SSTI Digest

To help business incubator managers match start-up businesses with private investors through an Internet-based network, the National Business Incubation Association (NBIA) has partnered with LocalFund, Inc., a network service provider based in Billings, Mont. The program allows incubator managers to establish their own entrepreneur-investor networks where potential investors can learn more about local start-up companies ready for investment. Entrepreneurs submit business plan summaries through a secure website, and potential investors search the site for companies that match their interests. Investors then contact entrepreneurs directly. Under the partnership agreement, NBIA members receive discounted rates on all LocalFund software. By creating a local entrepreneur-investor network, incubator managers provide new businesses with access to capital and give angel investors opportunities to develop their portfolios.

Michigan Governor John Engler on Thursday unveiled NextEnergy— a comprehensive economic development plan to make Michigan a leader in the research, development, commercialization and manufacture of alternative energy technologies such as hydrogen fuel cells. Gov. Engler's energy blueprint proposes the creation of a 700-acre, tax-free NextEnergyZone in York Township near Ann Arbor, building the NextEnergy Center there and attracting alternative energy companies from around the world to the zone, making it a cluster of energy innovation. Surrounded by fuel cell vehicles at the Henry Ford Museum in Dearborn, Gov. Engler announced his plan would help reduce America's dependence on foreign oil, improve the environment and strengthen the economy. He said he would work with the Michigan Legislature and Congress to fund the plan and would establish a Michigan NextEnergy Development Fund to leverage additional capital for industry expansion.

Preparing an index or report card is often a useful tool for tech-based economic development efforts to assess a geographic area's relative performance across selected statistics or indicators. The outcomes measured, if considered temporally, can help decision makers identify and shift policy and investment priorities for their community, region or state. Two recent reports apply indices in very different ways, providing examples of how they can be used to promote varied strategies or objectives. The first looks at the Washington D.C. metro region from the perspective of five broad categories of indicators. No recommendations are suggested; the authors hope the report encourages broader awareness of and public engagement toward those areas showing improvement or greater need since the previous year's report was completed.

Mississippi Band of Choctaw Indians (MBCI) Tribal Chief Phillip Martin and Mississippi Technology Alliance President and Chief Executive Officer Angie Dvorak recently announced a partnership to help foster science-based economic development for the state of Mississippi. The alliance's partnership with a tribal government is possibly the first of its kind in the U.S. "This is an opportunity for members of the public, private and academia sectors to come together to aggressively explore ways to work with the Mississippi Band of Choctaw Indians," Dr. Dvorak said in a press release.

Changes have led the business community to redefine its performance standards, government to rethink its goals and nonprofits to redouble their efforts to meet rising demands, according to a new report published by the Three Sector Initiative, a collaboration of seven organizations representing business, government and nonprofits. Working Better Together: How Government, Business and Nonprofit Organizations Can Achieve Public Purposes Through Cross-Sector Collaboration, Alliances and Partnerships works off the premise that technological, social and political changes have had far-reaching implications for the way government, business and nonprofit organizations fulfill their missions and work together. The report details the ways the sectors have used collaboration to form partnerships with each other to address complex problems.

More than 60 presentations on patterns, or solutions to problems in a given context, figure to be the highlight of CPSR's 8th biannual Directions and Implications of Advanced Computing (DIAC) symposium, "Shaping the Network Society: Patterns for Participation, Action, and Change," being held May 16-19 in Seattle. CPSR (Computer Professionals for Social Responsibility) describes patterns as observable actions, empirical findings, hypotheses, theories or best practices that exist at all levels. Patterns can be global or local and theoretical or practical, according to CPSR. Some of the presentations at the DIAC-02 symposium have particular relevance to state and local tech-based economic development affects, including:

The SSTI Weekly Digest will be taking a brief spring break and will resume publication on Friday, May 3. 

New York Governor George Pataki recently announced a multimillion plan to transform the aging 300-acre W. Averell Harriman State Office Building Campus in Albany, N.Y., into a world-class research and development technology park.  "The transformation of the Harriman Campus will provide opportunities for researchers and entrepreneurs to work together right here in the Capital Region, attracting technology businesses and building new industries, to create high quality, high-tech jobs for 21st century," Gov. Pataki said in a press release.  The plan paves the way for $304 million in combined public and private investment to help renovate aging facilities at the campus and to develop new office space. 

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. 

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. 

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: 

1997

1998

1999