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An historic, five-year reauthorization bill for the Appalachian Regional Commission (ARC) awaits only the President's signature after being approved Tuesday by Congress.



President Bush is expected to sign the legislation into law, making the reauthorization of ARC the longest in its history and only the second congressional reauthorization of the agency since the Carter Administration.



The reauthorization bill contains several key provisions:

The Economic Development Administration (EDA) has $335 million available for grants to support state, regional and community efforts to create wealth and minimize poverty by promoting a favorable business environment to attract private capital investment and high skill, high wage jobs through world-class capacity building, infrastructure, business assistance, research grants and strategic initiatives.

While some practitioners have centered themselves on running programs and shoring up budgets during the present fiscal crisis, other efforts are underway, including that of the Innovation Policy and the Economy (IPE) group of the National Bureau of Economic Research (NBER).

During the last eight weeks, communities across the U.S. have witnessed the rise or fall of small business incubators. Here are some of the developments:

During the 1970s, Canada routinely topped the U.S. in terms of real growth in gross domestic product per capita. As recently as 1990, Canada enjoyed the fourth highest standard of living in the world but slipped to seventh by 1999.

While Silicon Valley lost jobs last year — the first decline since 1992 — value added per employee, a measure of productivity, increased 4.6 percent to $170,000 compared to $56,000 nationally, according to the Index of Silicon Valley 2002 released in January by Joint Venture: Silicon Valley Network.

Last week, Governor Gray Davis announced the award of three grants to support the creation of new Regional Technology Alliances (RTA) for the Inland Empire, San Joaquin Valley, and Sacramento/Capital regions. The three new non-profit organizations join existing RTAs in Los Angeles, San Diego and the San Francisco Bay area to provide decentralized business support services for innovative, California-based technology firms.

High school courses for advanced study in mathematics and science should focus on helping students acquire in-depth understanding rather than the more superficial knowledge that comes from covering too much material too quickly, according to a new report from the National Academies' National Research Council.

An economic diversification package recently approved by officials in Orange County, Florida, is intended to offset some of the post-September 11 difficulties experienced by the local economy.



More than $1 million for the Orange County Economic Stimulus Package was approved in late January by the Board of County Commissioners. The initiative provides funding for five measures, including:

This is the final installment in this year's coverage of the Governors' State of the State and Budget Addresses highlighting issues of importance to the tech-based economic development community.



Illinois

We read a lot of e-mail for the Digest. A lot of e-mail. We know that e-mail boxes are getting fuller all the time, so even thinking of recommending that you increase your reading load takes a lot of nerve, or a very good reason. This one is the latter.

The number of states reporting cost overruns, budget cuts and use of their fiscal reserves has grown significantly over the last three months, according to a report released last week by the National Conference of State Legislatures (NCSL).

Royalty payback requirements and expanding roles for universities are among the changes outlined by the U.S. Department of Commerce in The Advanced Technology Program: Reform with a Purpose. With goals of improving the Advanced Technology Program (ATP) and providing "stability" — making the program more palatable to its perennial Congressional detractors — the Department of Commerce has identified six structural changes within ATP.

The results of Tuesday's primary election in Maine reveal the state's voters continue to be committed to improving their economy through technology-based economic development. Winning approval at the ballot was Question 2, allocating $35 million in bond revenues for 11 specific projects - a majority of which were tied directly to research and technology-based economic development.

The Illinois General Assembly has passed legislation to encourage venture capital investment in technology businesses across the state. HB3212 creates the Technology Development Fund, which permits the State Treasurer to use up to 1 percent of the state's total investment portfolio for equity investments through Illinois venture capital firms.

Canada already has seen its number of biotech firms grow from 227 in 1997 to 400 in 2000, second only to the U.S. in biotech concentration. Last week's announcement of a $51 million (Canadian) biotechnology strategy is intended to further strengthen the Ontario's position in health research and commercialization.

Nine metropolitan areas have been identified as the nation's possessing the greatest concentration of the U.S. biotechnology industry in a new Brookings Institution report entitled Signs of Life: The Growth of Biotechnology Centers in the U.S.

Few private foundations across the country have made a comparable commitment in size or duration toward improving a single state's ability to participate in a knowledge-based economy as the Lilly Foundation has for Indiana. The latest round, reported in this week's online Chronicle of Higher Education, promises a total of $138 million to match donations received by Indiana's accredited colleges and universities.

The U.S. Department of Education's National Center for Education Statistics (NCES) has released its annual progress report on education, The Condition of Education 2002, presenting 44 indicators on the conditions and trends in elementary, secondary and postsecondary education. In one of two special analyses, the report focuses on the experience of nontraditional college students, who comprise the majority of college students today.

Besides supporting life science research in universities, one of the other key areas states and communities are using to encourage the growth of a local biotech industry is by supporting an increase in the availability of wet lab and other biotech facilities. Biotech space, however, is extremely expensive compared to other traditional tech incubator facilities for a variety of reasons (design, HVAC, environmental, security, regulatory, etc.)

Christmas or Hanukkah for state coffers usually comes in April as taxpayers rush to meet the deadline for filing personal tax returns. Unfortunately, according to the latest survey released by the National Conference of State Legislatures this week, State Fiscal Update-June 2002, states collected $8.6 billion less in individual tax collections this April than a year ago. Much of the drop — 21 percent overall — came in final income tax payments, which fell nearly 29 percent compared to last year.

Comprising a majority of the U.S. workforce, women make up only 8.5 percent of the nation's engineers. A number of programs have been launched over the past decade to recruit more women into the field, and while women now represent 20 percent of all engineering students, women remain more likely than men to switch out of the field, particularly in the first two years of college, concludes a recently released study.

Economic downturns have a way of encouraging states, universities and communities to assess, refine and re-invigorate their strategies to promote growth and prosperity. The current recession is no exception. With the widely recognized roles played by science and technology in economic success, the news of changes and additions to tech-based economic development strategies from across the country is not too surprising. Here are some recent highlights:

While Congress debates whether or not it should fund national programs to address the Digital Divide, many communities continue their efforts to ensure all local residents have the technology training and access needed to secure high-quality employment and attain skills through lifelong learning. The City of Seattle, through its Department of Information Technology, may offer one of the more sophisticated and successful models for approaching the issue.

Emphasis in the defense research agenda would continue to shift toward advanced technology development and defense-wide programs in Fiscal Year 2003, based on the House and Senate versions of the defense authorization bills that have cleared the respective armed services committees. [Note: authorization bills set the parameters for program spending levels; Congress must pass separate appropriation bills each year to allocate funds to specific programs or agencies.]