SSTI Digest

Each year, SSTI looks at the various addresses given by the nation's governors at the beginning of the year. While the aftermath of September 11 weighs heavily in the content of this year's State of the State addresses, the important role tech-based economic development plays for strengthening state and local economies during a recession has not been overlooked by many governors.

Not all news is positive, however. As nearly every state confronts less-than-anticipated revenues and the resulting budget deficits, tech-based economic development initiatives face fiscal challenges.

Over the next few weeks, the SSTI Weekly Digest will highlight those portions of the speeches concerning programs, policies, and issues immediately affecting the tech-based economic development community. This week's addresses include:

Some of the biggest tourist destinations in the U.S. — Las Vegas, Reno, Atlantic City, Orlando and Honolulu — and the biggest cities — New York, Los Angeles and Chicago — will suffer heavy job losses as a result of the Sept. 11 terrorist attacks, according to a new study from the Milken Institute.

Metropolitan Economies in the Wake of 9/11 includes a detailed analysis of those industries and metropolitan areas hardest hit by Sept. 11 and examines the overall U.S. economy in light of the attacks and recession.

Las Vegas, expected to have nearly 5 percent fewer jobs in 2002 than it would have had without the attacks, will suffer more than any other metro area, the study says. Myrtle Beach, S.C., and New York City are second and third, respectively, with projected declines of 3.6 percent and 3.42 percent.

Against a backdrop of futuristic vehicles at the Detroit Auto Show on Wednesday, Secretary of Energy Spencer Abraham and executives of Ford, General Motors and DaimlerChrysler announced a new cooperative automotive research partnership between the U.S. Department of Energy and the U.S. Council for Automotive Research (USCAR).

Under the new program, Freedom CAR (Cooperative Automotive Research), the government and the private sector will fund research into advanced, efficient fuel cell technology, which uses hydrogen to power automobiles without creating pollution.

A student’s opportunity to gain access to and afford a college education varies significantly from state to state, according to a report recently issued by Lumina Foundation for Education.

Unequal Opportunity: Disparities in College Access Among the 50 States, a study of 2,887 degree-granting colleges, classifies each college by admissibility and affordability and examines differences in the patterns within and among states for different types of institutions and different groups of students.

Institutions are defined as admissible if they are open to college-qualified students with test scores and grades that place them in the 25th to 75th percentiles of college-bound high school graduates from their state.

Two reports released lated in 2001 by the U.S. General Accounting Office (GAO) highlight challenges presently faced by the Small Business Administration (SBA) and the Department of Health and Human Services (HHS).

In Current Structure Presents Challenges for Service, the GAO addresses the issues posed by SBA's current organizational alignment and presents "information SBA should consider in determining if and how to reorganize." Such issues, including ineffective lines of communication and confusion over the mission of district offices, are said "to impede the efforts of SBA staff to effectively deliver services." The GAO report does not make recommendations to SBA; however, the report calls the restructuring efforts of other federal agencies "a framework and a set of steps and considerations that may prove useful to SBA."

Albany, New York
Health Reseach Inc., a branch of the New York State Department of Health, is looking to move its Pharmacogenomics Institute to a vacant laboratory in Rensselaer Technology Park, according to a recent article published in the Times Union. The 25,000-square-foot building that housed the Virogenics Corp., a vaccine-research company that left in 2000, has not been officially purchased. The state expects to lease the site when the Rensselaer County Industrial Development Agency closes on the purchase.

Science and math education funding recently took the equivalent of a roller coaster ride, winding up on the bottom end, according to the Dec. 28 issues of FYI: The Bulletin of Science Policy News of the American Institute of Physics (AIP).

On Dec. 18, Congress — fresh off approving $450 million for the newly-established Math & Science Partnerships Program under the Elementary and Secondary Education Act (ESEA) on Dec. 13 — approved only $12.5 million for the Partnerships Program in its FY 2002 Labor-HHS-Education appropriations report.

Although the ESEA bill reformed, consolidated and streamlined many Education Department programs and created the Partnerships Program, it did not provide the full $450 million recommended in ESEA, the AIP bulletin states.

The Maryland Technology Development Corporation (TEDCO) kicked off the new year with a new $330,000 program to support Maryland companies wishing to develop technology-based products and/or services in collaboration with Johns Hopkins University (JHU), Morgan State University (MSU) or federal laboratories in Maryland. The Maryland Technology Transfer Fund (MTTF) will award non-equity investments of up to $50,000 per project.

The program supports company technology development projects that transfer technology from JHU, MSU or a federal laboratory in Maryland to the commercial sector and the development of technology-based products and/or services for future government uses. The Fund, made possible by a grant from the Maryland Department of Business and Economic Development (DBED), is also providing $100,000 to JHU and MSU to develop innovative ways to partner with industry.

The Tri-Cities (Richland-Kennewick-Pasco) ranks near the top 10 percent nationwide in technology industry growth and offers significant quality-of-life advantages over comparable communities, according to a recent report on local technology business.

Released in November 2001, Tri-Cities Innovation & Technology Index provides the first analysis of the Tri-Cities' ability to meet the needs of technology companies and how the community's business and quality-of-life attributes compare with other Northwest cities and national averages.

The Department of Energy's Pacific Northwest National Laboratory prepared the report in support of DOE's regional economic diversification efforts.

Several warnings have been issued in recent years about U.S. dominance in the world's scientific and technological communities slipping: the number of science and engineering (S&E) doctorates awarded per capita; the dearth of women and minorities entering technical fields; the facility in which knowledge, companies and people can be transferred globally; scores on standardized math and science tests; and indicators for global entrepreneurship, to name a few.

The latest alert, a draft report released in December by the National Science Board (NSB), urges the National Science Foundation (NSF) to take a more active, even strategic, role in fostering and participating in international S&E partnerships and collaborations.

Regional Technology Strategies, Inc. (RTS), a national nonprofit workforce and economic development group based in Carrboro, N.C., has published Cultivating Successful Rural Economies: Benchmark Practices at Community Colleges.

Through a grant from the U.S. Department of Agriculture’s Fund for Rural America, RTS identified by a competitive process 43 dynamic and effective programs at rural community colleges in the U.S. and abroad that are helping rural businesses adapt to current economic trends.

RTS' publication profiles several benchmark practices that encompass effective responses to the regional economic conditions, from a fiber arts program at Northern Mexico Community College to a hospitality-industry training program in Northern Ireland.

Annual R&D expenditures at America's academic institutions topped $30 billion for the first time, according to the early release tables from the National Science Foundation's Survey of Research and Development Expenditures at Universities and Colleges, Fiscal Year 2000. The final results of the latest annual survey reveals a nine percent increase over 1999 expenditures.

Despite growing by more than $1.4 billion during 2000, the federal government's share of total support for academic R&D, at 58.19 percent, fell to its lowest percentage since 1959. State and local government share dropped to 7.33 percent, the lowest level since the survey began in 1953. Institutional funds, on the other hand, accounted for 19.71 percent of academic R&D expenditures in 2000, the highest level ever for this source of funding.