SSTI Digest

A new biotech-opolis in Quebec soon may serve as one of the best organized business centers for biotech, biopharmaceutical, and biocomputer companies in the world, government leaders hope. The Quebec government, Investissement Quebec, the City of Laval, Laval Technopole and Institut national de la recherche re scientifique (INRS), are investing $250 million over five years in cash, in-kind donations, and forgone tax revenues to support the massive cluster project. Additional partners include various academic, economic and scientific communities in metropolitan Montreal and Laval.

Editor's Note and Commentary: The changes proposed by the Small Business Administration for the policy directive governing the administration of the $1.2 billion federal Small Business Innovation Research (SBIR) program are substantial. Some of the controversial changes proposed include blending STTR and SBIR dollars during Phase II, allowing agencies greater flexibility in setting award sizes, and creating the opportunity for impropriety in award selection. Public comment on the draft changes will be accepted by the SBA until June 18, 2001.

The leading indicator of a metropolitan area's high technology success is a large gay population, according to Technology and Tolerance: The Importance of Diversity to High-Technology Growth, a new study published by the Brookings Institution's Center on Urban & Metropolitan Policy. The study's authors are Richard Florida of Carnegie Mellon University and Gary Gates of the Urban Institute.



Nine of the top ten cities as ranked by a Gay Index developed by Florida and Gates were in the top 15 “Tech-Pole” Rankings conceived by Ross DeVol of the Milken Institute (see America's High Tech Economy). Florida and Gates conclude “[g]ays can be though of as canaries of the knowledge economy because they signal a diverse and progressive environment that fosters the creativity and innovation necessary for success in high-tech industries.”

Encouraging local sources of capital is a common element of most tech-based economic development efforts. The broad strategies to accomplish this typically include forums, investor groups, tax credits, CAPCOs, and public seed capital to fuel fund development.



A different approach was made almost two years ago when Pennsylvania Governor Tom Ridge announced the state was giving a $200,000 grant to Redleaf Group, a West Coast venture capital group to open its Atlantic headquarters in Pittsburgh. (see the Pittsburgh story in the 7/23/99 issue of the SSTI Weekly Digest).



Besides the obvious advantage to the state's economic development strategy of increasing deal flow for local businesses by having venture capital nearby, that inducement grant appears to be producing more notable fruit for the state.

After adjustments for inflation, Gross State Product (GSP) for the nation grew at an average annual rate of 4.0 percent from 1992 to 1999, according to estimated just released by the Bureau of Economic Analysis (BEA), U.S. Department of Commerce. GSP measures value added in production.



The fastest growth rates for 1992 through 1999 were experienced in Arizona (7.3%), Nevada (7.0%), Oregon (6.8%), Colorado (6.6%), Idaho (6.6%), New Hampshire (6.3%), Utah (6.3%), New Mexico (6.2%), Georgia (5.8%), Texas (5.4%), and North Carolina (5.1%). The BEA attributes the strong performance of these states partly to their strengths in business services and in high-tech manufacturing.



While real GSP grew in all major industries, it was notably strong in the areas of business services and high-tech manufacturing, trade, real estate, security trading, and communications.

New Mexico

The New Mexico Information Technology and Software Association (NMITSA) has hired its first staff: Randy Burge is the new president, Pete Inman is vice president of policy and development, and David Sahd is vice president of operations and marketing. According to the Council of Regional Information Technology Associations, NMITSA was the last such group to change from all-volunteer staffing.



New York

Joe Magno, former Executive Director of the New York State Science & Technology Foundation, is founder and chairman of the New York State Software Network (NYSSNET). Organized in November, NYSSNET's goal is to sustain, strengthen and grow the software industry of the state. The nonprofit has secured a $1.1 million information technology training grant from the Department of Labor and is holding a SmartStart Venture Forum this fall.