SSTI Digest

A bipartisan coalition of more than 50 U.S. Senators support continued funding for the Manufacturing Extension Partnership, according to the Northeast-Midwest Institute and the Modernization Forum. Senators Olympia Snowe (R-Me) and Joe Lieberman (D-CT), co-chairs of the Senate Task Force on Manufacturing, spearheaded a letter to Senate appropriators requesting $110 million in FY 2003 funding for the program. The Administration's FY 2003 budget request reduced funding for MEP to $12.9 million, a cut of 88 percent. MEP is a national network of centers with 400 offices in all 50 states and Puerto Rico that provide technical assistance and business support services to small and medium-sized manufacturers. The Senators sent their joint letter to Senators Fritz Hollings (D-S.C.) and Judd Gregg (R-N.H.), respectively, the Chairman and Ranking Member of the Senate Appropriations Committee on Commerce, Justice, State and the Judiciary.

Georgia Tech topped the nation in its efforts to help state and local agencies with economic development, according to a study released by the Southern Growth Policies Board's Southern Technology Council (STC). Conducted by Louis Tornatzky and Paul Waugaman, senior fellows at STC, Innovation U.: New University Roles in a Knowledge Economy offers comprehensive case descriptions of how national research universities operate in the following areas: Inclusion of economic development in mission, vision and goals statements; Pursuit of industry research partnerships; Technology transfer; Industrial extension and technical assistance; Entrepreneurial development; Industry education and training partnerships; Career services and placement;  Formal partnerships with economic development organizations; Industry/university advisory boards and councils; and  Faculty culture and rewards for participation in economic development activities. As a first step in the project, STC polled 40 practitioners, researchers and experts on economic development and university-industry technology transfer to identify which schools were seen as maintaining exemplary programs.…

Connecticut-based bioscience research and development (R&D) investment in 2001 totaled $3.6 billion, an 18 percent increase over 2000, according to the Seventh Annual Economic Report of Connecticut United for Research Excellence (CURE), Connecticut's bioscience Cluster. 2001 Gains and Future Opportunities, released last week at Yale University, highlights several economic indicators that demonstrate the growth of the bioscience industry in Connecticut, including: Connecticut's bioscience cluster total R&D investments increased 139 percent to $3.6 billion between 1995 and 2001. The most significant growth, 437 percent to $277 million, was noted in the biotechnology sector. Companies reporting from the biotechnology sector raised nearly $557 million in private and public capital last year despite a difficult financial environment nationally. Connecticut-based pharmaceutical R&D companies now account for more than 12 percent of all R&D dollars spent by the nation's pharmaceutical companies. Total cluster employment in 2001 increased 3 percent…

Small businesses bearing a critical role to the regional economies of upstate New York must overcome several barriers to growth if they are to enjoy future success, suggests a report by the Buffalo Branch of the Federal Reserve Bank of New York. Conducted in partnership with the Center for Governmental Research, a non-profit organization based in Rochester, N.Y., Small Business: Big Challenge — A Survey of Small Firms in Upstate New York identifies the chief barriers to growth of more than 4,000 small businesses in western and central New York State. The survey also spells out the ways new technologies have impacted the region's small firms, more than one-third of which were reported to have expanded in the last three years. Of the barriers cited in the survey, the cost of health care was determined to be the biggest concern. Sixty-three percent of respondents said health insurance premiums were significant, a finding not uncommon to small firms nationwide. At 49 percent, workers' compensation costs accounted for the second largest concern, and…

In SSTI's second look at the 2000 Annual Survey of Manufactures, Geographic Area Statistics in as many weeks, SSTI highlights more of the report's key findings, including data on such fields as the value added by manufacturers, value of shipments, and average value added per employee. The total value added by U.S. manufacturers increased by 9.69 percent between 1997 and 2000, according to the Census Bureau report. Idaho experienced the largest such increase (122.89 percent). Of the eight states that saw a decrease of value added by their manufacturers, New Mexico topped the list (24.56 percent). However, the District of Columbia experienced the largest decrease in the U.S. (42.74 percent). D.C. also saw the largest drop in value of shipments between 1997 and 2000 (34.25 percent) and in the average value added per employee during the same period (44.14). Seven states saw a decrease in their value of shipments, and nine states experienced a decrease in the average value added per employee. In terms of an increase for each of the two categories — nationally,…

Michigan Governor John Engler recently signed Senate Bills 880, 881 and 999 to help make high-speed Internet connections available and affordable to consumers across the state. Almost unanimously approved in the Michigan House and Senate, the Governor’s broadband initiative was supported by a coalition of more than 50 statewide associations, local groups and companies. The bills are as follows: SB 880 creates a statewide right-of-way authority, eliminating excessive fees and permit delays and leveling the field for all service providers. The bills also shield phone customers from rate increases. SB 881 creates a broadband finance authority that will provide low interest loans to expand broadband access in areas across the state that are underserved. SB 999 provides tax credits to telecommunications providers who invest in new broadband infrastructure and provides, upon certification of the state Public Service Commission, for a dollar-for-dollar tax credit for right-of-way fees paid under SB 880. The broadband initiative should have a significant impact on the Michigan economy, according to…

Responding to the demands of business leaders to close the nation's workforce skills gap, the National Skill Standards Board (NSSB) has created the Information and Communications Technology (ICT) Voluntary Partnership to represent the telecommunications, computer and information industry sector. By bringing together representatives from business, labor, education and community-based organizations, NSSB is facilitating the creation of a system of skill standards, assessments and certification that is expected to help the nation's businesses compete in the global economy and improve worker productivity. ICT is the fifth industry-led Voluntary Partnership recognized by NSSB; the other partnerships cover the manufacturing, sales and service, education and training, and hospitality and tourism industry sectors. ICT is spearheaded by several major organizations, including the  Computing Technology Industry Association, the National Workforce Center for Emerging Technologies, and the Information Technology Association of America. The creation of ICT is a…

NASA's Office of Aerospace Technology has released an integrated strategy, or blueprint, that suggests developing new technology will lead to a new era of aviation. The strategy, while not completed in time to be reflected in the Administration's 2003 budget request, will be used to guide federal aeronautics investments in research, education and development. The NASA Aeronautics Blueprint: Toward a Bold New Era of Aviation identifies four elements on which NASA will focus — the digital airspace, revolutionary vehicles, security and safety, and a state-of-the-art educated workforce — to address critical issues in aeronautics. NASA must work closely with the Department of Defense, the Department of Transportation, the Federal Aviation Administration, academia and industry to be successful, according to the blueprint. With respect to the four elements above, the following points are made: The digital airspace will provide precise knowledge to pilots and controllers of air traffic, terrain and weather for greater safety and efficiency. Revolutionary vehicles will enable…

As a means of highlighting the performance and composition of state economies, Harvard's Institute for Strategy and Competitiveness, led by Dr. Michael Porter, has published profiles on all 50 states and the District of Columbia. The profiles, available at http://www.people.hbs.edu/mporter/stateprofiles.htm, include data based on the Cluster Mapping project — a multi-year effort to statistically define clusters and analyze regional economies in the U.S. Relevant economic areas for companies and metropolitan areas, as defined by the Bureau of Economic Analysis, are outlined. The profiles are arranged by the following topics: Economic Performance and Innovation Output Patents by Organizations, 1995-1998 Overall Composition of Employment and Wages Employment by Cluster Job Creation by Traded Cluster Top 10 Highest Wage Traded Clusters Specialization of the State Economy by Traded Cluster State Ranking by Leading Subclusters The profiles were prepared under the guidance of Porter and are the work of the Council on Competitiveness, Monitor Company and the Institute for Strategy and…

The Census Bureau report released last week, 2000 Annual Survey of Manufactures, Geographic Area Statistics, provides annual data from 1997 through 2000 on the number of all manufacturing employees, number of production workers, value added by manufacturers, cost of materials, value of shipments, and new capital expenditures for manufacturing establishments by state. The data cover manufacturing industry groups such as food, apparel, lumber, chemicals, computers and transportation equipment. Due to the adoption of the North American Industry Classification System (NAICS) in the 1997 Economic Census, approximately half of the industries in the manufacturing sector of NAICS do not have comparable industries in the Standard Industrial Classification (SIC) system that was used in the past. As a result, comparability of current and historical data is severely impacted, and the report only presents data from 1997 through 2000. Total manufacturing employment in the U.S. shrunk by 0.74 percent between 1997 and 2000. Average pay per employee, however, grew by 9.3…

The U.S. Small Business Administration and My Own Business, Inc., have jointly created a free, online entrepreneurship course for small business owners and aspiring entrepreneurs. The announcement was made at the Conference on Women Entrepreneurship in the 21st Century in Washington, D.C., earlier this week. The 11-session interactive course was developed by My Own Business, Inc., a Los Angeles-based, non-profit firm founded in 1992 by a successful entrepreneur, to develop and provide educational materials on entrepreneurship. The course includes audio sound bytes, quizzes, feedback and an online tool to create business plans. Each of the individual components of the virtual business seminar can be pursued in sequence or independently. The 11 segments are: Deciding on a Business The Business Plan Basic Computer and Communication Tools Organization and Insurance Location and Leasing Accounting and Cash Flow How to Borrow Money E-Commerce Buying a Business or Franchise Opening and Marketing Expanding and Handling Problems Entrepreneurship: Starting and Managing Your…

Arizona The Arizona State Legislature has agreed to pull $10 million from the Arizona Job Training Program due to a current budget crisis, according to the Arizona Daily Star. A temporary agreement until the Legislature adopts the state budget, the cut in funding for the  program would preserve grants that have been approved but have  not been awarded. About $400,000 for program funding would remain until July 1. The training grants provided through the program enable companies to administer formal training to boost their employees' skills; it is the only state program in Arizona that provides in-house training. Cleveland, Ohio The Lubrizol Corporation recently presented CAMP, Inc. with a major intellectual property donation valued at $22.4 million. The donation, which includes patents and related know-how for intelligent fluids, systems and related software, will be used to develop new manufacturing companies in Northeast Ohio. CAMP's Manufacturing and Technology Complex, which will house the donated Lubrizol technologies, is…