SSTI Digest

Of Arizona's 664,454 businesses, 98 percent qualify as small businesses with fewer than 100 employees, according to a study released by the Arizona Department of Commerce and the Arizona State University's Center for the Advancement of Small Business. The study was conducted by the Masters Consulting Group (MCG), an MBA student organization at ASU's College of Business.

The number of Arizona's small businesses, estimated at 651,317 by the MCG report, includes 281,022 home-based businesses. For comparison, Arizona had 329,031 small firms in 1997, the last year for available U.S. Census data. The 1997 total, however, does not include limited liability partnerships, limited liability companies, not-for-profit corporations, and C corporations.

Virginia is one of the most connected states in the country with 5.19 million access lines, 2.76 million wireless telephone subscribers and 218,808 high-speed lines, according to a report issued by Virginia’s Center for Innovative Technology (CIT). State of the Telecommunications Industry in Virginia analyzes the state of the national and local telecom industry and identifies the key drivers of Virginia’s success in attracting telecommunications companies, focusing on the industry during the latter part of 2001 and the first half of 2002.

The report states that, with the national telecommunications industry in turmoil, further consolidation is inevitable. Between March 2000 and February 2002, more than $1 trillion in market value in the telecom industry was lost, and more than 300,000 people in the industry lost their jobs. In addition, the telecom industry recovery will lag the rest of the economy by 18-24 months.

Arizona

The Governor's Strategic Partnership for Economic Development (GSPED) has formally recognized the state's 12th industry cluster, E-Learning. The implementing organization for the cluster is the Globalized E-Learning Association, which grew from earlier efforts by the Arizona Telecommunications and Information Council, the telecommunications infrastructure foundation under GSPED. E-Learning is the 12th Arizona cluster recognized by GSPED since its inception in 1992.

SSTI extends a friendly reminder there is still time for readers to complete the 2002 SSTI Weekly Digest survey. As mentioned in a separate e-mail earlier this week, the survey results help us determine the editorial direction and content of future Digest issues.

We recognize demands on your time exceed availability, so the 2002 Digest survey asks only 11 critical questions. Completing the online survey forms should take only a few minutes. Most are multiple choice for further simplification, although your personal comments are very helpful, too.

Every SSTI staff member involved in preparing the SSTI Weekly Digest and Funding Supplements will read every comment or suggestion, and a summary of the results will be submitted to the Economic Development Administration, the source that allows the Digest to be a free publication.

Nominations are being accepted currently for the 2002 Tibbetts Awards to recognize those small firms, projects, organizations and individuals judged to exemplify the very best in Small Business Innovation Research (SBIR) achievement.

Named for Roland Tibbetts – acknowledged as the father of the SBIR program – the Tibbetts Award Program is administered by the Small Business Administration (SBA).

All nominations must be received by August 12, 2002, and announcements of awards will be made late August or early September. The national ceremony to recognize recipients of Tibbetts Awards will be held in Washington, D.C. on October 2, 2002. The event will include a specially arranged program of high-level briefings addressing issues of consequence to technology firms and the SBIR community and a luncheon featuring a keynote speaker.

Governor Dirk Kempthorne has announced the creation of TechConnect East, a regional science and technology office to be located at the Idaho State University Incubation Center in Pocatello, Idaho.

Funded with $30,000 from Bechtel, an engineering-construction firm, $25,000 from the Eastern Idaho Economic Development Council (EIEDC), and $15,000 from the state, TechConnect East will support job creation and high-tech business development in southeastern Idaho. Additional office and administrative support will be provided by Idaho State University and the Bannock Development Corporation, an economic development organization in Pocatello.

The nation's metropolitan areas were responsible for "driving the economic performance of the nation as a whole last year," accounting for 98 percent of job growth and 86 percent of national economic growth, according to a new report prepared for the U.S. Conference of Mayors by DRI/WEFA.

The Role of Metro Areas in the U.S. Economy contains data on each of the nation's 319 metro areas, including 2001 gross metropolitan product, as well as growth and employment figures. Economic forecasts are also provided for the 20 largest U.S. metro areas.

As engines of economic growth, job and income creation, metro economies hold the key to the future of the U.S. economy, the report observes. Some of the findings include:

The Center for Economic Forecasting and Analysis at Florida State University has completed a New Economy index for Tallahassee, showing how the Florida capital compares with 66 MSAs and, in a second analysis, a comparison of 20 Florida MSAs. Tallahassee ranks 11th among all MSAs assessed, a finding the authors suggest confirms "the city's economy has a number of very strong advantages."

The new index strives to build on the The Metropolitan New Economy Index, a study released by the Progressive Policy Institute in April 2001 that established a framework within which to rank the nation's 50 largest metropolitan areas.

Today's online issue of the Chronicle of Higher Education reports Microsoft Corporation is contributing $750 million to China to support computer science education, basic research, software training, and business growth.

To give a sense of the magnitude and potential importance of Microsoft's investment on the Chinese and global IT market and workforce: the $750 million (to be allocated over three years) is currently equal to 50 percent of the entire Chinese software industry's annual revenues.

The article reports $24 million would be used to create five software colleges in the leading Chinese universities while the balance "will go directly into joint-ventures with Chinese manufacturing firms and software companies."

The U.S. Department of Agriculture has announced 51 grant recipients will share $6.1 million for rural economic development. Funding for the projects comes from the USDA's Rural Business Opportunity Grants Rural Development and Rural Business Enterprise Grant programs.

The 2002 awards are distributed across 24 states: Arizona - $265,221; California - $450,000; Florida - $399,600; Georgia - $183,279; Illinois - $874,500; Kentucky - $398,000; Louisiana - $50,000; Maine - $445,000; Mississippi - $372,923; Missouri - $319,999; Montana - $63,260; Nebraska - $50,000; New Mexico - $200,960; New York - $250,000; North Carolina - $300,000; North Dakota - $236,290; Oklahoma - $211,070; Oregon - $250,000; South Carolina - $163,450; South Dakota - $100,000; Tennessee - $288,247; Utah - $46,545; Washington - $149,271; and West Virginia - $92,930.

A new report assessing Maine's seven targeted technology sectors represents the first systematic attempt to analyze the growth of the state's industry clusters. The report, Assessing Maine's Technology Clusters, was prepared for the Maine Science and Technology Foundation (MSTF) by the University of Southern Maine's Muskie School.

The MSTF report begins by defining clusters as more than geographic concentrations of firms in a similar industry. Clusters occur when a network of relationships between companies, suppliers, service providers and supporting institutions provide a competitive advantage to all related firms in the region, the report states.