SSTI Digest

A wide range of research and tech-based economic development bills were approved by the Arkansas legislature, which ended its legislative session in mid-April. With proposals and support coming both from Republican Governor Huckabee and the heavily Democratic legislature, Arkansas is the latest state to demonstrate broad bipartisan support for investing in science and technology. Bills addressed areas as varied as venture capital, life sciences research, creation of a chief information officer, and implementation of the state’s geographic information system. Highlights of the legislative session include: Act 1791 expands the availability of venture capital in the state through capital guarantees and tax credits to investor groups. Act 1584 provides tax credits against the state capital gains tax for qualified biotechnology and technology investments held at least five years. Act 913 makes permanent a pilot loan incentive program for small businesses through community lenders. In what the Governor calls the "centerpiece of the technology package," Act 1042…

U.S. companies originally backed by venture capital created 4.3 million new jobs last year according to a new economic impact study released this week by the National Venture Capital Association (NVCA). Those companies generated $736 billion in revenues in the year 2000 and, according to the study, venture capital-backed businesses represented 3.3% of the nation's total jobs and 7.4% of Gross Domestic Product in 2000. Regionally, the Southeast experienced the greatest job creation with 1 million jobs, followed by California. The consumer industry realized the largest number of jobs created as a result of venture-backed companies at more than 1.1 million in 2000, followed by the computer and medical/health industries. California saw the most venture capital-created revenues with $179 billion in 2000, followed by the Southeast and Southwest. The most significant revenue impact occurred in the computer industry with $204 billion in revenues generated in 2000, followed by the consumer and medical/health industries. Regional statistics are provided below:…

With ten firms, Chicago leaders win bragging rights for being called home by the greatest number of Inc. magazine's "Inner City 100," the fastest growing urban businesses. In fact, six of the top 50 companies were from the Windy City. Five businesses from Buffalo won inclusion in the magazine's list, earning the New York city the unofficial title as the second most popular home. Pittsburgh, Cleveland, and Oakland, CA each had four companies on the list. The "Inner City 100" is compiled by Inc. and the Initiative for a Competitive Inner City, a nonprofit organization founded by Harvard professor Michael Porter. The list of 100 firms, selected based on five-year sales growth, was narrowed from more than 2,300 nominations. Profitability and number of employees are not considered in making the award, although to be eligible for consideration, a company must have had at least 10 employees and $1 million in sales in 1999. To see the full list, visit: http://www.inc.com/incmagazine/inner100/

Using survey responses and a weighted index for caliber of students, curriculum, faculty, support for students, and overall program, Success Magazine has identified what it believes are the best 50 business schools for entrepreneurial education. The top honors are not necessarily the business schools that immediately jump to mind for most people. Babson College, situated outside Boston with an enrollment of 1,550 MBA students, won first place on the list because the students and curriculum are focused on starting businesses, the magazine reports. UCLA, the University of Illinois at Chicago, DePaul University (also in Chicago), and the University of St. Thomas (Minneapolis) round out the top 5. Finishing the top ten list are: Rensselaer Polytechnic Institute (Troy, NY), Indiana University (Bloomington), Case Western Reserve University (Cleveland), University of Southern California (Los Angeles), and San Diego State University. The article with the survey results, released in the February/March issue, launches a new, regular series…

Earlier this month Governor Jeanne Shaheen released New Hampshire in the New Economy: A Vision for Expanded Prosperity, the first-ever comprehensive economic development plan for the State of New Hampshire. The plan calls for New Hampshire state government to focus its activities toward encouraging innovation, strengthening education and workforce development, retaining and protecting the quality of life, and extending economic opportunity to every citizen in every part of the state. The plan’s 39 recommendations are divided among six categories. Specific recommendations relating to tech-based economic development are highlighted below. Maintaining A Strong Economy Develop a long-term integrated approach to supporting new economic activity, while maintaining support for firms in traditional industries. Develop a long-term strategy to encourage more investment in Research and Development, technology transfer, and support for initiatives such as the New Hampshire Manufacturing Extension Partnership and New Hampshire Industrial Research…

The Small Business Administration (SBA) will distribute up to $3.4 million for small technology business development efforts across as many as 30 states through the first Federal and State Technology Partnership (FAST) request for proposals, released online Tuesday. Proposals are due Thursday, June 7, 2001. Individual state awards will range from $100,000 - $150,000. FAST, included in legislation reauthorizing the Small Business Innovation Research (SBIR) Program last December, provides matching funds to enable states to augment or expand their tech business assistance and SBIR outreach efforts. Recognizing the priority nearly every state has placed on encouraging technological innovation and commercialization by small businesses, the Science and Technology Council of the States made the FAST program’s creation a top priority during last year’s SBIR reauthorization by Congress. Which of the three tiers of matching funding requirements a state must follow for a FAST award is based on the state’s national ranking in the number of SBIR Phase I awards received. Fifty percent of the match can be in-kind contributions while the balance must be direct cash expenditures…

Legislation for the Technology Education and Training Act, introduced earlier this week by a bipartisan group of six Senators, calls for the creation of a income tax credit for businesses to offset information technology training expenses of their workers and trainees. The credit would be equal to 100 percent of the first $1,500 a business spends to train an individual worker. The credit would increase to $2,000 per individual if the training program offered by the business is located in a specially designated area, including existing Empowerment Zones. Because the credit would apply to programs which lead to certification in information technology (IT), the bill, if passed, also would encourage businesses to form partnerships with schools, universities and job training programs. Bill sponsor Kent Conrad (D-ND) was joined by cosponsors Senator Olympia Snowe (R-N.H.), Senator Harry Reid (D-NV), Senator Tim Johnson (D-S.D.), Senator Mike DeWine (R-OH) and Senator John D. Rockefeller IV (D-WV) in introducing the bill on Tuesday. …

Long-held opinions are hard to change. The state of the US manufacturing sector is a good example. Many people, particularly those in the Northeast and Midwest, hold tightly to memories of mass layoffs and factory closings nearly 20 years ago. After two decades of transformation, today’s manufacturing sector is quite different. In fact, manufacturing exports, including food production and processing, have enjoyed positive annual growth rates in all but one state since 1986, point out the authors of Comparing Manufacturing Export Growth Across States: What Accounts for the Differences?, a recent journal article from the Federal Reserve Bank of St. Louis. Nationally, manufacturing exports as a share of Gross Domestic Product grew from 4.1 percent in 1986 to 7.0 percent in 1998. The annual growth rate for manufacturing exports varied widely across the states. New Mexico experienced the greatest change during the ten years of 1988-1998, achieving an annual rate of 28.2 percent. Only Alaska witnessed a decline in manufacturing exports during the period.…

Colorado The Bill and Melinda Gates Foundation is donating $8 million over five years to support the creation of four “high tech” high schools around the state. Modeled after San Diego’s High Tech High, the Colorado schools will have teacher-to-student ratios of 1:15 and the same teacher will work with the students for four years. Students would have individualized workstations and practical internship experience will be built into the curriculum. The state is providing an $8 million match for the grant. Marc Holtzman, the Governor’s Secretary for Technology, is chairing the effort. The Gates grant will also support the creation of a charter school network and breaking three large public schools into smaller multiplex schools managed by a private organization. For more information, see: http://www.gatesfoundation.org/ Michigan To entice technology cluster development, the Michigan Economic Development Corp (MEDC) has announced the creation of 11 SmartZones, areas with existing clusters of high-tech companies, universities, and research institutions…

Offering an assessment of the progress made by the nation's 50 largest metropolitan areas toward becoming high-tech communities as well as providing policy recommendations to help cultivate and encourage New Economy businesses, the Progressive Policy Institute (PPI) and Case Western Reserve University's Center for Regional Economic Issues yesterday released The Metropolitan New Economy Index: Benchmarking Economic Transformation in the Nation's Metropolitan Areas. These metro areas account for approximately 60 percent of the nation's workforce. The top 25 states (based on aggregate score) are: 1 San Francisco/San Jose, CA 95.6 2 Austin, TX 77.9 3 Seattle, WA 68 4 Raleigh-Durham, NC 61.4 5 San Diego, CA 61.4…

On Wednesday, South Carolina Governor Jim Hodges announced the appointment of a 38-member Steering Committee of the Technology Transition Team. The group, chaired by the president of the South Carolina operations of BellSouth, consists of business leaders, technology entrepreneurs, financial executives, research university leaders, and government representatives. Technology Transition Team responsibilities include: promoting the close cooperation of community and business leaders on technology issues  tapping the resources of South Carolina's research universities  examining the potential of current and emerging technologies  developing a comprehensive strategy to bring high-tech firms to South Carolina and grow local technology start-ups. In Florida, according to a press release from the Tampa Bay Partnership, a new, privately led technology council is underway called Tech Florida, Inc. Intended to meet only once or twice a year, Tech Florida, Inc., will provide a forum for high technology industry executives across the state to network and to express their thoughts…

Ben Franklin Technology Partners. Pittsburgh Technology Council. Industrial Resource Centers. Tech 21. Pittsburgh Digital Greenhouse. Whether one is looking for examples of states’ efforts in workforce development, innovative university-industry research partnerships, effective technology councils, or practically any other tech-based economic development program, Pennsylvania is one of the first states to come to mind because of its long-standing tradition of supporting innovative approaches to building a tech-based economy. With so many local, state, university, and federal efforts to cultivate science, technology and economic growth, it is only fitting that Pittsburgh will be the 2001 site of SSTI's annual conference on practical tools and policies for tech-based economic development. Building from the success of last year’s sell-out event in Chicago and the wealth of great resources in Pittsburgh — beginning with our host team of the Allegheny Conference on Community Development, the Center for Economic Development at Carnegie Mellon University, Heinz Endowments, Innovation…