With the slowdown in the economy, there is widespread concern about the kind of painful belt-tightening which occurred in the states in the early 1990s. Because of this perception and the rapid change in so many states’ fiscal situations, the National Conference of State Legislatures (NCSL) released this week a new survey to update its January 4, 2001, State Fiscal Outlook for 2001.

On February 26, President Bush issued a memorandum to 21 departments, agencies and other executive offices to create an Interagency Working Group on Federalism. The group is to: 



a) Identify initiatives that promote principles of federalism, such as: 

Release of the first solicitation of proposals for the new $3.5 million Federal and State Technology Partnership (FAST) has been delayed until the end of March, according to attendees of the National Small Business Innovation Research (SBIR) Conference held in Tulsa this past week. SSTI's March 1 presentation regarding FAST (a 16-slide Powerpoint file) is available by email request to skinner@ssti.org

The headlines of many tech and business publications scream of massive Internet incubator layoffs, closures, and restructuring. The rapid rise and fall of these organizations has left some local tech-based economic development practitioners wondering if encouraging the growth of incubator facilities is a worthwhile strategy to pursue.

The National Science Foundation has published online the latest edition of the annual series: Science & Engineering State Profiles: 1998-99. By presenting one-page statistical summaries for each state, the District of Columbia, and Puerto Rico, Profiles provides rankings, state and US figures for easy reference across 30 science and engineering statistics as well as the distribution of federal R&D obligations by department and performer. 

With the 1994 School-to-Work Opportunities Act sunsetting this year and the increasing importance of developing a skilled workforce for a tech-based economy, many are asking if the initiatives launched or expanded by the Act have been successful.

Two new Governors, Bob Wise of West Virginia and Wisconsin's Scott McCallum, have put tech-based economic development in the forefront of their respective economic agendas.



West Virginia

The latest word in the national press regarding the FY 2002 budget President Bush will present to Congress next week suggests President Bush may propose significant cuts in investment in research and tech-based economic development. Many of the programs potentially under fire are instrumental to state and local efforts to promote stronger economic growth through science and technology.

Stressing partnerships and flexibility, seven regional and national organizations have drafted an action agenda for the federal government to use to strengthen local and regional economic development efforts. After a brief introduction to the New Economy and its implications for local economic development, Partnership for Prosperity: A Federal Economic Development Policy Agenda includes several specific recommendations of interest to Digest readers:

Imagine President Bush using his entire State of the Union Address to present a $23 billion five-year strategy to encourage research, innovation, and entrepreneurship in the country. While it has not received much press in the United States, the equivalent happened when Australian Prime Minister John Howard gave his annual Federation Address on January 29.

The past decade’s economic boom has masked some serious cracks in the foundation of U.S. competitiveness– and it will take a strong policy of local and regional “innovation stimulus” to get the country back on track, says the Council on Competitiveness in U.S. Competitiveness 2001: Strengths, Vulnerabilities and Long-term Priorities.

President Bush is expected to release his first budget at the end of the month, and a published report indicates at least one tech program might be slated for significant cuts. The Wall Street Journal in a February 16 article ("Bush Aims to Reduce Digital Divide Funds") reported that their sources indicate the U.S. Department of Commerce's Technology Opportunities Program (TOP) may be slashed 65 percent from $42.5 million to $15 million.

In what could be the largest private sector commitment yet to a single industry/university research center, Corning, Kodak ,and Xerox have combined to pledge a staggering $45 million toward establishing a Center of Excellence in Photonics and Optoelectronics in Rochester, N.Y. The three corporate giants also committed to help raise another $30 million from other private sector companies for the new partnership involving New York State, higher education, and private enterprise.

Even tech hot spots like San Diego are finding they are not immune from the Digital Divide. In fact, a new report from the San Diego Regional Technology Alliance (SDRTA) finds that the region suffers a wider Internet access divide between Caucasians and Hispanics than the nation as a whole. With Hispanics representing 25 percent of the area’s population, the issue will have future economic repercussions in tech-based entrepreneurship and increasing shortages of workers with tech skills.

Over the next three years, Minnesota Technology, Inc. (MTI) will invest $3 million to support the development of existing and emerging technology-focused industry clusters. The new program is designed to increase collaboration between groups of tech business and the state’s nonprofit research, federal lab, and academic research communities.

Alan Balutis, director of the Advanced Technology Program (ATP), is leaving the agency at the end of the month to take over leadership of the Federation of Government Information Processing Councils.



Dr. Frederick Humphries, president of Florida A&M University and SSTI Board member, has announced he will retire this summer from the university.

Alan Balutis, director of the Advanced Technology Program (ATP), is leaving the agency at the end of the month to take over leadership of the Federation of Government Information Processing Councils