SSTI Digest

State and local strategies to assist start-up business formation often focus on three elements to help nascent firms: securing much-needed funding or capital (either private or public), lowering the overall cost of doing business, or gaining the skill set or access to intellectual resources to succeed. These objectives of tech-based economic development are, perhaps, most important in a recession, particularly a downturn like the current experience which comes after such a sustained period of growth.  Because most successful nonprofit technology business incubators address all three elements, it isn't too surprising to find the newspapers around the country carrying several stories on new incubators opening or existing incubators expanding their operations. The latter phenomenon, with examples in Maryland, Idaho, Missouri, and the Upper Peninsula of Michigan, attests to the economic development benefits that can be achieved through properly executed incubator strategies. 

Gaining a sense of how industries are likely to grow or contract over the next decade can be a vital tool for determining the priorities for tech-based economic development practitioners, public and private investing programs, and workforce developers. These figures are particularly relevant for geographic areas looking at cluster development strategies or targeted research/investment programs.  The November issue of the Monthly Labor Review, published by the Bureau of Labor Statistics, includes an article by Jay Berman projecting industry output and employment projections for the first decade of the 21st century.  Computer and data processing services (Standard Industrial Classification Code 737) continues to top the chart of fastest growing industries with an average annual rate of 6.4 percent growth for 2000-2010. Projected output for the field is expected to grow by an annual rate of 8 percent. 

Tthe five winners of the 2001 Malcolm Baldrige National Quality Award, the nation's premier award for performance excellence and quality achievement, include, for the first time, three winners in the education category: 

The number of women who own the nation's privately-held businesses, presently at 28 percent of such businesses, is growing at twice the rate of all firms, according to a new report from Center for Women’s Business Research.  The center projects the number of majority-owned, privately-held women-owned firms will stand at 6.2 million by 2002, and that sales generated by these businesses will have grown 40 percent between 1997-2002. Employment in women-owned businesses also is growing at a rate 1.5 times the national average.  Sponsored by Wells Fargo, the Center’s two most recent reports, Women-Owned Businesses in 2002: Trends in the U.S. and 50 States and Women-Owned Businesses in 2002: Trends in the Top 50 Metropolitan Areas analyze both published and unpublished data provided by the U.S. Bureau of the Census and present the most up-to-date information currently available on the country's women-owned businesses. 

To create new research centers in FY 2003, the National Science Foundation (NSF) is offering approximately $26 million through its Engineering Research Centers (ERC) Program.  At least two awards totaling up to $13 million each will be made. The awards, subject to 10 percent cost sharing, will be distributed as follows: $2.5 million (year 1), $3 million (year 2), $3.5 million (year 3), and $4 million (years 4 and 5).  Each new center will focus on the definition, fundamental understanding, development, and validation of the technologies needed to realize a well-defined class of engineered systems with the potential to spawn whole new industries or radically transform the product lines, processing technologies, or service delivery methodologies of current industries. 

Building Entrepreneurial Networks, a major report on how and why networks of entrepreneurs nurture economic growth in communities across the country, was released Wednesday by the National Commission on Entrepreneurship (NCOE).  To illustrate the importance of entrepreneurial networks, NCOE’s seventh report profiles five organizations in Idaho, North Carolina, Oklahoma, Pennsylvania and Texas that have succeeded in developing unique entrepreneurial networks.  The report notes that regions which have developed strong entrepreneurial economies tend to possess several key ingredients — well-organized local networks along with strong universities, access to equity capital, and an advanced public infrastructure. Similarly, regions with strong networks tend to have high rates of new start-ups and fast-growing companies. 

In an effort to help combat the present economic downturn, the Kauffman Center for Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation is looking to partner with groups across the U.S. to provide training to displaced workers interested in starting new businesses.  The Kauffman Center is offering its proven FastTrac NewVentureTM program materials at no cost to organizations that want to provide the course to downsized workers in their states or communities. Partner organizations locate attendees, handle logistics, and pay trainer expenses. Displaced workers participate in the program at no charge. The Center has 10 years of experience with the FastTrac program and is ready to work with partners to implement the program rapidly and effectively in their communities. 

University of Buffalo Entrepreneurial Awards  An in-depth look at the one-year success of a student company to win last year's first Panasci Entrepreneurial Awards at the University of Buffalo recently was highlighted in the Buffalo News.  The three students who comprise Student Voice received $25,000 in seed capital as first prize in a competition administered by the Center for Entrepreneurial Leadership (CEL) in the School of Management. Student Voice, a market research firm specializing in data on college-age consumers, uses personal digital assistants and peer-to-peer, in-person interviews for data collection. 

A National Science Foundation (NSF) program to foster significant public/private partnerships and help better position local communities to accommodate new and enhanced research and development is continuing into a second year, NSF announced last month.  The $14 million in grants awarded last year under NSF's Partnerships for Innovation (PFI) have been supplemented with more than $7 million for 12 new grants in 2001 to cover projects in 11 states involving more than 150 partner organizations.  The twelve lead institutions receiving new PFI awards include: Case Western Reserve University, Cleveland; the University of Alaska, Anchorage; the universities of Maine, Southern Mississippi, Southern California, Pennsylvania and South Dakota; Montana Tech; Michigan Technological University; and Montana State, Northwestern and Wichita State universities. 

A recent report released by the National Center for Education Statistics (NCES), The Nation’s Report Card: Science 2000, shows the average scores of fourth- and eighth-graders were essentially unchanged from 1996, and the scores for 12th-graders declined by three points, a significant change.  Scale scores for the report, a survey conducted by the National Assessment of Educational Progress (NAEP), generally show what students know and can do in a given subject. The National Assessment Governing Board, the independent body that sets policy for NAEP, developed the three NAEP achievement levels used in the report: Basic, Proficient, and Advanced.  From 1996 to 2000, the percentage of 4th-graders attaining these levels showed no change. In 2000, only 29 percent of 4th-graders scored Proficient or better on the NAEP science assessment. A mere 32 percent of 8th-graders and 18 percent of 12th-graders fared the same. 

One of the key findings in the 2000 National Assessment of Educational Progress science assessment was the correlation between student performance and the use of computer technology in the classroom. For eighth-graders, the use of computer simulation and modeling corresponded with higher assessment scores.  Fortunately, free or affordable resources are available so each local science teacher is not required to create their own computer applications. One of the most recent examples is www.getsmarter.org, launched by the Council on Competitiveness right before Thanksgiving. 

Using the statistics provided in the 2000 National Assessment of Educational Progress science assessment, SSTI has prepared a table ranking states based on the percent of 8th grade students scoring at or above proficiency in 2000. Ties were broken by the states' average scores for the year.  Montana, Massachusetts, Minnesota, Ohio and North Dakota were the top five states in the ranking — all with at least 40 percent of their 8th grade students scoring at or above proficiency in 2000. Thirteen other states were at or above the national average of 30 percent.  The SSTI table also presents each state's 1996 assessment score for 8th grade students, the change between 2000 and 1996, and the percentage of fourth-graders scoring at or above proficiency in 2000.  The table can be found on the following webpage: http://www.ssti.org/Digest/Tables/113001t.htm