SSTI Digest

The December 19, 1997 issue of the SSTI Weekly Digest reported an incorrect FY 1998 appropriation for the Advanced Technology Program (ATP). The correct amount is $192.5 million.

With all appropriations bills signed into law as of November 26 and the exercise of the final line item veto on December 2, the FY 1998 appropriations picture is coming into focus. A preliminary analysis by the American Association for the Advancement of Science (AAAS) of the FY98 appropriations shows that total federal funding allocated to R&D increased to $76.3 billion, 4.1 percent more than FY97. With the exception of Transportation and Agriculture, every major R&D funding agency received increases above the rate of inflation (2.5 percent). The Department of Commerce's R&D programs received the largest percent increase (14.8 percent) to bring the agency to $1.1 billion. Much of the increase is due to a $95 million appropriation to fund construction and renovation of NIST R&D facilities in Colorado and Maryland. Funding for other NIST programs included $114 million for the Manufacturing Extension Partnership (MEP), an increase of $19 million over last year. The Technology Administration in Commerce, which oversees NIST, received $1.6 million to initiate the…

Price Waterhouse recently announced that venture capital investments hit an all time record in the third quarter of 1997. Total investments exceeded $3.5 billion, eclipsing the previous high of $3.2 billion reported in the second quarter of 1997. Compared to the third quarter of 1996, investments increased 75%, the largest percentage increase measured by the survey. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States. A total of 675 companies received financing in the third quarter compared to 443 companies in the same period last year which is a 52% increase. Technology-based companies also set a record in the third quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information captured $2.25 billion, or 63% of all dollars invested and 68% of all companies. The following represents the amount of venture capital…

Research and development expenditures in 1997 are expected to reach $205.7 billion, a 6.5 percent increase over 1996's $193.2 billion in spending. Since 1994, R&D spending has been increasing at a rate of more than 5 percent a year, according to a recent National Science Foundation Data Brief. The federal share of the nation's R&D expenditures is expected to continue declining -- to 30.5 percent of R&D expenditures. The federal share of the nation's R&D funds first fell below 50 percent in 1978 and was consistently between 44 and 47 percent from 1980 to 1990. Since then, the federal share has dropped steadily. Industry has provided the greatest share of total support for R&D since 1980 and will continue to do so in 1997. Expenditures by industry are expected to reach $133.3 billion (64.8 percent of all expenditures). Of that total, virtually all (97.9 percent) of the funds are used by industry. The remainder goes to academic institutions and other nonprofit organizations. The remaining R&D expenditures are made by academic institutions, state and local…

The National Science and Technology Council (NSTC) report, Transportation Science and Technology Strategy, has been released. The Strategy was written to aid Congress, the White House, and federal Agencies in establishing national transportation R&D priorities and coordinating research activities. The report highlights ongoing federal research efforts in transportation science and technology and identifies areas of new opportunity and gaps for federal support. The report found that understanding the transportation infrastructure of the nation from a global perspective is essential to the ability of the United States to compete effectively in the future as well as to support domestic commerce. Transportation R&D must focus on innovations to help the nation cope with an expanding world population, urbanization, a rising volume of air passenger and air freight trips, growing marine traffic, and an increasing automobile population. The report focuses on transportation technologies designed to improve safety, enhance information and computer technologies, optimize energy-efficient…

The State Science and Technology Institute (SSTI) recently released State Science and Technology Strategic Planning: Creating Economic Opportunity. This report is the first comprehensive study of state science and technology strategic planning processes. Prepared under a grant from the Economic Development Administration, Creating Economic Opportunity describes the key factors that contribute to the successful development and implementation of state science and technology strategic plans. The study found there were ten best practices for successful strategic plans: The planning process had a champion The process was structured to obtain a wide range of viewpoints The strategy articulated a vision for the state's future and was based on a thorough understanding of the state's industry and technology resources The strategy was designed to benefit all areas of the state, including distressed areas The strategy was built on existing delivery systems The strategy addressed the key elements needed to support technology-based development The strategy included…

The National Business Incubation Association (NBIA) has released a new report that confirms that business incubators are helping to build healthy, long lasting businesses, and they are doing it at minimal cost with a good return on investment to supporters. The report was conducted by the University of Michigan, NBIA, Ohio University and the Southern Technology Council under a grant from the U. S. Department of Commerce's Economic Development Administration. It examines the impact of business incubators which house early stage companies and provide on-site management and a full array of business planning, marketing and financial services. The study indicates that: Incubator companies experience very healthy growth. The average firm's sales increase by more than 400 percent from the time they enter the incubator until they leave the program. Business incubation programs produce companies with a high survival rate. A reported 87 percent of the companies that fulfilled the program's requirements are still in business today. Business incubation programs create…

Raymond Kammer was sworn in as eleventh director of the National Institute of Standards and Technology (NIST) on November 12. Kammer had been NIST's deputy director since 1993. Robert Hebner had been acting director of the agency since the position was vacated by Arati Prabhakar in March.

A new industry association, the Small Business Technology Coalition (SBTC), has been organized to represent the interests of small, high technology firms in Washington, D.C. and in individual states. Since its creation, SBTCs membership has grown to 300, with members from 30 different states. SBTCs initial objectives include: 1) becoming a strong recognized voice in the formation of public policy that is of direct interest to small, high technology firms; 2) providing a forum for executive networking and education as well as interfacing with investors; and 3) leveraging member efforts and buying power to provide cost effective business support services. For more information about SBTC call 415/813-9124 or visit their web site at www.sbtc.org

Former Ohio Governor Richard F. Celeste was sworn in as the United States Ambassador to India last week. Celeste has been a leader in the field of technology-based economic development for the last 15 years. While governor, Celeste established Ohio's Thomas Edison Program. Since leaving office in 1991, he has played a key role in advancing state-federal cooperation in the area of science and technology. Among other positions, Celeste served as chairman of Carnegie Commission on Science, Technology, and Government's Task Force on Science and Technology and the States; co-chairman of the State-Federal Technology Partnership Task Force; and as vice chairman of the State Science and Technology Institute's Board of Trustees. His support, encouragement, and counsel will be missed by the SSTI staff, who wish him well in his new post.

The House Committee on Science has begun a year-long study of the nation's science and technology policy in order to determine funding priorities for federal support of research. The study will be the first attempt by the House to systematically assess the nation's research and development needs since the end of the Cold War. The Science Policy Study, commissioned by committee chairman James Sensenbrenner (R-WI) and House Speaker Newt Gingrich, will be headed by committee vice chairman Rep. Vernon J. Ehlers (R-MI). Rep. Ehlers is a nuclear physicist and one of the few scientists in Congress. According to the House Committee on Science, Rep. Ehlers' team will address long-range S&T policy and science and mathematics education, as well as serve as a contact with the science community. The public will be invited to submit letters and papers to the team for consideration. The team intends to hold field briefings and hearings in the spring. One of the first actions undertaken by Rep. Ehlers was to convene a roundtable in late October. The roundtable of more than 30 representatives…

The General Accounting Office (GAO) recently testified before a Congressional committee on the changing missions of the Department of Energy (DOE) national laboratories and perceived weaknesses in the management of the labs. According to GAO, DOE's efforts to meet the requirements of Government Performance and Results Act (GPRA) offer an opportunity to achieve fundamental change in the way in which the department manages the national labs. GAO has reported previously on its concerns with the national laboratory system. The two major concerns are: DOE has not ensured that work in the national labs was focused and coordinated. DOE has not established clear missions for the labs or developed a clear consensus on the labs' appropriate mission in the post-Cold War era. GAO opined that the department has struggled to manage large projects successfully, is slow to realize benefits from internal reforms, and continues to face problems from a complex organizational structure. GAO reported that DOE has begun a number of reform initiatives to address mission and management…