SSTI Digest

“Failure to improve broadband performance could reduce U.S. productivity by 1 percent per year or more,” concludes Charles H. Ferguson in a recent Brookings Institution policy brief. The July brief addresses the pace of broadband deployment and development in the U.S. and makes several recommendations to further progress. While Ferguson's focus is on national broadband policy, the objective is to increase access to the "last mile" services that enable, for example, videoconferencing, telecommuting, and wireless data services. Addressing last mile service capability is an area of concern for many state and local technology-based economic development initiatives, which hold future competitiveness for many regions will depend on accessibility to the nation's broadband infrastructure. In The U.S. Broadband Problem Ferguson suggests that the broadband industry, unlike other high technology industries, has not shown sufficient technological progress. This lack of advancement is a result of the monopolistic structure of the industry and major deficiencies in policy and regulatory systems among…

The National Center for Small Communities (NCSC) has two new free or low-cost resources for small town leaders and rural development practitioners. Based in Washington, D.C., NCSC conducts research, training and technical assistance to benefit the leaders of U.S. small communities. Technology and Grit at the Grassroots A 68-page guidebook, Technology and Grit at the Grassroots identifies and explores effective technology-based economic development strategies for distressed, rural communities. Concrete guidance on how to put computers, the Internet and advanced telecommunications to good use is distilled from practical research of 14 distressed rural communities and supplemented by recent articles and reports. NCSC is distributing 1,000 guidebooks to interested regional and statewide economic organizations and agencies at a fulfillment price of 93 cents per book. These organizations are asked to give their guidebooks to small town leaders. More information is available at: http://www.smallcommunities.org/ncsc/TechandGrit.htm Thriving Hometowns Network …

Columbus Tech Councils Merge To establish more clout, eliminate confusion and duplication, and cut costs, the Columbus Technology Leadership Council and the Industry & Technology Council of Central Ohio are merging into a new entity, according to the Columbus Dispatch. The details for the new organization, including its new name, will be announced later this year. First Incubator in Memphis Gets New Digs The grand opening of the new location of EmergeMemphis was celebrated last month as the city's only incubator and current 16 tenants moved into a renovated warehouse in the historic district of downtown. The incubator, operated by Memphis Incubator Systems, Inc., was launched in 2000, having received $4 million in initial funding from the Economic Development Administration, City of Memphis, Tennessee Valley Authority, Housing and Urban Development, Tennessee Technology Infrastructure Program, Memphis 2005, and private sector investors. New Grafton, MA Receives Grant for Science Park A $1.895 million grant to the town of New Grafton from…

Several recent reports and testimonies by the United States General Accounting Office (GAO) address issues of importance to many state and local technology-based economic development initiatives. Highlights of six are provided below. The full reports and testimonies can be found at http://www.gao.gov/. Technology Transfer: Several Factors Have Led to a Decline in Partnerships at DOE’s Laboratories (GAO-02-465) April 2002 This report outlines factors that have contributed to a recent decline in the number of cooperative research and development agreements (CRADAs), that Department of Energy (DOE) national laboratories have entered into with businesses, universities and other partners. Surveying 12 DOE labs, the GAO looked at laboratories’ participation in and funding for technology transfer activities with non-federal entities during the past ten years. The GAO also sought lab managers’ views on barriers that limit technology transfer between DOE labs and potential nonfederal partners. The results validated the decline in CRADA partnerships and also cited managers’ opinions…

You know that feeling you get when you've done something nice for no apparent reason? Or at least the grounds for being good are hidden so deeply within you that you aren't aware of the potential payoff? Well, the annual readers' survey for the SSTI Weekly Digest presents another one of those opportunities to ignite or rekindle that warm inner glow that made the Grinch's heart grow three sizes that day. Think we're overselling the potential positive impact of completing the survey? Only one way to tell: http://www.ssti.org/digestsurvey02.htm [expired] For the record number of you who have completed the survey already, we don't want to interrupt the feelings of bliss, nirvana or absolute oneness with everything right in the universe we know you're experiencing — other than to say soft and humble thank yous. And for those of you tired of these little pleas for help the survey form will be removed from the website on Tuesday, August 6, 2002. One final time, the 11-question, mostly multiple-choice survey is available at: http://www.ssti.org/digestsurvey02.htm […

State fiscal conditions continue to deteriorate dramatically, according to a report released Wednesday at the 2002 Annual Meeting of the National Conference of State Legislatures (NCSL). In April, 43 states reported budget gaps totaling $27.3 billion collectively. By June 30, the end of the fiscal year for 46 states, the gap had risen to $35.9  billion. Budget gap estimates for FY 2003 show an increase to $57.9 billion. However, because of balanced budget requirements, gaps have been or will be resolved by the time states officially close their books. 2002 State Budget and Tax Actions showed widespread fiscal problems, according to NCSL: 12 states reported FY 2002 budget gaps in excess of 10 percent of their general fund; State ending balances fell nearly 42 percent from FY 2001 to FY 2002 — from $31.5 billion to $18.4 billion; Aggregate rainy day fund balances have fallen from $16.5 billion in FY 2001 to $10.8 billion at the end of FY 2002; 26 states collected less revenue in FY 2002 than they did in the previous year; 29 states implemented targeted or across-the-…

Vermont’s high-tech businesses now can take advantage of new tax credits with Governor Howard Dean, M.D.’s signature on H. 239. The bill creates a set of five incentives for high-tech businesses in industries including computer hardware or software, information and communications, microelectronics, semiconductors, digital communications, medical devices, energy technologies and electric vehicles. The high tech credits are applied to investments in machinery and equipment, renovations to provide cable, fiber or telecommunications access, workforce development, and a sales and use tax exemption for personal computers and software. Applying to investments made on or after July 1, 2002, the High Tech Tax Credit effects taxable years beginning on or after January 1, 2002. All of the incentives will be administered by the Vermont Economic Progress Council (VEPC) and are subject to the same approval process, cost/benefit model and guidelines as current law provides for tax credits. High Tech Important for State The Vermont Department of Economic Development also recently…

The 20 states with the least total R&D expenditures increased their share of the total pot in 1999 to 5 percent, according to the National Science Foundation's (NSF) latest InfoBrief. In 1998, NSF found the lowest 20 states captured only 4 percent of the nation's R&D investment. To those who argue the nation's R&D investment should be more evenly distributed across the country — particularly expenditures made by the federal government — the finding may suggest progress has been made. Or has it? NSF also reported, and titled the InfoBrief accordingly, that the 1999 data revealed half of the nation's total R&D investment occurred in only six states, up half a percent from 1998. The share captured by the top 10 states grew from 85 percent in 1998 to 86 percent in 1999, according to the InfoBrief. At $10.695 billion, Pennsylvania joined the six other "10 billion plus" states for total R&D expenditures in 1999: California ($47.965B), Michigan ($18.799B), New York ($14.110B), Texas ($12.429B), Massachusetts ($12.190B), and New Jersey ($10.536B). Pennsylvania's…

The importance of strong academic R&D capabilities in building state and regional tech-based economies cannot be overstated. Subsequently most states, either independently or in partnership with federal EPSCoR programs, are making investments toward strengthening their academic research enterprises. Some also have invested in programs to attract, leverage or match federal R&D investments. One of the latest InfoBriefs from the National Science Foundation outlines trends over 30 years in federal and non-federal support for academic R&D. While federal spending for academic R&D grew by an inflation adjusted 180 percent between 1972 and 2000, the findings reveal federal support played a diminishing role compared to non-federal sources, which grew by nearly 350 percent during the period. Federal R&D expenditures represented only 58.2 percent of total academic R&D support in 2000. Institutionally financed R&D continued its 30 year climb to represent a record 19.7 percent of the total in 2000. State and local support declined during the period from a high of 10.2…

While Albany securing Sematech North has captured national attention in the TBED community for the past week, area leaders have been working for more than a year to forge a partnership toward regional technology-based economic development. That effort came to fruition in June when leaders of the Albany-Colonie Regional, Rensselaer County Regional and Schenectady County Chambers of Commerce announced the formation of the Tech Valley Chamber Coalition. Combined, the three chambers have nearly 5,000 members employing more than 174,000 individuals in the region. The Coalition will focus its efforts in three areas: promotion of the region as Tech Valley; development of programs that will enhance the business climate for members of all three chambers; and advocacy on issues of importance to each organization, as well as the greater business community. Each of the chambers is taking the lead on one of the three focus areas. The promotion of the region as Tech Valley will involve a number of initiatives, all of which revolve around marketing the 17-county region as a location with prime business…

The Department of Agriculture (USDA) and the Department of Defense (DOD) recently posted the abstracts for award selections from the FY 2002 Small Business Innovation Research (SBIR) Phase I solicitations. For DOD, abstracts are for 02.1, the first solicitation of the fiscal year. With information provided by the agencies and their websites, SSTI has prepared a table presenting the number of proposals submitted, the number of firms involved, the number of awards, and the proposal-to-award conversion percentage. For USDA, the total award amounts were also available by state. The table is available at: http://www.ssti.org/Digest/Tables/072602t.htm The USDA award information and FY 2003 solicitation are available online at: http://www.reeusda.gov/sbir/ The DOD abstracts are posted on: http://www.sbirsttr.com

The Center for Advanced Technology and Innovation (CATI) Partnership Board and the Gateway Technical College Board of Directors recently held a groundbreaking to begin construction of the new 40,000-square-foot facility located in Sturtevant’s Renaissance Park. The Center for Advanced Technology and Innovation (CATI) of Racine County was formed to promote business development, workforce development, and technology innovation in southeastern Wisconsin. CATI is a partnership among more than a dozen local and regional educational institutions, business development  organizations, and local industries. The effort is spearheaded by the Racine County Economic Development Corp. Once completed, the new facility will allow CATI to offer students and entrepreneurs: A technology incubator, where new and developing firms can cost effectively develop and market new technology products and services. A technology transfer office to help leverage research and development resources at local and regional educational institutions, businesses, and industries. An education program…