SSTI Digest

One Goal would see Science Share of GDP Surpassing US before 2010. Not to be outdone by its European neighbor across the Channel (see story above), the French government announced at the end of June it will create a national research agency modelled after the National Science Foundation, according to The Scientist, the European Commission and several French news reports. While the budget for the new government agency will not be released until November, the press reports indicate an additional $1.23 billion (US) could be available for research grants in 2005. While recent public expenditures have been below average for the European Union, France has set a goal to raise the percentage of the Gross Domestic Product (GDP) that is spent on science to 3.0 percent by 2010. In 2002, science spending represented 2.2 percent of the French GDP. Science in the U.S., for comparison, has seen its share of the GDP decline in each of the past three years to approximately 2.6 percent. To achieve its goal, French research spending will need to average an annual real growth rate of 10 percent…

Innovation policy approaches need to address specific challenges, problems and opportunities found in different types of regions, according to a new research paper from the Vienna University of Economics and Business Administration. The paper, One Size Fits All? Towards a Differentiated Policy Approach With Respect to Regional Innovation Systems, was presented at the recent German Institute of Economic Research conference. In it, the authors stress there is no ideal model for innovation policy in tech-based economic development, instead making a case for more differentiated policies. Various types of regions are analyzed, based on their preconditions for innovation, networking, and innovation barriers. The authors highlight the regional innovation system (RIS) approach, which is said to provide a useful framework for a differentiated approach. Regions characterized by low levels of clustering, a lack of interaction and networks, and old dominant industries do not fit previous models upon which innovation polices were shaped, the authors argue. For example, best practice models of interactive…

Scientific research, technological development and innovation are the heart of a knowledge-based economy, and in order to strengthen this sector in Europe, the European Union’s (EU) research budget needs to be doubled, according to a new plan released by the Commission of The European Communities. Science and Technology, the Key to Europe’s Future offers guidelines suggested by research commissioner Philippe Busquin and other scientists and researchers. In March 2002, the EU set the objective of increasing the European research effort to 3 percent of the European GDP by 2010, an effort referred to as the Lisbon strategy. To provide a response to the objectives of the strategy, the Commission initiated a plan focusing on key topic in future research efforts. The plan argues that the cost of research continues to skyrocket, in turn requiring the current budget of 10 billion Euros ($12 billion U.S.) per year to be doubled to extend through 2013. To enhance the impact of European research, the budget increase should be allocated according to three principles, centered around six objectives, the…

Competition for state, federal and industrial funding to support university research is increasingly fierce in the U.S. Growing interest in developing academic research capacity, eroding state support for higher education and federal R&D budgets barely keeping pace with inflation, let alone absorbing the growing percentage dedicated to Congressional earmarks, are some of the reasons. Universities or investigators able to claim being the "best" based on some sort of respected ranking could help influence state legislators, reviewers in a federal competition, or decision makers within industrial R&D facilities. New Zealand is about to launch an alternative, and radical in U.S. terms, approach to allocating federal research support to its universities, the $18 million Performance-based Research Fund (PBRF). Universities that previously received funding allocations according to student enrollment  -- similar to how most U.S. states support higher education -- will now see funding disbursed through PBRF, which grades the quality of research produced within each institution. Quality of teaching is…

With its economy already outpacing the average growth for the member states of the Organisation for Economic Co-operation and Development (OECD) for the past five years, the Czech Republic is injecting 348 million euros ($417.6 million US) into several tech-based economic development (TBED) initiatives. CzechInvest will coordinate development of strategic components of the nation's business environment including: the development of science and technology parks, incubators and technology transfer centers; subsidies for applied research projects undertaken by companies of any size; and a wide range of support for small and medium enterprises. Based on the Czech Republic's population of 10.2 million people in 2003, the country's commitment on a per capita basis would be the equivalent of the U.S. making an $11.8 billion investment in state and local TBED. Using Ireland and Spain as models, the Czech Republic's focus with the funds is to further develop its overall business infrastructure and build key sectors, including the life sciences, microelectronics and semiconductor industries. The…

Increased financial support for start-up companies and the research sector has the attention of Canadian Minister of Finance Ralph Goodale. In the Minister's 2004 budget report, released last month, venture capital (VC) initiatives totaling $270 million (CAN) are targeted for investment. Combined with private sector investments, total VC funding is expected to amount to $1 billion. Canada is uniquely positioned to benefit from the current global economic recovery, the budget report states. The VC funding, which is reserved for the Business Development Bank of Canada (BDC) and the Farm Credit Corporation, would be directed into four areas: $100 million for direct investments in new technologies; $100 million to support the creation of specialized funds that will leverage additional private equity investment in cutting-edge technologies; $50 million to invest directly in innovative start-up and early-stage companies to further support the commercialization of enabling technologies; and, $20 million over two years for agriculture and agri-food companies. Venture capital…

Although much collaborative work is underway in the United Kingdom, there is more to be done on the parts of universities, government and businesses, according to the Lambert Review of Business-University Collaboration. The conclusions and recommendations of the report span the Atlantic, offering advice of potential value for American university-industry relations. Through research and various case studies, the review compiles the following broad recommendations for each individual sector: Universities need to better identify their areas of competitive strength in research. Businesses should exploit the innovative ideas being developed in the university sector. And, Government needs to do more to support the collaboration between the two. Two developing trends reshaping the way companies undertake research could have positive implications for universities, the authors note. First, companies are moving away from a system in which research and development (R&D) is done in their own laboratories. Instead, they are seeking to collaborate with others in a new form of open innovation.…

The previous issue of the SSTI Weekly Digest (June 27, 2003) included a story with the headline "Québec Investing More Than $500M for Biotech." It was the kind of big initiative with a hefty price tag that a few states have launched and most others salivate to replicate. A perfect item for the Digest. The problem is that big initiative never actually happened. Had the story run before June 12 – the day the first budget of recently elected Québec Premier Jean Charest was released – it would have been accurate. However, the new Liberal government cancelled all of the biotech initiatives mentioned in that Digest article, and the budget eliminated or reduced several other government programs and tax incentives promoting science and technology (S&T): Tax benefits for tech-oriented cluster development in designated sites (12 different tax credits eliminated) - In the states, these are the technology enterprise zones that have become increasingly popular policy to encourage geographically specific and industry-targeted development. Québec's tax credits had also…

Following extensive public consultation, the French Ministry for Industry and Research has announced a revamped national strategy to boost support for research and development (R&D) activities in France. The plan, to be implemented in 2004, aims to make financial resources for innovative companies more accessible and to increase France’s appeal to the international R&D community. Some of the key measures include: Single-shareholder venture capital companies. A new status for innovative start-ups and single-shareholder venture capital companies will allow newly created companies to recruit dedicated research staff at reduced costs. Small-to-medium-sized innovative start-ups. Companies with R&D projects established in France for less than eight years will be partially exempt from social charges and business tax for investment in research, and eligible for increased tax reductions. Increased tax reductions. These will be offered annually to all companies with investments in research. Continuation of research tax credit. The highly competitive Research Tax…

The Ontario Ministry of Enterprise, Opportunity and Innovation has launched a two-phase, $30 million program intended to accelerate the development of Ontario's biotechnology cluster. The Biotechnology Cluster Innovation Program (BCIP) will support biotechnology infrastructure projects that will help create new companies. BCIP is expected to support projects such as commercialization centers, research parks and other regional initiatives that demonstrate entrepreneurship and innovation. The program also will fund projects that integrate biotechnology into knowledge-based and traditional industry sectors such as photonics, information technology, automotive, chemicals, agriculture, and forestry. "(The Ontario) government's biotechnology strategy will make Ontario one of the most competitive jurisdictions in North America," Minister of Enterprise, Opportunity and Innovation Jim Flaherty said in a press statement. "Merging biotechnology with traditional industry sectors could provide a significant contribution to the economic growth of the province." The first phase of BCIP is $2 million…

Ontario is performing from a base of strength in its transition to a knowledge-based economy, according to the Ontario Innovation Index recently released by the Ontario Science and Innovation Council (OSIC). Using 30 indicators, the report measures all aspects of the province's innovation system, from community awareness and support for science and technology (S&T) to levels of investment to support its infrastructure. It also looks at Ontario's incentives for commercialization and growth, innovative performance and innovation outcomes. "The purpose of the index is to provide us with an ongoing portrait of Ontario's innovation environment," Dr. Suzanne Fortier, chair of OSIC, said in a press statement. "This allows the province to compare itself to other jurisdictions that are also leaders in science and innovation. We hope this will be a useful tool for government, academia and the private sector to gauge Ontario's strengths and key areas for improvement." Ontario's base of strength – comprised of tax cuts, educational opportunities, investments in research and development (R…

Earlier this week, the European Commission presented its strategy to respond to the March 2002 Barcelona European Council's call to raise research spending to 3 percent of the European Union's (EU) average Gross Domestic Product (GDP) by 2010. Today, Europe is at 1.9 percent on average across the member countries. The Communication More Research for Europe looks into Europe's under-investment in science and technology and its harmful consequences for EU competitiveness, growth and employment. R&D investment (private and public) in the U.S. now exceeds EU expenditure by more than €120 billion every year. In 2000, in the U.S. €288 billion was spent on R&D, while only €164 billion was spent in the EU. The report states Japan already has achieved the 3 percent level, with R&D expenditures accounting for 2.98 percent of its GDP in 2000. The USA is coming closer (with 2.69 percent in 2000, which has been constantly rising since 1995). In Europe, R&D intensity, at 1.93 percent in 2000, has been stagnating at under 2 percent since the beginning of the last decade, the…