SSTI Digest

In the April 18, 1997 edition of the SSTI Weekly Digest, we reported on Congressional earmarks for research projects involving specific universities. The totals for six states were incorrect and, as a result, the rankings for five states were also incorrect.

Hawaii should have been reported as receiving $99,241,000 in earmarks; Pennsylvania as receiving $42,185,000; Texas as receiving $20,553,000; Alabama as receiving $19,900,000; and, Illinois as receiving $8,025,000.

New York should have been ranked as 10, New Mexico as 11, Texas as 12, Alabama as 13, and Minnesota as 14.

A demonstration program using federal loan guarantees to attract venture capital funds to rural areas is being created by the Rural Business-Cooperative Service (RBS) of the U.S. Department of Agriculture (USDA). RBS is seeking public comment on the program by May 9.

The Federal Agriculture Improvement and Reform Act of 1996 calls for the Secretary of Agriculture to designate up to 60 community development venture organizations over six years to demonstrate the utility of guarantees in attracting increased private investment in rural companies. The organizations must establish a rural business private investment pool to make equity investment in rural companies. USDA will guarantee up to 30 percent of the total funds in the pool against loss.

USDA will issue up to $90 million in guarantees over a six year period. The term of a guarantee is not to exceed 10 years.

Position descriptions for three new positions have been posted on the Institute's home page (http://www.ssti.org). The KPB Economic Development District in Alaska is seeking a Chief Executive Officer. The Associate Director position of Iowa State University's Center for Advanced Technology Development is open. Auburn University is accepting applications for the Associate Director of Industrial Programs and Technology Transfer position.

The Chronicle of Higher Education recently released its annual report on funding for university projects that Congress specifically directed federal agencies to support. The Chronicle reported that Congress earmarked at least $440 million for projects involving specific universities for FY1997. That is a 49 percent increase from FY1996 total of $296 million.

The report tallies items for which federal agencies did not request funding or sponsor merit-based competitions (although there were a few projects for which funding was added to projects that had previously been competitively awarded). The projects included were named either in appropriations bills or the legislative reports that accompany them.

Projects range from $32,000 to be allocated by the Agriculture Department to the University of Vermont for maple research to $45 million to be allocated by the Navy to University of Hawaii for a new oceanographic research ship.

Dr. Paul S. Huyffer has been named Executive Director of the Vermont Technology Council and Special Assistant to the President of the University of Vermont for Economic Development. The Vermont Technology Council has been in existence since 1992 and has been responsible for the development of a science and technology plan for the state.

The chairman of the Vermont Technology Council noted Dr. Huyffer's significant experience in building cooperative relationships between academia and industry. Prior positions include Vice President, Science and Technology of the Markem Corporation and several senior executive positions at the Polaroid Corporation.

Dr. Huyffer received the first Ph.D. in Organic Chemistry ever granted by the University of Vermont, in 1964.

As part of a review of the Advanced Technology Program (ATP) ordered by Commerce Secretary William Daley, public input is being sought on the operations and direction of the program. The outcome of the review is to be incorporated in the Department's recommendations to the Secretary on possible program modifications.

The department is particularly interested in receiving comments on specific questions in four topic areas. The four topics and some of the questions are:

Company participation

The House Committee on Science recently submitted its budget recom-endations to the House Budget Com-mittee. The recommendations call for a three percent total spending increase for federal research and development over FY 1997. The Administration's budget calls for a one percent increase for the civilian science and technology programs that are under the House Science Committee's jurisdiction. Those programs include NASA, FEMA, DOE, EPA, NOAA, NIST, and the Department of Commerce's Technology Administration.

The budget proposal, entitled "Views and Estimates of the Committee on Science for Fiscal Year 1998," was signed by a majority of Republicans and Democrats on the committee. "Views and Estimates" reports are required from each of the House Committees and are used by the House Budget Committee in formulating the Budget Resolution.

A newly formed panel will work with the White House Office of Science and Technology Policy and the U.S. Department of Energy to provide recommendations on how to ensure the U.S. energy R&D program addresses the economic, environmental and national security needs of the nation for the next century.

The panel will review current and projected U.S. energy R&D programs. The panel will also make recommendations on federal support for energy research and development, incentives for private sector investments in energy research and development, and U.S. commitments to international cooperation in energy research and development.

Increasing spending on education and research and development (R&D) was cited as the best means for the federal government to increase the long-term economic growth rate of the country, according to a recent Wall Street Journal survey of academic economists.

This option was selected by more economists, 43 percent, than any of the other nine offered. The next closest option, "reduce government spending as share of GDP" was selected by 10 percent.

The Journal surveyed 1,500 economists randomly chosen from faculties of "100 leading U.S. economics departments and 10 major business schools." In all, 320 responded. The results appeared in the March 6 edition of the Journal.

In what is touted as the first major national study of the economic impact of a research university, BankBoston recently reported on the economic impact of companies founded by graduates of the Massachusetts Institute of Technology (MIT). The report, MIT: The Impact of Innovation, "is a case study of the significant effect that research universities have on the economies of the nation and its 50 states."

Graduates of MIT have founded some 4,000 currently active companies, according to the report. Worldwide, these companies account for annual revenues of almost $232 billion. Compared with foreign countries, MIT-related companies would rank 24th largest in the world -- just behind South Africa and ahead of Thailand.

The General Accounting Office (GAO) has released information on the status of Small Business Investment Companies (SBICs) for fiscal years 1990 through 1996. The report, Update of Information on SBA's Small Business Investment Company Programs, provides data on the performance of the programs and related investment activities.

The SBIC program was created to help small businesses obtain financing. SBICs, licensed by the Small Business Administration, are privately organized and privately managed investment firms. With a combination of their own capital and funds borrowed at favorable rates through SBA, SBICs provide venture capital and loans to small businesses. A specialized SBIC (SSBIC) program was also established to provide funding to socially or economically disadvantaged small business owners.

GAO data for fiscal years 1990 through 1996 show that:

Pittsburg State University in Kansas is seeking a person to serve as the executive director of its Business & Technology Institute (BTI) and as Director of the Center for Design, Development, and Production. BTI is the primary economic development unit of the university. Its mission is to serve as interface between education, technology, business and industry by providing management, finance, and technological services. Review of applications will begin on April 28.

A full description of the position can be obtained from SSTI's home page (http://www.ssti.org) or by calling SSTI at 614/421-7784.