SSTI Digest

Sandy Layman was named commissioner of the Iron Range Resources and Rehabilitation Agency (IRRRA) earlier this month. IRRRA promotes economic development in Northeastern Minnesota.

Minnesota Governor Tim Pawlenty recently announced the formation of a Biodiesel Task Force to accelerate development of the state's biodiesel industry. The nine-member group will advise the Minnesota Department of Agriculture (MDA) on methods to increase production and use of biodiesel in Minnesota. Legislation passed by the 2002 Minnesota Legislature requires that 2 percent of Minnesota’s diesel fuel be replaced with biodiesel by June 2005. This requirement will take effect on the condition that the state has developed by that time an annual biodiesel production capacity of at least 8 million gallons. To help reach that production capacity and ensure a smooth introduction of biodiesel into the marketplace, the new task force will help promote and educate possible biodiesel developers, marketers, consumers and manufacturers. Governor Pawlenty said the task force will play a key role in making biodiesel use widespread in Minnesota. “The task force will be an important tool for spurring biodiesel production in Minnesota,” the governor said in a press statement. “It will…

Minnesota manufacturers are cutting payrolls, bidding low and scrambling to compete with the giant threat of cheap labor and enhanced manufacturing facilities offered in China, according to a recent survey of Greater Minnesota manufacturing companies. Funded by Minnesota Technology, Inc. (MTI), the state's lead technology-based economic development organization, the survey finds that most of Minnesota's outstate manufacturing companies are facing increased competition, specifically from Chinese manufacturers. Half of all respondents said that Chinese competition is hurting their business, and others suggested manufacturers have yet to see the benefits of trade with China touted by many free marketers. Of those who said Chinese manufacturing had hurt their business: When asked to estimate the loss in sales attributable to Chinese manufacturing, respondents on average estimated they would lose about 20 percent of their business in 2003, with larger losses expected over the next several years. Sixty percent said that it had resulted in lost business as customers bought from or moved…

Minnesota Governor Tim Pawlenty recently unveiled a plan to help make Minnesota a leader in biosciences. Governor Pawlenty says the state's history, expertise and economic infrastructure make it better prepared than most other states to capitalize on the bioscience industry. Presenting his ideas to the Minnesota Biotechnology Industry Organization (MNBIO) last week, Governor Pawlenty said bioscience advances represent the next frontier and that they will "revolutionize big parts of (the state's) economy within the next two decades." The governor's proposal includes the following: Governor's Biosciences Summit. Governor Pawlenty plans to bring together leaders from education, research, industry, the investment community, and others to exchange ideas and further chart out a course for developing Minnesota's bioscience future. Development of a Bioscience Park. Similar to one of the governor's proposed JOB Zones, this Bioscience Park would be a private-public partnership designed to attract cutting edge bioscience companies to Minnesota. Create Major Partnership in…

Despite an economic slowdown, the Twin Cities is more competitive than it was a year ago, according to a study released by the Great North Alliance, a regional civic leadership organization. Conducted annually, the Great North Opportunity Forecast uses regional productivity and innovation to predict future competitiveness and opportunity. The 2002-03 forecast measures 58 key indicators of the regional economy of the Twin Cities and divides the indicators into four areas — current performance, development capacity, innovation capacity and resource flow. Innovation capacity, for example, includes 18 indicators measuring inspiration, invention, and entrepreneurial development. In each area, the Twin Cities' performance is compared against 11 similar sized high-growth regions around the U.S., including Atlanta, Austin, Boston, Chicago, Dallas, Denver, Orange County (CA), Phoenix, Raleigh, Salt Lake City and Seattle. The Twin Cities is capturing a larger share of resources from equity and financial markets than it has in recent years, the findings show, but the region's ranking has fallen in…

Manufacturing jobs in rural Minnesota numbered almost 120,000 in 2000, a 25 percent increase since 1990, according to a recent study by the Center for Rural Policy and Development and Minnesota Technology Inc., two agencies dedicated to helping industry in Greater Minnesota. Meanwhile, manufacturing jobs in the state's metro area increased only 1.7 percent during the same period, the study shows. The study was the third part of the 2002 Rural Minnesota Internet Study, an annual collection of surveys designed to monitor computer, Internet and broadband use. Part III examines the telecommunications needs of the state's rural manufacturing firms. A survey of 300 of these firms revealed factors contributing to why some use the technology and others do not. Ninety-three percent of the surveyed companies reported having an Internet connection, and 28 percent said they buy or sell products through e-commerce applications. Among those with Internet hook-ups, 47 percent said they had a dial-up connection, while the majority of those with a broadband connection (42 percent) reported using…

Minnesota Technology, Inc. (MTI), the state's leading tech-based economic development corporation, currently is searching for a dynamic individual with top-notch skills to help bring federal technology transfer activities to Minnesota companies. The successful candidate will develop partnerships with federal labs, identify opportunities for tech transfer activities, and assist companies with the development of proposals, agreements and licenses, and implement solutions to enhance their ability to compete and grow. Successful applicants will hold a Bachelor's degree or equivalent in Manufacturing/Engineering, Science or related field (advanced degree is preferred). Experience in new technology development and commercialization, and product development; experience with DOD, DOE, NASA, NIST or other federal labs is required. Additional information regarding the position is available on SSTI's job corner: http://www.ssti.org/posting.htm

Minnesota's technology sector remains a diverse, well developed and stable anchor to the state's economy, according to a new report released by Minnesota Technology, Inc. (MTI), Minnesota's tech-based economic development organization. Using quantitative and qualitative measurements, Our Competitive Nature: Minnesota's Technology Economy characterizes almost 2,500 companies (with more than five employees) as technology intensive, including 1,300 advanced manufacturers, 850 information technology companies, and 300 life sciences companies. These sectors account for 164,500 jobs, the report states. Our Competitive Nature also reveals the diversity of Minnesota's tech sector. The state's 10 largest companies include six advanced manufacturing companies, two information technology technologies, and two life sciences companies. One of the weaknesses in the state's tech sector, the report contends, is an economy dominated by billion dollar companies and companies with sales of less than $100 million. "The lack of a 'middle class' of technology company means there is not much ground for…

In Perfectly Competitive Innovation, a March 2002 research department staff report for the Federal Reserve Bank of Minneapolis, Michele Boldrin and David K. Levine address whether current copyright, licensing and patent laws which grant monopolist rights to inventors beneficial or harmful to the innovation process. The authors suggest the latter in certain markets.  Most modern analysis of innovation, the authors contend, is based on models assuming monopolistic competition as a prerequisite for understanding innovation and growth. Instead, Boldrin and Levine conceive a model that confers the "right of first sale" practice that was granted to entrepreneurs historically [defined loosely as before the mid-19th century]. They also argue that, contrary to prevalent opinion, idea generation and the creative effort should be viewed as sunk costs instead of as fixed costs. Models based on competitive markets can address sunk costs.  The econometric model developed by Boldrin and Levine supports the conclusions that:  "the historical process…

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: Renew the spirit of local entrepreneurship. In this area, the group calls for investing in the workforce, land use and capital needs of businesses looking to expand. An "Innovation Center of Duluth" would serve as an incubator, enabling start-up companies to obtain seed and venture capital, technical assistance and access to marketing studies.  Highly skilled workers = economic success. This area focuses on the region's ability to develop, attract and retain talented people. Included is a plan to develop a "SciTech Scholars" program to…

Since its founding in 1991, the nonprofit Minnesota Technology Inc. (MTI) has been Minnesota lead technology-based economic development organization. Its mission, to help existing small and medium-sized companies apply, develop and commercialize technology, is achieved through three objectives:  Diversify the Greater Minnesota economy towards advanced manufacturing and technology-based businesses;  Promote the technology community in Minnesota and encourage awareness of the importance of a technology economy to the state; and,  Provide leadership in public policy discussions  Minnesota Technology, Inc. has a staff of approximately 85 people and is governed by a Board of Directors appointed by the governor and state legislature. The organization also is supported by ten Advisory Councils spread throughout the state and consisting of local business and community leaders.  Celebrating its first decade of service to Minnesotans, MTI can point to more than 4,000 individual companies assisted and a bottom-line impact of more…

One of the few new spending bills to make it through the 2001 session of the Minnesota Legislature provides $10 million in seed money for technology commercialization through a new Biomedical Innovation and Commercialization Initiative (BICI – pronounced beach-ee). The BICI appropriation is contingent upon state economic development officials securing a three-to-one private sector match. BICI is a collaborative economic development initiative involving the State of Minnesota, the University of Minnesota and the state’s medical research institutions, companies and investors. It establishes a commercial enterprise – independent of both the university and state government – to bridge the gap between academic basic research and the commercialization of new technologies. The explicit mission of BICI is to identify and invest in biomedical ventures that have long-term commercial development potential. It targets biomedical research at the University of Minnesota’s Academic Health Center, the area of academic basic research that has the most immediate commercial…