SSTI Digest

Bill Borgmeyer has retired from his position as Coordinator of Technology Development for the Missouri Technology Corporation.

Few economic sectors have experienced the combined economic, technological, social, biological, and – now with threats of mad cow and foot-and-mouth diseases – medical pressures that confront American agriculture. Adding the challenges of competing in the knowledge-based economy presents a formidable task for rural regions. New Valley Connexions, a public-private partnership in California that teams agriculture businesses with both state and local governments as well as the larger business, financial, and educational communities, may provide a worthy model for study and replication in other parts of the country. Core funding for the initiative was provided by the Division of Science, Technology and Innovation within the California Technology, Trade and Commerce Agency. Over the past three years, the partnership has developed plans for and is implementing a cluster-based economic development strategy, a comprehensive telecommunications plan, and a strategy to address digital divide issues for the eight-county San Joaquin Valley. An offshoot of the telecom…

Complementing California’s support for New Valley Connexion, described above, is the state’s $2 million Rural E-Commerce program. Administered by the Division of Science, Technology and Innovation within the California Technology, Trade & Commerce Agency, Rural E-Commerce provides grants to non-profit organizations, educational institutions, and local governments for innovative, community-driven solutions to the telecommunications challenges faced by rural residents. Examples of projects eligible for Rural E-Commerce support include rural telecommunications planning, rural network infrastructure, innovative applications, education and training, and related community planning efforts. According to the request for proposals, Rural E-Commerce grants also can be used as matching funds for rural communities competing for federal and foundation grants in areas relevant to rural e-commerce, such as the Technology Opportunities Program (TOP) and the Public Telecommunications Facilities Program. More information on the California Rural E-commerce Program is…

Eliminating all state taxes on long-term capital gains and providing incentives to encourage biotech start-ups and investment are among the recommendations advanced in The Competitive Edge: Rethinking Rhode Island Tax Policy for Success in the New Economy, the first report from the Tax Competitiveness Committee of the Rhode Island Economic Policy Council (RIEPC). Governor Lincoln Almond requested RIEPC review the state’s tax policy and recommend mechanisms for enhancing Rhode Island’s tax competitiveness in the New Economy. The report identifies four specific recommendations for the state to consider to encourage high-wage, New Economy growth, including: Phase out taxes on all long-term capital gains. Adjust the corporate apportionment formula to double-weight for sales and phase in 100 percent weighting of sales for manufacturing. Extend the net operating loss (NOL) carry-forward from the current five-year limit to 20 years for start-up biotech firms. Modify exemptions to the sales and use tax to benefit the state’s biotech industry cluster, including…

With 26 percent more of its workforce involved in information technology (IT) than the national average and with IT-producing industries growing faster in the state than the national average, Connecticut has possibly felt the pinch of the IT worker shortage more than other parts of the country. Add to that the fact that the number of IT-related graduates from the state’s universities and community colleges declined during the late 1990s. As a result, last year the state legislature ordered the development of a statewide IT workforce development strategy. Responsibility for the plan was given to the state Office for Workforce Competitiveness (OWC) and the Connecticut Economic Resource Center, Inc. (CERC). CERC is a private, not-for-profit 501(C)(6) corporation formed through a partnership of utility/telecommunications companies and state government in 1992. The challenge for the state, according to the draft plan, is to integrate IT workforce skills development “in a practical manner across the full knowledge supply chain” of K-12, colleges, universities,…

President Bush has announced several more nominations for key positions for the tech-based economic development community, including: Samuel W. Bodman for the position of Deputy Secretary of Commerce. Dr. Bodman is currently the Chairman and CEO of Cabot Corporation in Boston, Massachusetts. David A. Sampson to be Assistant Secretary of Commerce for Economic Development. The position serves as head of the Economic Development Administration. Mr. Sampson is currently the President and CEO of the Arlington Chamber of Commerce in Arlington, Texas and also serves as the Chairman of the Texas Council on Workforce and Economic Competitiveness. Kathleen B. Cooper for Under Secretary of Commerce for Economic Affairs. The position oversees the Census Bureau. Dr. Cooper is currently the Chief Economist and Manager of the Economics and Energy Division of Exxon Mobile Corporation in Irving, Texas. Roberto Salazar is leaving his post as the Director of the New Mexico Office of Science and Technology at the end of March to assume the position of State Director of the…

President Bush has announced several more nominations for key positions for the tech-based economic development community, including: Samuel W. Bodman for the position of Deputy Secretary of Commerce. Dr. Bodman is currently the Chairman and CEO of Cabot Corporation in Boston, Massachusetts. David A. Sampson to be Assistant Secretary of Commerce for Economic Development. The position serves as head of the Economic Development Administration. Mr. Sampson is currently the President and CEO of the Arlington Chamber of Commerce in Arlington, Texas and also serves as the Chairman of the Texas Council on Workforce and Economic Competitiveness. Kathleen B. Cooper for Under Secretary of Commerce for Economic Affairs. The position oversees the Census Bureau. Dr. Cooper is currently the Chief Economist and Manager of the Economics and Energy Division of Exxon Mobile Corporation in Irving, Texas.

Roberto Salazar is leaving his post as the Director of the New Mexico Office of Science and Technology at the end of March to assume the position of State Director of the USDA's Rural Development Agency for New Mexico.

The SSTI Weekly Digest will be taking a brief spring break and will resume publication on Friday, April 6.

The Economic Development Administration (EDA) is offering nearly $411 million in financial assistance for distressed areas. The agency has already begun accepting proposals and will continue to do so until the $410,972,866 allocated for FY 2001 is exhausted. EDA seeks proposals for projects that will significantly benefit areas experiencing or threatened with substantial economic distress, and targets assistance to communities with the highest economic distress. Such distress may exist in a variety of forms such as high levels of unemployment, low income levels, large concentrations of low-income families, significant declines in per capita income, substantial loss of population because of the lack of employment opportunities, large numbers or high rates of business failures, sudden major layoffs or plant closures, military base closures, natural or other major disasters, depletion of natural resources, or reduced tax bases. Most of the funding ($286 million) is available under Public Works and Economic Development Assistance program. The remaining funds are distributed…

While venture capital is harder to come by these days in most parts of the country due to the dot-com crash and stock market declines, investment capital may flow more easily in two southern states based on two initiatives. Florida: $450 Million for CAPCOs Considered The state legislature is currently considering CAPCO legislation to triple the maximum limit for tax breaks granted to insurance companies that invest in Florida companies through venture capital funds. Senate Bill 1130, passed unanimously in the Banking and Insurance committee this week, now moves to the Commerce and Economic Opportunities Committee for consideration. More information is available at: http://www.leg.state.fl.us/Welcome/index.cfm Tennessee: $12 million Raised for New SBIC According to a March 15 article in the Tennessean, the Tennessee Technology Development Corp. (TennesSeed) and Technology 2020 have raised $12 million to serve as seed capital for tech start-ups in the state. The University of Tennessee’s endowment contributed $1 million to the investment…

During the first days of March, Michigan Governor John Engler announced the implementation of two programs through the Michigan Virtual University to integrate information technology into the state’s education system. Laptops for Teachers On March 6, the Governor ceremoniously distributed the first laptop computers in the Teacher Technology Initiative (TTI) announced last year. The program allocates up to $1,200 for each eligible educator to receive a computer complete with software, including a productivity package, Internet access, a warranty and web-based professional development. It is funded by a one-time $110 million appropriation made last year by the state legislature, providing 90,000 Michigan teachers with computers and Internet access. TTI applications from some 211 school districts were processed during the months of December, January and February, representing 23,839 teachers and an investment of $28.6 million. Because more than 60,000 teachers have completed the required online assessment, more…