getting people to think about and recognize the importance of science and technology investments. [See the 6/23/00 issue of the SSTI Weekly Digest for an article on a related report from the Oklahoma Center for the Advancement of Science & Technology.]



Perhaps the "paradigm problem" reaches its most daunting levels in economies that have traditionally been agricultural- and natural resource-based. Often with low percentages of residents holding bachelors degrees or higher and with many people earning less than the national average, less populated areas face myriad challenges toward building tech-based futures.



Key ingredients to turning the corner or making progress — keys that have application or opportunity for replication in every state and community — were demonstrated vividly in the March 25-31 issue of mainescience.org, the exceptional e-newsletter of the Maine Science & Technology Foundation [Archive and free subscription information is available at: http://www.mainescience.org]



Among the week's top S&T stories in a recent issue of the newsletter was a clipping from the Lewiston Sun Journal reporting that the state legislature had approved $25 million in funding over the next two years to provide laptop computers for each of 19,000 seventh and eighth graders in Maine. More telling of the state's commitment to the New Economy is Maine was facing a $250 million deficit when the legislature began its work on the FY 2003 budget.



One of the keys for a successful tech-based economic development strategy is strong leadership, and Maine is a prime example. A large part of what is helping turn Maine into a stronger, more economically diversified state is the leadership and vision of its Governor, Angus King. Gov. King first called for the state to purchase computers for every single 7th and 8th grader in 2000. The intent, as well as improving the quality of their education, was to help the students embrace the importance of technology in their futures. An underlying goal was to change the mindset of the students and their parents, when the students took the computers home to do homework and research.



Some skepticism and opposition led to a two-year delay and some watering-down of the original idea, but the Governor's conviction and the statewide discussion that ensued after his first unveiling of the initiative have helped push Maine into a better position to face a knowledge-based future.



Of course, there are no guarantees that the initiative will work; in this field, there never are. The key is Maine's willingness to take the risk and embrace change — to address the paradigm problem head-on.



But are the lessons of Maine's laptop victory transferable to other states?



At least 20 states, including Maine, will have new governors as a result of the elections this fall. An additional 18 governors are running for re-election, some in tight races. Throughout the last five decades of state efforts in tech-based economic development, top-level leadership have been the driving force for innovation in policy and practice. Success doesn't follow from any specific political persuasion or geographic alignment, but from the contagious enthusiasm or zeal of a strong leader to embrace the change required to keep pace with and participate fully in an economy driven by scientific advancement and technological progress.



SSTI asks the tech-based economic development community — state and local programs, the universities, the businesses, the organizations, the associations, the tech councils, and individuals — in the 38 states with gubernatorial elections: are you doing what needs to be done to ensure your next leader possesses the vision and conviction to welcome and embrace change?

More Funding Sought For Pell Grants

An educated workforce is one of the most important elements of any tech-based economic development strategy. The Association of American Universities (AAU) has alerted its members to a Dear Colleague letter being circulated in the Senate to encourage the strengthening and improvement of the Pell Grant program. Cosigners are sought by Senator Russell Feingold (D-WI) to urge Senate appropriators to support a $500 increase in the maximum Pell Grant award for FY 2003 to $4,500 and to eliminate the current year's budget shortfall in the Pell Grant program. Pell Grants, which help to offset the financial burden of college for students from low and middle income families, have lost 20 percent of their value since 1975, because the award size has not kept pace with inflation. The AAU reports cosigners already include: Susan Collins (R-ME), Edward Kennedy (D-MA), Jack Reed (D-RI), and Gordon Smith (R-OR). More information is available from Tim Grace, in Senator Feingold's office, at 202-224-0398.



Basic Research = Technology Advances

Need anecdotal evidence of the technological, economic and social payoff of basic research? The Office on Public Understanding of Science within the National Academy of Sciences has relaunched its Beyond Discovery website to offer vivid examples for greater public understanding of the value of basic research. The office publishes articles, now indexed by subject, examining the crucial role played by basic research in the development of important technological and medical advances. The link is: http://www.beyonddiscovery.org/

Formerly the marketing manager for a local software firm, Mary Bergeron recently was named the new executive director of the Baton Rouge Technology Council.



Virgil Carter has been named executive director of the American Society of Mechanical Engineers International, a not-for-profit organization actively supporting tech-based economic development across the country. ASME has more than 125,000 members worldwide. Carter, whose appointment is effective July 1, succeeds retiring David Belden.



John Glerum, former president and CEO of Ore-Ida Foods, has been named science and technology coordinator for the Idaho Department of Commerce. Glerum also will serve as director of the new Technology and Entrepreneurial Center, to be built on the campus of Boise State University West.

Formerly the marketing manager for a local software firm, Mary Bergeron recently was named the new executive director of the Baton Rouge Technology Council.