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Science Foundation Arizona (SFAz) has released its strategic investment plan for fiscal year 2006-07, which includes grants to support university research, new high-tech businesses, and K-12 STEM education. The investment strategy will guide SFAz’s grant award decisions during its first year of operations and represents a starting point for the organization, which hopes to develop the plan into a long-term strategy for economic development.

 

Governor Urges Pension Fund to Invest in Emerging Tech Companies

Starting in January, a new advisory council within the Texas Governor’s Office will begin work on a long-term strategy to bolster the state’s economic competitiveness. The Competitiveness Council will be charged with designing an overall framework for cooperation between public and private organizations involved in economic development. Gov. Rick Perry will appoint the group’s members by the end of the year.

 

The number of doctorates awarded in the U.S. within science and engineering (S&E) fields reached an all-time high in 2005, according to a recent National Science Foundation (NSF) issue brief. After the previous high of 27,273 S&E doctorates awarded in 1998, the number decreased for four years until 2002, and has steadily increased the past three years to the 2005 number of 27,974 Ph.D. graduates.

 

One out of four public, venture-backed companies started since 1990 were founded by entrepreneurs who immigrated to the U.S. before starting their company, according to a recent study commissioned by the National Venture Capital Association. Immigrant-founded companies are even more common within high-tech industries, where 40 percent of all new publicly traded firms in the past 16 years have had immigrant founders, including widely-acclaimed IT success stories like Google, Yahoo! and eBay.

Describing the impact of universities can be a vexing issue for both the higher education and TBED communities. Two recent reports, one by the Atlanta Regional Council for Higher Education (ARCHE) and the other by the Iowa Board of Regents, utilize different approaches to help communicate the importance of higher education institutions to a local economy.

 

Momentum Mississippi, the state’s public-private economic development strategy first funded with $28 million last summer, could see an additional $4 million for new TBED initiatives if the state legislature passes Gov. Haley Barbour’s recommendation during its next session. Gov. Barbour announced his plans during the annual board meeting of Momentum Mississippi, which was attended by more than 75 industrial, academic and civic leaders.

 

In late October, Gov. Arnold Schwarzenegger signed an executive order designed to stimulate the growth and utilization of broadband networks throughout the state of California. Some the major components of this initiative include:

$190 million? $200 million? $250 million? Each of these figures has been advanced in Maine to support three different approaches toward tech-based economic development. The bottom line for the 2007 legislative session is Maine’s elected leaders - from the governor and the state assembly - believe a sizable injection of public funding is required to accelerate research and technology commercialization in the Pine Tree State.

 

As Ohio's General Assembly is poised to vote this week on whether or not to join a multi-state/province compact to govern use of Great Lake waters, the Brookings Institution is recommending a similar regional approach for coping with the area's economic future.

The U.S. may lose its edge in advanced military technology if it does not increase national investment in basic defense research, according to a new report issue by the Task Force on the Future of American Innovation.

Congress isn't the only place looking at dramatic changes in January. With 11 governors and hundreds of state legislators taking office for the first time, tech-based economic developers across the country are presented with both opportunity and challenge. A change in state leadership often presents the opportunity for positive changes in direction of outdated economic development policies and programs.

A handy resource for bringing new staff, board members and legislators quickly up to speed on TBED, A Resource Guide for Technology-based Economic Development targets a primary audience of existing practitioners looking to implement new or update older programs. SSTI compiled the book's recommendations after conducting extensive interviews with dozens of the countries leading TBED experts.

Both the Bush Administration and incoming Congressional Democrat leadership plan to put higher education under the spotlight in 2007, stressing issues of accessibility and cost containment. While their approaches to the problems will be different, both sides agree universities will play even greater roles in maintaining U.S. economic leadership in the 21st century than they have in the past.

It is unfortunate the word entrepreneurship has become as overused a buzzword as innovation because developing vibrant climates to support tech entrepreneurs remains one of the most important elements of successful state and local TBED.



Not all entrepreneurship is created equal, however. The country's standard of living will decline if it were based entirely on low-wage retail and service businesses – even if every single one of them was created by budding entrepreneurs.

The public role in increasing access to capital is, perhaps, the most controversial element of TBED – if any of the public's role in the 21st century to strengthen competitiveness in a global knowledge economy is controversial.

A Resource Guide for Technology-based Economic Development is available from SSTI as a free, downloadable PDF at http://www.ssti.org/Publications/Onlinepubs/resource_guide.pdf or as an inexpensive 90-page bound book (a format still more likely to be perused by most legislators or gubernatorial staff than a pile of printouts). Single print copies are $15 plus shipping and handling.

So far this year, SSTI's Funding Supplement has made its subscribers aware of more than 1,450 different opportunities to secure funding. Another 40-50 new opportunities will be included in this week's issue. If you aren't a subscriber, your client companies, academic researchers, and state and local TBED efforts are at a significant disadvantage.

State lottery would be leased to private company to finance fund, scholarships

Two initiatives recently proposed by Gov. Mitch Daniels would keep graduating college students in-state and lure world-class researchers to Indiana's public universities. However, a lottery lease plan that would, in part, finance the initiatives may be more the center of attention with Indiana legislators.

The Oregon Innovation Council (Oregon InC), which spent a year reviewing how best to expand the state’s economy by leveraging industry-supported initiatives with public investments, may get to see the toils of its labor come to fruition. Gov. Ted Kulongoski released earlier this month his 2007-09 budget, with full support for the innovation plan put out by Oregon InC.

A recent report from Hawaii’s Tax Review Commission recommends the state eliminate or drastically overhaul its five-year old tax credit for high-tech investors. According to the report, the current credit provides no clear advantage to the state and appears open to taxpayer abuse. The commission was particularly troubled by the lack of data provided by taxpayers who were approved for the credit and by the lack of transparency concerning the credit within the state’s Department of Taxation.

 

SSTI's most recent publication, A Resource Guide for Technology-based Economic Development, provides valuable insights into three of the most important elements of transforming regional economies:

The Kansas City region is obtaining funding for high-tech research in the life sciences, but entrepreneurship is stifled because of fragmented efforts to improve the innovation environment and the region’s lack of an overall strategy for its various stakeholders. This finding and others were identified in Completing the Puzzle: Creating a High-Tech and Life Sciences Economy in Kansas City, a recent report prepared for the Brookings Institution Metropolitan Policy Program.

In what is often seen as a leading indicator of future total international student enrollment numbers, the percentage of newly enrolled foreign students has increased 8.3 percent between the 2004-05 and 2005-06 school years. This trend and others were highlighted in the annual Open Doors Report published by the Institute of International Education. The attractiveness of the U.S.

Jerry Lonergan, president of Kansas, Inc., is resigning effective April 1. A bill to dissolve the state's policy and planning organization passed the Kansas Senate last week.

The fate of the Advanced Technology Program and the Administration's entire reorganization of federal economic development efforts also took hits, as parts of a series of Congressional votes on the budget. However, these votes are only the first step in a along budget process.

Senate Saves CDBG with Coleman Amendment