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Competition Canceled in Florida

Partisan politics take a back seat when the nation's governors talk about the need for stronger national innovation policies. Ample proof of this is offered policy position statements approved at the two most recent meetings of the Western Governors' Association and the National Governors Association.

The yearly dollar amount of research and experimentation (R&E) tax credit claims grew twice as fast as company and other nonfederally funded R&D expenditures between 1990 and 2001, a new National Science Foundation (NSF) InfoBrief reports. In contrast, direct federal funding for industrial R&D declined through much of the 1990s, both in absolute terms and relative to industry-funded R&D.

As most practitioners know, measuring progress for tech-based economic development efforts can be difficult given the long lead time necessary for most research investments to yield results. Consequently, many programs rely on interim measures to evaluate a policy or program's impact.

Do women shy away from competition? Do men compete too much? In a recent working paper published by the National Bureau of Economics Research (NBER), economists Muriel Niederle and Lise Vesterlund answer yes to both questions after measuring performance and preferences of men and women in a controlled environment.

A community essentially has two options for strategies to diversify its economic base: traditional economic development or technology-based economic development (TBED). The traditional approach of recruiting or inducing companies to relocate to their community from elsewhere creates an atmosphere of competition, rivalry and one-upmanship among cities and regions as they bid to buy firms' location decisions. Often, it is also difficult for small and mid-sized communities to compete on these terms.

Since passage of the Bayh-Dole Act of 1980, universities across the country have established transfer technology offices to assist in commercializing academic inventions. Efforts to transfer university inventions to the market continue to be a difficult proposition, with less than a third of disclosed inventions resulting in license. Start-ups garner only one in eight licenses.

Employing more than two million workers in 2001 with an annual average wage of $47,700, the U.S. civil and commercial aerospace and aviation industry has a major economic and employment impact at the national, state and local levels in all 50 states, according to a report by the Commission on the Future of the U.S. Aerospace Industry. The industry also is a substantial force in civil, military, and space manufacturing and operations in nearly half of the nation's states, the report stated.

Note: With this issue, the SSTI Weekly Digest is launching a new occasional "Programs with Results" series — articles profiling a variety of technology-based economic development programs that have been around many years and are yielding positive results. Our goal is to help answer the question "What Appears to Work?" with models that potentially could be duplicated in other states, regions or communities.

Many states have made substantial strides in preparing students for college-level education, but widespread gains in the proportion of Americans going to college have not been made, according to Measuring Up 2002, a report released by the independent, nonprofit, nonpartisan National Center for Public Policy and Higher Education. The report finds that overall college opportunity in America also is at a standstill, remaining unevenly and unfairly distributed.

The federal laboratories and research facilities associated with nine federal agencies can serve as a treasure chest of technologies for commercialization, according to Intellectual Property: Federal Agency Efforts in Transferring and Reporting New Technology (GAO-03-47). The recent report by the General Accounting Office (GAO) discloses that in fiscal year 2001, nine federal agencies created 3,676 new inventions, issued 1,585 patents and received $74.5 million in licensing revenues.

In an era of tight public budgets, sources of seed funding for early stage and developmental research projects with potential for commercialization is getting harder to come by. Many state initiatives to support these endeavors are subject to the same budget cuts as other areas, and small firms' interests in the federal Small Business Innovation Research (SBIR) program are increasing pressure for these already competitive grants.

Each year, the U.S. Department of Transportation's Small Business Innovation Research (SBIR) Program is one of the most competitive for companies seeking federal research funding. The FY 2002 Phase I solicitation proved to be no different as the agency made only 12 award recommendations from the pool of 202 proposals submitted — an award percentage of only 5.94 percent.

The National Science Foundation (NSF) has announced it intends to have almost $200,000 in fiscal year 2003 funds for new awards under the Presidential Awards for Excellence in Science, Mathematics and Engineering Mentoring (PAESMEM) Program. Nominations to honor individuals and institutions are invited for the 2003 competition of these annual awards.

Bill Richardson, Governor-elect of New Mexico, has named Rick Homans as secretary of the state's Economic Development Department.

Fritz Bittenbender will become president of the Pennsylvania Biotechnology Association in December.

Bill Richardson, Governor-elect of New Mexico, has named Rick Homans as secretary of the state's Economic Development Department.

Fritz Bittenbender will become president of the Pennsylvania Biotechnology Association in December.

The New Hampshire High Technology Council has announced Paul Houle is the new president and chief executive officer and Mary Collins will serve as executive vice president and chief operating officer.

Gary Mahn, director of the Idaho Department of Commerce, has announced he will resign from the position at the end of the year.

Pam McDonough, director of the Department of Commerce and Community Affairs for the past four years, has been appointed to the Illinois Labor Relations Board by outgoing Governor George Ryan. Joseph Hannon will serve as the department's director for the remainder of Ryan's term, which ends in January.

Carla Patterson is the new director of the Nebraska Manufacturing Extension Partnership.

Cian Robinson, executive director of Infotech Niagara, has left the position to consult privately.

Carolyn Stark is the new director of the Austin Technology Council, filling the position vacated by Paul Toprac.

Lara L. Vande Walle is the new president of the Washington DC Technology Council (DC Tech).

Many community and economic development professionals believe the report released last Tuesday should have predated the President's 2006 Budget to consolidate or eliminate 18 federal programs used by most parts of the country to support growth and well-being (see the Feb. 14 issue of the Digest).