SSTI Digest

Two independent surveys of venture capital investments made during the fourth quarter of FY 2001 suggest an end to downward trends in the flow of money and number of VC placements. MoneyTree™ Survey The fourth quarter 2001 results of the MoneyTree™ survey measuring venture capital activity across the country are now available online. This is the first survey conducted since the merger of the two most widely known quarterly investment surveys, the PricewaterhouseCoopers/Venture Economics MoneyTree™ Survey and the quarterly survey conducted by the National Venture Capital Association. With total investments of $7.1 billion, the fourth quarter data provides evidence that the VC community's reluctance to invest, which started in the third quarter of 2000, was finally reversing itself. Figures for both the total number of deals and total investments were higher than the third quarter. According to the report's highlights, the biotech and software industries showed the most strength, respectively capturing 14 percent and 22.…

The Missile Defense Agency (MDA), formerly known as the Ballistic Missile Defense Organization, may have cut the amount of research funding it is required to award small tech companies, but the Department of Defense still must meet its full 2.5 percent set-aside obligations, points out Senators John Kerry of Massachusetts and Christopher "Kit" Bond of Missouri in a strongly worded, bipartisan letter to Defense Secretary Donald Rumsfeld. The Senators are the chairman and ranking member of the Senate Committee on Small Business & Entrepreneurship, respectively. An eleventh hour insertion in the 2002 Defense Appropriations Act reduced MDA's set aside requirement for the Small Business Innovation Research (SBIR) Program from $148.8 million to only $75 million [see the 1/11/02 SSTI Weekly Digest for more information]. The Kerry-Bond letter reminds Secretary Rumsfeld that the Small Business Act requires the Department of Defense to award 2.5 percent of its entire extramural R&D budget to tech companies with fewer than 500 employees — regardless…

With the goal of supporting partnerships that unite the efforts of local school districts with science, mathematics, engineering and education faculties of colleges and universities, the National Science Foundation (NSF) has released the first request for proposals (RFP) for the $160 million Math & Science Partnerships (MSP) initiative. Involvement of additional stakeholders, especially states, is highly encouraged, according to the RFP. The program seeks to improve student outcomes in high-quality mathematics and science at all levels, from pre-K to 12. By stressing partnerships, MSP emphasizes that mathematicians, scientists and engineers participate in the effort to impact the teacher workforce and to work with teachers and administrators to substantially improve student achievement. NSF expects teachers and higher education faculty, as well as administrators and school guidance counselors, to be significantly involved in proposal development and program implementation. In making award selections expected to total 85-90, NSF will look for innovative approaches that…

The first-ever Mississippi Innovation Index was released Wednesday by the Mississippi Technology Alliance. Targeting technology-based economic development in Mississippi, the Index groups baseline data into eight categories and establishes a data collection process for 24 science- and technology-related indicators. Initial analyses suggest: Wealth Creation: Wages, though below average, are increasing the most in higher wage establishments. Research Capacity: Mississippi has huge federal investment, good university investment and low industry investment in research and development (R&D). University Research Capacity: While the level of federal investment is good, the state has seen decreased R&D expenditures in recent years. The Index reports the state has weak research-commercialization linkages. Business Research Capacity: Relatively little industrial research exists in the state; the business environment may not be conducive to R&D activity due to workforce, infrastructure and capital investment shortfalls. Technology Business…

Kansas, Inc., a nonpartisan public-private organization, recently released the findings and recommendations of its team of economic development consultants and more than 1,100 Kansans as a comprehensive update to Kansas' economic development strategic plan. Making the Knowledge Economy Work for All Kansans emphasizes commitment to a cooperative environment by both public and private sectors in Kansas. Considered the state's most ambitious look at economic development in nearly 15 years, the report highlights five strategic objectives, including 47 policy recommendations, that address the challenges facing Kansas: The need for sufficient, sustainable enhancement in economic development; The importance of a better-educated, better-trained and adaptable workforce; Implementation of a strong information technology and communications plan that will bring the benefits of cutting-edge technology to all Kansans; Policies to stabilize and rebuild rural Kansas; and, The enhancement of Kansas through the globalization of markets, improved tax policies for business…

Again, "Tech-talkin Govs" highlights programs, policies and issues in tech-based economic development that were considered in the following governors' State of the State addresses. Utah Michael Leavitt, State of the State, January 28, 2002 http://www.utah.gov/governor/stateofstate.html Plans to boost marketing efforts to brand Utah as a world technology player. The state will expand on existing efforts by showing the connection between its technological prowess and its natural, recreational wonders. Over 1,000 days, Utah will organize more than a dozen economic ecosystems, a term which the Governor says will become a Utah trademark. An economic ecosystem is a cluster of related technologies where the elements necessary for prosperity — the ideas, research, capital, workforce and government support — exist in one place. Proposes a system of high-tech charter high schools — each named after a Utah scientific entrepreneur and each designed to support one of the economic ecosystems. Four of the six such schools planned would be…

Dallas The Office of the Vice President for Research and Graduate Education at the University of Texas at Dallas (UTD) has created an external advisory council to provide insight into research trends, entrepreneurial activities, government liaison and global outreach. The council, which is composed of members of academia and both the commercial and defense industries, is being asked to help administrators plan the future of the university's research, assist in maintaining a sense of direction and focus in present work research, and interact closely with UTD's internal research council. UTD has a legislatively mandated emphasis in the natural sciences and engineering and management sciences. Greenville, South Carolina An unidentified developer has purchased 132 acres near Interstate 85 to build a research park with a $40 million wind tunnel, according to the Associated Press. The park, pending approval by nearby Clemson University's board of trustees, would attract research funding for Clemson and would be geared to the motorsports and automotive…

Rick Kovar, executive director of the Rhode Island Technology Council for the past two years, resigned from his position. The 242-member Council is beginning the search for a new director. John Anderson, CEO for Enterprise Florida since 1996, has announced his retirement effective in June. The nonprofit organization that handles economic development for the state has been accused in recent months for negative audit findings by the state, overstating its impact figures, and for Anderson's comment that the organization is not in the job creation business. The North Carolina Technological Development Authority is going through staff cuts and reorganization after a critical audit caused the state to pull its funding. Five management and staff positions, comprising 40 percent of the organization's workforce, have been eliminated to regain the state's support and public confidence. Return to the top of this page

To give environmental technology entrepreneurs the chance to have their business plans analyzed by experts and win money for it, the National Environmental Technology (NET) Incubator in Wilberforce, Ohio, is hosting the first annual National Business Plan Competition. Prizes including $10,000 for first place, $5,000 for second place and $2,500 for third place will be awarded. The company deemed "Most Likely to be Funded" will have the opportunity to present its plan before a panel of investors at the Energy and Environmental Network's Early Stage Capital Forum in Boston on May 8. In addition, two years of free rent in the NET Incubator will be granted to the finalist with the business plan deemed most likely to succeed, yet not ready for equity funding. Entrants must be companies — either currently operating or in the formation stage — that have the intent to manufacture or have proprietary enabling technology or software that will allow rapid growth. Companies must have a business plan that demonstrates a clear business model and intent to expand…

With more than 110 great titles to aid the policy, practice and study of tech-based economic development, the SSTI Publication Catalog, Resources for Building Tech-based Economies officially is online. Placing the catalog on the World Wide Web is the latest effort to reflect the SSTI's commitment to making available quality information on science and technology policy issues and tech-based economic development. From Accessing Capital to Commercializing Technology, 17 categories arranged by the most common objectives of local, state and national entities make it easy for users to locate specific titles. Whether you're new to the field or a seasoned professional, SSTI is confident at least one publication in Resources for Building Tech-based Economies will significantly improve your understanding and application of tech-based economic development policies. Visit the SSTI Publication Catalog online at:  http://www.ssti.org/Publications/publications.htm

Total R&D expenditures in the U.S. are expected to increase about 3.5 percent to $285.6 billion in 2002, according to the annual Battelle-R&D Magazine research and development forecast. Three significant factors, according to the forecast, have combined to exert influence on the state of R&D funding for the upcoming year, including the change in presidential administration, the faltering economy and the events and aftermath of the Sept. 11 terrorist attacks. The forecast suggests the impact of these factors cannot be underestimated. "In previous years, the analysis of the emerging patterns of R&D could readily accommodate almost any singular disruption and could present a reasonable picture of the anticipated effects," said Dr. Jules Duga, a Battelle senior researcher and co-author of the report. "However, the concurrent triple-whammy experienced over the past few months creates a degree of uncertainty that is higher than usual and adds a layer of complexity to the forecast." Highlights in the forecast are:…

In his fourth State of the State Address, Governor Jeb Bush outlined a new $100 million university-based initiative focused on nanotechnology and biotechnology. "I propose that we dedicate $100 million to create the Florida Technology Development Initiative. This initiative will build centers of excellence among our universities dedicated to the key research necessary for building our promising technology sectors. New facilities, laboratories, and endowed academic chairs will be the catalysts for entrepreneurial investment. If we build it, they will come. If we seize this opportunity, the best and the brightest academics, researchers, innovators, and entrepreneurs will call Florida home. And they in turn will help build businesses that will fuel our economy for the next century," Gov. Bush said. The Governor's written budget request provides more details on the proposal: A new and important technology-related initiative that the Governor is proposing focuses on developing Florida as a key center for biotechnology and nanoscience activity...Governor…