SSTI Digest

States that support a vibrant technology sector are attentive to the quality of their economic development efforts and continue toattract venture capital will outperform those that do not, according to the 2001 Development Report Card for the States. The 15th annual report, released yesterday by the Corporation for Enterprise Development (CfED), uses 70 measures to provide a state-by-state assessment of economic development policy in three main areas — Performance, Business Vitality and Development Capacity. 



Top performers in this year's report, Colorado, Connecticut, Massachusetts, Washington and Minnesota, all earned straight A's. They were joined by Maryland, New Jersey, Pennsylvania, Utah, and Virginia on an "honor roll" of A’s or B’s. Eleven states received an F in at least one of the three categories. 

A group of community leaders bent on revitalizing the Duluth, Minn., economy and ensuring economic opportunities for the city recently moved one step closer toward accomplishing its goals. 



The Bridge Syndicate, a non-profit with more than 300 members, recently made public its plan for economic growth, issuing A Positive Vision for Duluth's Economy. 



In the plan, the group's economic development task force of 20 young business owners and professionals focus on three main principles:

The Wisconsin Legislature presently faces two bills which could greatly boost venture capital funds in the state. 



Clearing the Senate October 26, Senate Bill (SB) 296 requires the state investment board to invest up to $50 million in venture capital investment firms and to provide a high-technology business development corporation a grant of up to $2.5 million in FY 2001-02. Intended to help place Wisconsin at the fore of biotechnology, the bill supports the creation, development and retention of science- and technology-based businesses. 



Receiving passage by House representatives on October 17, Assembly Bill (AB) 579 would provide capital investments totaling $100 million to companies with a 100 employees or less and a net worth of $5 million or less. The bill would require that the companies also be located in and have their headquarters in Wisconsin. 

The National Science Foundation Division of Science Resource Statistics has e-published early release tables for the Science & Engineering Doctorate Awards: 2000 report. The data show trends in science and engineering (S&E) doctorate awards by S&E field and recipient characteristics, institutions awarding doctorates, and postgraduation plans of recipients. 



Among the 10 tables included in the report is an 18-page table presenting institutions conferring S&E doctorates by state, institution, and major field in 2000. SSTI has prepared a table summarizing the 2000 data, standardizing S&E doctorates per 100,000 residents in each state, and ranking the results by state. 



The District of Columbia, Massachusetts, Rhode Island, Delaware and Iowa awarded the highest number of S&E doctorates in 2000 per 100,000 residents. 

larta has issued its 2002 Federal Technology Funding Guide, a survey of federal funding sources for technology firms. The sixth edition of the guide provides information on more than 90 regularly scheduled programs, hundreds of links to resources on the Web, and a special section funding for technologies to fight terrorism. An index identifies program by technology area or funding emphasis. 



larta is one of three regional technology alliances established and funded by the Division of Science, Technology and Innovation in the California Technology, Trade and Commerce Agency. The full guide is available for $39 from larta; an abbreviated, downloaded version is available at http://www.larta.org 

Two reports released during this past week examine state fiscal conditions for FY 2002 and a slowing national economy following the terrorist attacks on Sept. 11.



State Fiscal Outlook for FY 2002: October Update

State Fiscal Outlook for FY 2002 offers a look at the fiscal condition of all 50 states, based on information collected from legislative fiscal directors in mid to late October. A comprehensive survey conducted by the National Conference of State Legislatures (NCSL), the report covers the revenue and expenditure situation through the beginning of FY 2002, state plans to address budget shortfalls and the budget forecast for the remaining fiscal year.



Some highlights included in the report:

Philanthropic individuals and foundations are increasingly vital contributors for tech-based economic development, particularly for "big-ticket" initiatives. Most gifts, such as that covered in the second item below, are tied to a specific relationship with a university or field of research, working independently of the strategies or programs developed by state or local tech-based economic development organizations. The continuing work of the Heinz Endowments in Pittsburgh and single large donations, such as the $1 billion Stowers gift announced last Spring (see the May 18, 2001 issue of the SSTI Weekly Digest), are noticeable exceptions.



The series of sizable gifts made by the Lilly Endowment, including the latest donation described below, also are an exception in that they collectively could influence the state's S&T strategy where single gifts would have less of an impact.

Nearly every state legislature annually appropriates some level of funding to support research and development activities in the state's nonprofit, university, and industrial research communities. Few, though, have developed long-term, systematic attempts to measure the impact of those investments. Following a nearly ten-fold increase in the state's investment in research and development over the past six years, Maine legislators requested that the Maine Science & Technology Foundation (MSTF) conduct such an impact assessment.



MSTF has until July 2006 to answer three questions posed by the state legislature:

With almost every state seeing declining revenues in light of the recession and Sept. 11 attacks, projections from the Center for Budget and Policy Priorities that the economic stimulus package passed by the House on Wednesday could further reduce states’ revenues by as much as $5 billion for each of the next three years may further exacerbate the problem. The Center, releasing its analysis of the House stimulus package on Monday, suggests the losses in revenues could compel states to institute still-larger program cuts or tax increases that would partially offset and thereby weaken the federal stimulus goals. 



The single biggest tax-cut item in the Ways and Means bill is a provision that allows brief expensing of business investments. This provision would allow firms to subtract immediately 30 percent of the cost of new investments in equipment or similar business property, rather than depreciating the costs of these investments over a number of years as under current law. 

The Pittsburgh Technology Council's State of the Industry Report shows the region's technology sector, while continuing its growth, has become a significant driver of southwestern Pennsylvania's overall economy. 



Conducted by Carnegie Mellon University's Center for Economic Development, the report measures the six-county Metropolitan Statistical Area that encompasses Allegheny, Beaver, Butler, Fayette, Washington and Westmoreland counties. The report also includes separate data for the entire 13-county southwestern Pennsylvania region. 



Examining the economic impact that has been created by the region's core technology clusters – information technology, biomedical and biotechnology, advanced manufacturing, advanced materials, and environmental technology – the report assesses the overall sector, considering indicators such as venture capital investment and research and development activities. 



Key findings in the report include: