The Oklahoma Center for the Advancement of Science and Technology (OCAST) has provided the state an 8:1 return on its $78 million investment since 1993, according to From Concept to Commercialization, a new OCAST impact report, and accompanying press release. The state's leading organization for building a tech-based economy finds its client companies also have enjoyed a 90 percent survival rate.
No region of the world encapsulates the aspirations of many metro and regional technology-based economic development programs as Silicon Valley, particularly to the benefits of having a cluster of technology companies feeding off of each other to the mutual benefit of all. The Valley was the global tech leader during the heyday of the IT boom, but is undergoing a tremendous structural shift since the dot-com bubble burst.
Massachusetts Governor Mitt Romney recently announced a plan to spur job growth in the state by tapping the expertise of area business, community and education leaders through Regional Competitiveness Councils. Six such councils will represent the Berkshires, Cape and Islands, Central, Northeast, Pioneer Valley and the Southeast regions of the state.
Community buy-in to building a technology-based economy is vital for TBED success. Establishing a strong private sector commitment to science and technology can make a significant difference, particularly as elected officials are deciding what to cut or trim from the budget. TBED organizations use different approaches to get the buy-in. In states such as Massachusetts (see story in this Digest), the top-down direction from the Governor could provide the group critical access.
More than $4.7 billion of venture capital was invested in 524 private companies, according to Growthink Private Equity Funding Reports for the Fourth Quarter 2002. Companies securing investments numbered 30 less than the previous quarter.
The U.S economy experienced a turbulent year in 2001. However, small businesses demonstrated resilience and strength according to the Small Business Economic Indicators for 2001, a report released by the SBA Office of Advocacy. The February 2003 report states that although economic activity was sluggish in the months leading up to September 2001, economic output grew for the year as a whole.
Congress Finished FY 2003 Budget Last Night
In SSTI's final look at the 2003 State of the State Addresses and Inaugural Addresses, we find the importance of building technology-based economies continues to be emphasized by governors across the country, despite – or because of – the down economy. Below are excerpts from speeches given in Michigan, Minnesota, Oklahoma, Rhode Island and Texas.
State budget gaps have grown by 50 percent in the last two months and state policymakers will work to resolve unprecedented budget shortfalls for the next 15 months, according to findings from the latest budget survey released by the National Conference of State Legislatures (NCSL).
With nearly $1 billion in federal R&D funding proposed for the new Department of Homeland Security, many states, universities and companies are exploring ways to be actively involved as R&D partners. Already home to several military and intelligence research activities, with proximity to Washington, D.C. in its favor, Virginia recently announced an effort to further strengthen its competitive position in the funding race.
Governor Tom Vilsack has announced a plan to invest $50 million into the creation of a life sciences initiative to help establish Iowa as a leader in the life sciences. Developed with the Regents Universities, Iowa Business Council and leaders in Iowa's biotechnology industry, the biotech plan's success hinges on a three-part strategy:
NJCST Out, Cancer Research In
Governor John Baldacci used his February 5 budget address to outline a proposal to float a $70 million economic development bond, the majority of which would be dedicated to research and development projects. Citing the successful results of several R&D bond packages approved by voters over the past five years – with last summer's $35 million bond being the most recent – Gov.
Rural economic development policies must build upon the natural assets of rural America, advises the latest issue brief from the National Governors' Association (NGA) Center for Best Practices. Innovative State Policy Options to Promote Rural Economic Development suggests rural strengths include natural resources, local business networks, and an under-exploited entrepreneurial culture.
To help formulate the best approach for the state to deploy to help build a stronger technology sector, Arizona Governor Janet Napolitano has established a state advisory group of consisting entirely of high tech business leaders.
Certified economic development professionals have an extra reason to attend Building Tech-based Economies: From Policy to Practice, the nation's premier educational and networking experience for the TBED community. The 2003 SSTI Annual Conference will be recognized by the International Economic Development Council (IEDC) as a professional development event that counts toward the recertification of Certified Economic Developers (CEcD).
The Economic Development Administration (EDA) has announced it is accepting nominations for the Excellence in Economic Development Awards 2003. The awards will be presented in Washington, D.C. at EDA's National Conference Engines of Economic Growth for the 21st Century May 7-9, 2003.
Nominations for the awards will be accepted across seven categories:
Public-private partnerships involving cooperative research and development activities among industry, universities and government laboratories can play a key role in speeding new technology from the concept stage to the marketplace, argues a new report conducted by the National Research Council (NRC).
State and local governments are starting to develop entrepreneurship programs, but the past decade's progress could be threatened by the looming fiscal crisis facing the states, according to a new study released by the National Commission on Entrepreneurship (NCOE) and the Center for Regional Economic Competitiveness (CREC).
During the past two years, efforts have been launched in the Dallas-Fort Worth metroplex to boost its capacity for building a technology-based economy. The efforts have been directed toward increasing public-private cooperation, especially across organizations and jurisdictions that traditionally have thought of themselves as competitors, and conducting a critical review of the area's strengths and weaknesses.
The steady decline of venture capital abated in the fourth quarter of 2002 with total investments of $4.2 billion, essentially flat from the prior quarter of $4.5 billion, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree Survey. A total of 692 companies received funding in the fourth quarter compared to 671 companies in the third quarter.
New and re-elected Governors gave inaugural addresses in Alabama, Oklahoma, Pennsylvania, South Dakota, Tennessee and Texas during the past 10 days. Additionally, State of the State addresses were made in Hawaii, Montana, Nevada, New Mexico, Ohio, South Carolina, South Dakota and Utah. Building tech-based economies remains a high priority for many Governors, as evidenced in the following:
Nevada
Many states and communities are focusing their limited technology-based economic development funds toward cluster development, concentrating on those sectors in which some assemblage already exists within the jurisdiction. Proponents of the approach suggest the public sector is able to maximize its investments in those areas already showing some strength.
Whether the reason is to spur more innovation among students, fight the brain drain of graduates or simply help to build tech-based economies, many states, communities and universities are targeting a portion of their efforts toward encouraging tech-based entrepreneurship among their young residents and college students.
More rigorous evaluations of local economic development programs and policies are feasible argues a recently released working paper by Timothy Bartik, a senior economist at The W.E. Upjohn Institute for Employment Research. Evaluating the Impacts of Local Economic Development Policies On Local Economic Outcomes: What Has Been Done and What Is Doable? stresses the importance of evaluation in local economic development.