SSTI Digest

Total R&D expenditures in the U.S. are expected to increase about 3.5 percent to $285.6 billion in 2002, according to the annual Battelle-R&D Magazine research and development forecast.



Three significant factors, according to the forecast, have combined to exert influence on the state of R&D funding for the upcoming year, including the change in presidential administration, the faltering economy and the events and aftermath of the Sept. 11 terrorist attacks. The forecast suggests the impact of these factors cannot be underestimated.



"In previous years, the analysis of the emerging patterns of R&D could readily accommodate almost any singular disruption and could present a reasonable picture of the anticipated effects," said Dr. Jules Duga, a Battelle senior researcher and co-author of the report. "However, the concurrent triple-whammy experienced over the past few months creates a degree of uncertainty that is higher than usual and adds a layer of complexity to the forecast."



Highlights in the forecast are:

In his fourth State of the State Address, Governor Jeb Bush outlined a new $100 million university-based initiative focused on nanotechnology and biotechnology.



"I propose that we dedicate $100 million to create the Florida Technology Development Initiative. This initiative will build centers of excellence among our universities dedicated to the key research necessary for building our promising technology sectors. New facilities, laboratories, and endowed academic chairs will be the catalysts for entrepreneurial investment. If we build it, they will come. If we seize this opportunity, the best and the brightest academics, researchers, innovators, and entrepreneurs will call Florida home. And they in turn will help build businesses that will fuel our economy for the next century," Gov. Bush said.



The Governor's written budget request provides more details on the proposal:

The following item was prepared by Bill Noxon of the National Science Foundation.



U.S. collegiate enrollments in graduate-level science and engineering (S&E) fields rose in Fall 2000 for the second year in a row following several years of declines, according to a new National Science Foundation Data Brief from the Division of Sciences Resources Statistics. However, the entire 2000 increase, and then some, was due to the largest-ever, single-year increase in foreign student enrollees who held temporary visas.



The 2000 graduate S&E enrollments rose a modest 0.8 percent over 1999, reaching 414,570 — the highest number since 1996. The all-time high was in 1993 when more than 435,700 enrolled as full-time graduate students. But the numbers declined for the next five years. In 1998, less than 405,000 students enrolled in S&E graduate programs U.S.-wide, representing the lowest total for the decade.



In 2000, S&E graduate students with temporary visas reached an all-time high of more than 121,800. From 1998 through 2000, their numbers jumped by more than 19 percent, far exceeding the overall increase of the last two enrollment years.



"In the mid-1990s, the numbers of students with temporary visas went down fairly sharply when the Chinese Student Protection Act of 1992 made thousands of Chinese students eligible to receive permanent resident visas," Joan Burrelli, author of the data brief, says. "The recent increases, we believe, are tied to more foreign students coming to the U.S. to study computer science and electrical engineering." [Bill Noxon]



For more information, see: http://www.nsf.gov/sbe/srs/databrf/nsf02306/db02306.htm

Yesterday's Providence Journal-Bulletin reports the Rhode Island Economic Policy Council (RIEPC) has reduced by merger the number of Slater Centers. With the goal of increasing the impact of the state's annual $3 million investment, the restructuring from six to four centers is intended to reduce overhead and administrative costs, allowing more of each resulting center's funding to flow into emerging businesses.



The Slater Centers foster industry-university collaborations, build and strengthen relationships among academic institutions, and develop industry clusters. The centers offer business development resources — in the form of investments of up to $100,000 — to nascent ventures while creating a culture of entrepreneurialism. The merger, according to RIEPC officials quoted in the article, also permits center staff to focus more time and energy in the portfolio companies.



Two of the original six centers, the Slater Center for Biomedical Technology and the Slater Center for Interactive Technologies, remain focused in their original technology areas, while the remaining four are being consolidated into two broader centers: the Slater Center for Design and Manufacturing Innovation and the Slater Center for Marine and Environmental Technologies.



More information on the Slater Centers and RIEPC is available from: http://www.ripolicy.org/slater.html

Tennessee's Sullivan County took a big step toward reducing the presence of a brain drain when it approved a scholarship program for its high school graduates.



Officials in Sullivan County, a community of about 144,000 that neighbors Virginia, established the Educate and Grow scholarship program in May 2001. The program was approved first by the Kingsport (Tenn.) Board of Mayor and Aldermen and, with no dissenting votes, the Sullivan County Commissioners gave way to a $300,000-per-year plan for the program.



Under the program's terms, up to 168 students may receive full tuition assistance on a per-year basis to attend Northeast State Technical Community College, and every student in Sullivan County's six high schools and homeschoolers is eligible for the $1,600 in tuition money. Recipients must take at least 12 hours of classes a semester, maintain a C-average, enter college within 15 months of graduating high school, and complete a 60-hour degree at Northeast State within three calendar years.



Northeast State, which offers two-year associate degrees in 45 fields, reportedly has experienced success in attracting graduates via the Educate and Grow program. This past fall, 103 students enrolled in the program, and an above-average 72 returned for the spring semester, according to the Kingsport Times-News. In November 2001, the program was lauded by members of Kingsport's Economic Development Partnership for showing progress and gaining national attention.



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The third part in a series, "Tech-talkin Govs" highlights programs, policies and issues in tech-based economic development that were considered in the following governors' State of the State and Budget addresses.



California

Gray Davis, 2002-2003 Budget proposal, January 2002

http://www.dof.ca.gov/HTML/Budget02-03/00_toc.htm

Last week, Texas Governor Rick Perry announced the formation of the Governor's Council on Science and Biotechnology Development. The Council will strive to create a seamless system of innovation from the laboratory to the marketplace in rapidly developing areas of biotechnology — such as biopharmaceutical development, bioinformatics, genomics and nanotechnology.



Governor Perry described the Council's mission as one that will ultimately bring more research dollars to Texas higher education institutions, encourage university researchers to get products that advance the quality of life to the market, and create biotechnology jobs — and growing companies — across Texas.



Among its responsibilities, the 36-member Council will work to identify ways institutions of higher learning can coordinate efforts to attract federal research funds. Currently, Texas ranks sixth in research funds received from the National Institute of Health and third overall in research expenditures.



The Council also will develop a strategy to increase research and development expenditures in Texas, including both private and public funds. The Governor urged the council to identify ways to commercialize intellectual property that helps turn an idea into a marketable medicine or product.



Ashley Smith, a senior advisor on the governor's staff, will serve as chairman of the Council. Smith is a former member of the Texas House and serves as chairman of the Southeast Texas BioTechnology Park in Houston. He is also president and CEO of the Texas Institute for Rehabilitation and Research in Houston.



More information is available from: http://www.governor.state.tx.us/

Lincoln, Nebraska

Mayor Don Wesely's Technology Council has proposed to end the competition between Lincoln and Omaha for educational and economic resources, favoring a collaboration geared toward economic development, the Associated Press recently reported. The collaboration is expected to create new technology industries and help lessen the struggle for development in territory in and among the cities. Lincoln's strength, the presence of the University of  Nebraska-Lincoln, traditionally has been pitted against that of Omaha — venture capital and telecommunication infrastructure.



Pontiac, Michigan

Mayor Willie Payne recently announced the sale of $33 million in Tax Increment Financing Authority bonds to finance development at the former site of a state hospital, according to the Associated Press. The bonds, which include $10.2 million to purchase the former Clinton Valley Center, will make way for the Pontiac Oakland Tech Center technology park. Expected to yield millions of tax dollars, new residents and jobs, the $350 million project includes a 670-home residential development.



Montgomery, West Virginia

Plans are underway for the Upper Kanawha Valley Technology Community, a proposed three-story, 36,000-square-foot technology park that backers hope will bring more than 300 jobs, according to the Charleston Gazette. Early in 2001, $2.35 million in federal funds was earmarked for the center; in September 2001, the Upper Kanawha Valley Economic Development Corp. received a $132,000 grant from the U.S. Department of Agriculture. The tech park, to be housed in the former G.C. Murphy building, is a result of collaboration among the City of Montgomery, UKVEDC and the West Virginia University Institute of Technology.



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Two of SSTI's sponsoring organizations, the Kansas Technology Enterprise Corp (KTEC) and Virginia's Center for Innovative Technology, are looking for strong candidates to fill two critical positions. A brief description of each opportunity is provided below. More detailed information is available on SSTI's website at: http://www.ssti.org/posting.htm

Yesterday's edition of USA Today reported "the Commerce Department's Manufacturing Extension Program [sic], funded this year at $107 million...would be eliminated [in FY 2003] because the White House says they should be financed by the private sector."

With biotechnology taking center stage on several occasions during the past year, President Bush has appointed an 18-member Council of Bioethics to address some of the more controversial aspects of the field. Policy suggestions to emerge from the council are likely to impact the activities of the significant investments many states and localities are making for biotechnology research and seed capital.

The nation faces social and economic crisis unless America succeeds in promoting and taking advantage of racial and ethnic diversity, according to a report released last week by the Business-Higher Education Forum (BHEF).