SSTI Digest

The Massachusetts Technology Collaborative (MTC) released its second annual Index of the Massachusetts Innovation Economy earlier this month. The report tracks 31 performance indicators and explores the implications of each indicator on the long-term growth and stability of the Massachusetts economy.

Included in this year's report is an analysis of "the Dynamics of Innovation" using healthcare technology's contributions to the state economy as an example. The special section illustrates the interrelationship of the innovation process and many of the indicators used in the Index.

The MTC Index reports indicators from primary and secondary sources in nine key industry clusters, which represent 24 percent of the state's non-government employment and 35 percent of private-sector payroll. Eight of the measures are new this year for the Index.

The November 20 SSTI Weekly Digest article on the current Advanced Technology Program (ATP) competition should have stated the following information on ATP's indirect cost policy:

• for single proposer projects, ATP will fund only direct costs; the company must cover its indirect costs. Large businesses submitting single-company proposals must support 60 percent or more of total project costs which may include both direct and indirect costs.
• for joint venture projects, industry must pay at least 50 percent of the total project costs. ATP's portion may include both direct and indirect costs.

Two ATP proposers' conferences will answer additional questions on ATP's policy toward indirect costs and many other issues. Those conferences will be held:

The National Science Foundation (NSF) has invested $10 million to fund the first year of new Engineering Research Centers (ERCs) in Georgia, Hawaii, Maryland, South Carolina and Virginia. Each of the five centers will receive $2 million in the first year from the NSF, leveraged by support from industry, state governments and partnering universities. NSF will support the centers for five years, after which the support agreement is subject to renewal.

The NSF has established 34 ERCs nationwide since 1985. NSF created the ERC program to foster partner-ships between government, industry and universities in research and engineering. ERC partnerships work to solve crucial research issues that could hinder advances in emerging technologies. As the ERCs develop advanced technologies, they also prepare the next generation of engineers with practical experience in leadership and team-building skills.

PricewaterhouseCoopers recently announced that venture capital investments in the third quarter of 1998 set an all-time high of $3.77 billion, just slightly above the previous record of $3.73 billion set last quarter despite the current stock market turmoil. Compared to the third quarter of 1997, investments increased 29% over the $2.92 billion reported one year ago.

These findings were released in the PricewaterhouseCoopers Money Tree, a quarterly report of venture capital investments throughout the United States. This survey is a result of the merger of the Price Waterhouse National Venture Capital Survey and the Coopers & Lybrand Money Tree Survey.

The following table shows the amount of venture capital dollars invested by region in the third quarter of 1998:

Region

Investment Amount

The long-time executive director of the New Jersey Commission on Science and Technology, Jay Brandinger, recently announced his decision to resign as Executive Director of the New Jersey Commission on Science and Technology. Consequently, the Commission is seeking an Executive Director.

The New Jersey Commission on Science & Technology is appointed by the Governor to oversee a competitive grants program of $20 million annually that spans science and technology research, technology transfer and business development.

Technology 2020, a public-private partnership, is seeking a Director of New Business Development. Technology 2020is supported by a number of large corporate "technology partners" in the Knoxville/Oak Ridge Area of east Tennessee. Technology 2020's primary objective is to leverage talent and reputation of the Oak Ridge National Laboratory and grow new technology businesses that will create new jobs and help diversify the economy of the region. Oak Ridge is the nation's largest multi-disciplinary laboratory and is a primary source for technology commercialization.

The Director of New Business Development will have a pivotal role in Technology 2020's success in identifying and creating new businesses in the region. Reporting to the President and CEO, the ideal candidate will blend a broad knowledge of business and finance with excellent personal skills and a strategic mindset regarding new ventures. The focus of the Director's work will be to identify or create new businesses in the area and help grow these new ventures.

The omnibus spending bill signed into law last week also includes extensions of several tax credits, including the Research and Experimentation Tax Credit which expired on June 30 of this year. The R&E Tax Credit is now in effect, retroactively, for the period from July 1, 1998, to June 30, 1999.

Maine and Oklahoma voters both approved ballot initiatives designed to encourage technology-based economic development, while voters in other states elected 13 new governors. Eight legislative chambers also switched control.

The Maine initiative authorizes a $20 million bond issue for research and development. The University of Maine system will receive $13.5 million for capital improvements; the Maine Science and Technology Foundation will receive $4.5 million in part for a Research Challenge Grants Program to enhance R&D capacity and productivity; and, the Department of Economic and Community Development will receive $2 million for a laboratory to support applied fishery and marine biotechnology research.

November 17, 1998

The National Association of Seed Venture Funds is sponsoring a seminar entitled "Seed Investing as a Team Sport" to be held in Des Moines. The purpose of the seminar is to expand the attendees' understanding of business investing, help locate a team of like-minded investors in the region, and provide new tools to help optimize investment dollars. For more information, visit NASVF's website at http://www.nasvf.org

November 18-19, 1998

The Progressive Policy Institute is sponsoring a two-day conference "Understanding America's Transformation To a New Economy" in Washington, DC. Scheduled speakers include Vice President Al Gore and Sen. Tom Daschle. For more information, contact PPI at 202/608-1235.

The Department of Energy has been unable to demonstrate that it can effectively manage the reform of its national laboratory system, the General Accounting Office (GAO) says in a new report. Consequently, GAO recommends that Congress consider alternatives to the present relationship between DOE and the laboratories. In response to on-going congressional concerns about DOE’s progress in making systemic changes, GAO evaluators were asked to:

California is considering expanding its network of Regional Technology Alliances (RTA), which is a component of the Goldstrike Partnership. The Goldstrike Partnership, a program of the California Trade and Commerce Agency's Office of Strategic Technology (OST), supports the development, application, and commercialization of technology to create jobs, respond to industry changes, and foster competitiveness.

The program’s goal is to leverage existing regional, state, and federal resources to maximize assistance in the formation and growth of technology-based firms. The RTA model is an industry driven, non-profit private/public partnership. There are currently three RTAs, located in the San Francisco Bay area, Los Angeles, and San Diego. OST is looking to establish a statewide network of RTAs that develop and manage technology based industry-driven initiatives.

Nearly 70,000 manufacturers received services from the Manufacturing Extension Partnership (MEP) from July 1995 through December 1997, according to a new report released by MEP.

Client reported impacts for projects closed from June 1996 to May 1997 increased for the short-term competitiveness indicators compiled by the program. These indicators include: sales ($187 million); labor savings ($8.9 million), material savings ($7.3 million), inventory savings ($25 million), client investment in modernization ($135 million); jobs created (2,095); and jobs retained (3,011).