Census of State Government Initiatives for High-Technology

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					Census of State Government Initiatives for
High-Technology Industrial Development         Technology, Innovation,
                May 1983
                                               and Regional Economic
          NTIS order #PB84-104033
                                                         Background Pape.'

                                             Census of State Government lnitiaUvt.."S lor
                                             High-Technology lndustrial Development
Library of Congress Catalog Card Number 83-600537

      For sale by the Superintendent of Documents,
U.S. Government Printing Office, Washington, D.C. 20402

    This background paper contains preliminary information gathered by OTA during the
early stages of its assessment of Technology, Innovation, and Regional Economic Develop-
ment. The information is being made available at the request of public officials and others
with an interest in high-technology development programs that are being mounted at the
State and local levels. OTA hopes that its timely publication will prove helpful to readers
who have an immediate need for more detailed information than will be available in the
formal report of this assessment.
                OTA Technology, Innovation, and Regional
                  Economic Development Project Staff

                              John Andelin, Assistant Director, OTA
                       Science, Information, and Natural Resources Division

                               William F. Mills, Program Manager
                        Science, Transportation, and Innovation Program

                                 Paul B. Phelps, Project Director
                                      Barry J. Holt, Analyst
                             Caroline S. Wagner, Research Assistant
                               Charla M. Rath, Research Assistant
                                Jay M. Berman, Intern (Fall 1982)
                              Mary Ann Wall, Intern (Spring 1983)

                             Marsha Fenn, Administrative Assistant
                          R. Bryan Harrison, Word Processing Specialist

OTA Publishing Staff
                               John C. Holmes, Publishing Officer
             John Bergling     Kathie S. Boss    Debra M. Datcher         Joe Henson
                         Doreen Foster    Linda Leahy      Donna Young

—..    .    —                                                                                      ..


  Chapter                                                                                                                                Page
  1. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               q q q   “ “       q q q   “        1

  Z. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...*.**                            q               3
    Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    Preliminary Taxonomy. . . . . . . . . . . . . . . . . . . . . . . . . . . .                                       4

  3. Analysis of Census Results. . +.. . . . . . . . . . . . . . . . . . . . . . . . . .                                 q                7
     Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     Creation of State High-Technology Programs . . . . . . . .                                                        8
      General Industrial Development Programs . . . . . . . . .                                                        9
       High-Technology Task Forces . . . . . . . . . . . . . . . . . . . .                                             9
     High-Technology Development Programs and Services                                                                 9
     Unsuccessful High-Technology Programs . . . . . . . . . . . .                                                    10
     High Technology in Overall State Strategies . . . . . . . . .                                                    11
       Strategies Focused on Research and Development . .                                                             11
       Strategies Focused on Commercialization and Firm Creation . . . . . . . . . . . . . . .                                               11
       Strategies Focused on Expanding Production and Mature Industries . . . . . . . . .                                                    11
       Other Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....””..                    12

  Appendix—Directory of State High-Technology Strategies and Programs                                                                        13

  Table No.                                                                                                                              Page
  1. High-Technology Development Programs and Services . . . . . . . . . . . . . . . . . . . . . . .                                          5
  2. State High-Technology Programs by Type.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 7
  3. Establishment of State High-Technology Programs by Year. . . . . . . . . . . . . . . . . . .                                             8
                                                                                                CHAPTER I

   Over the past 20 years, several regions of the         the development and commercialization of innova-
United States have developed strong local economies       tive products and services:
based on fast-growing, technology-based industries.         q   technical assistance, including access to techni-
Encouraged by the success of “high-technology” in-
                                                                cal facilities and equipment as well as the con-
dustries in California’s Silicon Valley, Massachu-
                                                                sulting services of experienced personnel to con-
setts’ Route 128, and North Carolina’s Research Tri-
                                                                duct feasibility studies or patent searches;
angle, many other States have launched government           q   manpower assistance, including access to scien-
initiatives to promote similar high-technology indus-
                                                                tific and technical personnel as well as highly
trial development of their own.
                                                                skilled labor;
   OTA’s census, carried out as part of the ongoing         q   business assistance, including access to consult-
assessment of Technology, lnnovation, and Regional              ants who can help the entrepreneur put to-
Economic Development, has identified 150 State                  gether a business plan or management team,
government programs with at least some features                 as well as assistance with licensing and permit-
directed toward high-technology development. Only               ting or through subsidies for sites and facilities;
a few of these initiatives, however, are dedicated              and
assistance programs focused on the needs and prob-          q   financial assistance, particularly access to risk
lems of high-technology businesses. Using the nar-              capital (whether through brokerage services, or
rower definition of a “dedicated” high-technology               direct State equity investment, grants, or loans
development program—chartered and at least par-                 and loan guarantees), but also including fiscal
tially funded by the State, and specifically targeted           assistance such as research and development tax
on the creation, attraction, or retention of high-tech-         credits, technical training credits, and other tax
nology firms-OTA identified a total of 38 programs              incentives and concessions.
in 22 States. Most of these initiatives have been
                                                            OTA has not yet completed its evaluation of the
launched within the last 3 years.
                                                          effectiveness of these State efforts and their impacts
  OTA also found that the States define “high-tech-       on related Federal policies and programs for high-
nology development “ in many different ways. In           technology industry. It should be noted, however,
most cases, State officials consider their high-tech-     that only a few of the high-technology development
nology initiatives to be a natural and even unavoid-      programs have been in place long enough to show
able extension of their different economic develop-       measurable results or impacts. Further, the States
ment strategies. As a result, their high-technology       that have launched these initiatives often had con-
initiatives show a great deal of variety in form, pur-    siderable high-technology development prior to the
pose, and level of funding. In general, however, the      State government’s intervention, making it difficult
dedicated programs provide services that address          to assess the specific impact of the dedicated pro-
four central needs of high-technology firms, particu-     grams on further development.
larly those of entrepreneurial businesses engaged in
                                                                                            CHAPTER II

                                                                              Int roduct ion

  Over the past two decades, several regions of the       grams to stimulate, attract, or retain high-technol-
United States have developed strong local econ-           ogy industrial development. As such, it represents
omies based on high-growth, technology-based firms        an update of similar studies conducted by the State
that are engaged in the systematic development and        of California for the National Governors’ Associa-
commercialization of new products, processes, and         tion (NGA) (State Activities to Encourage Techno-
services. These firms, and the industries they com-       logical Innovation, October 1981, revised February
pose, are a major source of new jobs in the manufac-      1982) and by Venture Economics, Inc. (Source
turing sector and an important factor in U.S. inter-      Guide of Government Technology and Financial
national competitiveness and balance of trade. They       Assistance, Capital Publishing Co., October 1982).
are also a key source of the innovations that are         Much of the impetus for such studies comes from
essential to increased productivity in more mature        an increasing awareness of the impact of State and
industries. As a result, several Federal policies are     local initiatives on the creation of new businesses.
aimed at encouraging their growth. In addition,           In addition, recent changes in Federal policy have
these high-technology industries are also becoming        put increasing emphasis on the role and responsibil-
the targets of the economic development strategies        ity of the States in controlling the distribution of
of many State and local governments, as well as the       public funds and in promoting their own economic
efforts of corporations, universities, and other pri-     development and well-being.
vate sector groups.
  This background paper presents the preliminary
results of a census of existing State government pro-

  Later components of OTA’s assessment of Tech-             The purpose of this census was to identify the
nology, Innovation, and Regional Economic Devel-          fullest range and variety of State initiatives for the
opment will address the factors that influence the        encouragement of high-technology industrial devel-
birth and location of high-technology firms and the       opment. As a consequence, it cast a wide net—both
role of high-technology industries in the growth and      “high-technology programs” and “high-technology
revitalization of the U.S. economy. We have given         industries” were defined broadly (see below) in order
priority to the identification of State initiatives for   to catch as many potential initiatives as possible,
high-technology development, however, in response         as well as the similarities and differences between
to both the desires of the Committees of Congress         these initiatives.
that requested this study and the recommendations
of the OTA Planning Workshop held in July 1982.

4 q Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives
                .——.— - .——— . . . .     —.—-                  . .-———.—.-————.——— — — — — — — — — —

  Based on the NGA and Venture Economics stud-               about its purpose and funding level and the services
ies cited above and additional literature search, proj-      it provides. Where no dedicated program had previ-
ect staff developed a list of known high-technology          ously been identified, the contacts were asked if their
initiatives and names of contacts. In States where           State had any high-technology incentive program
no initiative was known, a call was placed to the            and, if yes, to describe the mission of that program
Washington Office of the Governor; if this turned            and the services it provides. In addition, they were
up no contact, a call was made to the Office of the          asked for information about other programs, such
Governor in the State capital. In each State con-            as vocational and technical training programs
tacted, an effort was made to identify not only the          funded by the State, as the y relate to a high-tech-
manager of individual programs, but also the one             nology development strategy. In States with no dedi-
person in the State government most knowledgeable            cated high-technology program, the contact was
about its high-technology industrial development             questioned about the extent to which general indus-
initiatives. In many cases these proved to be the            trial development programs might also promote
same person.                                                 high-technology development. In addition, ques-
                                                             tions were asked about overall State strategy in gen-
  Project staff called the managers of known pro-
                                                             eral economic development, and the place of high-
grams in order to determine the current status of
                                                             technology industries in this development.
each program and to verify available information

                                       Preliminary Taxonomy
   The census data gathered b y OTA have been                and qualities of different State efforts. This results
coded and stored according to a preliminary taxon-           in some overlap—individual initiatives may be classi-
omy of program types and services. This taxonomy,            fied in two different program categories, and some
based on earlier studies and literature searches, in-        programs may be listed as offering up to 10 different
cludes 5 descriptive codes for “universal categories”        services—but it also indicates the range and diver-
or program types, in addition to about 40 functional         sity of the tactics that have been employed by State
codes for specific services that are (or could be) pro-      governments to encourage high-technology develop-
vided to high-technology firms by one or another             ment. The program and service codes are listed in
of these program types. Although formatting con-             table 1 for ease of reference and comparison in ‘ .
straints did not allow for extensive comments, codes         discussion that follows.
were added over time to capture the unique features
                                                    —              .

                                                                                      Ch. 11—introduction   q   5

                                  Table 1 .—High-Technology Development
                                           Programs and Services
            ———. -. ——. .— -..—.—. — . - — — -           —.                —   .
Program types                                    training by State                 State resources promotion
High-technology      development                 technical support by              Task forces and
High-technology      education                      State                            commissions
Capital assistance                               link with university              Tax incentives
Labor/technical assistance                     Legislation                           reduction in corporate
General industrial development                 Licensing assistance                     tax
Functional codes (Program services)            Loans                                 abatement of property
Enterprise zones                                 debt                                   tax
Industrial revenue bonds                         equity                              freeze on assessed value
Information dissemination                        subordinated                        exemption from sales
Investment capital                               stock or royalty rights                tax
  investment in survival                         guarantees                        Venture capital
Grants                                           long-term low-interest              direct (startup)
  research                                     Market development                    direct (product
  startup                                        assistance                          development)
  development                                  Office or equipment                   bond issue to raise
  training                                       provision                              funds
Labor                                          Physical plant assistance             royalty or stock rights
  grant for jobs created                       Patent searches                       assistance in finding
  training vouchers                            Product development
  training technical staff                       assistance
                                         — — — — — — — — — —
SOURCE Office of Technology Assessment
                                                                                                                        CHAPTER Ill

                                                 Analysis of Census Results

   OTA’s census identified over 200 State and local                              Most of these HTD initiatives have been launched
level economic development initiatives with at least                           within the last 3 years (see table 3). Few of them
some features directed toward high-technology de-                              have been in existence long enough to produce
velopment. The appendix contains detailed descrip-                             measurable results, and in most cases there has been
tions of 150 of these initiatives that were launched                           no systematic evaluation of their effectiveness. In
by State governments; table 2 shows the distribu-                              fact, their effectiveness will be difficult to measure–
tion of these programs by type and State. Using the                            many of these States had experienced a considerable
narrower definition of a “dedicated” high-technol-                             amount of high-technology development prior to
ogy development (HTD) program—chartered and                                    any intervention by the State government, and the
at least partially funded by the State government,                             impact of the dedicated program on further develop-
and specifically targeted on the creation, attraction,                         ment has yet to be demonstrated. In other cases,
or retention of high-technology firms—OTA iden-                                furthermore, relatively mature State programs have
tified a total of 38 programs in 22 States.                                    been very slow to produce any appreciable results,

                                         Table 2.—State High-Technology Programs by Typea

State                              HTD TF HTE LTA CPA
                                                                    GID         State                    HTD      TF   HTE   LTA    CPA      GID
Alabama. . . .           .     . . . . . . . — — — — —              1           Nevada. . . . . . . . . . . . . — — — — — 1
Alaska . . . .         .      . . . . . . . . — — — — 2             —           New Hampshire . . . . . — — — — — 1
Arizona. . . .         .      . . . . . . . . — — 1 1 1             1           New Jersey . . . . . . . . . — 1 — — — —
Arkansas . . .            .     . . . . . . . — — — 2 1             —           New Mexico .        . . . .       . . . 2 — 1 — — —
California. . .        .      . . . . . . . 1 — 1 1 —               —           New York. . .        . . . .     . . . . 2 — — 1 2 —
Colorado .        . . . . . .       . .    . . 1 1 —       1    —   1           North Carolina       . . . .        . . 1 — 2 — — 1
Connecticut.       . . . . .        . .     . 3 — —         1   1   1           North Dakota .      . . . . .      . — — — —       1
Delaware .        . . . . . . .      . .    . — — —        —    —   1           Ohio . . . . . .   . . . . . .    . . . 1 — – — ;  1
Florida . .       . . . . . . .      . .    . . 3 — 1      —    —   3           Oklahoma . . .      . . . . . . . —          —    — —    —   1
Georgia . .        . . . . . .      . .    . . 1 — 2       —    —   —           Oregon . . . . .     . . . . . . . . —       —    — —    —   1
Hawaii       ... , . .        . . . . . . . 1 — — —             —   —           Pennsylvania. .     . . . . . . 2            —     1 1   -   —
Idaho .        . . . . .       . . . . . . . . — — — 2          —   1           Puerto Rico . .      . . . . . . . —          —    — 2   1   —
Illinois     . . . . .         . . . . . . . . 2 1 — 2          1   —           Rhode Island. .      . . . . . . 1           —    — 1    1   —
Indiana       . . . . .        . . . . . . . . 1 — 1 —          —   —           South Carolina . . . . . . — 1 — 1 —                         —
lowa .       . . . . .        . . . . . . . . . —  — —          —   —           South Dakota . . . . . . . — — — — —                         1
Kansas . . . . . . . . . . . . . —   — — —                          1           Tennessee . . . . . . . . . . 2 — 1 — —                      —
Kentucky . . . . . . . . . . . — — — 1 1                            1           Texas . . . . . . . . . . . . . . 1 — — 1 —                  2
Louisiana. . . . . . . . . . . — 1 — — 1                            —           Utah . . . . . . . . . . . . . . . — — — — —                 1
Maine . . . . . . . . . . . . . . — — — — 2                         2           Vermont . . . . . . . . . . . . — — — — 1                    —
Maryland . . . . . . . . . . . — 1 — 2 3                            —           Virginia. . . . . . . . . . . . . 1 1 — — —                  1
Massachusetts . . . . . . 1 — 1 1 1                                 1           Washington . . . . . . . . . 1 — 1 — —                       —
Michigan . . . . . . . . . . . 8 — — 1 1                            —           West Virginia . . . . . . . — — — 1 —                        1
Minnesota . . . . . . . . . . — — 1 — —                             1           Wisconsin . . . . . . . . . . — — — — —                      3
Mississippi . . . . . . . . . 1 — — 1 1                             1                                 .      .
                                                                                Wyoming ., . . . . — . . . . — — — — —
                                                                                                                   —                         1
Missouri . . . . . . . . . . . . 1 — 2 2 2                          2                Totals , . . . . . . . . . . . 38 9 15 27 27 37
Montana. . . . . . . . . . . . — — — — — 1
Nebraska . . . . . . . . . . . — — — 1 — 1
    HTD - High-technology development.        LTA = Labor/technical assistance.
    TF = Task force.                          CPA = Capital provision assistance
     HTE - High-technology education.         GID = General Industrial development

SOURCE: Off Ice of Technology Assessment

8 . Technology, Innovation, and Regional Economic Development: Background Paper—Census Of State Government Initiatives
                                                    .--—       — . — — . — — —

 Table 3.—Establlshment of State High-Technology            of the effectiveness and benefits of different program
                 Programs by Year                           types. Finally, some States report that, even without
1959      North Carolina Research Triangle Park
                                                            a dedicated effort, they have nevertheless experi-
1984      Mississippi Research and Development Center       enced a great deal of high-technology industrial
1988      New York Science and Technology Foundation        development.
1975      Connecticut Product Development Corp.
1978      Florida Research and Development Commission          It was also found, however, that different States
          Massachusetts Technology Development Corp.
1979      Hawaii Venture Development Fund
                                                            define “high-technology development” in different
          North Carolina Board of Science and Technology    ways, and that in most cases their high-technology
1980      Georgia Advanced Technology Development Center    initiatives are an extension of their overall economic
1981      California Innovation Development Loan Program
          Florida Technical Entrepreneurship Program        development strategies. States with HTD initiatives,
          Indiana Corp. for Science & Technology            for example, tend to be those that had a sophisti-
          Missouri Office of Science and Technology         cated research base and considerable high-technol-
          New York Corp. for Innovation Development
          Pennsylvania Industrial Development Authority     ogy industry even before these programs were estab-
          Tennessee Department of High-Technology,          lished; their objective is in part to strengthen and
              Finance, and Service Sales                    retain what was already there. In States where the
          Washington Research Foundation
1982      Connecticut Innovation Development Loan Fund      economic base consists primarily of “sunset” indus-
          Connecticut Science Park                          tries, on the other hand, the “high-technology” strat-
          Illinois Biomedical Research Parks                egy tends to emphasize economic diversification and
          Illinois Research Assistance to the State
          Michigan High-Technology Development Corp.        the application of new production technologies to
          Michigan High-Technology Resource Center          traditional manufacturing processes. Still other
          Michigan Industrial Technology Institute          States, notably those that are not yet highly indus-
        “ Michigan Innovation Center
          Michigan Molecular Biology Institute              trialized, base their strategies on the aggressive pur-
          Rhode Island Strategic Development Corp.          suit of the production facilities of expanding
          Tennessee Technology Corridor Foundation          high-technology firms as part of a broader effort to
          Texas Institute for Ventures in New Technology
          Virginia Science, Engineering, and Technology     bolster their industrial base and build the founda-
              Advisory Service                              tion for future development.
1983      Florida Interagency High-Technology Committee
          Michigan High-Technology Equity Loans               These patterns suggest that, for most States, at-
          New Mexico Economic Development Division          tention to high--technology industrial development
          Ohio Industrial Technology and Enterprise Board
          Pennsylvania Ben Franklin Partnership Fund        is not distinct from economic development in gen-
SOURCE: Office of Technology Assessment,                    eral. They also suggest, however, that in launching
                                                            their initiatives, the States have given attention both
                                                            to the special needs of technology-based enterprises
while more recent programs in other States are al-          and to their own comparative advantage vis-a-vis
ready considered successful. Admittedly, some pro-          the basic stages of technological innovation and
grams are designed to achieve long-range objectives,        commercialization. This attention, in turn, results
while others are intended to show short-term results;       in part from the ways in which these programs have
but there has yet to be any systematic comparison           been created.

            Creation of State High-Technology Programs
  Initiatives to promote high-technology industrial         grams that are based on the needs of technology-
development usually come about in one of two ways:          based enterprises, whether perceived or projected,
1) as a natural, evolutionary outgrowth of the State’s      and on strategies to mobilize the resources or pro-
ongoing economic development efforts; or 2) as the          vide the services that will encourage or attract their
result of a special effort to identify and mobilize the     growth within the State. In many cases the programs
appropriate State resources. Both routes lead to pro-       are based on models elsewhere: several States cited
                                                                        Ch. 111—Analysis of Census Results 9
                 — — .         —   —   .   —   .   —      —.—         —-—          —     .   —

the National Research Development Corp. (created          do exist, they usually work closely with these general
by the British Government in 1949 to commercialize        programs to help their high-technology clients. In
new products), and many other strategies are de-          addition, in several States, an existing State agency
scribed in terms of “making Silicon Valley happen         or representative assumed the job of encouraging
here.”                                                    high. technology industrial growth in the State.
                                                            As a result, however, it was difficult in most
     General Industrial Development                       States—even those with dedicated programs—to de-
                Programs                                  termine precisely where to make the cutoff between
                                                          “high-technology” programs, on the one hand, and
   In the first instance, the dedicated high-technol-
                                                          those whose mission is more general but who never-
ogy program results from a need perceived by the
                                                          theless provide the special services demanded by a
State’s department of economic development. This
                                                          growing high-technology sector.
office already provides a wide range of assistance to
industry in general, such as locating plant sites or
identifying an appropriate labor pool. Many but not             High-Technology Task Forces
all these services are also helpful to technology-based
                                                             The second method of creating a high-technology
businesses. As more and more special requests are
                                                          program is more of a “supply-side” tactic. The Gov-
received from high-technology firms, or as this sec-
                                                          ernor or legislature appoints an ad hoc task force
tor becomes more important to the State’s industrial
                                                          to examine the State’s resources and recommends
base, individuals or offices within the existing State
                                                          initiatives that will encourage the development of
agency are designated to concentrate on meeting this
                                                          high-technology industries. These task forces usually
increasing demand.
                                                          represent all sectors of the State’s economy, and they
  OTA found that almost all States have “general          address such issues as the proper definition of “high
industrial development” programs that can also as-        technology, ” the special needs of high-technology
sist or influence the creation and growth of high-        firms, and the question of loyalty to traditional in-
technology businesses. The same can be said for pro-      dustr y versus the appeal of emerging technologies.
grams in the “capital assistance” and “labor and
                                                            OTA’s census identified nine existing task forces,
technical assistance” categories. These programs
                                                          and similar task forces in a number of other States
rarely exclude any specific type of business that needs
                                                          have already disbanded after reporting to the Gover-
their services, and the services they offer to new,
                                                          nor or legislature. In many cases the task forces, after
expanding, or relocating high-technology industry
                                                          presenting their recommendations, are succeeded by
are often not much different from services offered
                                                          permanent advisory committees that coordinate sub-
to more traditional industry.
                                                          sequent efforts, In other cases they are transformed
  For this reason many States that do not have ded-       into nonprofit, semiprivate corporations or foun-
icated HTD programs can and do encourage this             dations that administer or provide funding for the
kind of development through the services offered          mechanisms created to implement task force recom-
by their general, capital, and technical assistance       mendations. These organizations often provide the
programs. In the States where dedicated programs          basis for the State’s HTD programs. -

High-Technology Development Programs and Services
  OTA’s census identified only 38 State initiatives       plants of expanding firms elsewhere or by encourag-
that met the criteria for the “high-technology devel-     ing the creation and retention of indigenous high-
opment” category—that is, a dedicated State govern-       technolog y businesses. In addition, OTA identified
ment program or agency whose specific mission is          15 “high-technology education” programs—initia-
the promotion of high-technology industrial devel-        tives undertaken by States in conjunction with their
opment in the State, whether by attracting branch         universities, and dedicated to equipping inventors
10. Technology lnnovation, and Regional Economic Development: Background Paper-Census   Of State Government Initiatives
           — . . — — — —————.—--—..—                        .—. .— — —————_-— —.— —_..

or entrepreneurs with the skills needed to create             for high-technology firms. Almost half of the pro-
firms that will develop or commercialize emerging             grams also offer some form of financial assistance—
technologies. In many cases, however, it is difficult         nine programs assist entrepreneurs in locating ven-
to draw the line between these two categories, par-           ture capital, another nine deal with industrial rev-
icularly where the school involved was a State uni-           enue bonds, eight provide grants for research and
versity and thus funded by the State. (In addition,           development, and four provide loans to high-tech-
the 15 education programs included here are only              nology firms. Other services commonly offered in-
a fraction of the HTD programs that have been                 elude: market development assistance (seven pro-
launched by colleges and universities, both public            grams); product development assistance (four pro-
and private, throughout the Nation.)                          grams); and incentives or assistance in training tech-
                                                              nical personnel (five programs). More unique serv-
  The services most frequently offered by these 53
                                                              ices include helping inventors to acquire patents;
programs involve information dissemination–ii’
                                                              providing laboratory or office space for new and
programs link industry and university resources, and
                                                              growing businesses; and investing public pension
8 others involve promotional activities aimed at
                                                              funds in high-technology business.
advertising the State’s resources and opportunities

               Unsuccessful High-Technology Programs
  In the course of its census, OTA also identified                and royalty rights before the legislation was
several high-technology industrial development pro-               passed. As a result, the private sector was un-
grams that have not succeeded. It is unclear whether              willing or unable to provide funding to busi-
the reasons for failure are unique to each program                nesses through this program, and MBDC never
or State, or the result of program design flaws that              got off the ground. It was replaced in 1981 by
other States should avoid. Several examples follow:               the Michigan Economic Development Author-
                                                                  ity, which has established several programs for
  q   The Maine Capital Corp. (MCC) was estab-
                                                                  financial assistance to high-technology industry.
      lished by the legislature in 1978, with capitaliza-
                                                                 The New Jersey Office for Promoting Technical
      tion encouraged through a 50-percent credit
                                                                  Innovation (OPTI) was set up in 1979 to en-
      against State income tax for investments in
                                                                  courage economic development through tech-
      MCC. Since that time, MCC has funded only
                                                                  nical, business, and financial assistance to tech-
      one project—a manufacturer of electronic parts
                                                                  nology-based enterprises. OPTI had a broad
      —and that project was unsuccessful. Although
                                                                  mandate but little flexibility or funding. It at-
      MCC has advertised its services, the fact that
                                                                  tempted to encourage everything from “base-
      it could invest only in Maine corporations, and
                                                                  ment inventors” to sophisticated licensing ar-
      the fact that it is so close to Boston (a center
                                                                  rangements, but its greatest success may have
      of competing private venture capital activity),
                                                                  been in involving the private sector in screen-
      may have rendered the program ineffective.
                                                                  ing and financing promising projects. The pro-
  q   The Michigan Business Development Corp.
                                                                  gram lost its funding on September 31, 1982,
      (MBDC) was authorized by the legislature in
                                                                  but a source close to the program characterized
      1979 to promote the growth of small high-tech-
                                                                  it as a useful experiment whose errors were
      nology businesses in Michigan by channeling
                                                                  taken at a low cost. A proposal to create a sim-
      private venture capital to existing firms. How-
                                                                  ilar mechanism, with these errors corrected, has
      ever, the legislature did not reach final agree-
                                                                  been introduced in the New Jersey Legislature.
      ment with the financial community about stock
                          ————.     -                                     Ch. III—Analysis of Census Results   q   11
                                                 .— ——- —-————-—.— — — — . — —             — — —        -

            High Technology in Overall State Strategies
   Most States report that “high-technology develop-       inventors and entrepreneurs with the services they
ment” is part of their overall strategies to increase      need to create new firms and bring new products
economic growth, create new jobs, and enhance the          to market. These services include providing product
standard of living of their people. (These strategies      and market development assistance, finding capital
are described in the appendix.) As part of this ef-        assistance for new products and young companies,
fort, most States seem to be assessing their strengths     and in some cases establishing “incubator facilities”
and capitalizing on them in order to develop, at-          for high-technology business starts.
tract, or retain high-technology industry. The
                                                               Georgia’s Advanced Technology Development
resulting programs therefore appear to target dif-
                                                               Center provides technical and business assist-
ferent phases in the development and commercializa-
                                                               ance, helps firms to find venture capital, and
tion of new technologies, according to each State’s
                                                               provides incubator space for new businesses.
comparative advantage. These phases correspond
                                                               The Massachusetts Technology Development
roughly to basic stages of industrial innovation: 1)
                                                               Corp. provides venture capital for firms and
initial research and product/process development;
                                                               products that would usually be overlooked by
2) commercialization and firm creation; and 3) ex-
                                                               traditional sources of capital, and it also pro-
panding production or application by established
                                                               vides assistance with business plans, manage-
firms. These patterns are illustrated below with ex-
                                                               ment, and marketing.
amples identified by the OTA census.
                                                               l-he Hawaii Venture Development Fund has
                                                               a special “Inventor’s Fund” for the development
      Strategies Focused on Research                           of new product ideas.
              and Development                                  The Connecticut Product Development Corp.,
                                                               which makes equity investments in existing
  States whose high-technology strategies em-
                                                               firms, has recently set up an Innovation Devel-
phasize basic and applied research in emerging
                                                               opment Loan Fund to fund the development
technologies tend to focus on the resources and
                                                               of innovative projects.
facilities of their university systems, and on the im-
portance of cooperation between industry and
university activities. Several States are working to          Strategies Focused on Expanding
improve or expand the university faculty, cur-                Production and Mature Industries
riculum, and research in relevant disciplines. To en-
courage these efforts they often provide R&D tax              Instead of targeting the early stages of the innova-
credits, offer challenge grants for university research,   tion and firm creation processes, some States con-
seek out Federal R&D contracts, and even support           centrate on attracting the assembly facilities of ex-
the creation of independent centers of research and        panding or relocating high-technology firms, or on
development.                                               transferring and applying new production technol-
                                                           ogies to help firms in mature industries.
  q   Michigan has set up several research institutes
      with State funding to conduct research and             Attracting Production Facilities.–Some
      development in biotechnology and robotics.           States, aware of their limited R&D capability or
  q   Illinois and Utah both have a biomedical             skilled labor pool, are instead trying to attract the
      research park connected with the State               production of more standardized high-technology
      university.                                          goods in the State. These States pursue expanding
                                                           and relocating high-technology firms in much the
      Strategies Focused on                                same way that they recruit more mature industries,
 Commercialization and Firm Creation                       through promotional programs and through loca-
                                                           tion assistance and tax incentives. Alabama’s New
 Some States encourage the development and com-            and Expanding Industry Program is an example of
mercialization of new technologies by providing their      such an initiative; similar strategies to attract high-
12 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives
       .————-. ——. .——. -. ——.—-——...——.—.——-———-—-———.                      ——————.

technology expansion and relocation are being used            ing the opportunity for new high-technology indus-
in Delaware, Idaho, and Puerto Rico.                          try to produce for and obtain inputs from existing
                                                              industry. Examples of this approach are Michigan’s
   Process Development and Application.–
                                                              emphasis on robotics, both as a new manufacturing
The “high-technology” strategy in many States em-
                                                              sector and as an input to the automotive industry,
phasizes technology transfer-the application of new
                                                              and Arizona’s attempts to encourage the growth of
production technologies to the manufacturing proc-
                                                              high-technology support industries.
esses in mature industries already located in the
State. By increasing the efficiency and productivity             A few States have placed their general industrial
of the existing industrial base, these programs may           development emphasis on technology appropriate
strengthen and retain facilities and jobs that might          to unique State needs, and are not making a con-
otherwise leave the State or the country. Maine’s             certed effort at this time to attractor develop high-
New Enterprise Institute, for instance, helped to in-         technology industry. Alaska, for example, has a lim-
troduce technologies like computer-assisted design            ited manufacturing base and special application
and manufacturing to the shoe industry, and Mich-             needs in most technologies.
igan has established an Industrial Technology In-
                                                                Finally, several States have attracted “spillover”
stitute to promote the development and application
                                                              high-technology industry without a concerted effort
of robotics in the automotive and other mature in-
                                                              by their governments. These States include Colo-
dustries. Similar programs are underway at the Mis-
                                                              rado, Oregon, Arizona, Washington, and New
sissippi Research and Development Center, the
                                                              Hampshire. Each of them maybe a desirable place
Arkansas University-Industry Experimental Center
                                                              to live and do business, but in each case they also
for Small Manufacturers, and the Texas Engineer-
                                                              have-the advantage of proximity to a growing center
ing Experimental Stations.
                                                              of high-technology development—apparently a great
                                                              advantage in attracting branch plants.
              Other Approaches
  Some State strategies have aimed at developing
integrated markets within the State, thereby provid-

                       Directory of State High-Technology
                                 Strategies and Programs*
                              Alabama                                            Description:
                                                                                   This State-funded program includes training for both
  Alabama’s overall strategy is based on developing the                          technical and managerial personnel, and is free to new
primary industry and infrastructure needed to attract                            or expanding businesses. The program meets require-
high-technology development. To do this, the State has                           ments on a firm-by-firm basis and provides screening of
set up a new and expanding industry program, technical                           personnel, on-the-job training to business specification,
and managerial training programs, and a pension fund                             upgrading or renewal of skills, and mobile classrooms and
with bond issues for business. The State’s community                             workshops.
college system also provides programs for training and
retraining technical workers. In addition, the State uses
                                                                                 Alabama New and Expanding
several Federal programs, such as Community Develop-
ment Block Grants, to develop the infrastructure needed
                                                                                 Industry Program
for growth and development.                                                      Mr. Michael McCain
  Alabama reports a good supply of engineers and techni-                         Assistant Director
cians and a large number of high-technology support in-                          Alabama Development Office
dustries. It also has a considerable base to build on in                         State Capitol
the Huntsville area, which boasts some 200 high-tech-                            Montgomery, AL 36130
nology manufacturing firms and several advanced re-                              (205) 832-6980
search programs at the University of Alabama at Hunts-
                                                                                 Date of establishment: N/A
ville. Other centers of high-technology research are Bir-
                                                                                 Annual State funding (millions): N/A
mingham, Auburn, and Tuscaloosa.
                                                                                 Program type:
Programs                                                                           General industrial development
Labor/technical assistance                                                       Program services:
  Alabama Industry Development Training Program
                                                                                   Abatement of local property tax.
General industrial development                                                     Freeze tax on improved property.
 Alabama New and Expanding Industry Program                                        Exemption from State sales tax.
Alabama Industry Development                                                        The Alabama development office offers many services
Training Program                                                                 to new and expanding industry, some of which are also
                                                                                 part of the general industrial development network. This
Mr. Michael McCain                                                               program works with the Industrial Training Program to
Assistant Director                                                               provide training services to meet the needs of individual
Alabama Development Office                                                       firms. The State gives grants for industrial site develop-
State Capitol                                                                    ment, has a one-stop permitting agency, and can pro-
Montgomery, AL 36130                                                             vide 100 percent Industrial Revenue Bond (IRB) financ-
(205) 832-6980                                                                   ing on land, buildings, and equipment. IRB projects and
Date of establishment: N/A                                                       business inventory may qualify for certain tax exemp-
Annual State funding (millions): N/A                                             tions for up to 20 years.
Program type:
  Labor/technical assistance.
Program services:
  Trains technical staff for business.                                             Alaska’s overall strategy involves the development of
  Technical training provided by State.                                          technological solutions for the unique problems faced by
   *This directory i? based on lntbrmatmn provided hy the States, in conversa-
                                                                                 a “frontier” State. For example, the State is a leader in
tion a n d wmung, betwcxn h“o~,ember f W a n d F e b r u a ry 1983,              implementing advanced telecommunications technology,

 14 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government initiatives

largely because of the vast distances between cities and        Alaska Resources Corp.
the subsequent isolation of its people. The State govern-
ment is investing oil and gas revenues in renewable re-        Mr. Wayne Littleton
sources, such as agriculture and fisheries, that will diver-   Executive Director
sify Alaska’s economy and minimize its dependence on           Alaska Resources Corp.
the boom/bust cycle characteristic of extraction in-           Government Bldg.
dustries. In addition, Alaska has several programs de-         Anchorage, AK 99811
signed to encourage the development of specific tech-          (907) 561-2210
nologies such as housing for permafrost areas, ice-            Date of establishment: 1982
strengthened research vessel, and avalanche forecasting,       Annual State funding (millions): $40
as well as the application of existing technologies to         Program type:
Alaskan problems.
                                                                 Capital provision assistance.
                                                               Program services:
Capital provision assistance
                                                                 Direct investment in startup.
  Alaska Council on Science and Technology                       Equity loans.
  Alaska Resources Corp.                                         Venture capital.
Alaska Council on Science and Technology                          The Alaska Resources Corp. (ARC) (reconstituted in
Mr. Christopher Noah                                            1982 from the Alaska Renewable Resources Corp.) pro-
Executive Director                                             vides development capital for establishing and expanding
Office of the Governor                                         small enterprises in resource industries, to diversify and
Pouch CV                                                       stabilize the State’s economy. Targeted industries are
Juneau, AK 99811                                               tourism, fisheries, timber, and manufacturing enterprises.
(907) 465-3510                                                    This program uses a broad definition of “venture cap-
                                                               ital” in order to serve the diverse needs of a frontier State.
Date of establishment: 1978                                    This program will help start any type of business, al-
Annual State funding (millions): $0.8
                                                               though most businesses served thus far are commercializ-
Program type:                                                  ing or developing ideas for alternative energy sources.
  Capital provision assistance.
Program services:
   Grants available.                                                                   Arizona
   State resource promotion.
                                                                  Arizona already has a well-established high-technology
Description:                                                   base, consisting of some 200 establishments—many of
   This State program is designed to advise the Governor       them branches of firms elsewhere—that represent over
and the legislature on technological and research mat-         40 percent of the State’s industrial base. This develop-
ters. In particular, the Council concentrates on energy        ment has occurred with relatively little direct interven-
programs and on telecommunications policy.                     tion by the State government programs or initiatives, but
  The Council administers two research grant programs          Arizona has begun to explore possible mechanisms for
for development of technology. One is the Northern             retaining existing industry and encouraging the growth
Technologies Program, which provides grants for the de-        of indigenous firms. As part of this effort, the State
velopment of technology appropriate to the region. To          recently issued a report on Opportunities in Arizona for
date the program has funded 115 projects for up to $5,000      Suppliers ofIfigh-Technology Manuficturers, which tar-
each. Most are energy-related projects.                        gets desirable high-technology support industries and
  The second research grant program (using a National          discusses the availability of skilled labor for microelec-
Science Foundation program as a model) provides funds          tronics, computers, and other high-technology areas.
for the development of technology suitable to northern           In addition, the State has placed emphasis on the de-
climes. This research grant program has also worked            velopment of a strong, technically based education sys-
closely with the Canadian Science Advisory Board of            tem that can work closely with private industry. The
the Northwest Territories.                                     Center of Excellence at Arizona State University

                                            Append/x—Directory of State High-Technology Strategies and Programs    q   15

(Tempe), for example, works closely with business to im-      Arizona Economic Development Program
prove science, mathematics, and engineering instruction.
                                                              Ms. Judie Scalise
Programs                                                      Program Manager for Economic Development
High-technology education                                     Office of Economic Planning
  Center of Excellence                                        1700 W. Washington St., Suite 400
                                                              Phoenix, AZ 85007
Capital provision assistance
                                                              (602) 255-5374
  Arizona Development Services
                                                              Date of establishment: 1962
Labor/technical assistance                                    Annual State funding (millions): $0.180
  Governor’s Manpower Program                                 Program type;
General industrial development                                  General industrial development.
  Arizona Economic Development Program                        Program services:
  Arizona Development Services                                  State resources promotion.
                                                                Assists in finding venture capital.
                                                                Labor assistance.
                                                                Physical plant provision.
                                                                Information dissemination.
Arizona Development Services                                    Links industry with university.
                                                                Market development assistance.
Mr. John O. Morales
Program Manager                                               Description:
Office of Economic Planning and Development                      The high-technology industry base in Arizona has been
1700 W. Washington St., 4th Floor                             created with few explicit State government incentives.
Phoenix, AZ 85007                                             Since nearly 40 percent of all manufacturing is in the
(602) 255-5705                                                high-technology sector, Arizona has begun to consider
Date of establishment: 1980                                   support mechanisms for new and existing high-technol-
Annual State funding (millions): N/A                          ogy industry.
                                                                 The State office also works closely with a number of
Program type:
                                                              Federal Government programs such as the Small Business
  Capital provision assistance.                               Administration (SBA) 503.
  General industrial development,                                There are no tax rebates or “holidays” offered to busi-
Program services:                                             ness, mainly because the State considers the existing tax
  Licensing assistance.                                       climate favorable for business. The existing tax structure
  Assists in finding venture capital.                         includes no inventory tax, no corporate franchise tax,
  Loans.                                                      and allows tax-exempt dividends for firms based in
                                                                 A joint position statement between this office and the
   This Arizona program works closely with the Federal        community colleges in Arizona links education, train-
Small Business Administration 503 program. The pro-           ing and employment resources to the State in an effort
gram provides lists of licensing requirements for each        to further high-technology development.
Arizona community as a reference to new or relocating
business. It also helps new or relocating business obtain     Center of Excellence
licenses and explains the local and State tax structure,
sales taxes, and city ordinances.                             Dr. Charles E. Backus
   In addition, the program will help businesses find ven-    Director, Center for Research
ture capital, and is trying to attract venture capital to     College of Engineering and Applied Science
the State. Finally, the office plans a Center for Innova-     Arizona State University
tion, and intends to maintain an information clearing-        Tempe, AZ 85287
house for small business information.                         (602) 965-1725
16 . .Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government Initiatives
                 —.—           — -_-—      .——. -—.. .—    —                           — —. _ —-    -——-

Date of establishment: 1980                                    quirements. Two of the areas, “electronics” and “data
Annual State funding (millions): $1.4                          processing and computer science” are occupations in
Prograrn type:                                                 demand.
                                                                 Arizona does not have any quick start money for train-
  High-technology education.                                   ing, so the program was set up initially with Federal Com-
Program services:                                              prehensive Employment and Training Act (CETA) fund-
  Links industry with university resources.                    ing. “Manpower” custom designs a training program on
                                                               a firm-by-firm basis.
                                                                 Manpower has undertaken several projects to investi-
  The Center of Excellence has coordinated with a pro-         gate opportunities for high-technology managers and to
posed State program for Academic Excellence recently           research information processing training needs. Man”
initiated by the State. Six proposals were given by the        power links university resources with industry, and can
Governor to the State Board of Regents and Board of            provide a list of high-technology firms with 25 or more
Education to provide the following:                            employees.
   1. higher admission requirements for math and science         In addition to the ongoing work of the Center of Ex-
    in the State universities,                                 cellence, the State has provided funding for five short-
  2. math and science centers at the universities for out-     term, competency-based, curriculum development and
    standing high school students,                             validation projects, designed to train workers in skills re-
  3. a student loan program to encourage more math and         quired by high-technology industries. Utilizing CETA
    science teachers,                                          funds, training will be in the following occupational areas:
  4. summer science and math institutes for teachers,          electronics, data entry/word processing, computer pro-
  5. computer literacy as a requirement for State teacher      graming, and automated accounting.
    certification, and
  6. “team-teaching” efforts between educators and in-
     dustry specialists.                                                              Arkansas
  The Center of Excellence represents public/private in-
vestment of $32 million, of which the State has donated           There is considerable support for high-technology de-
funds for a new building and equipment for the engineer-       velopment in Arkansas, but also for increased produc-
ing school.                                                    tivity in traditional industries. Arkansas sources some-
                                                               times point out that it is a newly industrialized State and,
                                                               like many other Southern States, its industry has its
Governor’s Manpower Program                                    headquarters and research facilities elsewhere, while
Mr. Alton J. Washington                                        Arkansas labor is used primarily in production and ship-
Governor’s Manpower Program                                    ping of manufactured goods, As one State official put
Arizona Office of Economic Planning and                        it, “High-technology? By the time it gets here it is like
   Development                                                 any type of assembly industry. ” The State has therefore
1700 W. Washington St., 4th Floor                              adopted a policy of encouraging innovation in all types
Phoenix, AZ 85007                                              of firms. It does this through a number of programs that
(602) 255-5434                                                 provide firms with financial, technical, and training as-
                                                               sistance. A recent task force of government officials and
Date of establishment: 1977
                                                               high-technology experts identified the State’s educational
Annual State funding (millions): -O-
                                                               institutions as a valuable asset, and encouraged a con-
Program type:                                                  tinued emphasis on quality education.
  Labor/technical assistance.                                  Programs
Program services:                                              Capital provision assistance
  Training and employment resources.                             Industrial Research Extension Center
  Grants for training.
                                                               Labor/technical assistance
  Information dissemination.
                                                                 A University-Industr y Experimental Center for
                                                                   Small Manufacturers
  The Office of Economic Planning and Development
                                                                 Industrial Development Corp.
supports a major job training effort called the Manpower
                                                                 Industrial Research Extension Center
Program. It has recently published the Arizona Train-
ing Profiles, which supply Arizona employers and poten-        General industrial development
tial employers with information in occupational educa-           A University-Industry Experimental Center for
tion and training available to meet their employee re-            Small Manufacturers

                                     Appendix—Directory of State High-Technology Strategies and Programs . 17
                 — . — — — — — — — — . — — - — —        —————. .—.—.—        — —

  Industrial Development Corp.                                   Description:
  Industrial Research Extension Center                            The AIDC program seeks to assist “home grown” busi-
                                                                 nesses within the State, and to help firms relocate to the
A University-Industry Experimental                               State. Arkansas does not provide any venture capital or
Center for Small Manufacturers                                   business loans, but the First Arkansas Development Fi-
                                                                 nance Corp. puts together State and commercial money
Mr. J. P. Moore                                                  for fledgling organizations. The Board of Directors of
Director of Extension Activities                                 AIDC has both State and private sector representatives.
University of Arkansas at Little Rock                               In addition to its day-to-day work, this State office has
33d and University, Rm. 417                                      conducted some seminars to bring together industry and
Little Rock, AR 72204                                            education on an informal basis. Also, AIDC took part
(501) 371-1971                                                   in the Legislative Council Task Force chaired by Ray
Date of establishment: 1978                                      Thorton of Arkansas State University, to “study educa-
Annual State funding (millions): $0.05                           tional and research resources within the State which
                                                                 would be useful in providing highly technical and scien-
Program type:
                                                                 tific instructional and research programs.” Conclusions
  General industrial development.                                of this Task Force included the realization that high-tech-
  Labor/technical assistance.                                    nology industrial development will only come about be-
Program services:                                                cause of the development of other basic industries and
  Information dissemination.                                     infrastructures.
  Trains technical staff for business.
  Market development assistance.
  Assists in finding venture capital.                            Arkansas Industrial Research
  Physical plant provision.                                      Extension Center
Description:                                                     Dr. Barton Westerlund
   This program is jointly sponsored by the National             Director, Industrial Research Extension Center
Science Foundation and the State of Arkansas. It is set          University of Arkansas at Little Rock
up to introduce state-of-the-art technology into tradi-          College of Business Administration
tional industrial processes in all industries in need of help,   33d and University, Rm. 417
including new starts, expansions, and stabilizations. The        Little Rock, AR 72204
services include production assessment, evaluation of lay-       (501) 569-3470
out and design efficiency, advice in technical manufac-
                                                                 Date of establishment: 1955
turing, and assistance in finding capital for new devel-
                                                                 Annual State finding (millions): $1.2
opments. The program does not provide any funding for
new ventures.                                                    Program type:
                                                                   Capital provision assistance.
Arkansas Industrial Development Corp.                              General industrial development.
(AIDC)                                                             Labor/technical assistance.
                                                                 Program services:
Mr. Windell Adams
Director                                                           Labor assistance.
Arkansas Industrial Development Corp.                              Loans.
One State Capital Mall                                             Investment capital.
Little Rock, AR 72201                                              Tax-favorable business climate.
(501) 371-2301                                                     Venture capital assistance.
                                                                   Product development assistance.
Date of establishment: 1955                                        Information dissemination.
Annual State funding (millions): $3.5                              Grants available.
Program type:                                                      State resources promotion.
  General industrial development.                                  Market development assistance.
  Labor/technical assistance.                                    Description:
Program services:                                                 The Industrial Research Extension Center (TREC) is
  Information dissemination.                                     set up to provide economic research and information to
  State resources promotion (infrastructure).                    the State development agencies, both public and private.
18. Technology, Innovation, and Regional Economic Developrnent: Background Paper-Census           Of State   Government   Initiatives
       —.—   ..———   ——.—.-—.       —     —    ——    —   —   —   —   — -.——.—---———

This consists of educational programs and research, coun-            Labor/technical assistance
seling of various types, projection studies, demographic               California Worksite Education and Training Act
studies, income studies, feasibility studies, and market                (CWETA)
studies. For small businesses in the State, IREC provides              Microelectronics Innovation and Computer Science
production analysis, accounting assistance, and financial               Research Program (MICRO)
analysis. IREC has field offices in five cities in the State,
and is linked to nine institutions in the State. Set up by
legislative mandate, the program is located and integral-            California Innovation Development
ly part of the State university system, although they                Loan Program
maintain a separate budget.
                                                                     Ms. Christie Campbell
   IREC handles all kinds of businesses, and are seeing
more and more advanced technology innovation in the
                                                                     Innovation Development Loan Program
State. The Director notes, however, that “by the time
                                                                      1030 13th St., Suite 200
it gets here, it is like any type of assembly industry, with         Sacramento, CA 95814
similar types of low-skilled manufacturing jobs. We have
                                                                     (916) 322-1394
spent some time with innovating firms who try to move
into higher technology manufacturing processes, but                  Dare of establishment: 1981
what often starts out as ‘high tech’ quite quickly becomes           Annual State Funding (millions): $2.0
standard manufacturing procedure. ” Of his clients, Dr.              Program type:
Westerlund goes on to say, “We have fewer and fewer                    Capital provision assistance.
dealings with ‘Mere and Pop’ and more with minicom-                    High-technology development.
puters to be installed in gas stations. Perhaps its that
                                                                     Program set-vice:
Mom and Pop are becoming more sophisticated.”
                                                                       Investment in product development.
                       California                                      This program provides financing for product develop-
   California is renowned as a center of high-technology             ment to promising technology-based firms. The recipi-
development. It has a highly advanced industrial base,               ents of the loans are generally entrepreneurs and inven-
capital resources to fund new ventures, and the technical-           tors who have had difficulty finding finding from other
ly skilled labor to meet the needs of quickly changing               more traditional sources.
technologies. Under the previous administration, the
State government set up several programs to encourage                California Worksite Education
technological innovation and further development.                    and Training Act (CWETA)
These included the California Commission on Industrial
                                                                     Ms. Charlsey Cartwright
Innovation, a Pension Investment Unit that invested in
high-technology ventures, and the California Innovation
Development Loan Program, which was designed to pro-
                                                                     800 Capita! Mall, MIC 38
mote product development. The Commission, however,
                                                                     Sacramento, CA 95814
ceased to exist after producing case studies of “winning
                                                                     (916) 323-3006
technologies,” and both of the other programs have been
discontinued under new State administration.                         Date of establishment: 1980
  California’s public and private universities have worked           Annual State funding (millions): $10.0
closely with industry to develop the technically skilled             Program type:
work force needed for economic development. This trend                 Labor/technical assistance.
is expected to continue. In addition, the State’s training
                                                                     Program services:
programs will continue to train technicians for industry.
                                                                       Links industry with university resources.
                                                                       Trains technical staff for business.
High-technology development
  California Innovation Development Loan Program
                                                                       CWETA established a program in which potential em-
Capital provision assistance                                         ployers commit to hire CWETA-trained workers. Train-
  California Innovation Development Loan Program                     ing programs are devised in conjunction with local educa-
                                               Appendix- Directory of State High-Techno/ogy Strategies and Programs    q   19
-——. --.——.. ...- .———.— . .—. — .-                                                    ._ —.————.—..———

tion and training institutions, with much of the train-          as an “economic panacea,” but the State has set up a
ing taking place on the job. Both entry level and upgrade        task force m look at the issue of innovation in national
training are provided in fields which include electronics,       and international markets and in the educational sec-
machine trades, and health.                                      tor. In addition, legislation is pending on the creation
                                                                 of” a Colorado Tec hnology Institute, although economic
Microelectronics Innovation and                                  constraints make passage uncertain in 1983.
Computer Science Research Program                                  Colorado also has the active participation of the private
(MICRO)                                                          sector in the development of high-technology industry.
                                                                 The Colorado Business Development Center, the Higher
Dr. James Albertson                                              Education Council of the Colorado Association of Com-
Associate Vice President for Academic Affairs                    merce and Industry, the Institute for Computational
University of California                                         Studies, and Worker Outreach, all provide assistance in
733 University Hall, 2200 University Ave.                        technology-based economic development.
Berkeley, CA 94720                                               Programs
(415) 642-9786
                                                                 High-technology development
Date of establishment: 1981
                                                                   High-Technology Cabinet Council
Annual State funding (millions): $2.0
Program type:
                                                                 High-technology education
  High-technology education.                                       Colorado Electronics Institute

Program services:                                                Labor/technical assistance
                                                                   Jobs for Coloradans
  Links industry with university resources.
  Grants for research.                                           General industrial development
  Grants available.                                                Colorado Division of Commerce and Development
 The 1981-82 University of California budget included            Colorado Division of Commerce
$980,000 for “innovative research in microelectronics            and Development
technology, its application in computer information sci-
ences, and its necessar y antecedents in other physical sci-     Mr. Steve Schmitz
ence disciplines. ” The program is intended by the State         Director
to assist the California electronics and computer in-            Department of Commerce and Development
dustries in maintaining their competitive edge by expand-        1313 Sherman St.
ing pertinent research and graduate student education            Denver, CO 80203
at the University. Under the research part of the pro-           (303) 866-2205
gram, faculty members on several campuses submit pro-            Date of establishment: 1982
prprosals for research projects that will potentially form the   Annual State funding (millions): N/A
basis of new industrial products several years in the
                                                                 Program type:
future, Each faculty member is responsible for obtain-
ing a prior commitment from an industrial firm to sup-             General industrial development.
port at least half the cost of the project.                      Program services;
                                                                   Location assistance.
                                                                   Licensing assistance.
                        Colorado                                   Investment assistance.
  Colorado has a good base in high-technology industry,          Description:
and in secondary industries supplying the inputs for                The Division of Commerce and Development has a
high-technolog y manufacturing. This development has             long history of providing staff and financial assistance
been accomplished largely without the intervention of            to businesses seeking a new location. Many times, this
the State government. INC. Magazine, in its “Report              involves working with a new manufacturing process or
Card on the States,” identified Colorado as one of the           product, helping to identify a labor base, the best loca-
four or five most desirable States for high-technology in-       tion for specific resource needs, and assistance in com-
dustry. Many Coloradans do not see such development              pliance with local ordinances.
20 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government      /initiatives
        ——.——————..— .- — .-—-— - ——               -. .——.—— --- . . . . . . —_ .-. .—- —.. -

Colorado Electronics Institute                               ketplace by looking at educational and international eco-
                                                             nomic issues.
Senator Al Meiklejohn
State Capital Bldg., Rm. 127                                 High-Technology Cabinet Council
Denver, CO 80203
(303) 8664866                                                Mr. Leonard Slosky
Date of establishment: 1982                                  Assistant to the Governor for Science
Annual State funding (millions): $4.0                          and Technolog y
                                                             Governor’s Office
Program type:                                                State Capitol Bldg.
  Legislation.                                               Denver, CO 80203
Program services:                                            (303) 866-4579
  Links industry with university resources.                  Date of establishment: 1983
                                                             Annual State funding (millions): N/A
                                                             Program type:
  A bill (S. 01) has been introduced in the 1983 Col-
orado General Assembly for the establishment of a Col-         High-technolog y development.
orado Advanced Technology Institute to promote, de-          Program services:
velop, and coordinate education and research programs          Task force.
in fields of advanced technology. The Institute will seek
to improve the quality and quantity of graduates from        Description:
Colorado institutions of higher education in fields of ad-     This Council is set up to coordinate the activities of
vanced technology, to further the research capabilities      the Colorado government intended to promote high-
of Colorado institutions of higher education, to provide     technolog y development in the State. The Council will
incentives to attract and retain superior faculty members,   prepare a Colorado strategy to encourage high-technol-
and to enhance the economic health of Colorado by en-        ogy industrial development in the State, including coor-
couraging investment by both governmental and private        dination of research and development efforts, education
sources in educational programs which promote ad-            and training, and private sector initiatives.
vanced technology education and research and develop-
ment.                                                        Jobs for Coloradans
                                                             Mr. Steve Schmitz
Governor’s Science and Technology                            Director
Advisory Council                                             Department of Commerce and Development
                                                             1313 Sherman St., Rm. 500
Mr. Leonard Slosky                                           Denver, CO 80203
Assistant to the Governor for Science and                    (303) 866-2205
  Technology                                                 Date of establishment: 1982
State Capital Bldg., Rm. 127
                                                             Annual State funding (millions): $0.150
Denver, CO 80203
(303) 866-2471                                               Program type:

Date of establishment: 1975                                    Labor/technical assistance.
Annual State funding (millions): -O-                         Program services:
Program type:                                                  Technical training provided by the State.
  Legislation.                                               Description:
Program services:                                               This program is setup to meet the changing labor needs
  Task force.                                                of industry, and train State people for jobs. A disloca-
                                                             tion or training need is identified by State staff or through
Description:                                                 negotiations between local governments, area vocational
   Technology development activity in Colorado has oc-       schools or community colleges. Upon identification of
curred largely without active State government involve-      specific skill areas, employment and trainin g agencies or-
ment. The Governor’s office established this task force      ganize and implement specific training programs. In ad-
to explore ways to attract technology to the State, a top    dition, this program works closely with the Worker Out-
issue for the Governor in the coming year. The task force    reach Program, a privatel y run program, which screens
is to address the issue of moving innovation to the mar-     and places individuals for technical occupations.
                                             Appendix—Directory of State High-Technology Strategies and Programs   q   21
.     —— . . . .                                    .—          ————

                    Connecticut                                Connecticut Department of
                                                               Economic Development
   Connecticut has a major stake in high-technology in-
dustrial development and has become a leader in the de-        Mr. John Carson
velopment of State government programs to encourage            Commissioner
it, It ranks first in the percentage of manufacturing jobs     Department of Economic Development
in high-technology areas, and this percentage is grow-         210 Washington St.
ing. State officials attribute Connecticut’s success in at-    Hartford, CT 06106
tracting and incubating high-technology industry to a          (203) 566-4094
number of coincidental factors, including: a strong in-        Date of establishment: N/A
dustrial base; a large, well-educated labor pool; proximi-     Annual State funding (millions): N/A
ty to a large export center; an above-average system of        Program type:
higher education; and access to venture capital.
   To foster and retain this growth, the State government        General industrial development.
has created over the past 20 years a number of programs        Program services:
targeted on the creation and success of high-technology          Abatement of local property tax.
firms. The major goals of these programs include: crea-          Training vouchers for new jobs.
tion of new jobs; expansion of existing industry; reten-         Exemption from State sales tax.
tion of existing industry; creation of new ventures; and
diversification of the State’s economic base. The Gover-
nor recently established a State High-Technology Coun--          The Connecticut Department of Economic Develop-
cil, which will focus its attention on the State’s educa-      ment is working on a project called “Take Care of Your
tional resources, and proposed a “high-technology strat-       Own)’ to look after the needs of existing industry in the
egy” for 1983 that includes funds for job training, in-        State. The Office reports that Connecticut has had the
creased funding for the Connecticut Product Develop-           high-technology industry advantage all along, mainly
ment Corp., and funds for education programs in voca-          because of its diversified economic climate. The State
tional and higher education.                                   claims 40 percent of Connecticut’s manufacturing work
   The State government also has the organized participa-      force is in high-technology industry, and that the State
tion of the private sector through the Cambridge Re-           leads the Nation in the number of patents granted and
search and Development Group (CRDG), founded in                in the number of research and development laboratories.
1965. The principal mission of CRDG is to identify and         There is a broad mix of economic sectors, including a
exploit patentable new products that represent outstand-       well-trained and educated work force.
ing business opportunities for Connecticut companies.            Aside from being the home of many major manufac-
                                                               turers, Connecticut offers Industrial Revenue Bonds, a
                                                               working capital loan program, industrial park networks
High-technology development                                    for land acquisition, no State income tax, and a general
    Connecticut Innovation Development Loan Fund               program of recruitment.
    Connecticut Product Development Corp.
    Science Park                                               Connecticut Enterprise Zones
Capital provision assistance
                                                               Mr. Ken Roberts
    Connecticut Enterprise Zones                               Director
    Connecticut Innovation Development Loan Fund               Connecticut Department of Economic Development
    Connecticut Product Development Corp.                      210 Washington St.
    Science Park                                               Hartford, CT 06106
General industrial development                                 (203) $66-3308
    Connecticut Department of Economic Development             Date of establishment: N/A
    Connecticut Enterprise Zones                               Annual State funding (millions): $1.0
22   q   Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives

Program type:                                                     Connecticut Product Development Corp.
  Capital provision assistance.                                   (CPDC)
  General industrial development.                                 Mr. Thomas Munson
Program services:                                                 Director
  Enterprise zones.                                               Connecticut Product Development Corp.
  Long-term, low-interest loans.                                  93 Oak St.
  Industrial revenue bonds.                                       Hartford, CT 06106
  Physical plant provision.                                       (203) 566-2920
Description:                                                      Date of establishment: 1975
  Six enterprise zones, in underdeveloped parts of the            Annual State funding (millions): $10
State in need of economic revitalization, have been               Program type:
named to date. The Enterprise Zone office has available             Capital provision assistance.
a $1 million revolving loan fund to help establish new              General industrial development.
or expanding businesses within the newly created zones.
                                                                  Program services:
The emphasis is on high-technology business develop-
ment.                                                               Grants for development.
                                                                    Loans with stock or royalty rights.
                                                                    Investment in firm survival.
                                                                    Product development assistance.
Connecticut Innovation Development
                                                                    Technical support provided b y State.
Loan Fund                                                           Assists in finding venture capital.
Mr. Thomas Munson
Innovation Development Loan Fund                                    CPDC, although not strictly a high-technology devel-
93 Oak St.                                                        opment operation, provides financial investment to
Hartford, CT 06106                                                develop new products with job creation and market po-
(203) 566-2920                                                    tential. These products are often “high-technology” prod-
                                                                  ucts. The system is set up to receive royalty from suc-
Date of establishment: 1981
Annual State funding (millions): $2                               cessful products, which in 1982 provided CPDC with
                                                                  $3.3 million in royalty payments. At present there are
Program type:                                                     50 active projects, with 22 products alreadon the mar-
  Capital provision assistance.                                   ket. CPDC takes part in all aspects of preparing a prod-
  High-technology development.                                    uct for market, including assisting in management plan
Program services:                                                 preparation, product development, market identification
                                                                  and development, and examining the financial capabili-
  Grants for development.
                                                                  ty of a company. It does not take part in any new business
  Loans with stock or royalty rights.
  Market development assistance.
                                                                    While CPDC is not a government agency, the
Description:                                                      employees are on the State payroll, and the State treasury
  This organization, recently funded by the Federal Eco-          handles payment to beneficiaries. The Governor appoints
nomic Development Agency, aims to speed the diffusion             the Board of Directors and advises it about State policy.
of innovation. It will work closely with the Connecticut          CPDC works closely with the Connecticut Innovation
Product Development Corp. (CPDC), taking over where               Development Program (CIDP), set up with U.S.
CPDC leaves off in the development of an innovative               Economic Development Agency (EDA) funds, particular-
product within an established company. In addition,               ly in high-technology initiatives. Since CIDP provides
CDPC and CIDP are considering providing venture cap-              venture capital, CPDC will usually refer new starts to
ital to new starts.                                               CIDP.
                                            Appendix—Directory of State High-Technology Strategies and Programs . 23

Science Park                                                  Delaware Tax Incentives for Business
Mr. E. L. Deshong                                             Mr. David V. Brandon
Vice President                                                Assistant Director for Business Development
Science Park Development Corp.                                Delaware Development Office, Townshend Bldg.
Yale University                                               P.O. Box 1401
New Haven, CT 06106                                           Dover, DE 19901
(203) 436-2300                                                (302) 571-3156
Date of establishment: 1981                                   Date of establishment: N/A
Annual State funding (millions): $2                           Annual State funding (millions): N/A
Program type:                                                 Program type:
  Capital provision assistance.                                 General industrial development.
  High-technology development.                                Program services:
Program services:                                               Reduction in State corporate business tax.
  Market development assistance.                                Abatement of local property tax.
  Links industry with university resources.                     Freeze on assessed value of improved property.
  Grants for development.                                     Description:
  Physical plant provision.
                                                                 Although there are no State programs geared specifical-
Description:                                                  ly to the development of high-technology industry, tax
  Science Park is now under construction. Located with-       incentives have been created for industry in general. In
in a Connecticut Enterprise Zone, Science Park will de-       addition, the State has initiated enterprise zone legisla-
velop a large tract of land in New Haven for a community      tion, allowing a city or municipality to develop an enter-
of companies engaged in the pursuit and development           prise zone and a related loan fund. At present, only
of new scientific and technological products, processes       Wilmington has exercised the enterprise zone option. The
and related manufacturing. This project represents a joint    State runs a training program through its technical and
effort between Olin Corp., Yale University, and the City      community colleges, including classes in electronics and
of New Haven. The State has contributed $2 million to         the sciences.
help rehabilitate a vacant industrial building in New
Haven for Science Park. Olin and Yale have also inde-
pendently entered into a cooperative research agreement.                              Florida
                                                                Florida has developed a solid industrial base for
                      Delaware                               high-technology development, particularly in the so-
                                                             called “Golden Girdle” and “Silicon Coast” areas that
  Delaware is the headquarters and research center for       stretch from Tampa on the gulf coast to Daytona Beach
many of the Nation’s largest businesses. However, aside      on the Atlantic and south to Fort Lauderdale and Miami.
from a favorable tax structure that is available to all      This includes a considerable amount of space-related in-
businesses, there has been little direct effort to attract   dustrial development around the Kennedy Space Center
or develop high-technology business to the State. This       at Cape Canaveral, as well as aerospace and electronics
may be changing.                                             manufacturing generally. One-fourth of Florida’s man-
  Legislation has been introduced that would require         ufacturing employment is in high-technology industries,
that all Delaware high school graduates be computer lit-     according to State officials.
erate. The State also sponsors community college train-         Florida began its focused high-technology effort in 1980
ing programs geared to skill development in electronics      with the formation of a Governor’s Task Force, which
and science. These colleges also work with the Federal       recommended special incentives targeted on industries
Government to help with technology transfer from col-        such as defense contracting, communications, electronics,
leges to industry.                                           pharmaceuticals, and scientific instruments.
                                                                In the near future, the legislature is expected to con-
                                                             sider a bill creating an umbrella program for State ef-
General industrial development                               forts in high-technology industrial development. Florida
  Delaware Tax Incentives for Business                       is constitutionally prohibited from making loans or pro-
24 Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

vialing capital of any kind to private firms, but the State   tiative was the creation of enterpise zones, wherein new-
government is helping to start a private venture capital      ly created jobs bring tax credits for salaries, tax credits
association. In addition, legislation was recently passed     for contributions to community projects, and exemption
to exempt certain types of new job creation from taxes        from the “school tax” portion of the development tax.
and to protect intellectual property developed under uni-     This amounts to almost tax-free development over a cer-
versity-industry contracts.                                   tain number of years. In addition, four research and de-
   Florida places considerable emphasis on these univer-      velopment parks have been or are being formed in the
sity-industry partnerships and has set up several govern-     State, modeled after the Research Triangle in North
ment programs in this area. The University system par-        Carolina. In addition, the University of Florida is de-
ticipates in an entrepreneurship program and in a State-      veloping an “innovation center. ”
funded Research and Development Parks program. In re-
cent months Florida has also announced plain to develop
engineering and vocational-technical education programs       Industrial/Academic Council
and efforts to enhance in-State research and develop-
ment.                                                         Mr. Hank Hector
                                                              State University System
                                                              Florida Board of Regents
High-technology development                                   107 West Gaines St.
  Interagency High-Technology Committee                       Tallahassee, FL 32301
  Research and Development Commission                         (904) 488-7702
  Technical Entrepreneurship Program                          Date of establishment: 1983
High-technology education                                     Annual State funding (millions): $0.113
 Office of High-Technology and Industry                       Program type:
General industrial development                                   General industrial development.
  Bureau of Economic Analysis                                 Program services:
  Industrial/Academic Council                                    State resource promotion.
  Industry Services Training Program                             Links industry with university resources.
                                                                 Patent searches.
Bureau of Economic Analysis                                   Description:
                                                                 The Industrial/Academic Council, recently organized
Mr. Maury Hagerman                                            by the Board of Regents, is designed to further coordinate
Economic Analysis Supervisor                                  engineering activities within the State university system.
Bureau of Economic Analysis                                   The membership consists of user business and industrial
406 Fletcher Bldg.                                            groups, and coordinates the State Technology Applica-
Tallahassee, FL 32301                                         tions Center, the Florida Engineering Education Delivery
(904) 487-1314                                                System and the Engineering and Industrial Experiment
Date of establishment: N/A                                    Station.
Annual State funding (millions): N/A
Program type:
  General industrial development.                             Industry Services Training Program
Program services:                                             Mr. Jesse Burt
  State resources promotion (infrastructure).                 Director
  Links industry with university resources.                   Florida Department of Education, Division of
                                                                Vocational Training
                                                              107 West Gaines St.
 This office works to attract new businesses into Florida     Tallahassee, FL 32301
and retain businesses already there. It emphasizes attract-   (904) 487-1040
ing new industry to the State rather than starting new
                                                              Date of establishment: N/A
business within the State.
                                                              Annual State funding (millions): N/A
   The Florida Legislature has passed three laws to create
incentives for business to develop facilities in tradition-   Program type:
ally underdeveloped or low-income areas. Part of this ini-     General industrial development.
                                                                   .   —

                                           Appendix—Directory    of State High-Technology Strategies and Programs     q   25
.——.———                                                                 . . —.    ...—.—-. -——— . -.——— ——.—. ——-.—

Program services:                                               Description:
  Technical support provided by the State.                        The Office of High-Technology and Industry was or-
  Trains technical staff for business.                          ganized by the Florida Department of Education with
Description:                                                    existing resources to provide for increased State level em-
                                                                phasis on high--technology vocational training programs,
  This program provides customized training programs
                                                                particularly at the community college level. The level of
for new and expanding industries funded entirely by the
                                                                State funding and specific responsibilities of the office
State. Training is implemented through local vocation-          will be determined by the 1983 Florida Legislature.
al-technical schools and community colleges, and is
geared toward the development of skills for Florida’s in-
creasing community of hig}~-technolog y industries.
                                                                Research and Development Commission
Interagency High-Technology Committee                           Mr. Tim Gray
                                                                Legislative Assistant to the Secretary of Commerce
Mr. Kern Alexander
                                                                College Bldg.
                                                                107 West Gaines St.
Governor’s Office of Planning and Budget
                                                                Tallahassee, FL 32301
Carleton Bldg.
                                                                (904) 487-3104
Tallahassee, FL 32301
(904) 487-1880                                                  Date of establishment: 1978
                                                                Annual State funding (millions): N/A
Date of establishment: 1983
Annual State funding (millions): N/A                            Program type:
Program type:                                                     High-technology development.
  High-technology development.                                  Program services:
Program services:                                                 Links industry with university resources <
  Information dissemination.                                    Description:
  Task force.                                                      The State government has set up this Commission to
Description:                                                    initiate incentives for research and development parks
                                                                in association with State universities. Four parks have
  Florida’s most recent State initiative relating to high
                                                                been established: Tampa Bay Research Park at the Univer-
technology is the establishment of the Governor’s Inter-
                                                                sity of Southern Florida; Central Florida Research Park
agency High-Technology Committee, to plan and mon-
itor high-technology industrial development initiatives         at the University of Central Florida; Florida Research
                                                                and Technology Campus at the University of Florida;
in the State. Representatives are drawn from education,
                                                                and Innovation Park at Florida State University and Flor-
labor, and commerce agencies. This group will also coor-
                                                                ida A&M University. Industrial revenue bonds may be
dinate the Divisions of Sponsored Research at the State
                                                                used in financing development.
universities, administering State research trends.                 Plans are currently underwa y at the University of Flor-
                                                                ida for the development of an incubator facility to sup-
Office of High-Technology and Industry                          port new high-technology companies.
Dr. Marm Harris
Department of Education
College Building                                                Technical Entrepreneurship Program
107 West Gaines St.
                                                                Mr. Maury Hagerman
Tallahassee, FL 32301
                                                                Economic Analysis Supervisor
(904) 487-3134
                                                                Bureau of Economic Analysis
Date of establishment: 1982                                     406 Fletcher Bldg.
Annual State funding (millions): N/A                            Tallahassee, FL 32301
Program type:                                                   (904) 487-1314
  High-technology education.                                    Date of establishment: 1981
Program services:                                               Annual State funding (millions): N/A
  Technical support provided by State.                          Program type:
  Links university with industry resources.                       High-technology development.
26   Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government lnltiatives
               .—— —.——. ————— ——.                      —————.—.— —- ——. ..——.— .

Program services:                                              targeted in the future will probably involve computer
  Information dissemination.                                   software, communications, biotechnology, and solar
  State resources promotion.                                   energy.
Description:                                                   Programs
  This program, established to promote indigenous in-          High-technology development
dustry in Florida, mobilizes the components of the State’s       Advanced Technology Development Center
high-technology community. Its activities consist of:          High-technology education
  1. organizing and leading public and private efforts to
                                                                 Georgia Engineering Technology Program
     evolve State high-technology strategies,
  2. supporting and acting as a catalyst to individual and       Governor’s High-Technology Advisory Council
     joint efforts of various elements of the high-technol-    Labor/technical assistance
     ogy community to move ahead with actions support-           Advanced Technology Development Center
     ive of State goals, and                                     Georgia Engineering Technology Program
  3. continuing efforts to analyze economic growth.
  The program works closely with the Florida “Venture
Capital Association (a private group), and with the            Advanced Technology Development
University of Florida in developing a prototype incubator      Center (ATDC)
facility and innovation center. This program will also be      Mr. Jerry Birchfield
working closely with the Small Business High Technology        Director
Council (Washington, D. C.) to develop an entrepreneur-        Advanced Technology Development Center
ship network.                                                  Georgia Institute of Technology
                                                               Atlanta, GA 30332
                                                               (404) 894-3575
                       Georgia                                 Date of establishment: 1980
                                                               Annual State funding (millions): $0.420
  Georgia has a well-established State strategy to en-
courage the creation and growth of high-technology in-         Program type:
dustry. This strategy is centered on the Advanced Tech-          High-technology development.
nology Development Center (ATDC), jointly run by the             Labor/technical assistance.
State and the Georgia Institute of Technology. Much of         Program services:
the impetus for the development of ATDC came from
                                                                 Product development assistance.
Georgia Tech graduates who wanted to create challeng-
                                                                 Technical support provided by State.
ing employment opportunities in the State. ATDC pro-
                                                                 Assists in finding venture capital.
vides technical, financial, and management assistance in
                                                                 Office or equipment provision.
the creation of new firms, as well as information and con-
                                                                 Physical plant provision or assistance.
sulting services for relocating firms. Similar centers are
being developed at other universities.                         Description:
  The Department of Industry and Trade is working                In 1980, the State of Georgia and the Georgia Institute
closely with the education sector and ATDC to develop          of Technology established the Advanced Technology De-
a training strategy for high-technology development, and       velopment Center (ATDC) to provide services for de-
the ATDC program and the vocational training initia-           veloping and expanding high-technology industries. The
tives are being integrated into the State’s general in-        office is independent of both the State government and
dustrial development program. State development agen-          the university,, but maintains strong ties and shares per-
cies are stressing the importance of education to meet         sonnel with these offices. In addition, ATDC maintains
future needs.                                                  close ties with the private venture capital community in
  In addition to the joint effort at ATDC, the State has       Atlanta. Services are available to new businesses as well
a vigorous industrial development program that is recruit-     as to existing businesses wishing to relocate. Future plans
ing technology-based manufacturing operations such as          include providing office and laboratory space on the
avionics and microelectronic research and assembly             Georgia Tech campus for the incubation of new, small
plants. The State reports that high-technology ventures        business.
                                          Appendix-Directory of State High-Technology Strategies and Programs . 27
                                       — . . — . . — —         ——————-.———.— — — — — — — — — — — . — — — . —

Georgia Engineering Technology Program                       sion are representatives of Georgia industry. The two re-
                                                             maining spaces are filled by a representative of the Ad-
Mr. Robert Mabry                                             vanced Technology Development Center, and the State
Director, Postsecondary Instructional Programs               Board of industry and Trade participation.
Office of Vocational Education
17th Floor Twin Towers East
Atlanta, GA 30334                                                                    Hawaii
(404) 656-2547
Date of establishment: 1982                                    The Hawaii Institute of Electronics Research, chartered
Annual State funding (millions): $8                          in 1979 to develop Hawaii's electronics research capa-
Program type:                                                bilities, works with the State Department of Planning and
                                                             Economic Development to obtain and administer re-
  High-technology education.                                 search contracts involving both private business and the
  Labor/technical assistance,                                facult y of the University of Hawaii. In addition, the State
Program services:                                            has targeted tropical applications of biotechnology and
  Technical training provided by the State.                  microelectronics as key areas of high-technology growth.
                                                               Hawaii’s Governor has proposed creating a High-Tech-
                                                             nology Development Corp. responsible for identifying
 This statewide education program offers an Associate        available land and financing to develop industrial parks
Degree in Applied Technology to answer the needs of          devoted entirely to high-technology firms. This research
incoming industry for skilled technicians in several tech-   and industrial effort targets alternative energy resource
nical areas. The program curriculum is developed on the      development, in which Hawaii is a leader.
State level, and administered at six community colleges.
The program takes a multidisciplined systems approach
to technical education given that many technologies in-      High-technology development
clude components from different technical skill areas.         Hawaii Venture Development Fund
Every faculty member has 2 years of industry work ex-
perience plus academic degree.
                                                             Hawaii Venture Development Fund
Governor’s High-Technology
Advisory Council                                             Dr. Hideto Kono
Mr. Robert Mabry                                             Department of Planning and Economic Development
Staff Coordinator                                            P.O. Box 2359
Office of Vocational Education                               Honolulu, HI 96804
Twin Towers East                                             (804) 548-8741
Atlanta, GA 30334                                            Date of establishment: N/A
(404) 656-2547                                               Annual State funding (millions): N/A
Date of establishment: 1982                                  Program type:
Annual State funding (millions): N/A
                                                               High-technology development.
Program type:
                                                             Program services:
  High-technology education.
Program services:                                              Market development assistance.
  Task force.                                                  Product development assistance.
Description:                                                   Licensing assistance.
                                                               Location assistance.
 This Council, established to advise the Governor, came
about largely through a recognition of the need for a pro-   Description:
gram of excellent, high-technology education to attract        This Department has three separate projects designed
and retain advanced technology industries, and to secure     to help high-technology development in the State:
employment for students in high-technology industries.         1. Inventor's Fund (Funding: $100,000) This project
As high-technology training programs help industry as             provides seed loans for the development of new
well as the State, 10 of the 12 members of the Commis-            products. In addition to capital, the staff assists with
28 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

      patent and literature searches, and in finding ven-      Programs
      ture capital for business development.                   General industries development
   2. High-technology promotional funds. ( F u n d i n g :
                                                                 Idaho State Tax Commission
      $l00,000)The Department has set aside funds to de-
      velop, attract, and retain high-technology industries.   Labor/technical assistance
      The staff will assist in location of new and expand-       Idaho Division of Economic and Community Affairs
      ing industry, provide information on tax regulations,      Industry Training Program
      licensing, permitting, labor, trade, and markets.
   3. Capital Loan Program. (Funding: $1 million) This
      program has a high-technology focus: the staff helps     Idaho Division of Economic and
      identify new industries needing funds. The program       Community Affairs
      provides debt financing at below market rates (cur-
                                                               Mr. Jay Engstrom
      rently 7.5 percent) up to $100,000. Additional funds
                                                               Economic Development Specialist
      are requested for fiscal year 1984.
                                                               Division of Economic and Community Affairs
A fourth effort expected to be passed in the State legis-
                                                               108 State House
lature this term is the development of a High-Technology
                                                               Boise, ID 83720
Development Corp. set up to develop Science Parks for
                                                               (208) 334-2470
high-technology industries in the State. This program,
like the Hawaii Institute of Electronics Research (HIER),      Date of establishment: N/A
will eventually be a private corporation, but will be ini-     Annual State funding (millions): N/A
tially administered through this Department.                   Program type:
                                                                 Labor/technical assistance.
                                                               Program services:
                                                                 Tax—favorable business climate.
                         Idaho                                   State resources promotion.
                                                                 Links industry with university resources.
   There are no State programs geared to the develop-
                                                                 Technical training provided by State.
ment of high-technology industry in Idaho, although the
                                                                 Physical plant provision.
State markets itself actively to expanding companies. Like
                                                                 Industrial revenue bonds.
many Western States, Idaho has a lot of tax “incentives”
                                                                 Task force.
built into its tax laws, including low property taxes and
incentives for job creation and investment. In addition,       Description:
the State claims the lowest energy prices in the North-          Idaho has no State programs geared to the develop-
west. The State government recently convened a Task            ment of high-technology industry, although the Gover-
Force on capital development, and it has set up a pro-         nor has actively marketed the State’s resources to expand-
gram to use public pension funds for mortgage and busi-        ing corporations. The State takes advantage of Federal
ness development.                                              funding through CETA, CDBG, and other development
   Through the State Board of Education, an electronics        money to improve the State infrastructure and make it
technical training center is being established at Idaho        more attractive to incoming business. Cities and munici-
universities with private industry funding. Teachers and       palities have also been participating actively in this area.
equipment will be supplied by area industries to train           The State recently convened a Task Force on Capital
students to meet their employment needs. Private sec-          Development to discuss State resource promotion. A pri-
tor initiatives include a State Marketing club set up          vate sector “State Marketing Club” is being set up with
cooperatively by business and government to help draw          members from business and government-to promote the
industry to the State. Such efforts have already attracted     resources of the State to businesses outside the State.
branch plants of microelectronics firms to Idaho. The            Idaho reports many tax “incentives” built into an al-
State also works closely with the U.S. Small Business Ad-      ready low tax base and claims to be the lowest indebted
ministration, and uses CETA and block grant funds to           State in the Nation; the property tax is 1 percent and
develop the work force and infrastructure needed to            incentives have been created for job creation and invest-
strengthen its industrial base.                                ment (see Tax Commission program).
                                                                 -. —.

                                            Appendix-Directory of State High-Technology Strategies and Programs      q   29

Idaho State Tax Commission                                    Training programs to meet new specific needs can be op-
                                                              erational in a short time. The program is available for
Mr. Larry G. Looney                                           industries new to Idaho and for expansion of business
Chairman                                                      and industries already in the State.
Idaho State Tax Commission
700 West State St.
Boise, ID 83720
(208) 334-4624
Date of establishment: 1945
Annual State funding (millions): $11.7                           The task force appointed by the Governor in 1981
Program type:                                                 identified four high-technology industries central to I1-
  General industrial development,                             linois’ economic development: electronics, biotechnol-
                                                              ogy, materials technology, and robotics. In addition, it
Program services:
                                                              recommended that the State develop a network of high-
  Tax—favorable business climate.                             technology facilities associated with university and in-
  Training vouchers for new jobs.                             dustrial centers. This task force has been replaced by a
  Labor assistance.                                           permanent Commission on Science and Technology with
  Reduction in State corporate business tax.                  representatives from banking, business, labor, education,
Description:                                                  and government. The Commission’s goal is the develop-
  The 1982 Idaho Legislature approved and Governor            ment of long-range economic goals and the implemen-
John Evans signed into law a tax incentive package allow-     tation of the task force’s recommendations.
ing an investment tax credit. The law provides a 3 per-          Illinois’ strategy for economic development is to pub-
cent tax credit for new investments made instate, not         licize the advantages of the State to attract high-tech-
to exceed 50 percent of the tax liability for the taxable     nology growth companies, but it will also encourage new
year. A carry-over provision of up to 5 years is included.    and expanding firms within the State. Like other heav-
In addition, the Job Expansion Act of 1982 offers Idaho       ily industrialized Midwestern States, however, Illinois also
businesses a tax credit for hiring new employees. This        needs to retain and strengthen traditional industry while
credit is limited to $500 the first year, $300 the second     diversifying into high-technology areas. The State reports
year, and $100 the third year for each new employee           that development is building on existing strengths: good
hired. The law is retroactive to January 1, 1982.             transportation, a skilled work force, a network of univer-
                                                              sities and scientific research facilities, and good educa-
Industry Training Program                                     tional and vocational training systems.
                                                                 Part of this effort includes retraining workers for new
Dr. Larry Sellend                                             skill areas and setting up a biomedical research park in
State Administrator                                           Chicago. The State is also working closely with the Fed-
Department of Vocational Education                            eral Government to develop a High-Technology Train-
650 West St.                                                  ing Assistance Program, designed to provide technicaI
Boise, ID 83720                                               skills for economically disadvantaged students. Educa-
(208) 334-3210                                                tion sector initiatives include a Microelectronics Center
Date of establishment: 1978                                   at the University of Illinois, set up to conduct basic re-
Annual State funding (millions): N/A                          search in electron beam lithography.
Program type:                                                 Programs
  Labor/technical assistance.                                 High-technology Development
Program services:                                               Biomedical High-Technology Research Park
                                                                Faculty Research Assistance to the State
  Training provided by the State.
                                                                Governor’s Commission on Science and Technology
                                                              High-technology education
  This program assists businesses in new and expanding
                                                                Biomedical High-Technology Research Park
industries to train personnel for growing needs. The pro-
gram provides “customized” training through the State’s       Capital provision assistance
postsecondary vocational-technical education system.            Illinois Industrial Development Authority
30 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Labor/technical assistance                                      Faculty Research Assistance
  Faculty Research Assistance to the State                      to the State (FRATS)
  High Impact Training Services
                                                                Mr. Richard A. Zollinger
  Illinois Industrial Training Program
                                                                Director, FRATS Institute of Government and
General industrial development                                     Public Affairs, University of Illinois
  Illinois Industrial Development Authority                     1205 W. Oregon St.
                                                                Urbana, IL 61801
                                                                (217) 333-8770
Biomedical High-Technology                                      Date of establishment: 1982
Research Park                                                   Annual State finding (millions): $0.082
                                                                Program type:
Mr. Norm Peterson
Executive Director                                                High-technology development.
Governor’s Commission on Science and Technology                   Labor/technical assistance.
310 South Michigan Ave., Suite 1000                             Program services:
Chicago, IL 60604                                                 Information dissemination.
(312) 793-3982                                                    Links industry with university resources.
Date of establishment: 1982                                     Description:
Annual State funding (millions): $1
                                                                  The FRATS program provides an on-line computer-
Program type:                                                   ized information file of faculty research capabilities and
  High-technology development.                                  scholarly interests. The data base is a resource accessi-
  High-technology education.                                    ble to participating campuses and businesses in need of
Program services:                                               obtaining information on research capabilities and per-
                                                                sonnel. The FRATS program provides a method by
 Links industry with university resources.
                                                                which individuals/universities/businesses can receive
 Physical plant provision.
                                                                broad and rapid access to faculty research and teaching
Description:                                                    capabilities in areas of interest, including science and
   The 46-acre high-technology Park is being established        technology, economic development, and employment
to promote the development of high-technology industry          training. During 1983, 4,500 faculty profiles will be col-
in the Chicago metropolitan area and in Illinois, and to        lected and entered on-line into the data base.
strengthen the partnership between high-technology
businesses and higher education.                                Governor’s Commission on Science
   Initial capital of $1 million was provided by the State
                                                                and Technology
of Illinois to enable the university to lease an incubator
facility building. The State has agreed to provide the Uni-     Mr. Norm Peterson
versity with $10 million to purchase the building. The          Executive Director
City of Chicago has agreed to provide both planning and         310 S. Michigan Ave., Suite 1000
construction of the infrastructure in the Park.                 Chicago, IL 60604
   Leases in the incubator building are mainly for fledg-       (312) 793-3982
ling firms. Land leases for firms desiring to build their       Date of establishment: 1981
own facilities would be long-term. The Park has no spe-         Annual State funding (millions): N/A
cific written criteria for occupants at this time. Park oc-
                                                                Program type:
cupants are expected to be businesses or organizations
which will benefit from location in proximity to univer-          High-technology development.
sities and their human and physical resources.                  Program services:
   The Chicago area universities anticipate a high degree
                                                                  Task force.
of faculty participation in the many facets of the Park’s         Information dissemination.
operation, ranging from research consultation to the pro-         State resources promotion.
vision of faculty expertise in other areas to assist Park
                                                                  Investment capital.
occupants (e.g., architectural design, securing of venture
capital, etc.) A full range of services can be provided, from   Description:
library and computer facilities to conference facilities and     This 31-member Commission was appointed by the
catering.                                                       Governor to carry out the recommendations of the State
                                                         ——.       —

                                             Appendix—Directory of State High-Technology   Strategies and Programs    q   31
                     ————— .——. ..—

Task Force (which presented recommendations to the             grams. The program is available to any business or in-
Governor on March 24, 1982) to develop the State’s             dustry that is expanding, permanently increasing person-
high-technology effort. The Task Force targeted four in-       nel levels through additional work shifts, and/or facilities
dustries as central to Illinois development: electronics,      in excess of normal growth or turnover.
biotechnology, materials technology (coal processing),
and robotics. The overall recommendation of the Task
Force was that the State should develop a network of            Illinois Industrial Development Authority
high-technology facilities associated with various univer-
sities and other centers of technical excellence through-      Mr. Lee Roy Brandon
out Illinois. As a result, the State established Chicago’s     General Manager
biomedical research park in September 1982, and plans          Illinois Industrial Development Authority
to develop a $5.3 million Microelectronics Center at the       P.O. Box 397
University of Illinois (Urbana/Champaign).                     Marion, IL 62959
   In addition, an Illinois Growth Investment Fund is be-      (618) 997-6318
ing established to provide seed capital to help finance         Date of establishment: 1968
new product development. The Fund will finance small            Annual State funding (millions): $Bond
technologically innovative enterprises during their initial    Program type:
formation and early development stages.
                                                                  Capital provision assistance.
   Specific investment criteria for the Fund will be estab-
                                                                  General industrial development.
lished. These will include, for example, financial support
for companies that are located or agree to be located in       Program services:
Illinois, have products or services sufficiently innovative       Enterprise zones.
to have a potential market advantage, have adequate               Industrial revenue bonds.
management and technical support, and offer the poten-            Loans.
tial for significant job creation and long-term growth.        Description:
                                                                  The Authority helps create new jobs or retain existing
High Impact Training Services                                  jobs within labor surplus areas of the State. The Authori-
Mr. Jack Williams                                              ty concentrates its assistance on the projects designed to
Director                                                       create the maximum number of new jobs.
Illinois State Board of Education                                 The Authority’s two part effort consists of: 1) direct
100 North First St.                                            loans for periods up to 25 years, ranging from $10,000
Springfield, IL 62777                                          to $150,000; and 2) issuing industrial revenue bonds on
(217) 782-5098                                                 behalf of qualified applicants. The Authority may not
                                                               have outstanding at any one time, bonds and notes in
Date of establishment: 1978
                                                               an aggregate principle amount exceeding $1 billion. No
Annual State funding (millions): $1.65
                                                               more than one-third of the total principle amount of
Program type:                                                  bonds and notes as authorized by the Illinois General
  Labor/technical assistance.                                  Assembly are issued for the development, construction,
Program services:                                              acquisition, or capital improvements of commercial fa-
                                                               cilities. One hundred million dollars of the total author-
  Technical training provided by State.
                                                               ized bonding power is reserved for use in Enterprise Zones
Description:                                                   as established by the Illinois Department of Commerce
   The High Impact Training Services (HITS) program            and Community Affairs.
offers “customized” training on a firm-by-firm basis. The
Illinois State Board of Education cooperates with the De-
partment of Commerce and Community Affairs, Illinois            Illinois Industrial Training Program
State Chamber of Commerce, Board of Education, and
the Illinois Community College Board in offering these          Mr. Chuck Baker
services. HITS, funded from State and Federal vocational        Department of Commerce and Community Affairs
dollars, is intended to bridgc the gap between long-term,       320 W. Washington St., 5th Floor
in-school vocational training programs and the imme-            Springfield, IL 62706
diate short-term job training needs of business and in-         (217) 785-3206
dustry. It provides financial assistance for local educa-       Date of establishment: N/A
tional agencies to design and conduct job training pro-         Annual State funding (millions): N/A
32   q   Technology Innovation, and Regional Economic Development: Background Paper—Census of State Government initiatives
                      — ..—. — .    —                                             —.-   — .- ——

Program type:                                                     Corporation for Science and Technology
  Labor/technical assistance.                                     Mr. Robert Cummins
Program services:                                                 Acting Director
  Trains technical staff for business.                            Indiana Department of Commerce
  Technical training provided by State.                           440 N. Meridian St.
  Links industry with university resources.                       Indianapolis, IN 46204
  Physical plant provision.                                       (317) 232-8810
Description:                                                      Date of establishment: 1982
  The Department of Commerce and Community Af-                    Annual State funding (millions): -O-
fairs administers the Illinois Industrial Training Program        Program type:
(ITP) to help Illinois industries expand and to assist in-          High-technology development.
dustries locating in Illinois. ITP pays firms a portion of
                                                                  Program services:
the salaries of new workers while they are being trained.
ITP can be used to improve the skills of currently em-              Task force.
ployed workers and to support on-the-job training in a              State resource promotion.
wide range of skill areas. ITP? activities can be coordinated       Information dissemination.
with CETA programs. To qualify for ITP funds, a firm              Description:
must be planning an expansion or permanent increase                 This Corporation is designed to stimulate the develop-
in production that requires additional personnel. Such            ment of science and technology in Indiana, and is set
expansion can take the form of additional work shifts             up as a not-for-profit corporation. The Board of Direc-
and/or facilities in excess of growth.                            tors consists of representatives from the private sector,
                                                                  from education and from the State and local govern-
                                                                  ments. One of the primary missions of the corporation
                           Indiana                                will be to encourage public-private cooperatives programs
                                                                  in research and development.
  Indiana is setting up a program to answer the specific
technology development needs of the State. The State
effort includes the Corp. for Innovation Development,             Laser and Electro-Optics Technology
a not-for-profit organization set up in 1982 with funds           Training Program
provided through a foundation. The 24-member board
of directors includes representatives from business, gov-         Mr. Don Gentry
ernment, and education. The Corporation provides cap-             Executive Director
ital assistance to promising innovations, makes public            State Board of Vocational and Technical Education
policy recommendations and designs programs to en-                401 Illinois Bldg.
courage further development of science and technology             Indianapolis, IN 46204
in educational institutions and the industries within the         (317) 232-1814
State.                                                            Date of establishment: 1975
  The government plans to work closely with existing              Annual State funding (millions): N/A
industries to provide a favorable economic climate and
                                                                 Program type:
to encourage the growth of new industry within the
State. In addition, plans are in the works to develop               High-technology education.
industry-university cooperative resources in research and           Labor/technical assistance,
development.                                                      Program services:
Programs                                                           Technical training provided by State.
High-technology development                                        Links industry with university resources.
  Corporation for Science and Technology                         Description:
Capital provision assistance                                       This training program has been set up within the De-
 Corporation for Science and Technology                          partment of Vocational Education to address the needs
                                                                 of industry with advancing technologies. The program
Labor/technical assistance                                       qualifies graduates as skilled technicians in design sup-
 Laser and Electro-Optics Technology Training                    port, developmental assistance, sales, field service, and
   Program                                                       maintenance.

                                               Appendix-Directory of State High-Technology Strategies and Programs      q   33
.. ——————. . .- — —. — .— — ——. . . . . —— -- ——         -.—.———-—— ——-— .—.                        ——.—.— .

                          Iowa                                     Description:
                                                                     The high-technology Task Force reported on Novem-
   The former Governor’s High-Technology Task Force                ber 1, 1982 on its original mission to examine the status
was appointed in 1982 to examine the status of high-               of high-technology in Iowa. It recommended:
technology industry in the State. The Task Force report,             1. targeting research and development efforts at bio-
after taking into account existing State resources, iden-               technology, microelectronics, productivity enhance-
tified biotechnology, micrcelectronics, and energy tech-                ment/process controls, and energy alternatives;
nologies as important to the overall economic develop-               2. expanding technology transfer opportunities;
ment of Iowa. It also cited the need for a better technol-           3. looking towards long-term development;
ogy-transfer mechanism, and recommended the creation                 4. forming a commission to oversee efforts (a bill is
of a permanent Commission to establish long-range goals                 before the 1983 legislature to form this commission);
and oversee State high-technology issues.                            5. considering legislative changes;
   The new Governor has introduced a legislative package             6. developing human resources;
that echoes many of these recommendations, including:                7. encouraging venture capital; and
the continuation of a permanent high-technology com-                 8. expanding in tax and regulations State promotion
mission; a technology-transfer mechanism; challenge                     around the country.
grants for basic and applied research in agriculture and
industrial; a high-technology research tax credit; expan-
sion of the State industrial development bond law to in-
clude high-technology research and development bonds;
and revisions in Iowa securities laws to encourage the
availability of venture capital.                                                          Kansas
   The Iowa Development Commission has also worked
                                                                      “Strategy for the Eighties,” a staff study commissioned
with local communities that are experiencing labor prob-
                                                                   by the Governor, concluded that Kansas has, in its tech-
lems, trying to encourage local solutions to local problems
                                                                   nically skilled work force, the basic ingredients needed
and to improve labor relations throughout the State by
                                                                   to compete in the arena of high-technology development.
forming labor/industry councils. In addition, the State
                                                                   The Governor has appointed a task force to follow up
will be looking at policy alternatives in the longer term
                                                                   on this study and develop specific policy recommenda-
development issues of education and training.
                                                                   tions based on its findings.
Programs                                                              The Governor has also called for a program under
High-technology development                                        which the education system’s Board of Regents would
  Iowa High-Technology Task Force                                  invest State money, with matching funds from the private
                                                                   sector, to provide more support for high-technology re-
                                                                   search conducted at State schools. This includes a pro-
                                                                   posal to tax oil and gas revenues in order to avoid cut-
Iowa High-Technology Task Force
                                                                   ting other educational programs. Wichita State Univer-
Mr. David Swanson                                                  sity, in cooperation with the local chamber of commerce,
Director                                                           has taken the lead in this area by establishing an innova-
Iowa Development Commission                                        tion and entrepreneurship center to encourage new busi-
250 Jewett Bldg.                                                   ness development. The University of Kansas is also in-
Des Moines, IA 50309                                               vestigating the feasibility of a science and research park
(515) 281-3251                                                     in Lawrence. The State has also developed an aggressive
Date of establishment: 1982                                        enterprise zone program to be developed and run by in-
Annual State funding (millions): -O-                               dividual cities.

Program type:                                                      Programs
  High-technology development.                                     High-technology Development
Program services:                                                    Governor’s Task Force on High-Technology
  Task force.
  State resources promotion (infrastructure).                      General industrial development
  Information dissemination.                                         Kansas Department of Economic Development
34 TechnOlOgy, Innovationr and Regional Economic Development: Background Paper—Census of State Government Initiatives
— — . - — — — . — . — — .- -..— . . . -..———. .- ——-. -— ———..— --——. --- — .——.————— .———— —..- ————— — --.———. -.—

Governor’s Task Force on High-                               tries a concern or commitment on the part of Kansas.
Technology Development                                       Recommendations for this action include: convening a
                                                             committee of business, education, and State leaders; con-
Mr. Charles Schwartz                                         sidering legislative changes such as tax and R&D incen
Secretary                                                    tives; coordinating training with educational instructions;
Department of Economic Development                           and promoting the State resources to out-of-State busi-
503 Kansas Ave., 6th Floor                                   ness. At present, the State has an Industrial Training
Topeka, KS 66601                                             Program, tax incentives for business and enterprise zone
(913) 296-3481                                               legislation allowing cities to develop the zones in specially
Date of establishment: 1982                                  designated areas.
Annual State funding (millions): N/A
Program type:
  High-technology development.                                                      Kentucky
Program services.
                                                               The economic development strategy laid out by the
  Task force                                                Governor includes the formation of a High-Technology
Description:                                                Committee to review all sectors of the State economy
  In October 1982, Governor ]ohn Carlin established         ior possible high-technology industrial development. The
by Executive Order, the Governor’s Task Force on High       State already provides overall development assistance to
Technology Development, The Task Force is charged           business, including a strong financing program and a re
with analyzing the conclusions and recommendations of       cent emphasis on the importance of education for eco
the study on Strategy for the Eighties: High Technology     nomic growth. Kentucky also has good vocational train-
Industrial Development, as well as exploring high-tech      ing programs, including a program designed for displaced
nology development potential in Kansas. The Task Force      older workersj and has an aggressive State- local cooper -
will make its report to the Governor in July 1983.          ative enterprise nine program.
                                                               Development efforts by the education sector include
                                                            the Northern Kentucky University Foundation, estab-
Kansas Department of
                                                            lished to develop a research/technology park adajacent
Economic Development                                        to Northern Kentucky University. In addition, the Uni-
Mr. Charles Schwartz:                                       versity of Kentucky Office of Continuing Education acts
Secretary                                                   as information broker on Federal funds for small business.\
Department of Economic Development                          development.
503 Kansas Ave., 6th Floor                                  Programs
Topeka, KS 66603
                                                            Capital provision   assistancc
(913) 296-3480
                                                              Kentucky Development Finance Authority
Date of establishment: N/A
Annual State funding (millions): N/A                        Labor,/technical assistance
Program type:                                                 Industry Training Program

  General industrial development.                           General industrial development

Program services:                                             Kentucky Development Finance Authority
                                                              Kentucky Enterprise Zones
  Trains technical staff for business,
  Enterprise zones.
  Reduction in State corporate business tax.
  Training vouchers for new jobs.                           Kentucky Development Finance Authority
  Task force.                                               Mr. Roger Peterman
Description:                                                Executive Director, Industrial Development Division
  This Department recently completed a study entitled       Kentucky Commerce Cabinet
Strategy for the Eighties: High Technology Industrial De    Capital Plaza Tower
velopment, in which State officials concluded that Kansas   Frankfort, KY 40601
has the basic ingredients needed to compete in the arena    (502) 564-4554
of high-technology development, hut must now create         Date of establishment: 1%2
State level programs that show high-technology indus-       Annual State funding (millions): N/A
Appendix—Directory ofState High-Technology Strategies and Programs     q   35
              ———— ..——.——.—. .— — . .————.— —..— ... .———.— ——.

                  puter training in manufacturing industries. This commit-
                  tee will identify the skills needed in high-technology in-
                  dustries, and then develop a training program around
                  these needs.
                    The Upgrade Training Program, another project in this
                  department, is a program designed to retrain older work-
                  ers who do not have the skills to use new manufactur-
                  ing equipment.

                  Kentucky Enterprise Zones

                    The Governor’s Task Force on High-Technology,ap-
                  pointed to look at possible economic diversification in
                  a State that is dependent on the petrochemical industry ,
                  includes representatives from business, education, gov
                  ernment, and finance. Goals developed by the Task Force
                  include better capital markets, enhanced technology
                  transfer between university and business, and changes
                  in the tax structure to encourage the development of
                  technology-based industries. Other State development
                  goals include strengthening the State’s research and de-
                  velopment base, both public and private. The State de-
                  velopment strategy includes all forms of innovation and
                    Louisiana is looking forward to hosting the New
                  Orleans World Fair, which will emphasize high-technol-
ogy industrial development. The city of New Orleans,          bers of the business community. The Task Force will
too, is aggressively pursuing the development of high-        make recommendations to the Governor and the legis-
technology industries. This includes plans for a research     lature in April 1983.
park, changes in city ordinances, and location assistance
for new and expanding industry.                               National Business Division
Programs                                                      Mr. John Foltz
High-technology development                                   Director
  Louisiana Task Force on High-Technology                     National Business Division of the Department
                                                                of Commerce
Capital provision assistance
                                                              P.O. BOX 44185
  National Business Division                                  Baton Rouge, LA 70804
Labor/technical assistance                                    (504) 342-5370
  National Business Division                                  Date of establishment: 1972
General industrial development                                Annual State finding (millions): N/A
  National Business Division                                  Program type:
                                                                Capital provision assistance.
                                                                General industrial development.
                                                                Labor/technical assistance.
                                                              Program services:
Louisiana Task Force on High-Technology                         Enterprise zones.
                                                                Industrial revenue bonds.
Mr. Kevin Couhig                                                Technical training provided by State.
Project Coordinator-Task Force on
                                                                Subordinated loans.
                                                                Links industry with university resources.
Office of Commerce and Industry                                 Abatement of local property tax.
P.O. BOX 44185                                                  Assists in finding venture capital.
Baton Rouge, LA 70704                                           Task force.
(504) 342-5372                                                  State resources promotion.
Date of establishment: 1982                                     Information dissemination
Annual State funding (millions): N/A                          Description:
Program type:                                                    Louisiana has developed incentives for business devel-
  High-technology development.                                opment including property and building tax exemptions
Program services:                                             for up to 10 years; an Industrial Revenue Bond (IRB) fi-
  Task force.                                                 nancing program; and a training program which custom-
                                                              izes a program on a firm-by-firm basis. The State recent-
Ascription:                                                   ly began a new effort coordinating the efforts of the vo-
   This Task Force is considering the future of Louisiana’s   cational-technical schools with the skill requirements of
economy, emphasizing the potential instability in con-        industry. In addition, the State is looking for ways to
tinued State income reliance on the petrochemical in-         promote engineering and science skills.
dustry. The concerns of the Task Force include access            A small business division of this department provides
to risk capital, and the role educational resources play      loans and guaranteed loans; and some venture capital
in the development of high growth industry. It consists       is available through this office. This office also ad-
of university presidents and chancellors, the Commis-         ministers the State enterprise zones-two of the first four
sioner of Higher Education, State Legislators, and mem-       firms in these zones were high-technology manufacturers.
                                                    ——       ———-         . —

                                           Appendix—Directory of State High-Technology Strategies and Programs   q   37
—       . —           —.—.—.—..——..——

   Maine, whose economy is made up almost entirely of
small businesses, has recently struggled with a declining
demand for its major product: shoes and leather goods.
Its strategy for overall economic development includes
the creation of a loan guarantee program and a State-
chartered corporation to provide capital for new or ex-
panding industry. There has been limited support for the
technical education that may be needed to attract high-
technology industries, but the State enjoys the coopera-
tion of the university and private sectors in automating
the shoe industry and other traditional industries to
make production more efficient.
   The New Enterprise Institute, a private nonprofit group
associated with the University of Maine, has been in-
strumental in developing computer--assisted design and
manufacturing in the shoe industry, working on a firm-
by-firm basis to implement innovative production proc-
esses. In addition, this group helps find research and de-
velopment funds for further high-technology develop-
Capital provision assistance
    Maine Capital Corp.
General industrial development
    Business Assistance Division
    Maine Guarantee Authority

Business Assistance Division
Mr. Robert Hird
Director, Business Assistance Division
State Development Office
State House
Augusta, ME 04333
(207) 289-2656
Date of establishment: 1981
Annual State funding (millions): N/A
Program type:
    General industrial development
Program services:
    Training vouchers for new jobs.
    Tax–favorable business climate.
    Industrial revenue bonds.
  The Business Assistance Division of the State of Maine
works closely with industry in the State to encourage
economic development. The office caters to the needs
of small business which comprises a large proportion of
38 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

brella Program which issues bonds to provide loans and        Maryland High-Technology Roundtable
insurance, and 3) loans for building “shell” industrial
                                                              Mr. James Roberson
buildings. The program makes it possible for businesses
to acquire loans that would otherwise be beyond their
                                                              Department of Economic and Community
                                                              2525 Riva Rd.
                                                              Annapolis, MD 21401
                      Maryland                                (301) 269-3176
                                                              Date of establishment: 1982
  The Maryland High-Technology Roundtable, created
                                                              Annual State funding (millions): N/A
in 1982, advises the Governor and legislature on issues
such as financial support, technical education, industrial    Program type:
retraining, and engineering programs at Maryland’s uni-         High-technology development.
versities. Maryland already has eight State financing pro-    Program services:
grams for different types of businesses, including a ven-
ture capital program for new companies, and it aggressive-      Task force.
ly promotes the resources available to expanding indus-       Description:
try. There are plans to expand the existing Technology          The Maryland High-Technology Roundtable acts as
Extension Service throughout the State to encourage           an advisor and consultant to the Governor and State
product development and manufacturing innovation. In          legislature on significant issues in Maryland’s high-tech-
addition, several Maryland counties have launched suc-        nology environment. The Roundtable is comprised of de-
cessful high-technology programs of their own.                cisionmakers from high-technology businesses, financial
  The University of Maryland plays a leading role in the      institutions, professional organizations, public and private
State’s efforts to promote advanced research and high-        universities, and State and local government. Issues on
technology development. Its University Research Foun-         the Roundtable’s agenda include: the development of ex-
dation conducts technical research and assists businesses     cellence in State university engineering programs; the
in product and market development; the Center for Pro-        development of realistic industrial retraining programs;
ductivity and Quality of Working Life provides training,      the enhancement of technical education in primary and
technical assistance, and information to the public and       secondary schools; promote capital formation; set up
private sector; and the Engineering Research Center as-       committees on specific issues.
sists small business with technology-related product de-
velopment. In addition, the University has recently an-
nounced plans to establish a research park, the Maryland      Maryland Industrial Development
Science and Technology Center, to exploit its strengths
in computer science, engineering, and biomedical re-
                                                              Financing Authority
search.                                                       Mr. Oliver H. Fulton
Programs                                                      Executive Director
High-technology development
                                                              The World Trade Center, Suite 2244
  Maryland High-Technology Roundtable                         Baltimore, MD 21202
Capital provision assistance                                  (301) 659-4262
  Maryland Industrial Development Financing                   Date of establishment: 1%5
   Authority                                                  Annual State funding (millions): N/A
  Maryland Small Business Development Financing               Program type:
                                                                Capital provision assistance.
Labor/technical assistance
                                                              Program services:
  Maryland Industrial Training Program
  Technolog y Extension Service                                 Industrial revenue bonds.
                                                                Long-term, low-interest loans,
General industrial development                                  State resource promotion.
 Technology Extension Service                                   Loan guarantees.
                                             Append/x-D/rectory of State High-Technology Strategies and Programs        39

Description:                                                   Description:
 The Maryland Industrial Development Financing                  This program assists socially or economically disadvan-
Authority (MIDFA) approves issues, sells, and insures          taged businesspersons to obtain working capital needed
tax-exempt industrial revenue bonds through two major          to continue and complete a project under a Federal,
programs. Both programs assure low-interest, tax-exempt        State, or local government contract. Eligibility for loans
financing for loan recipients to finance land, buildings,      up to $150,000 per project requires that the applicant
and equipment. Because of the tax-exempt status, interest      be unable to obtain adequate business financing through
rates are lower than those available through conventional      normal lending channels. A second program admin-
lending markets. The two programs are the MIDFA Um-            istered by this office can guarantee up to 80 percent of
brella Program for capital provision to small businesses,      a loan, up to $500,000 made by a lender to a qualified
and the MIDFA Insurance Progam guaranteeing loans              applicant.
made to business.
                                                               Technology Extension Service
Maryland Industrial Training Program
                                                               Mr. Frank Moderachi
Mr. Ray Adcock                                                 Director, Technology Extension Service
Director                                                       University of Maryland College of Engineering
Department of Economic and Community                           Frostburg State College
  Development                                                  Frostburg, MD 21532
1748 Forest Dr.                                                (301) 689-2570
Annapolis, MD 21401                                            Date of establishment: 1978
(301) 269-2631                                                 Annual State funding (millions): $0.05
Date of establishment: N/A                                     Program type:
Annual State funding (millions): N/A
                                                                 Labor/technical assistance.
Program type                                                     General industrial development.
  Labor/technical assistance.                                  Program services:
Program services:                                                Product development assistance.
  Technical training provided by State.                          Patent searches.
Description:                                                     Links industry with university resources.
                                                                 Information dissemination.
  The Maryland Industrial Training Program offers cus-
tomized training on a firm-by-firm basis with special em-      Description:
phasis on new and expanding industries. The Program             This program was funded as a pilot program by the
offers skills training in high-technology areas such as com-   Appalachian Regional Commission in 1978, to help busi-
puters, electro-optics, and robotics.                          nesses with product development and innovation. The
                                                               Director reports the program has been quite successful
Maryland Small Business Development                            in helping firms to adopt new technologies, and in link-
Financing Authority                                            ing firms with university technical assistance. This pilot
                                                               program, which was considered a success, has been ex-
Mr. Stanley Tucker                                             tended statewide and will be funded by the State of Mary-
Executive Director                                             land.
The World Trade Center-401 E. Pratt St.
Baltimore, MD 21202
(301) 659-4270
Date of establishment: 1980
Annual State funding (millions): N/A                              Massachusetts is often cited as an example of the ben-
Program type:                                                  efits of high-technology development. It has been de-
                                                               scribed as having no outstanding natural resources, but
  Capital provision assistance.
                                                               it does have a well-trained technical labor force, excellent
Program services:                                              educational institutions, and a business community that
  Assists in finding venture capital.                          has consistently fostered investment in technological in-
40 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives
                                                                                 —       ——      --.—————

novation. Massachusetts boasts more venture capital           growth occupations. In addition, the corporation plans
companies than any other State except California.             to collect and disseminate information on employment
   State government initiatives include an aggressive         needs, and to conduct conferences and seminars. BSSC
training program for high-technology workers, tax incen-      will identify occupations that are in high demand, seek
tives for investments by insurance companies, and a tech-     out strong education and training organizations, and
nology park that is currently in the planning stage.          fund creative skill training programs by using State
Another initiative, the Massachusetts Technology De-          dollars to leverage financial assistance from the private
velopment Corp. (MTDC), was set up by the State to            sector. All of BSSC programs require active involvement
provide venture capital to otherwise overlooked ventures.     of the private sector.
MTDC has been highly successful in this role, and has
come to be a model for similar initiatives in many other      Massachusetts Industrial
States.                                                       Finance Agency (MIFA)
                                                              Mr. Robert E. Patterson
High-technology development
                                                              Executive Director
  Massachusetts Technology Development Corp.                  Massachusetts Industrial Finance Agency
High-technology education                                     125 Pearl St.
  Bay State Skills Corp.                                      Boston, MA 02110
                                                              (617) 451-2477
Capital provision assistance
                                                              Date of establishment: 1979
  Massachusetts Industrial Finance Agency
                                                              Annual State funding (millions): $100
  Massachusetts Technology Development Corp.
                                                              Program type:
Labor/technical assistance
                                                                Capital provision assistance.
  Bay State Skills Corp.
  Massachusetts Technology Park Corp.                         Program services:
                                                                Industrial revenue bonds.
                                                                Physical plant provision.
Bay State Skills Corp. (BSSC)                                 Description:
Ms. Susan K. Moulton                                            This agency was established to create jobs by stimulat-
Executive Director, Bay State Skills Corp.                    ing private investment. Since its inception, the agency
McCormack Office Bldg.                                        has helped 769 industrial and urban revitalization proj-
One Ashburton Place, Rm. 2110                                 ects to go forward, creating an estimated 40,000 new jobs.
Boston, MA 02108                                              The program provides low-cost capital for expansion
(617) 727-5431                                                through the Industrial Review Bond (IRB) program.
                                                              MIFA uses the IRBs for three types of development proj-
Date of establishment: 1981
                                                              ects—industrial companies , commercial projects, and
Annual State finding (millions): $5.0
                                                              pollution control facilities.
Program type:
  High-technology education.
  Labor/technical assistance.
                                                              Massachusetts Technology
                                                              Development Corp. (MTDC)
Program services:
  Information dissemination.                                  Mr. William F. Aikman
  Links industry with university resources.                   President      .
  Grants for training.                                        Massachusetts Technology Development Corp.
                                                              84 State St., Suite 500
Description:                                                  Boston, MA 02109
   BSSC encourages and facilitates cooperative relation-      (617) 723-4920
ships between business, labor, government, and educa-         Date of establishment: 1978
tion aiming to develop and expand programs of skills          Annual State funding (millions): $1.6
training consistent with employment needs. It also pro-
vides grants-in-aid to educational and training institu-      Program type:
tions making awards of over $5 million for conducting           Capital provision assistance.
skills training programs and education in a variety of          High-technology development.
                                                                                             — —

                                             Appendix—Directory of State High-Technology Strategies and Programs     q   41
—     —. . . . . -. — — .             —        -.     —. —        ———

Program services:                                                                    Michigan
    Assists in finding venture capital.
    Direct investment in startup.                                 Michigan is undertaking a comprehensive program to
    Investment in product development.                         stimulate the growth of new industries and bolster its
    Venture capital–royalty or stock rights.                   traditional industries. This strategy includes loan and
    Loan–debt.                                                 capital programs, training programs, a research and de-
    Equity loans.                                              velopment (R&D) fund, university-industry cooperative
    Market development assistance.                             programs, university research centers, and changes in
                                                               R&D tax laws. Legislation passed in 1982 made the
                                                               State’s public pension funds eligible for equity in-
   This Corporation—often the model for programs in            vestments in Michigan businesses. The focus is on tech-
other States—provides venture capital to new or small          nology-based, growth-oriented industries, with invest-
high-technology-based companies. MTDC also provides            ments generally taking the form of stock or convertible
information on labor and market development, product           debentures. Michigan banks have also set up Small Busi-
development assistance, and export promotion informa-          ness Innovation Centers in several cities, and a State
tion. It will coinvest with private funds. MTDC helps          agency has a program to help with small business devel-
new businesses or inventors achieve commercial success         opment.
by providing debt, equity or royalty agreement capital,           The new Governor has called for a study of how the
and assistance in finding venture capital from other           State’s education system is tied to overall economic de-
sources.                                                       velopment, and how improvements can be made to en-
                                                               hance overall economic development in the State. This
                                                               comes in part from the recognition that Michigan’s un-
                                                               employment problems, caused by permanent structural
Massachusetts Technology Park Corp.                            changes in automotive and related industries, can be
                                                               eased only by developing new industries like robotics.
Mr. Philip F. Holahan
                                                                  Government leaders also recognize that, if the State
Assistant Secretary and General Counsel
                                                               is planning to compete effectively for new jobs and eco-
Executive Office of Economic Affairs
                                                               nomic growth, there must be more cooperation between
One Ashburton Place, Rm. 2101
                                                               the private, public, and academic sectors. A new private
Boston, MA 02108
                                                               sector initiative in this area is the Economic Alliance for
(617) 727-8380
                                                               Michigan, a group of business and labor leaders that is
Date of establishment: 1982                                    investigating high-technology industry as a means of
Annual State finding (millions): $20                           bringing new jobs to the State and expanding employ-
Program type:                                                  ment in existing industries.
    Labor/technical assistance.                                Programs
Program services:                                              High-technology development
    Links industry with university resources.                    High-Technology Equity Loans
    Trains technical staff for business.                         High-Technology Resource Center
    Technical training provided by State.                        Industrial Technology Institute
    Physical plant provision.                                    Innovation Center
Description:                                                     Metropolitan Center for High-Technology
                                                                 Michigan High-Technology Development Corp.
  This public corporation encourages industry to locate,
                                                                 Molecular Biology Institute
develop, and expand within the Commonwealth by in-
creasing the capacity of postsecondary institutions to pro-    Capital provision assistance
vide state-of-the-art training in certain emerging areas of      High-Technology Equity Loans
science and technology. At present, the Corporation is           Michigan Economic Development Authority
designing a microelectronics center.                             Michigan Job Development Authority
42   q   Technology, Innovation, and Regional Economic Development:   Background        Paper-Census Of State Governmenf Initiatives

Labor/technical assistance                                               ment institutional venture capitalists into a company that
  Comprehensive Employment Program                                       would in turn make the direct equity purchases.
  High-Technology Resource Center
General industrial development
                                                                         High-Technology Resource Center
  Michigan Economic Development Authority                                Mr. Albert A. Bogdan
                                                                         Office of Economic Development, Michigan
Comprehensive Employment Program                                            Department of Commerce
                                                                         P.O. BOX 30225
Mr. Rob Fraser                                                           Lansing, MI 48909
Office of Industrial Training                                            (517) 373-35.30
Michigan Department of Labor                                             Date of establishment: 1982
309 N. Washington St.                                                    Annual State finding (millions): $0.15
Lansing, MI 48909
(517) 373-9180
                                                                         Program type:
Date of establishment: 1978                                                High-technology development.
                                                                           Labor/technical assistance.
Annual State funding (millions): $0.99
Program type:                                                            Program services:
  Labor/technical assistance.                                              Grants for research.
                                                                           Grants for development.
Program services:                                                          Assists in finding venture capital.
  Technical training provided by State.                                    Links industry with university resources.
  Links industry with university resources.                              Description:
  Technical support provided by State.
  Loans.                                                                   This Center administers the State Research Fund and
                                                                         provides assistance to entrepreneurs in obtaining Federal
Description:                                                             research and development grants. Also assists technol-
  This program designs and administers training pro-                     ogy-based firms obtain venture capital, prepare business
grams to meet the expressed labor needs of new and/or                    plans, and access technical assistance from Michigan
expanding businesses.                                                    universities.

High-Technology Equity Loans                                             Industrial Technology Institute (ITI)
Mr. Bill Amerman                                                         Dr. Arch Naylor
Director of Investments                                                  Director
Michigan Department of Treasury                                          Industrial Technology Institute
P.O. Box 15128                                                           2901 Baxter Rd.
Lansing, Ml 48901                                                        Ann Arbor, MI 48109
(517) 373-3140                                                           (313) 763-9273
Date of establishment: 1983                                              Date of establishment: 1981
Annual State funding (millions): $375 bond                               Annual State funding (millions): $2.75
Program type:                                                            Program type:
  Capital provision assistance,                                            High-technology development.
  High-technology development.                                           Program services:
Program services:                                                          Market development assistance.
  Equity loans.                                                            Links industry with university resources.
Description:                                                               Technical training provided by State.
  This program is not yet implemented, but will be a “set-              Description:
aside” for high-technology business provided in conjunc-                   ITI has been established to help the State capture an
tion with the State Pension Fund. It is likely that the                 increasing share of the growing computer-based automa-
initial investments for the pension fund as a venture cap-              tion and flexible automated manufacturing industries.
ital source will likely take place with other nongovern-                ITI will use Michigan’s higher education system, includ-
                                              Appendix—Directory of State High-Technology Strategies and Programs     q   43
                    —     —

ing community colleges, and work with the private sec-          ing, and retraining. Key program components include
tor to develop capabilities in advanced robotics research,      an Innovation Center, Incubation Center, and High-
applied research, and retraining programs necessary to          Technology Outreach Services.
integrate robotics into the workplace. Funding is ex-
pected to come from private foundations, private sector         Michigan Economic Development
individuals, and the State government.                          Authority (MEDA)
Innovation Center                                               Mr. William A. Schwartz
                                                                Executive Director
Mr. Don Smith                                                   Michigan Economic Development Authority
Institute of Science and Technology                             BOX 30234
University of Michigan                                          Lansing, MI 48909
2200 Bonisteel Blvd.                                            (517) 373-6378
Ann Arbor, MI                                                   Date of establishment: 1982
(313) 764-5260                                                  Annual State funding (millions): $10.0
Date of establishment: 1982                                     Program type:
Annual State finding (millions): $0.15
                                                                  Capital provision assistance.
Program type:                                                     General industrial development.
  High-technology development.                                  Program services:
Program services:                                                 Loan-debt.
  Technical assistance.                                           Bond issue to raise capital.
Description:                                                      Long term, low-interest loans.
                                                                  Grants for research.
 The main emphasis of this program is to help existing            Grants for development.
Michigan firms expand their manufacturing capacity into
new products and markets, utilizing emerging technol-           Description:
ogies. This demonstration project brings university              The Authority’s primary responsibility is to retain and
resources to the private sector.                                create jobs in Michigan. In addition it is to develop self-
                                                                sustaining enterprises and to promote diversification of
Metropolitan Center for High-Technology                         the economy of the State.
                                                                  MEDA provides necessary financial assistance to job
Dr. M. A. Rahimi                                                creating or job retaining projects capable of becoming
Metropolitan Center for High-Technology                         self-sustaining enterprises. It provides direct loans and
Wayne State University                                          loan insurance enabling projects to obtain funds on terms
2727 Second St.                                                 not otherwise available.
Detroit, MI 48201                                                 A separate responsibility of MEDA is to administer
(313) 577-4722                                                  grants to nonprofit research and development enterprises
Date of establishment: 1982                                     that perform research and development in present and
Annual State funding (millions): $0.50                          emerging technologies and the application of such tech-
                                                                nologies to business and industry.
Program type:
  High-technology development.                                  Michigan High-Technology
Program services:                                               Development Corp.
  Product development assistance.
  Technical training provided by State.                         Mr. Robert C. Law
Description:                                                    8623 N. Wayne Rd., Suite 200
   Wayne State University, with over $20 million of con-        Westland, MI 48185
tract research a year, will play a pivotal role in Michigan’s   (517) 373-3530
and particularly southeast Michigan’s plans to encourage        Date of establishment: 1982
development of technology-based industries. The Metro-          Annual State funding (millions): $0.150
politan Center for High Technology will provide research
and development capabilities, special incubator environ-        Program type:
ments, teaching and service capabilities, industrial train-       High-technology development.
44   q   Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government /initiatives

Program services:                                                  Program services:
  Task force.                                                        Links industry with university resources,
  State resources promotion (infrastructure).                        Grants for research.
Description:                                                       Description:
   This Corporation has the job of implementing the                   Originally formed by Governor Mil!iken’s Task Force
Michigan High-Technology Task Force recommenda--                   for High Technology Industry and located close to
tions. The Corporation is designed to devise, promote,             Michigan State University, the Molecular Biology Insti-
and implement plans to increase development and                    tute will be a biotechnology coordinating development
growth of technology-based businesses in Michigan. The             center spanning the entire State. Interuniversity projects
Corporation will coordinate all State, local, and regional         and university-industry collaboration will be emphasized
high-technology efforts.                                           with a strong orientation toward projects with potential
                                                                   for early commercialization. Building on Michigan’s
Michigan Job Development Authority                                 strong forest and agricultural resources, Biology Institute
                                                                   scientists are dedicated to the development of new bio-
Mr. William I. Cochran                                             products and processes from renewable resources. Ad-
Director                                                           vanced biotechnology techniques including recombinant
Michigan Department of Commerce                                    DNA, plant tissue culture, and immobilized enzymes are
P.O. Box 30227                                                     integral parts of the research and development program.
Lansing, MI 48909                                                  In addition, a project in protein design and function is
(517) 373-0349                                                     under development.
Date of establishment: 1978                                           A scientific advisory board is being assembled consist-
Annual State funding (millions): N/A                               ing of nationally recognized scientists in the field of bio-
Program type:                                                      technology. This group will help in the identification of
                                                                   new research opportunities and guide progress of indus-
  Capital provision assistance.
                                                                   try projects.
Program services:                                                     Institute startup funds were provided by the Kellogg
  Investment capital.                                              and Dow Foundations and a major grant has been pro-
Description:                                                       vided by the Michigan Economic Development Author-
                                                                   ity. The Molecular Biology Institute will favor Michigan-
   The Michigan Job Development Authority (JDA) of-                based commercialization of its research and expects to
fers direct loans and loan participation for financing in-         be self-supporting from industrial royalties and contracts
dustrial construction, but cannot finance startup busi-            after 8 years.
nesses or rescue failing businesses. Financing is available
for construction, acquisition, expansion, or rehabilita-
tion of industrial buildings, machinery, and equipment.
The Authority requires, however, that successful appli-                                 Minnesota
cant credit must be sufficient to attract revenue bond
                                                                     Minnesota is distinguished by the aggressive economic
buyers. In 1983, JDA will expand its services to commer-
                                                                  development efforts of its private sector and educational
cial, agricultural, solid waste disposal, and forestry
facilities.                                                       groups. Several firms and industry-labor-education coali-
                                                                  tions have set up programs to provide incentives for high-
                                                                  technolog y industrial development. Minnesota Well-
Molecular Biology Institute
                                                                  spring, chaired by the Governor, includes 28 repre-
Dr. Patrick Oriel                                                 sentatives from labor, business, agriculture, education,
Molecular Biology Institute                                       and government. Its goal is to mobilize statewide sup-
276 Bessey Hall                                                   port for new and better jobs, technological innovation,
Michigan State University                                         business growth, and changes in public policy. The Uni-
East Lansing, MI 48824                                            versity of Minnesota has created an agency for computer
(517) 355-2277                                                    literacy through local schools and community colleges.
                                                                  In 1983, the State Legislature is considering a Minnesota
Date of establishment: 1982
Annual State funding (millions): $1.0                             Challenge Grant Program to provide high-technology
                                                                  skills training.
Program type:                                                        In addition, several private sector groups in Minnesota
  High-technology development.                                    are working to promote high-technology development.
                                                    — —— ..— ——

                                          Appendix—Directory of State High-Technology Strategies and Programs     q   45

One of these is the Minnesota Information and Science       Corp., Control Data Corp., and 3M. This project pro-
Center (MISC), which is largely funded by four major        vides advice and technical assistance to high-technology
corporations but has a board of representatives from        projects on a contract basis, and uses technical staff from
government, education, and industry. MISC formulates        the universities in the State. In addition, money is avail-
broad policy recommendations, proposes strategies for       able as seed for matching grants in new research ideas
economic development, and designs training courses for      initiated by the university which will be joint projects
high-technology skills. This group plans to work closely    with industry. The assistance is generally not product
with other private sector groups such as the Minnesota      oriented, and the Center does not help new firms get
High-Technology Advisory Council, which is assessing        started. The Center will offer courses to help keep tech-
the technological needs and resources of the State, and     nical people current in their field.
the Minnesota Seed Capital Corp., which will provide
startup financing for new firms. Another large private      Minnesota Wellspring
sector initiative is the Business and Technology Center
in Minneapolis, sponsored by Control Data Corp., which      Ms. Donna Knight
provides incubator space and technical and management       Executive Director
assistance to help entrepreneurs develop new high-          Minnesota Wellspring
technology products and processes.                          101 Capital Sq.
                                                            St. Paul, MN 55101
                                                            (612) 296-4858
High-technology education
                                                            Date of establishment: 1981
  Microelectronics Information and Science Center           Annual State funding (millions): $0.35
Labor/technical assistance                                  Program type:
  Microelectronics Information and Science Center             General industrial development.
General industrial development                              Program services:
 Minnesota Wellspring                                         Information dissemination.
Microelectronics Information and                              This nonprofit corporation represents a collaborative
Science Center                                              effort among Minnesota business, labor, education, and
                                                            government. The State provides one-third of the program
Dr. Ted Davis                                               budget, with private sources supplying the rest. The mis-
Chairman, Department of Chemical Engineering                sion of the corporation is to increase the number of new
University of Minnesota                                     jobs in the State, and to expand the State’s technol-
421 Wash Ave., S.E.                                         ogy-based industry.
Minneapolis, MN 55455
(612) 373-2299
Date of establishment: 1982
Annual State funding (millions): $1.5                                            Mississippi
Program type:                                                 Mississippi has taken stock of its needs and made a
  High-technology education.                                major investment in education to enhance its future eco-
  Labor/technical assistance.                               nomic growth. This includes a financial investment in
Program services:                                           primary and secondary schools funded by a tax increase,
                                                            as well as reform of curriculum to reflect the increasing
 Grants available.
                                                            emphasis on science and mathematics in the Nation’s in-
 Grants for research.
                                                            dustrial sector. In addition, the State already has an ag-
 Grants for startup.
                                                            gressive high-technology training program customized to
 Grants for development.
                                                            the needs of a particular firm.
 Links industry with university resources.
                                                              Another State program is the Mississippi Research and
 Trains technicians for business.
                                                            Development Center (MRDC) which coordinates public
Description:                                                and private resources to promote technology transfer.
 This private sector effort has a small amount of State     MRDC’s Business Services Bureau and New Ventures
money through university funding. It has requested $1.5     Branch provide complete analyses of the commercial po-
million for 1983. Major private contributors are Sperry     tential of research projects, and they work closely with
46 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

industry to help with new product and process develop-        office surveying of high-technology firms to determine
ment. Both groups assist in preparing financial projec-       what the State can develop to attract these industries.
tions, finding sources of financing, locating sources of      In addition, with a view towards overall economic devel-
raw materials, determining manpower needs, and obtain-        opment, the Mississippi Legislature recently passed a $106
ing or licensing patents. The Mississippi Legislature         million initiative to improve public education.
recently passed a bill establishing enterprise zones and
high-technology zones for establishment of high-technol-      Mississippi Research and
ogy business and industry.                                    Development Center
                                                              Dr. Jim Meredith
High-technology development                                   Director
  Mississippi Research and Development Center                 Mississippi R&D Center
High-technology education                                     3825 Ridgewood Rd.
                                                              Jackson, MS 39211
  Vocational Education Program                                (601) 982-6606
Capital provision assistance                                  Date of establishment: 1964

  Small Business Loan Guarantee Program                       Annual State funding (millions): $4.2
Labor/technical assistance                                    Program type:
  Industrial Development Division                               High-technology development.
  Mississippi Research and Development Center                   Labor/technical assistance.
  Vocational Education Program                                Program services:
General industrial development                                  State resources promotion.
  Industrial Development Division                                Market development assistance.
  Small Business Loan Guarantee Program                          Information dissemination.
                                                                Product development assistance.
                                                                This Center coordinates industry and university re-
Industrial Development Division                               sources, to help with product and process development,
Mr. James Miller                                              and to transfer technologies from R&Q centers to indus-
Director                                                      try. The Center also provides organizational and opera-
Industrial Development Division                               tional services to small business, manufacturing opera-
P.O. Box 849                                                  tions, and new ventures.
Jackson, MS 39205
(601) 359-3439                                                Small Business Loan Guarantee Program
Date of establishment: N/A
Annual State funding (millions): N/A                          Mr. James Miller
Program type:                                                 Industrial Division
  Labor/technical assistance.                                 P.O. Box 849
  General industrial development.                             Jackson, MS 39205
Program services:                                             (601) 354-6700
  Industrial revenue bonds.                                   Date of establishment: 1977
  Tax–favorable business climate.                             Annual State funding (millions): $1.0
  State resources promotion (infrastructure).                 Program type:
  Information dissemination.
                                                                Capital provision assistance.
Description:                                                    General industrial development.
   This office, with five individuals who travel throughout   Program services:
the United States and two who travel internationally,           Loan guarantees.
contacts industries that might be interested in relocating
in Mississippi. The State offers financing under the Indus-   Description:
trial Revenue Bond program, and provides business tax           The State modeled this program on a Federal Small
incentives such as exemptions from property taxes. This       Business Administration program that guarantees loans
—      —                                                             . — — —              .——

                                         Appendix—Directory of State High-Technology Strategies and Programs        q   47
— . — —                              —-——— .—..———

for businesses creating new jobs. While not focused exclu-    for Undergraduate Science Education grants. Another
sively on high-tech firms, the program looks for com-         universit y program is the Office of Science and Tech-
panies that can expand and survive.                           nology, which has negotiated contracts for research with
                                                              local industry.
Vocational Education Program                                    In addition, the State has taken stock of the training
                                                              needs of workers displaced from traditional industry and
Mr. Elwin Wheat                                               developed a retraining program to teach new high-tech-
Vocational-Tech Division                                      nology skills. The State also provides funding for business
State Department of Education                                 development, tax incentives for new and expanding in-
P.O. Box 771                                                  dustries, and active local groups working on economic
Jackson, MS 39205                                             development.
(601) 359-3088                                                Programs
Date of establishment: N/A                                    High-technology development
Annual State funding (millions): N/A
                                                                University of Missouri-Office of Science and
Program type:
    High-technology education.
                                                              High--technology education
    Labor/technical assistance.
                                                                Higher Education Research and Applied
Program services:
                                                                 Projects Funds
    Trains technical staff for business.                        University of Missouri-Office of Science and
    Technical support provided by State.                         Technology
    Links industry with university resources.
                                                              Capital provision assistance
                                                                Higher Education Research and Applied
   This program provides labor for new and expanding              Projects Funds
industry and provides training for displaced workers by         Industrial Development Funding Act
funding up to 100 percent of new and upgrade training           Missouri Economic Development Commission
programs. The program accepts anyone who applies for
                                                              Labor/technical assistance
a job, and trains them to the level needed by industry.
It also helps workers who are not trained for a specific        High-Technology Skills for Auto Workers
position to find jobs. This program recently started a          University of Missouri-Office of Science and
series of three workshops in advanced technology skills.         Technology
The State maintains eight mobile industrial training units      Higher Education Research and Applied
that provide courses in computer-aided design, metal-            Projects Funds
working, and robotics.                                          Missouri Enterprise Zones
                                                              General industrial development
                                                                Industrial Development Funding Act
                                                                Missouri Economic Development Commission
                       Missouri                                 Missouri Tax Program for Business

  Missouri has developed an aggressive program to at-
tract, develop, and retain high-technology industry. This
program is largely dependent on the interaction, through
                                                              High-Technology Skills for Auto Workers
research funding, of university and industry in the State.
Much of the initiative for this program came from in-         Mr. J. H. Frappier
dustry, which saw the potential for high-technology prod-     Director
uct development in the basic research conducted at            Consumer Affairs, Regulation, and Licensing
Missouri universities.                                        P.O. Box 1156
   In 1982, the University of Missouri at Rolla began a       Jefferson City, MO 65102
computer-aided design and manufacturing (CAD/CAM)             (314) 751-3946
and robotics center to train engineering students in state-   Date of establishment: 1982
of-the-art manufacturing technologies. Seven Missouri         Annual State funding (millions): $18
and national firms have contributed funds and equip-
ment to the center, which also receives National Science      Program type:
Foundation (NSF) funds through Computer Assistance              Labor/technical assistance.
48 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives
                                                                        ——                            —
-—. ——.. -————. — -- -             ———.—— .

Program services:                                               State resources promotion.
                                                                Physical plant provision.
  Links industry with, university resources.
  Technical support provided by State.                        Description:
Description:                                                    The Missouri Division of Community and Economic
  This program represents a cooperative effort between        Development was established to enhance economic sta-
                                                              bility in the State. The Industrial Development Funding
General Motors and the State to retrain displaced auto-
                                                              Act program encourages businesses to locate in Missouri,
workers in new skills needed by automated manufactur-
                                                              expand existing facilities in the State, promote foreign
ing processes in automobile factories.
                                                              investment, and increase State imports. In addition, the
                                                              program offers low-interest loans for capital improvement
Higher Education Research and                                 needed to attract new industry. The program issues
Applied Projects Funds                                        bonds to help promote growth in diverse areas of industry
Mr. Mike McManis                                              and trade.
Missouri Department of Higher Education
600 Monroe St.
Jefferson City, MO 65102
(314) 751-2361
Date of establishment: 1982                                   Missouri Economic Development
Annual State funding (millions): $1,5                         Commission
Program type:                                                 Mr. Barry Jackson
  Capital provision assistance.                               Manager of Financing
  High-technology education.                                  Missouri Division of Community and Economic
  Labor/technical assistance.                                    Development
Program services:                                             P.O. Box 118
                                                              Jefferson City, MO 65102
  Grants for research.
                                                              (314) 751-3674
  Links industry with university resources.
  Grants for development.                                     Date of establishment: 1982
                                                              Annual State finding (millions): $0.700
                                                              Program type:
  This program offers challenge grants to Missouri col-
leges and universities for research and applied develop-        Capital provision assistance.
ment projects likely to stimulate private investment and        General industrial development.
create new jobs in high-technology areas.                     Program services:
                                                                Loan guarantees.
Industrial Development Funding Act                              Industrial revenue bonds.
                                                                State resources promotion.
Mr. Barry Jackson
                                                                Physical plant provision.
Manager of Financing
Missouri Division of Community and Economic                   Description:
   Development                                                  This Commission has the authority to pledge up to
P.O. Box 118                                                  $1 million from the State reserve to guarantee loans for
Jefferson City, MO 65102                                      projects that will generate new jobs and contribute to
(314) 751-2686                                                the economic well-being of the State, Approval also re-
Date of establishment: 1982                                   quires that the borrower can repay the loan, and the
Annual State funding (millions): $0.800                       properties financed are secured by a mortgage or deed
Program type:                                                 of trust. The commission can guarantee 90 percent of
                                                              the value of privately obtained loans, up to $1 million,
  Capital provision assistance.
                                                              which must be for machinery, equipment, and/or
  General industrial development.
Program services:                                               In addition, this office provides special services to small
  Industrial revenue bonds.                                   business through assistance in loan packaging for devel-
  Long-term,low-interest loans.                               opment using all sources of financial assistance.
.                                                                   - —                 .—               -—           .

                                                  Appendix-LW??ctory of State High-Technology Strategies and Programs 49
          —-—.—— .—— —-. . — — — ———           -—.—. .—— - ..- .—.—.——.

    Missouri Enterprise Zones                                                vestment. The credit allowed to an existing business
                                                                             employer is equal to $100 for each new job created
    Mr. Bob Simones                                                          and/or $100,000 of new investment. The credit al-
    Manager                                                                  lowed to a new employer is equal to $75 for each
    Missouri Division of Community and Economic                              new job created and/or $100,000 of new investment.
       Development                                                        2. The tax investment financing program rebates tax
    P.O. BOX 118                                                            funds to local community to repay Industrial Reve-
    Jefferson City, MO 65102                                                nue Bonds used for development.
    (314) 751-4849
    Date of establishment: 1982                                       University of Missouri—Office of
    Annual State funding (millions): N/A                              Science and Technology
    Program type:
                                                                      Dr. Thomas C. Collins
      Labor/technical assistance.                                     Associate Vice President for Academic Affairs
    Program services:                                                 University of Missouri
      Enterprise zones.                                               309 University Hall
      Training vouchers for new jobs,                                 Columbia, MO 65211
      Tax–favorable business climate.                                 (314) 882-4893
      Abatement of local property tax.                                Date of establishment: 1981
    Description:                                                      Annual State finding (millions): $0.1
      This legislative initiative authorizes tax credits to busi-     Program type:
    nesses that establish or expand business operations in an             High-technology development.
    enterprise zone and invests in capital or creates new jobs.           High-technology education.
    Firms locating in a zone would be eligible for an invest-             Labor/technical assistance.
    ment tax credit equal to 10 percent of the first $10,000          Program services:
    in investments, 5 percent of the next $90,000, and 2 per-
                                                                          Training provided b y the State.
    cent of the rest, up to $1,200 tax credit for each new
                                                                          Links industry with university resources.
    employee hired.
    Missouri Tax Program for Business                                   This program coordinates industry and university re-
                                                                      sources, to help with product and process development
    Mr.   John Kleindienst                                            in the manufacture and use of robotics, and to transfer
    Senior Research Associate                                         this technology from research and development centers
    Missouri Division of Community and Economic                       to industry. The Center has recently received a $250,000
       Development                                                    grant from the National Science Foundation for com-
    Capitol Bldg.                                                     puter-aided design and manufacturing training.
    Jefferson City, MO 65101
    (314) 751-3674
    Date of establishment: 1980
    Annual State funding (millions): N/A                                                     Montana
    Program type:                                                       As part of “Build Montana,” a general industrial de-
      General industrial development.                                 velopment campaign, the Governor recently convened
    Program services:                                                 an ad hoc Council of Technology to advise him on high-
                                                                      technology development in the State. The State boasts
      Tax—favorable business climate.
                                                                      an excellent living environment and low taxes as incen-
      Training vouchers for new jobs.
                                                                      tives for industrial business development. In addition,
    Description:                                                      the State is exploring the use of State resources to develop
      The Missouri tax program for business includes two              new technologies. The legislature is also considering a
    different packages-the Tax Relief Credit for New or Ex-           proposal to allow Montana’s Unified Investment Fund
    panded Business Facilities, and Missouri Tax Increment            to invest in State industry.
    Financing:                                                           The legislature also has before it a proposal to create
      1. The Relief Credit program offers tax credits for em-         a Council on Science and Technology, which would de-
         ployers who create new jobs and generate new in-             velop specific priorities in scientific, technical, and
50 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives
          . —                                                        —    .

engineering research for economic development purposes.       Industrial Development Division
The Council will have the ability to conduct specific
scientific and research projects which may be of use to       Ms. Dolores Wilson
high-technology firms in Montana. It may also have the        Industrial Analyst
ability to develop technology transfer mechanisms for         Industrial Development Division
licensing university-developed patents and disseminating      P.O. BOX 94666
technological and engineering information.                    Lincoln, NE 68509
                                                              (402) 471-3774
                                                              Date of establishment: N/A
General industrial development
                                                              Annual State funding (millions): N/A
 Montana Department of Commerce
                                                              Program type:
                                                                General industrial development.
                                                              Program services:
Montana Department of Commerce
                                                                Investment capital.
Mr. Gary Buchanan                                               Links industry with university resources.
Director                                                      Description:
Montana Department of Commerce                                  This office recently completed a study of State resources
1424 9th St.                                                  and future economic growth, considering the develop-
Helena, MT 59620                                              ment of high-technology industry in the State. As a
(406) 449-3494                                                result, it recommended a closer working relationship be-
Date of establishment: N/A                                    tween industry and the universities. In addition, the State
Annual State finding (millions): N/A                          plans to strengthen university research and development
Program type:                                                 capabilities, and to target specific industries whose growth
  General industrial development.                             in the State appears promising. In order to help new and
                                                              expanding business grow, the State provides funding for
Program services:                                             plant development through the Development Finance
  State resource promotion.                                   Fund. This office is also working closely with the Federal
  Tax.                                                        Small Business Innovation Program.
  Physical plant assistance.
  The State provides technical and management assist-                               Nebraska
ance in such areas as accounting, plant design, product
development, and marketing analysis. It provides assist-         The Governor plans to implement the recommenda-
ance through grants utilizing private consulting services     tions of a recently completed study on State resources
and the university systems’ teaching and research staffs.     in economic development. These include: promoting uni-
  In addition, to encourage economic development in           versity-industry relations; strengthening university re-
the State of Montana: -                                       search and development; and targeting certain high-
  q local governments may issue industrial revenue            growth industries for development in the State.
    bonds;                                                       The State Department of Economic Development ad-
  q local governments ma authorize a 50 percent prop-         vises individuals and firms on product development. This

    erty tax reduction for the first 5 years of a business’   is done in cooperation with the University of Nebraska’s
    operation; and                                            College of Engineering, which evaluates product ideas.
  q State government may authorize tax credits against        Discussions are currently underway to expand these ef-
    corporate income tax for jobs created. (This provi-       forts. The University’s Business Development Center also
    sion virtually eliminates corporate income taxes dur-     plans to assist small businesses with technical matters
    ing the first 3 years of operation for labor-intensive    relating to research grants under the Federal SBI Pro-
    firms.)                                                   gram.
                                                          .—             . — —               —

                                            Append/x-D/rectory of State High-Technology Strategies and Programs . 51
— — .                                       —..—-—-               — — - —             —-—.——-————

Programs                                                       against cuts in university funding and in favor of diver-
Labor/technical assistance                                     sifying the State’s industrial base, has indicated that he
                                                               will implement most of these recommendations.
  Patent Development Program
General   industrial   development
                                                               General   industrial   development
  Industrial Development Division
                                                                  Nevada Office of Economic Development

Patent Development Program                                     Nevada Office of Economic Development
Mr. Darrell Unman
Manager, Licensing and Patent Office
Nebraska Department: of Ecomonic Development
P.O. Box 94666
Lincoln, NE 68509
(402) 471-3786
Date of establishment: 1967
Annual State funding (millions}: N/A

Program type:
  Labor/technical assistance.
Program services:
  Patent searches.
  Grants available.
  Licensing assistance.
  The Nebraska Department of Economic Development’s
Patent Development Program is responsible for the ad-
ministration and commercialization of patents owned by
the State of Nebraska. Efforts in commercialization have
been particularly sucessful because the Department, as
part of its regular programs, also works closely with com-
panies interested in plant reloc ation and business expan-
sion opportunities.                                                                   New Hampshire
  Benefits to the State may accrue in the form of royalties
and/or licensing fees, new industrial locations, expanded         New Hampshire borders on eastern Massachusetts, a
employment and increased tax revenues. Moneys accru-           major growth center for high -technology industries, and
ing to the program are reiinvested in additional contract      it has received some of the benefit of proximity. The
research projects.                                             State’s economic development strategy encourges new
                                                               and expanding businesses, and several high-technology
                                                               companies have located branch plant in New Hamp-
                                                               shire to take advantage of its favorable tax structures and
                        Nevada                                 the availability of capital and skilled labor. The State
                                                               works closely with private business and universities
   ‘The Commission on Economic Diversification., ap-           through the nonprofit Center for New Hampshire's Fu-
pointed by the former Governor, recommended creating           ture, but to date there are no dedicated government pro-
a new public development organization—NEVADA                   grams to develop high-technology industry.
INC.–to assist new and expanding industries, with par-            The new Governor, himself an engineer and the found-
ticular emphasis on economic diversification. Other            er of a high-technology company, supports such develop-
Commission recommendations included tax exemptions             ment and places greatest emphasis on industry-university
for capital improvement and new equipment; State as-           partnerships, with the private sector taking the lead.
sistance to local governments for economic development;        However, he recently told his fellow governors that “We
and development of State education to promote technical        like all of you will plagiarize all the good ideas” that have
skilIs. The newly elected Governor, who campaigned             been developed in other States. He has also stressed the
52 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives
                                  —    —

need to define “high technology” more broadly, so as             Several high-technology bills have been introduced in
to include the delivery of health care and social services.   the legislature, including proposals to create a public
Programs                                                      foundation to assume the functions of the Commission,
                                                              and a public-private corporation to provide venture cap-
General industrial development
                                                              ital and technical assistance for high-technology entre-
  New Hampshire Department of Resources and                   preneurs. An earlier State initiative of this kind, the Of-
     Economic Development                                     fice for Promoting Technological Innovation (OPTI), suf-
                                                              fered from financial and design problems that will be cor-
New Hampshire Department of Resources                         rected in future initiatives.
                                                                 The State also has the advantage of a private, non-
and Economic Development                                      profit corporation, the Research and Development Coun-
Mr. George Gilman                                             cil of New Jersey, which makes policy recommendations
Commissioner                                                  in science and technology and promotes university/in-
Department of Resources and Economic Development              dustry relations in the high-technology field.
P.O. Box 856                                                  Programs
Concord, NH 03301                                             High-technology Development
(603) 271-2591
                                                                Governor’s Commission on Science and Technology
Date of establishment: N/A
Annual State finding (millions): N/A
Program type:                                                 Governor’s Commission on
  General industrial development.                             Science and Technology
Program services:                                             Mr. Edward Cohen
  Market development assistance.                              Executive Director
  Assists in finding venture capital.                         Governor’s Commission on Science and Technology
  Licensing information.                                      225 W. State St., CN 542
                                                              Trenton, NJ 08625
                                                              (609) 292-1970
  The department offers to business: a list of industrial
                                                              Date of establishment: 1982
location recommendations; documented labor analysis;
                                                              Annual State funding (millions): N/A
community and regional information; financial assist-
ance; market demand studies; commercial retail market         Program type:
statistics; and marketing assistance programs. In addition,     High-technology development.
six Vocational-Technical Colleges and the State Techni-       Program services:
cal Institute are located throughout the State to permit
high school graduates obtain advanced training and de-          Task force.
velop skills.                                                 Description:
  This department also supports the Industrial Develop-         The Governor of New Jersey created the Commission
ment Authority, which offers guaranteed loans and in-         on Science and Technology to develop a comprehensive
dustrial revenue bond financing. In addition, it refers       plan and make policy recommendations to foster a high-
businesses to financial sources in other State government     technology economy, especially where economic growth
offices and the private sector.                               and job creation are concerned. A primary objective is
                                                              to strengthen linkages between New Jersey’s industries
                                                              and universities for applied research, with government
                    New Jersey                                facilitating these relationships.

  New Jersey has recently set up a Commission on Sci-
ence and Technology to develop an overall strategy for
the development of high-technology industry in the                                New Mexico
State. The-Commission’s four task forces will identify
technologies to be targeted and mechanisms for mobiliz-         The Committee on Technical Excellence in New Mex-
ing the State’s considerable resources, including venture     ico, in its report on Enhancing New Mexico's Lea&-
capital, skilled labor, strong universities, and a private    ship in H&h- Technology lndustry Development, has
research base in pharmaceuticals and telecommunica-           recommended the promotion of a “Rio Grande Research
tions.                                                        Corridor,” the promotion of technical excellence at New
.                                                                                 . .—— -—. -—

                                                Appendix—Directory of State High-Technology Strategies and Programs    q   53

    Mexico’s universities, and the commercialization of de-       Economic Development Division
    sirable technologies by firms in the State.
       The new Governor has also called for the further de-       Mr. James Garvin
    velopment of centers of excellence in high-technology         Director
    fields and for strengthening university/industry cooper-      Economic Development Division
    ative ventures. State agencies have also- targeted high-      Bataan Bldg.
    technology industries in their general economic develop-      Santa Fe, NM 87503
    ment programs, and government officials are looking into      (505) 827-6026
    the development of venture capital and product develop-       Date of establishment: 1983
    ment agencies.                                                Annual State funding (millions): N/A
                                                                  Program type:
                                                                    High-technology development.
    High-technology development
                                                                  Program services:
      Department of Commerce and Industry
      Economic Development Division                                 Task force,
                                                                    State resources promotion (infrastructure).
    High-technology education
      Technology Programs at Albuquerque Technical
        Institute                                                   This department administers recommendations of the
                                                                  Governor’s Committee on Technical Excellence. It is cur-
    Labor/technical assistance                                    rently helping develop the Rio Grande Research Corri-
      Technology Programs at Albuquerque Technical                dor, promote focused areas of technical excellence at New
        Institute                                                 Mexico Universities, and encourage industrialization
                                                                  with desirable industries.

                                                                  Technology Programs at Albuquerque
    Department of Commerce and Industry                           Technical Institute
                                                                  Mr. Robert Dorak
    Mr. Russell Autry
                                                                  Chairman of Technology Programs
                                                                  Albuquerque Technical Vocational Institute
    Department of Commerce and Industry
                                                                  525 Buena Vista, S.E.
    State Capital Bldg.
                                                                  Albuquerque, NM 87106
    Santa Fe, NM 84501
                                                                  (505) 848-1400
    (505) 827-3008
                                                                  Date of establishment: 1979
    Date of establishment: N/A
                                                                  Annual State funding (millions): N/A
    Annual State funding (millions): N/A
                                                                  Program type:
    Program type:
                                                                    High-technology education.
      High-technology development.
                                                                    Labor/technical assistance.
    Program services:
                                                                  Program services:
      Task force.
                                                                    Labor assistance.
      Tax—favorable business climate.
                                                                    Technical support provided by State.
      Licensing assistance.
                                                                    Trains technical staff for business.
    Description:                                                  Description:
      This office administers the recommendations of the            This Institute has targeted several important technol-
    State Task Force on Technical Innovation and Excel-           ogies for developing the skills of students and industrial
    lence. In addition, it helps new and expanding industry       workers. The programs specialize in areas such as solar
    obtain licensing, train new workers, find plant locations,    power development and installation, computer program-
    help with mortgage financing and residential property         ing, robotics, and fiber optics. The courses offer train-
    location. In addition, one division works closely with        ing to young people in advanced technologies and retrain
    small businesses to help them become established.             displaced workers who wish to advance their careers.
54 . Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government Initiatives

                      New York                                Corp. for Innovation Development
                                                              Mr. John Defiggos
   The primary goal of New York’s high-technology de-
                                                              Deputy Executive Director for Operations
velopment strategy is to retain and expand the State’s
                                                              New York State Science and Technology Foundation
existing technology-related industrial base. The former
                                                              99 Washington Ave.
Governor designed comprehensive policies for advanc-
                                                              Albany, NY 12210
ing high-technology economic growth, as well as the con-
tinued development of the traditional industrial base.        (518) 474-4349
The new Governor is expected to continue this overall         Date of establishment: 1981
strategy. Its goals include improving the efficiency and      Annual State funding (millions): $1.1
productivity of the State’s existing industry and nurtur-     Program type:
ing the growth of small high-technology firms.
                                                                 Capital provision assistance.
   Overall, this State’s approach is considered more
                                                                 High-technology development.
sophisticated and rigorous than those of many other
States. The New York Science and Technology Foun-             Program services:
dation, reconstituted in 1981, coordinates efforts to           Loan–debt,
stimulate research and encourage technological innova-          Equity loans.
tion. Many of the initiatives launched by the Founda-           Subordinated loans.
tion have later been integrated with the programs of the        Stock or royalty rights.
Commerce and Education Departments.                             Investment capital.
   State officials report that there is strong support for      Market development assistance.
further high-technology development from the private            Product development assistance.
sector, including the State’s existing high-technology          Assists in finding venture capital.
firms, and from the university and educational systems.       Description:
One innovative program at SUNY Stony Brook is the
                                                                The New York Corp. for Innovation Development,
Center for Industrial Cooperation, which assists member
                                                              established within the Science and Technology Founda-
businesses in technology transfer, product and market
development, and research. The State also reports being       tion, provides financial assistance and technical services
successful in attracting venture capital and foreign in-      to innovative technology-based new business ventures/
                                                              startups. A special grant from the U.S. Department of
                                                              Commerce (EDA) funds this Corporation, which focuses
Programs                                                      on startup situations with no track record but with signif-
                                                              icant potential. The Corporation will generally invest be-
High-technology development
                                                              tween $50,000 and $100,000 but not more than $250,000.
  New York Science and Technology Foundation
  Corp. for Innovation Development                            New York Job Development Authority
Capital provision assistance
                                                              Mr. Robert T. Dormer
 Corp. for Innovation Development
 New York State Urban Development Corp.
                                                              New York Job Development Authority
 New York Job Development Authority
                                                              3 Park Ave., 34th Floor
Labor/technical assistance                                    New York,, NY 10016
 New York Job Development Authority                           (212) 578-4181
 New York Science and Technology Foundation                   Date of establishment: 1962
 New York State Department of Commerce                        Annual State funding (millions): Bond
General industrial development                                Program type:
 New York Job Development Authority                             Capital provision assistance.
 New York State Department of Commerce                          General industrial development.
 New York State Urban Development Corp.                         Labor/technical assistance.
                                            Appendix—Directory of State High-Technology Strategies and Programs   q   55

Program services:                                             encourage technological innovation; to diffuse benefits
  Bond issue to raise funds.                                  derived from new developments in science and technol-
  Low-interest loans.                                         ogy; and to strengthen the State’s leadership position as
                                                              a research and development center. The Foundation has
Description:                                                  six major program areas:
 The principal activity of the Job Development Author-          q Policy and Strategy Development-studies expansion

ity (JDA) is making business and industrial loans, tech-           possibilities;
nically described as “special purpose” loans. JDA func-         q Assistance and Services–develops special training

tions as a bank, making long-term, low-cost loans for real         programs;
estate, machinery, and equipment. It may lend up to 40          q Regional High Technology Development—encour-

percent of project costs in connection with construction,          ages locally formed high-technology councils;
acquisition, rehabilitation or improvement of industrial        q Research and Development-awards research and

or manufacturing plants, research and development facil-           development grants for university-based research
ities, or other eligible business facilities.                      with commercial application;
   JDA may also participate in financing the purchase of        q Centers for Advanced Technology Development–

machinery and equipment to be located and used within              grants to universities; and
the State. These loans may not be subordinate, but may          q Corp. for Innovation Development–see above.

cover up to 90 percent of machinery and equipment               The Foundation has targeted two technology areas
costs. JDA is set up to act as a catalyst for the invest-     which represent the greatest economic opportunity for
ment of private funds.                                        the State: electronics/information and medical/bio-
New York Science and Technology
                                                              New York State Department of Commerce
Mr. John Defiggos
Assistant Director                                            Mr. William J. Donohue
New York State Science and Technology Foundation              Commissioner
99 Washington Ave.                                            New York State Department of Commerce
Albany, NY 12210                                              99 Washington Ave.
(518) 474-4349                                                Albany, NY 12245
Date of establishment: 1982                                   (518) 474-4100
Annual State funding (millions): $1.4                         Date of establishment: N/A
Program type:                                                 Annual State funding (millions): $27
  High-technology development.                                Program type:
  Labor/technical assistance.                                   General industrial development.
Program services:                                               Labor/technical assistance.
  Information dissemination.                                  Program services:
  Market development assistance.                                State resource promotion.
  Assists in finding venture capital.                           Tax—favorable business climate.
  Grants for development.                                       Physical plant provision.
  Technical support provided by State.                          Information dissemination.
  Grants available.                                             Technical training provided by the State.
  Investment capital.                                         Description:
  Physical plant provision.
                                                                The Department of Commerce promotes domestic and
Description:                                                  international investment in New York State to create
  The purpose of this Foundation is to identify and shape     private sector jobs and to generate additional tax rev-
the “critical massing” of industrial, scientific, and aca-    enue. The Department works with new and expanding
demic talent and resources necessary to foster high-tech-     industry, imports and exports, and State infrastructure
nology industries in New York. A nine-member Board            to enhance the overall State economic welfare.
of Directors represents the private sector, with the Com-       In addition, this office administers the State tax pro-
missioners of Education and Commerce also serving. The        gram which includes the following: Job Incentive Pro-
mission of the Foundation is: to assume a central role        gram, Capital Investment Credit, Employment Incentive
in stimulating research and development; to support and       Credit, Research and Development Tax Credit, Small
 56 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government /initiatives

Business Tax Incentives, and Business Property Tax             attracting branch plants and relocating facilities, rather
Exemption.                                                     than encouraging the creation of new businesses.
                                                                 The Board of Science and Technology, chaired by the
 New York State Urban Development Corp.                        Governor, was established in 1963. It functions as a
                                                               “nerve center” connecting research institutions with State
 Mr. Donald Glickman                                           and local government agencies and with the private sec-
 Acting Chief Executive Officer and Vice President             tor. Working closely with the State university system,
 New York State Urban Development Corp.                        the Board has helped to encourage cooperative univer-
 1515 Broadway, 52nd Floor                                     sity-industry research and development. More recently,
New York, NY 10036                                             the Governor appointed a Science and Technology Task
 (212) 930-0200                                                Force in 1982, composed of Board members plus 15 lead-
 Date of establishment: 1968                                   ing citizens, to recommend policy in science and math-
Annual State finding (millions): $800 bond                     ematics education, research and higher education, and
Program type:                                                  technological innovation.
   Capital provision assistance.                               Programs
   General industrial development.                             High-technology development
Program services:                                               North Carolina Board of Science and Technology
   Bond issue to raise venture capital.                        High-technology education
   Product development assistance.                              Microelectronics Center of North Carolina
   Market development assistance.                               North Carolina Biotechnology Center
Description:                                                   General industrial development
   The Urban Development Corp. (UDC), a corporate               Division of Industrial Development
governmental agency of New York State, executes financ-
ing and development programs designed specifically to
help business and industry expand, modernize, or re-           Division of Industrial Development
locate and assists new companies coming into the State.
UDC has the power to purchase, lease, sell, and acquire        Mr. Alvah H. Ward, Jr.
property, apply for and administer grants, and issue tax-      Director, Division of Industrial Development
exempt revenue bonds. Working in partnership with pri-         North Carolina Department of Commerce
vate enterprises, UDC’s economic development programs          430 N. Salisbury St.
maximize private sector opportunities for growth and           Raleigh, NC 27611
stimulate investment in the economy of the State. Since        (919) 733-4151
its inception in 1976, UDC economic development pro-           Date of establishment: N/A
grams have generated $800 million worth of projects,           Annual State finding (millions): N/A
which have been completed or are presently under con-
                                                               Program type:
struction. UDC’s staff includes financial analysts, law-
yers, engineers, architects, and planners who can pro-            General industrial development.
vide technical services and expertise to accelerate and        Program services:
facilitate projects.                                              Market development assistance.
                                                                  Location assistance.
                  North Carolina
                                                                  This office offers many different services to help indus-
  The State of North Carolina is often looked to for lead-     try locate or relocate in the State. It provides: industrial
ership in the area of high-technology industrial develop-      information about State communities; business trends
ment. Starting with the North Carolina Board of Science        and market development possibilities; industrial location
and Technology and the Research Triangle Park, the             services; environmental services; labor availability serv-
State has become a model of government-industry-uni-           ices; and financial services such as finding capital for
versity cooperation to develop new technology-based in-        physical plant or product development. In addition, this
dustries. In addition, the State works aggressively to re-     office makes new industries aware of the tax and regula-
tain existing industry and attract new firms to the State.     tion structure, offers marketing services, and helps with
To date, in fact, the State has been more successful in        international trade, importing, and exporting.

                                              Appendix—Directory of State High-Technology Strategies and Programs “ 57

Microelectronics Center of                                      North Carolina Board of
North Carolina (MCNC)                                           Science and Technology
Dr. Donald Bielman                                              Dr. Quentin Lindsey
Director                                                        Science and Public Policy Adviser
Microelectronics Center of North Carolina                       Office of the Governor
P.O. Box 12889                                                  116 W. Jones St.
Research Triangle Park, NC 27709                                Raleigh, NC 27611
(919) 541-7286                                                  (919) 733-6500
Date of establishment: 1981                                     Date of establishment: 1979
Annual State funding (millions): $24.4                          Annual State funding (millions): $0.4 (1968 original
Program type:
  High-technology education.                                    Program type:
Program services:                                                 High-technology development.
                                                                Program services:
  Links industry with university resources.
                                                                  Links industry with university resources.
                                                                  State resource promotion.
   MCNC was created to help North Carolina’s univer-              Research and development.
sities educate students in fields related to microelectronics
by providing research and training facilities. MCNC is
a nonprofit coordinating body, helping five State univer-       Description:
sities work together in this area.
                                                                  The Board’s mission is to identify and support research
                                                                needs of public and private agencies, institutions and
North Carolina Biotechnology Center                             organizations, and to recommend policies, procedures,
Dr. Quentin Lindsey                                             organizational structures, and financial requirements that
Science and Public Policy Adviser                               will promote effective use of scientific and technological
Office of the Governor                                          resources in fulfilling research needs.
116 W. Jones St.                                                  The Board work plan is organized into programs, in-
Raleigh, NC 27611                                               cluding: R&D in North Carolina; Scientific Personnel,
(919) 733-6500                                                  Equipment and Facilities; Institutional Support for Eco-
Date of establishment: 1981
                                                                nomic Development; Environmental Management; Hu-
Annual State funding (millions): $0.1                           man Resources Development; Local Government-Related
                                                                Research; Public Understanding of Science; Small Grants
Program type:                                                   Program; and Exploration of New Fields. Each program
  High-technology education.                                    is implemented through specific projects, sponsored by
Program services:                                               the Board and generally carried out through joint effort
                                                                by research institutions and government finding.
   Links industry with university resources.
                                                                  The Board consists of seven members from the public
Description:                                                    sector, six from the university sector, and two from the
  The North Carolina Biotechnology Center conducts              private sector, with the Governor acting as Chair. The
research and development in biotechnology. The Center           Board is divided into committees that guide particular
acts as a State cooperative effort to experiment and “learn     activities pertaining to the need and/or use of scientific
by doing.” The Center plans: to stimulate further devel-        resources in relation to the following objectives: strength-
opment of North Carolina’s interdisciplinary research           ening science and technology base, improving public
community; to facilitate mutually beneficial collabora-         understanding of science, forming policy, assisting State
tion between industry and universities; and to stimulate        agencies and local governments, and assisting private in-
the biotechnology industry in the State.                        dustries and institutions.
58 q Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

                   North Dakota                               Economic Development Commission
  The State government provides numerous incentives           Mr. David Torkelson
for general industrial development, and the Governor          Chief Research Analyst
places particular emphasis on the need to create challeng-    Economic Development Commission
ing jobs in the State. As one official put it, “North         1050 E. Interstate Ave.
Dakota’s largest export is its young people.” The State       Bismark, ND 58501
provides a tax package favorable to business development      (701) 224-4190
and offers labor training for new and expanding industry.     Date of establishment: N/A
  The private sector has joined with the universities to      Annual State funding (millions): N/A
set up an “Industry North Dakota” program, which will         Program type:
take inventions by citizens to the universities for devel-
opment. North Dakota also boasts the only wholly State-          General industrial development.
owned and State-operated bank in the Nation, estab-           Program services:
lished in 1919 to encourage industry, commerce, and agri-        Tax—favorable business climate.
culture. Most of the bank’s financial assistance is cur-         Link industry with university resources.
rently provided to the agricultural community, but there         Reduction in State corporate business tax.
is a new “Beginning Businessman’s Program” that will             State resources promotion (infrastructure).
finance up to 60 percent of a new business, in hopes of          Technical training provided by State.
encouraging growth in technology-based industries.               Abatement of local property tax.
Programs                                                      Description:
Capital provision assistance                                     This office develops industrial possibilities for the State.
 Bank of North Dakota                                         It aims to increase the amount of science and math taught
General industrial development                                in schools, help upgrade engineering taught in the State
                                                              universities, provide tax incentives for business, and help
  Economic Development Commission                             businesses locate in the State.

Bank of North Dakota                                                                     Ohio
Mr. Herb Throndall
                                                                 In 1982, as part of a high-technology development strat-
Bank of North Dakota
                                                              egy, the Ohio Legislature created the Industrial Tech-
P.O. Box 1657                                                 nology and Enterprise Board to make recommendations
Bismark, ND 58502
                                                              to the Governor about industrial development. This
(701) 224-5600
                                                              Board will also work closely with the Ohio Development
                                                              Financing Commission (ODFC) to provide capital and
Date of establishment: 1919                                   product development assistance to new and expanding
Annual State finding (millions): N/A                          industry in the State. The Governor plans to implement
Program type:                                                 other changes designed to encourage high-technology de-
  Capital provision assistance.                               velopment in a State that must cope with both high un-
                                                              employment and a changing industrial base.
Program services:
                                                                The State has enacted enterprise zone legislation to en-
  Loans.                                                      courage development in underdeveloped areas; the zones
  Loans guaranteed.                                           will be administered on the local level. Active local ini-
Description:                                                  tiatives are already under way in several cities, including
  This bank, the only State-owned and operated bank           Columbus, Cleveland, and Toledo.
in the Nation, has a special program for small and new        Programs
businesses called the “Beginning Businessman’s Program,”      High-technology development
which pays up to 60 percent of startup costs for a new
                                                                 Industrial Technology and Enterprise Board of ODFC
venture. In addition, the bank guarantees loans, provides
funding for physical plant acquisition and improvement,       Capital provision assistance
and helps businesses relocate into the State. According          Economic Development Financing Program
to State information, this program has helped many types         Industrial Technology and Enterprise Board of ODFC
of small business.                                               Ohio Development Financing Commission
                                              Appendix-Dkectory of State High-Technology Strategies and Programs 59

General industrial development                                 Program type:
 Ohio Development Financing Commission                            Capital provision assistance.
 Ohio Enterprise Zones                                            High-technology development.
                                                               Program services:
Economic Development                                              Venture capital provision assistance.
Financing Program                                                 Direct investment in startup.
                                                                  Loan-stock or royalty rights.
Ms. Mary Beardan                                                  Loan-equity.
Loan Officer, Special Services                                    Links industry with university resources.
Department of Development                                      Description:
P.O. Box 1001
Columbus, OH 43216                                               The Industrial Technology and Enterprise Board
(614) 466-7784                                                 (ITEB) of the Ohio Development Financing Commission
                                                               (ODFC) administers two grant programs: 1) the Develop-
Date of establishment: 1980
                                                               ment Grant program, and 2) the Resources programs.
Annual State funding (millions): $70 bond                      Modeled after the Massachusetts Technology Develop-
Program type:                                                  ment Corp., this program was set up to support the
  Capital provision assistance.                                growth of high-technology firms, and to encourage en--
Program services:                                              hanced university/industry cooperation. This program
                                                               has just been established; a request for $10 million in
  Long-term, low-interest loans.                               operating funds has been made of the 1983 Ohio Legis-
  Bond issue to raise capital.                                 lature.
  Loans.                                                          1. The ITEB Development Grant Program will furnish
Description:                                                        capital to small- and medium-sized innovative firms
  This corporation was created by legislative mandate               whose projects will benefit the State by creating jobs
to provide direct loan assistance and guarantees to Ohio            and promoting the development of new technol-
companies that want to expand their facilities and in so            ogies.
doing provide new jobs or preserve existing ones. Fund-          2. The Resources Program is designed to investigate
ing for this program is obtained by designating 15 per-             and assist the implementation of programs and proj-
cent of liquor profits, to retire original bond debt. The           ects that could enhance cooperative university/
types of assistance available are: I) State guarantees which        industry relations in Ohio.
would provide for repayment of up to 90 percent of the
unpaid principal amount of a project loan upon default;
and 2) direct loans, at favorable rates, of up to 75 per-      Ohio Development Financing Commission
cent of project cost. In order to be eligible, the proposed
project must be located in an “economic needs” area of         Mr. Louis Kuhman
the State, must be financially sound, adequately secured,      Director, Ohio Development Financing Commission
and the applicant must be unable to obtain necessary           P.O. Box 1001
financial assistance at comparable terms through ordi-         30 East Broad St.
nary financial channels.                                       Columbus, OH 43216
                                                               (614) 466-5420
Industrial Technology and Enterprise                           Date of establishment: 1963
Board of ODFC                                                  Annual State funding (millions): $7
                                                               Program type:
Mr. Steve Holtzman
Director, Industrial Technology and Enterprise Board             Capital provision assistance.
Ohio Development Financing Commission                            General industrial development.
P.O. Box 1001, 30 E. Broad St.                                 Program services:
Columbus, OH 43216                                               Industrial revenue bonds.
(614) 466-5420                                                   Long-term, low-interest loans.
Date of establishment: 1982                                      Subordinated loans.
Annual State finding (millions): $0.15                           Loans guaranteed.
60   q   Technology, Innovation, and Regional Economic Development: Background Paper—Census of State Government Initiatives

Description:                                                                               Oklahoma
  The Ohio Development Financing Commission
(ODFC) operates three industrial financing programs:                   Oklahoma has a two-part plan to attract and retain
1) Direct Loans; 2) Economic Development Revenue                     industry in the State: 1) create subdivisions that can in-
Bonds; and 3) Guaranteed Loans. Since its inception in               dependently develop infrastructure or change local or-
1965, OFDC has helped finance more than a quarter                    dinances to attract specific kinds of industry; and 2) pro-
billion dollars of projects.                                         vide a customized training program for industry. How-
  1. Direct Loans. -This program is designed to lend up              ever, there are at present no State programs specifically
     to 30 percent of the total cost of land and buildings           targeted on high-technology development.
     for an industrial project. ODFC attempts to target                The State has a strong program in vocational/technical
     direct loan funds into what they term “future-ori-              training, and the government works closely with the pri-
     ented” industries.                                              vate sector in economic development, with strong input
  2. Economic Development Revenue Bonds –This pro-                   from labor. An example of this is the privately funded
         gram allows the State to finance up to 100 percent          Oklahoma Productivity Center at Oklahoma State Uni-
         of the fixed assets of a project at an interest rate usu-   versity, which serves as a resource for worker involve-
         ally 3 percent below the conventional rate. The             ment in decisionmaking and innovation. Another non-
         funds from the bond issue may be used for land,             profit organization is the Industrial Research and Devel-
         building and certain equipment as well as profession-       opment Center, which develops innovations of economic
         al costs such as attorney, architect, and underwriting      benefit to rural parts of the State.
         fees.                                                       Programs
  3. Guaranteed Loans. -This program authorizes the                  General industrial development
     State to use the Ohio “unclaimed funds” to insure
     payment of first mortgage loans made by lending in-               Oklahoma Department of Economic Development
     stitutions to an expanding company. This guarantee
     allows a company to obtain a loan which would                   Oklahoma Departmentof
     otherwise be difficult to obtain.                               Economic Development
  ODFC also operates a financial clearinghouse service
to identify potential capital sources for expanding busi-            Mr. Eastal Hart
nesses throughout the State.                                         Director
                                                                     Department of Economic Development
Ohio Enterprise Zones                                                P.O. Box 53242
                                                                     Oklahoma City, OK 73152
Mr. Larry Blake                                                      (405) 521-2401
Director                                                             Date of establishment: 1955
Department of Development, Special Services                          Annual State funding (millions): $2.1
P.O. Box 1001
                                                                     Program type:
Columbus, OH 43216
(614) 466-7784                                                         General industrial development.
Date of establishment: 1982                                          Program services:
Annual State funding (millions): N/A                                   Labor assistance.
Program type:                                                          State resources promotion (infrastructure).
                                                                       Information dissemination.
  General industrial development.
                                                                       Tax–favorable business climate
Program services:
  Enterprise zones.
  Training vouchers for new jobs.                                      This office is working closely with political subdivisions
                                                                     in the State to develop infrastructure and train labor to
  Tax—favorable business climate.
                                                                     attract industry.
Description:                                                           The State reports a favorable tax climate for business,
  This Enterprise Zone program is a cooperative venture              claiming a corporate tax rate of “only 4 percent. ” Other
of local and State government, in which the State defines            tax incentives for industry include industrial exemptions
an enterprise zone in local areas in need of industrial              from retail, sales, and use taxes, and a constitutionally
development. The local area grants some real estate or               limited property assessment. Oklahoma has 100 percent
personal property tax deductions relating to the creation            industrial revenue bond financing available for land,
of jobs, wages to unemployed, or day care expenses.                  buildings, and equipment.
                                           Append/x-Directory of State High-Technology Strategies and Programs . 61

                       Oregon                                ment Recovery Plan and the Oregon Economic Growth
                                                             Plan which are designed to diversify its industrial bases.
  Oregon has a well-established industrial base in elec-     Both plans recommend a variety of action that will assist
tronics and has attracted a considerable amount of high-     and encourage all areas of industrial growth. The Eco-
technology development, partly due to its proximity to       nomic and Employment Recovery Plan would create a
California. High-technology growth, centered primarily       computerized inventory of all industrial land statewide,
in the Portland area, has thus far taken place without       and establish a revolving loan program to help counties
significant direct State assistance.                         provide public services for business development. The
  The Governor has appointed an Economic Develop-            Oregon Economic Growth Plan contains over 30 separate
ment Action Council to plan changes in the State ap-         projects such as improving State permit procedures, co-
proach to growth, with the goal of attracting high-tech-     ordinating educational offerings with industry needs, and
nology industry. The Economic and Employment Recov-          encouraging international trade activities.
ery Plan and the Orgeon Economic Growth Plan are two           Special training programs are offered by the Oregon
parts of Governor’s strategy to enhance economic devel-      Community Colleges, and others. Generally, these pro-
opment in the State. These plans include a computer-         grams are tailored to meet the needs of a particular indus-
ized inventory of all industrial land in the State; State    try. On the university level, several of these programs are
technical assistance to the business community; and a        aimed at high-technology skills development.
revolving loan fund to provide the infrastructure neces-       In addition to these efforts, the State has put together
sary for industrial development.                             a list of high-technology firms located in the State to at-
Programs                                                     tract other firms to the State.
General industrial development
  Economic Development Department                                                Pennsylvania
                                                               Pennsylvania reports a major initiative to advance tech-
Economic Development Department
                                                             nology development and promote future economic
Mr. Peter Tryon                                              growth in the State. The key to this effort is a plan to
Development Specialist                                       diversify the State’s economy away from its traditional
Economic Development Department                              reliance on basic manufacturing and resource-based in-
155 Cottage St., N.W.                                        dustry, and thus to minimize unemployment resulting
Salem, OR 97310                                              from the economic troubles of older industries. In addi-
(503) 373-1200                                               tion, State planners are looking toward advanced pro-
Date of establishment: N/A                                   duction technologies to improve efficiency, productivi-
Annual State funding (millions): N/A                         ty, and profitability in traditional sectors.
                                                               The Governor, along with the State Department of
Program type:                                                Commerce, has proposed a four-part plan to promote
  Capital provision assistance.                              high-technology development:
  General industrial development.                               1. increase capital and financing available to advanced
  Labor/technical assistance.                                      technology industries;
Program services:                                               2. provide technical assistance to new and expanding
                                                                3. enhance labor skills; and
  Industrial revenue bonds.
                                                               4. promote the expansion of high-technology markets.
  Abatement of local property tax.
  Tax—favorable business climate.
                                                               The State has begun to pursue this strategy by setting
                                                             up new high-technology programs and assisting busi-
  State resources promotion (infrastructure).
  Task force.
                                                             nesses through existing programs. Dedicated programs
  Assists in finding venture capital.
                                                             include: funding technology innovation centers; targeting
                                                             State economic assistance to technology-based firms; and
  Licensing assistance.
                                                             increasing marketing and recruiting of high-technology
Description:                                                 firms. The State Department of Commerce has targeted
  Although there is no dedicated high-technology devel-      27 industry groups for special attention from State agen-
opment program operated by the State, the State govern-      cies. In addition, the State is working closely with the
ment has encouraged the growth of the high-technology        education sector at all levels to enhance math, science,
sector. The State has prepared an Economic and Employ-       and technical education in the State.
62 c Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Programs                                                      be matched on a one-to-one basis by the private sector
High-technology development                                   and higher education. This Challenge grant program will
                                                              create regional Advanced Technology Centers. These
  Ben Franklin Partnership Fund                               centers, which will be designated by the end of February,
  Pennsylvania Industrial Development Authority               will focus on joint research and development, education,
High-technology education                                     and training and entrepreneurial development.
  Pennsylvania School for the Sciences                          In addition, the Board has $350,000 available this year
                                                              for the funding of miniresearch and development
Capital provision assistance
  Ben Franklin Partnership Fund
Labor/technical assistance                                    MILRITE Council (“Making Industry and
  MILRITE Council (“Making Industr y and Labor Right          Labor Right in Today’s Economy”)
    in Today’s Economy”)
                                                              Mr. Gregg Robertson
                                                              Executive Director
General industrial development                                MILRITE Council
  MILRITE Council                                             513 Finance Bldg.
  Pennsylvania Industrial Development Authority               Harrisburg, PA 17120
  PENNTAP                                                     (717) 783-7408
                                                              Date of establishment: 1979
Ben Franklin Partnership Fund                                 Annual State funding (millions): $0.21
                                                              Program type:
Mr. William J. Cook
Director, Bureau of Technological Development                   General industrial development.
Department of Commerce                                          Labor/technical assistance.
462 Forum Bldg.                                               Program services:
Harrisburg, PA 17120                                            Task force.
(717) 787-4147                                                  Labor.
Date of establishment: 1982                                   Description:
Annual State finding (millions): $1.35
                                                                 The Pennsylvania MILRITE Council is an independent
Program type:                                                 State economic development agency, created to seek solu-
  Capital provision assistance.                               tions to Pennsylvania’s economic problems through the
  High-technology development.                                cooperative efforts of business, labor, and government.
Program services:                                             Its board has 15 members-five each from business, labor,
                                                              and government. The Council has undertaken a program
  Grants available.
                                                              to create a venture capital limited partnership that will
  Grants for research.
                                                              be capitalized with public and private pension funds.
  Grants for development.
  Links industr y with universit y resources.
  Product development assistance.                             PENNTAP
  Assists in finding venture capital.                         Mr. Paul Houck
Description:                                                  Information Coordinator
   This partnership of government, business, and educa-       Pennsylvania Technical Assistance Program
tion would provide $1 million in seed money to stimulate      J. Orvis Keller Bldg.
Pennsylvania research, development, and training in ad-       University Park, PA 16802
vanced technology industries through the Pennsylvania         (814) 865-0427
Science and Engineering Foundation (which has recentl y       Date of establishment: 1965
been reactivated). The Partnership will link resources and    Annual State finding (millions): $0.15
skills in the public, private, and academic sectors to ex-    Program type:
pand and encourage the development of scientific and
                                                                General industrial development.
technological education, research, and innovation in the
                                                                Labor/technical assistance.
   Governor Thornburgh has requested for the 1982-83          Program services:
budget year that funding be increased to $10 million, to        Links industry with university resources.
                                             Appendix—Directory of State High-Technology Strategies and Programs      q   63

  Technical support provided by State.                         advanced technology industries. Since 1980, the amount
  Market development assistance.                               of PIDA loans to advanced technology industries has
  Technical training provided by State.                        steadily increased.
  Trains technical staff for business.
  Information dissemination.                                   Pennsylvania School for the Sciences
Description:                                                   Mr. John McDermott
  The Pennsylvania Technical Assistance Program                Director, Pennsylvania School for the Sciences
(PENNTAP) offers access to technical information and           Pennsylvania Department of Education
assistance for State business, encouraging economic            333 Market St.
growth. It services primary technology-transfer and tech-      Harrisburg, PA 17108
nical assistance for small business. PENNTAP acts as a         (717) 783--6598
“technology middleman” by helping firms with technical         Date of establishment: 1982
problems access technology resources that can produce          Annual State funding (millions): $0.1
answers and solutions. The Advisory Council consists
of 15 executives from the private sector who help guide        Program type:
and plan program activities.                                     High-technology education.
                                                               Program services:
Pennsylvania Industrial                                          Links industry with university resources.
Development Authority                                            State resource promotion.
Mr. Gerald Kapp                                                Description:
Director                                                         This program offers summer school courses in math
Pennsylvania Department of Commerce                            and science for students interested in high-technology
405 Forum Bldg.                                                careers. A number of students took advantage of this pro-
Harrisburg, PA 17120                                           gram in 1982, and the program will continue in the
(717) 787-6245                                                 future.
Date of establishment: 1956
Annual State finding (millions): $15
Program type:                                                                      Puerto Rico
  General industrial development.
  High-technology development.                                   The Governor has recently introduced a bill in the
                                                               Puerto Rican Legislature which would extend to research
Program services:                                              and development companies the same package of tax ex-
  Physical plant provision.                                    emptions currently enjoyed by qualifying manufactur-
Description:                                                   ing firms. This is just one part of an aggressive industrial
                                                               development strategy that includes several programs for
  The Pennsylvania Industrial Development Authority
                                                               encouraging high-technology growth. The Common-
(PIDA) was created in 1956 to stimulate acquisition and
                                                               wealth’s Economic Development Administration offers
construction of industrial buildings to increase employ-
                                                               training, research grants, and labor analysis for high-
ment in the State. It participates in three kinds of proj-
                                                               technology firms. The education sector supports high-
ects: industrial development projects; industrial park proj-
                                                               technology development through the Center for Engi-
ects; and multiple tenancy building projects.
                                                               neering Research, which provides product and market
  The authorizing legislation allows PIDA to make loans
                                                               development assistance to new and expanding firms. The
for projects in “critical economic areas,” designated based
                                                               University of Puerto Rico is also the home of the Center
on unemployment statistics. The percentage of costs
                                                               for Energy and Environmental Research, which is coor-
PIDA will finance depends on the area of the develop-
                                                               dinated by the U.S. Department of Energy.
ment and the nature and size of the buyer or tenant.
PIDA also generally requires participation by an individ-      Programs
ual development agency.                                        Capital provision assistance
  For small businesses, a new emphasis in the Agency,            Government Development Bank
PIDA can provide as much as 70 percent of financing
for eligible projects.                                         Labor/technical assistance
  In addition, the PIDA Board recently approved a new            Economic Development Administration
policy earmarking 25 percent of its annual cash flow to          Electronics Industry Centers
64 . Technology, Innovation, and Regional Economic Development: Background Paper-Census of State Government /initiatives

General industrial development                                 Electronics Industry Centers
  Economic Development Administration                          Mr. Luis Diaz Gandia
  Government Development Bank                                  Director
                                                               Economic Development Administration
                                                               P.O. Box 6419
Economic Development Administration                            Caguas, PR 00626
                                                               (809) 833-2955
Mr. Jose R. Madera
                                                               Date of establishment: 1981
                                                               Annual State funding (millions): $2.7
Economic Development Administration
G.P.O. Box 2350                                                Program type:
San Juan, PR 00936                                               Labor/technical assistance.
(809) 758-4747                                                 Program services:
Date of establishment: 1950                                      Technical training provided by the State.
Annual State finding (millions): $17.2
Program type:
                                                                 The main thrust of the two Electronics Industry
   General industrial development.                             Centers is a specialized, intensive, 38-week training pro-
   Labor/technical assistance.                                 gram, leading to a certificate in digital electronics and
Program services:                                              computer techniques.
   Tax—favorable business climate.                               The Economic Development Administration, jointly
   Reduction in State corporate business tax.                  with the Puerto Rico Industrial Development Co.
   Training provided by the State.                             (PRIDCO) created the Electronics Industry Center.
   Location assistance.                                        PRIDCO provides funding for the facilities and equip-
                                                                 Personnel, books, and expenditures are paid from local-
   The Economic Development Administration (EDA) is            ly generated funds of the Puerto Rico Department of
the agency responsible for the expansion of manufactur-        Labor and Human Resources.
ing activity in the Island. Besides monitoring performance
of the economy and conducting economic research proj-          Government Development Bank
ects of immediate interest, EDA actively promotes the
development of new manufacturing plants and industries         Mr. Julio Pietrantoni
in Puerto Rico.                                                President
   The industrial training section of the EDA offers           Government Development Bank
specialized services to manufacturers in the identification,   Box 32001, Minillas Station
study, implementation, and evaluation of training pro-         Santurce, PR 00940
grams for technicians, supervisors, and production work-       (809) 726-2525
ers in advanced job skills, It also advises manufacturers      Date of establishment: 1942
on the organization, time requirements, and training           Annual State funding (millions): N/A
costs for necessary personnel.
   EDA offers scholarships in managerial, scientific, and      Program type:
technical areas.                                                 Capital provision assistance.
   Special locational incentives in the form of negotiable       General industrial development.
cash grants are available for establishing manufacturing       Program services:
facilities in areas of high unemployment in Puerto Rico.         Long-term, low-interest loans.
The incentives are administered by the Puerto Rico In-
dustrial Development Co., which is responsible for con-        Description:
struction and maintenance of industrial buildings on the         The Government Development Bank has been active
Island.                                                        and effective in fostering economic growth with its loan
                                             Appendix-D/rectory of State High-Technology Strategies and Programs      q   65

to finance fixed assets and working capital. Normally          Strategic Development Commission
loans are made for up to 70 percent of the appraised value
of the real estate and up to 50 percent of the appraised       Dr. Norton Berman
value of machinery and equipment. The rate is tied into        Director
the prime rate of major New York banks, although nego-         Rhode Island Department of Economic Development
tiated rates are also possible.                                7 Jackson Walkway
                                                               Providence, RI 02903
                                                               (401) 277-2601
                   Rhode Island                                Date of establishment: 1982
                                                               Annual State funding (millions): N/A
  This State has begun an examination of high-technol-         Program type:
ogy possibilities for its economy. This effort includes a
                                                                 High-technology development.
proposal to put a computer in every elementary and sec-
                                                                 Labor/technical assistance.
ondary school, as well as in community and vocational
colleges.                                                      Program services:
   A Strategic Development Commission has studied the            Task force.
possibilities of using State resources in high-technology        State resources promotion.
economic development and has recommended targeting              Links industry with university resources.
specific industries and linking university research capaci-    Description:
ties with high-technology industry.
                                                                 This Commission was set up to identify high-technol-
Programs                                                       ogy growth possibilities for the State of Rhode Island,
High-technology development                                    and to link industry with university resources. This pro-
  Strategic Development Commission                             gram, only recently started, will identify target industries
                                                               for the State.
Labor/technical assistance
  Strategic Development Commission
Capital provision assistance
  Industrial Development Bond Program
                                                                                 South Carolina
                                                                  South Carolina has long been recognized for its out-
                                                               standing vocational training program. This has been ex-
Industrial Development Bond Program                            tended into the high-technology area with “Design for
 D r. Norton Berman                                            the Eighties,” a plan to provide high-technology skills
Acting Director                                                training in the State’s 16 community colleges, in order
Rhode Island Department of Economic Development                to produce a work force that will make the State attrac-
7 Jackson Walkway                                              tive to expanding high-technology firms.
Providence, RI 02903                                              The State government has targeted seven specific in-
(401) 227-2601                                                 dustries and is planning to develop research parks around
                                                               its three major universities: Clemson, the University of
Date of establishment: 1966
                                                               South Carolina, and Charleston Medical College. The
Annual State funding (millions): $250 bond
                                                               legislature is also considering the creation of a finance
Program type:                                                  authority and State support for cooperative research.
  Capital provision assistance.                                These efforts will be coordinated with several small busi-
  General industrial development.                              ness development centers in the university system,
Program services:                                              funded by the U.S. Small Business Administration.
  Industrial revenue bonds.                                    Programs
  Loans.                                                       High-technology development
  Product development assistance.                                Task Force on Industrial Development
Inscription:                                                   kfigh-technology education
  This program was revived in 1977 to provide financ-            Design for the Eighties
ing for industrial development. The program encourages
growth of Industrial Parks, offers mortgage guarantees         Labor/technical assistance
and insurance to industry, and helps the State in its ef-        Design for the Eighties
forts to attract high-technology industry.                       Task Force on Industrial Development
General industrial development                              Description:
  South Carolina Development Board                            South Carolina has targeted seven industries to attract
                                                            or promote within the State. These include pharmaceuti-
                                                            cals, microprocessors, machine tools/robotics, agricul-
Design for the Eighties                                     tural processing, defense-related industries, structural
                                                            fibers and plastics, and fiber optics.
Mr. William Dudley
                                                              In addition, the Board is proposing to the State legis-
                                                            lature that it establish a finance authority to pool small
Design for the Eighties
                                                            Industrial Revenue Bond issues, and establish financing
111 Executive Center Dr.
Columbia, SC 29210
                                                            plans for small and large manufacturing firms. The Board
                                                            works closely with the Federal Small Business Develop-
(801) 758-6915
                                                            ment Centers.
Date: of establishment: 1978
Annual State funding (millions): $0.45                      Task Force on Industrial Development
Program type:
                                                            Mr. John S. Hooks
  High-technology education.
  Labor/technical assistance.
                                                            Office of the Governor
Program services:                                           P.O. Box 11450
  Technical training provided by State.                     Columbia, SC 29211
  Technical support provided by State.                      (803) 758-3208
  Links industry with university resources.                 Date of establishment: 1981
  Trains technical staff for business.                      Annual State funding (millions): N/A
Description:                                                Program type:
  Design for the Eighties is now establishing training         High-technology development.
resource centers for the development of high-technology        Labor/technical assistance.
skills needed in six fields: robotics, machine operation,   Program services:
computer design, microprocessors, advanced office sys-
tems, and water control. South Carolina has traditionally      Task force.
offered strong technical education, and these centers          Links industry with university resources.
should enhance capabilities for the high-technology            State resources promotion (infrastructure).
sectors.                                                       Information dissemination.
South Carolina Development Board                               This group proposed an Industrial Research Board to
                                                            promote the economic development of high-technology
Mr. Robert Leak
                                                            industry in South Carolina, and to enhance the capabil-
                                                            ities of South Carolina’s State and private universities.
State Development Office
                                                            Board membership would include representatives from
P.O. Box 927
                                                            government, education, and industry. Its objectives
Columbia, SC 29202
                                                            would include promoting and maintaining a high level
(803) 758-3145
                                                            of interaction between industrial and academic research-
Date of establishment: N/A                                  ers in the State. In addition, the State hopes to attract
Annual State funding (millions): N/A                        high-technology industry by developing industrial re-
Program type:                                               search centers on land adjacent to State universities.
  General industrial development.
Program services:
                                                                               South Dakota
  Links industry with university resources.
  Trains technical staff for business.                        This State’s economic strategy does not include a spe-
  Industrial revenue bonds.                                 cific plan to encourage high-technology industry, but of-
  Task force.                                               ficials report a favorable business climate and a cooper-
                                              Append/x—D/rectory of State High-Technology Strategies and Programs      q   67

ative relationship between the banks and industry. South        gional development and technical education in the Knox-
Dakota emphasizes the autonomy of its communities, but          ville-Oak Ridge area. This task force has been replaced
the State government works closely with local efforts in        by the Technology Corridor Foundation, which will im-
towns that are aggressively seeking industrial develop-         plement its recommendations.
ment. The State also supports six vocational-technical            The State’s high-technology development strategy is
training schools that can provide a customized training         focused on nurturing new ventures as well as attracting
program for any new or expanding industry, including            expanding industry. Part of this effort includes a “State
an increasing number of skills required in high-technol-        inventory” of existing technology-based firms and re-
ogy manufacturing.                                              sources. Among these are the Oak Ridge National Lab-
Programs                                                        oratory, the Tennessee Valley Authority, and the Uni-
                                                                versity of Tennessee, all of which have contributed to
General industrial development
                                                                the birth of a small high-technology business communi-
  Bureau of Industrial Development                              ty around Oak Ridge-Knoxville.
Bureau of Industrial Development                                High-technology development

Mr. Eugene Miller                                                 High-Technology Initiative for Industries
Director                                                          Tennessee Technology Corridor Foundation
Bureau of Industrial Development                                High-technology education
221 S. Central Ave.                                               Tennessee Comprehensive Education Study
Pierre, SD 57501                                                    Task Force
(605) 773-3158
Date of establishment: N/A
Annual State funding (millions): N/A
                                                                High-Technology Initiative for Industries
Program type:
  General industrial development.                               Dr. John Crothers
                                                                Director of High-Technology Development
Program services:
                                                                Tennessee Department of Economic and Community
  Tax–favorable business climate.                                  Development
  Labor assistance.                                             1011 Andrew Jackson State Office Bldg.
  Industrial revenue bonds.                                     Nashville, TN 37219
  State resources promotion (infrastructure).                   (615) 741-5070
Description:                                                    Date of establishment: 1981
  This State boasts a favorable tax package to attract in-      Annual State funding (millions): $0.135
dustry. In addition, it has six vocational technical schools    Program type:
that will design customized programs for firms.
                                                                  High-technology development.
                                                                Program services:
                                                                  Assists in finding venture capital.
                     Tennessee                                    Task force.
                                                                  Capital provision assistance.
   This State has a large manufacturing sector, and like
that of the industrial Midwest it has been hard-hit by          Description:
economic changes. The labor and financial communities,            With State funding, the Department of Economic and
therefore, are looking to high-technology growth as a           Community Development created the Division of High
source of jobs and revenue.                                     Technology, Finance, and Service Sales. This office also
   The overall objective is to capture a larger share of new    acted as the host for the Governor’s Technology Task
jobs in emerging growth sectors that are dependent on           Force. In addition, it is looking at in--State development
advances in technologies. Part of this effort is reflected      and recruitment of high-technology industries. The De-
in the Governor’s strong support for the Knoxville              partment is evaluating State resources, and plans to find
World’s Fair, which centered on new energy technologies         venture capital sources for new and expanding businesses.
and other innovations. In addition, the Governor estab-         This office will also work closely with the university sec-
lished a Technology Corridor Task Force to study re-            tor to link research with lndustrial development.
68   q   Technology, Innovation, and Regional Economic Development: Background Paper— Census of State Government   Initiatives

Tennessee Comprehensive Education                                 will permit the completion of the initial development of
Study Task Force                                                  the Knoxville/Oak Ridge area and allow similar support
                                                                  services to other selected areas of the State.
Dr. William H. Payne
Executive Director
Tennessee Comprehensive Education Study
16th Floor–James Polk Bldg.                                                                Texas
Nashville, TN 37219
                                                                     The Governor recently received the report from the
(615) 741-5230
                                                                  Texas 2000 Commission, which was appointed by his
Date of establishment: 1981                                       predecessor. This Commission looked at long-range eco-
Annual State funding (millions): $0.3                             nomic planning issues, including high-technology in-
Program type:                                                     dustrial development, and recommended that the State
  High-technology education.                                      concentrate on strengthening its research and develop-
                                                                  ment facilities. It also recommended establishing a Re-
Program services:
                                                                  search and Development Council, coordinating R&D
  Task force.                                                     efforts with the private sector; increasing salaries to re-
  Links university with industry resources.                       tain university faculty; providing technical assistance to
Description:                                                      entrepreneurs; and working with the Federal Govern-
  This Task Force works closely with the recommenda-              ment to create incentives for private sector research.
tions of the Regional Technology Corridor Governor’s                 Efforts in university research include a planned elec-
Task Force, and implemented joint recommendations for             tronics research center uniting the resources of Texas
industry and education. The State plans to establish a            A&M, Rice, and the University of Houston. A new In-
$20 million comprehensive technical institute to be               stitute for Ventures in Technological Innovation at Texas
located within the Knoxville/Oak Ridge Technology                 A&M will work with both the private sector and Federal
Corridor. This will allow interaction between university          agencies to promote technological innovation. Con-
personnel and industry, transferring technology between           siderable high-technology development has also occurred
the two groups. In addition, this group will study the            in Austin, in part because of resources and programs at
organization structure of the State.                              the University of Texas.
                                                                     In addition to these State efforts, Texas has a tradi-
Tennessee Technology Corridor Foundation                          tion of community-based initiatives. One of the most for-
                                                                  ward-looking communities is San Antonio, which is de-
Dr. David Patterson                                               veloping the human resources to become a high-technol-
Staff Director                                                    ogy center in the years to come.
Tennessee Technolog y Corridor Foundation                         Programs
P.O. BOX 2752
                                                                  High-technology development
Knoxville, TN 37901
(615) 966-2804                                                      Institute for Ventures in New Technology
Date of establishment: 1982                                       Labor/technical assistance
Annual State funding (millions): $1.5                               Industrial Start-up Training
Program type:                                                     General industrial development
  High-technology development.                                      Texas 2000 Commission
Program services:                                                   Texas Engineering Experiment Station
  Market development assistance.
  Assists in finding venture capital,
  Product development assistance.                                 Industrial Start-up Training
Description:                                                      Mr. Joe Ferran
  This office helps implement the State strategy to de-           Manager
velop a high-technology corridor in the Knoxville/Oak             Texas Industrial Commission
Ridge area, coordinating industr y with educational and           P.O. Box 12728, Capitol Station
State resources, The Foundation expects to have a 1983            Austin, TX 78711
funding level of between $4 million and $5 million, which         (512) 472-5059
                                           Appendix—Directory of State High-Technology Strategies and Programs    q   69

Date of establishment: N/A                                   Program type:
Annual State funding (millions): N/A                           General industrial development.
Program type:                                                Program services:
  Labor/technical assistance.                                  Task force.
Program services:                                               State resources promotion.
  Trains technical staff for business.                         Information dissemination.
  Links industry with university resources.                     Links industry with university resources.
  State resource promotion.                                  Description:
Description:                                                   The Texas 2000 Commission reports periodically to the
   The Texas Industrial Commission, through its Indus-       Governor and legislature on the role of research and
trial Development Department, serves as a liaison be-        development, advanced technology, and the State, in
tween new and expanding industry and the Vocational-         economic development. The mission of Texas 2000 is to
Technical Division of the Texas Education Agency. The        look at long-range planning issues for State economic
Commission encourages the Education Department to            development, including high-technology industrial devel-
structure education programs to accommodate the needs        opment. The Commission’s concerns include rapid
of industry currently locating or expanding. It aims to      growth, research and development, water resources, en-
put trained people in touch with jobs.                       ergy resources, transportation availability, government
                                                             financing, and Mexican relations.
                                                               The Commission recommended that the State focus
Institute for Ventures in                                   more clearly on research and development facilities and
New Technology (INVENT)                                     establish a research and development center. It also
                                                            recommended that the State coordinate research and
Mr. Franklin Sekera                                         development efforts with the private sector, ensure re-
Director                                                    sources for research and development, compensate uni-
The Texas Engineering Experiment Station                    versity faculty on a market basis to retain them, evaluate
The Texas A&M University System                             agencies’ roles in research and development, develop
College Station, TX 77843                                   technical assistance to entrepreneurs, provide capital
(713) 845-0537                                              through State channels, and work with the Federal Gov-
Date of establishment: 1982                                 ernment to create private sector research and develop-
Annual State funding (millions): $0.856                     ment efforts. The Commission helped develop the Insti-
Program type:                                               tute for Ventures in Technical Innovation (INVENT)
                                                            at Texas A&M University, which will link university
   High-technology development.
                                                            resources with entrepreneurs. The Commission also
Program services:                                           worked to reorganize traditional industrial development
   Links industry with university resources.                offices to attract advanced technology industries to the
  Market development assistance.                            State.
  Product development assistance.
Description:                                                 Texas Engineering Experiment Station
  INVENT integrates science and engineering with the        Mr. W. Arthur Porter
commercial disciplines of marketing, management, and        Director
finance to help determine the “credibility” of new ideas.   The Texas Engineering Experiment Station
                                                            The Texas A&M University System
Texas 2000                                                  College Station, TX 77841
                                                            (713) 845-0537
Ms. Meg Wilson                                              Date of establishment: 1914
Director of Policy Research                                 Annual State finding (millions): $30
Texas 2000
                                                            Program type:
Governor’s Office, P.O. Box 13561
Austin, TX 78711                                              General industrial development.
(512) 475-8386                                              Program services:
Date of establishment: 1980                                   Links industry with university resources.
Annual State finding (millions): $0.40                        State resource promotion.
70 q Technology Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Description:                                                   Description:
  The primary purpose of the Texas Engineering Experi-           Utah has had an ongoing program to attract high-tech-
ment Station (TEES) is to serve and support the business       nology firms and to nurture the growth of existing high-
and industrial community of Texas and the Nation               technology firms since 1975.
through research and development. TEES has 25 sepa-              Over one-third of the division budget is targeted to
rate research divisions with at least that many identifiable   high-technology industries such as biomedical and bio-
subdivisions. There are a total of some 800 people in-         engineering, computer and electronics, and pharmaceuti-
volved in the collective research activities of more than      cals and medical instruments. The office helps new and
400 projects annually. Funds to support this research are      expanding high-technology industry in locating plant
generated primarily through outside sponsored research         operations; provides information on area marketing,
projects with a small but very important percentage com-       wages, and education; provides training; and will assist
ing from State general revenue funds.                          in locating capital.
                                                                 The office works closely with the University of Utah
                                                               Research Park, the Utah Innovation Center, and the
                                                               Governor’s Council on Science and Technology in at-
                          Utah                                 tracting and retaining new industry.
   Utah has a strong high-technology manufacturing base          The State reports a good and rapidly growing techno-
to build on, particularly in microelectronics, robotics,       logical base and an educated labor force.
and computer graphics. Utah firms also conduct ad-
vanced research in biomedical and aerospace technol-
ogies. State officials report that Utah has had the fifth
highest growth rate in high-technology jobs in the Na-                               Vermont
tion over the past 5 years.                                      The Governor supports higher education as a means
   The State government cooperates closely with the pri-       of strengthening the State’s economy and preparing the
vate sector through the Office of Industrial Development.      way for high-technology industrial development in the
The University of Utah also has several initiatives to pro-    future. The State also has a number of general loan pro-
mote high-technology innovation, including a nonprofit         grams for businesses, several of which are reported to be
Research Institute and an Industrial Research Park where       more liberal with high-technology industries given their
university and industry cooperate on R&D projects. Pri-        special capital needs.
vate sector programs include the Utah Innovation Center
in Salt Lake City, which assists small- and medium-sized       Programs
firms in product and process innovation.                       General industrial development
Programs                                                         Vermont Industrial Development Authority
General industrial development                                 Capital provision assistance
 Office of Economic Development                                  Vermont Industrial Development Authority

Office of Economic Development                                 Vermont Industrial Development Authority
Ms. Evelyn Lee                                                 Mr. Albert Coffrin
Director                                                       Manager
Economic Development                                           Industrial Development Authority
200 South Maine, Suite 620                                     109 State St.
Salt Lake City, UT 84101                                       Montpelier, VT 05602
(801) 533-5325                                                 (802) 828-2384
Date of establishment: 1968                                    Date of establishment: 1972
Annual State finding (millions): $0.85                         Annual State funding (millions): $1.1
Program type:                                                  Program type:
  General industrial development.                                Capital provision assistance.
Program services:                                                General industrial development.
  State resources promotion.                                   Program services:
  Industrial revenue bonds.                                      Loans.
                                              Append/x—D/rectory of State High-Technology Strategies and Programs     q   71

  Long-term, low-interest loans.                                Date of establishment: 1%2
  Subordinated loans.                                           Annual State funding (millions): $4.2
  Industrial revenue bonds.                                     Program type:
Description:                                                      General industrial development.
   This program, currently being implemented, has a “set-       Program services:
aside” for high-technology business provided in conjunc-          State resources promotion (infrastructure).
tion with the State Pension Fund. The initial investments         Labor assistance.
for the pension fund as a venture capital source will likel y     Information dissemination.
take place with other nongovernment institutional ven-
                                                                  Market development assistance.
ture capitalists in a private company that would make
                                                                  Industrial revenue bonds.
direct equity purchases.
                                                                  Although there are no special tax incentives for new
                        Virginia                                or expanding industry, the State reports a low business
                                                                tax in the State, with strong support for business. In ad-
   In 1982, the Governor appointed a Task Force on Sci-         dition, the State boasts a good overall location, good ac-
ence and Technology to assess the current state of tech-        cess to transportation, and an excellent higher educa-
nological development within the Commonwealth and               tion sector. The State is currently exploring ways to be
to prepare recommendations for the Governor and Gen-            more responsive to the high-technology sector through
eral Assembly. The Task Force, which consists of 36             a Governor’s task force which will report in 1983.
members drawn primarily from the business and aca-
demic communities, will address such issues as education,       Governor’s Task Force on
finance, and State intervention.                                Science and Technology
   The State government feels strongly that existing in-
dustry should not subsidize new industry, so there are          Mr. Scott Eubanks
no targeted loans or special financing for new and ex-          Director
panding industry. However, the State has a good business        Department of Industrial Development
climate and an excellent higher education system, as well       100 Washington Bldg.
as growing high-technology concentrations in the Nor-           Richmond, VA 23219
folk and Charlottesville areas and in the suburbs of            (804) 786-3791
Washington, D.C. The State provides labor training              Date of establishment: 1982
through the community college system and has a good             Annual State funding (millions): N/A
supply of technically trained personnel. Its banks are fair-    Program type:
ly conservative, so venture capital is hard to find inside
                                                                  High-technology development.
the State, a situation the Task Force is expected to
address.                                                        Program services:
Programs                                                          Task force.
High-technology development                                     Description:
  Governor’s Task Force on Science and Technology                 This Task Force will report to the Governor in June
  Science, Engineering, and Technology Advisory                 1983, on Virginia’s science and engineering community
    Service                                                     on how to mobilize talent in support of high-technology
                                                                industry. The Task Force is currently working in six com-
General industrial development
                                                                mittees preparing reports on different aspects of the
  Department of Industrial Development                          State’s economic development.

                                                                Science, Engineering and Technology
Department of Industrial Development                            Advisory Service
Mr. Hugh Keogh                                                  Mr. Robert J. Griffis
Assistant Director                                              Director
Department of Industrial Development                            Department of Planning and Budget
100 Washington Bldg.                                            P.O. Box 1422
Richmond, VA 23219                                              Richmond, VA 23211
(804) 786-3791                                                  (804) 786-8303
Date of establishment: 1982                                  Date of establishment: 1981
Annual State funding (millions): $0.01                       Annual State funding (millions): N/A
Program type:                                                Program type:
  High-technology development.                                 High-technology education.
Program services:                                            Program services:
  Task force.                                                  Task force.
Description:                                                 Description:
  This office acts as the technical consultant to the Task     The mission of this Committee was to develop policy
Force on Science and Technology. In addition, it helps       recommendations aimed at developing high-technology
new and expanding industries develop products, and           industr y in the State of Washington. Specific issue areas
helps businesses develop contacts with university techni-    considered include: engineering education, tax and land-
cians. The office is helping coordinate the efforts of       use policy, development of high-technology centers
university research and the development of high-tech-        around State universities, developing specialized training
nology industry in the State.                                programs, and attracting and maintaining high-quality
                                                             personnel to the State.

                    Washington                               Washington Research Foundation
                                                             Mr. Hunter Simpson
  The Governor’s Committee on High-Technology
                                                             Staff Director
Training and Advancement, established in 1982, will ex-
                                                             Governor’s High-Technology Transfer Task Force
amine engineering education, tax and land use policy,
                                                             State Capitol
development of high-technology centers, specialized
                                                             Olympia, WA 98504
training programs, and the attraction of high-quality
                                                             (206) 000-0000
teachers. Its mission is to identify programs that en-
courage innovation and to recommend legislation that         Date of establishment: 1981
will promote high-technology growth.                         Annual State funding (millions): -O-
  Other State initiatives include the Washington Re-         Program type:
search Foundation, funded primarily by private sector          High-technology development.
sources, which was set up to coordinate university R&D         Labor/technical assistance.
activities with the needs of industry. The University of
Washington is also working with local corporations and       Program services:
businessmen to promote innovation and entrepreneur-            Task force.
ship in the Seattle area.                                      Links industry with university resources.
Programs                                                     Description:
High-technology development                                    The Foundation, funded primarily by private industry
  Washington Research Foundation
                                                             sources, resulted from the Governor’s High Technology
                                                             Transfer Task Force. The purpose of the Foundation is
High-technology education                                    to finance applied research and development on new
  Governor’s High-Technology Training and                    technology-based products.
   Advancement Committee
Labor/technical assistance
  Washington Research Foundation
                                                                                West Virginia
Governor’s High Technology Training                            West Virginia is looking for ways to diversify its in-
and Advancement Committee                                    dustrial base by encouraging product and process innova-
                                                             tions in the manufacturing sector. The State government
Mr. Alan Hager                                               also works closely with local development authorities to
Committee Coordinator                                        plan and develop industrial parks, and to attract expand-
Department of Commerce and Economic Development              ing industry. Targeted industries include robotics, elec-
101 General Administration Bldg.                             tronics, chemicals, and energy.
Olympia, WA 98504                                               The University of West Virginia established a Center
(206) 753-3065                                               for Entrepreneurial Studies and Development in 1981 to
— —               .                                                                             —.

                                              Appendix—Directory of State High-Technology Strategies and Programs     q   73

 bring the resources of university faculty and students to                           Wisconsin
 the direct support of West Virginia businesses, particular-
 ly small and developing enterprises.                             Wisconsin’s aggressive program to attract high-technol-
 Programs                                                      ogy industr y is distinguished by the efforts of the private
                                                               sector and public-private coalitions. The State is active-
 General industrial development
                                                               ly marketing its resources as a high-technology center,
   Governor’s Office of Economic and                           and government industrial development efforts include
    Community Development                                      customized labor training, licensing and finance assist-
                                                               ance, and tax credits for R&D and job creation. The
                                                               legislature will soon be considering proposals to increase
 Governor’s Office of Economic and                             technical training, tax incentives, and R&D tax credits.
 Community Development                                            Two private sector groups working closely with the
 Mr. Douglas Scaff                                             State government are Competitive Wisconsin and Wis-
 Director of Economic Development                              consin for Research. Both are nonprofit groups represent-
 Governor’s Office of Economic and Community                   ing business, education, and government, Another
    Development                                                group, the Wisconsin Alumni Research Foundation of
 Capital Complex                                               the University of Wisconsin, holds patents on alumni
 Charleston, WV 25305                                          inventions; income received as a result of licensing
 (304) 348-2234                                                agreements is channeled into further university research.
                                                                  At the community level, the State works closely with
 Date of establishment: 1977                                   the Greater Milwaukee Committee and the Milwaukee
 Annual State funding (millions): $22 bond                     Chamber of Commerce to develop high technology in
 Program type:                                                 that city. In addition, the Heritage Bank in Milwaukee,
   General industrial development.                             a privately chartered bank, has committed $50 million
   Labor/technical assistance.                                 to the development of high-technology industry in the
 Program services:                                             city.

   Long-term, low-interest loans.
   Industrial revenue bonds.                                   General industrial development
   Training provided by the State.                               Business Development Services
   Site location.                                                Wisconsin Department of Development
   Market development assistance.
   Information dissemination.
 Description:                                                  Business Development Services
    This agency is the economic development arm of the
 Governor’s office, providing new and expanding industry       Mr. Fred Pearce
 with: financial assistance and packaging, labor studies,      Director
 marketing research, facility location, and training pack-     Business Development Services
 ages. The organization serves as interface for industry       P.O. Box 7970
 with other State agencies.                                    Madison, WI 53707
    A close relationship exists with local development         (608) 266-0165
 authorities in bringing plans for local industrial parks to   Date of establishment: 1960
 fruition. Targetted industries include: robotics, electron-   Annual State finding (millions): N/A
 ics, chemicals, high energy users, as well as supporting      Program type:
                                                                 General industrial development.
    This agency works closely with the West Virginia
 Development Authority (WVDA). WVDA was set up                 Program services:
 by legislative mandate, and has funds appropriated by           Information dissemination.
 the State, but works independently of State control.            State resources promotion (infrastructure).
 WVDA provided low-interest loans (4 percent) to quali-          Links industry with university resources.
 fied high technology, (as well as any industry qualifying)      Market development assistance.
 to fund up to ) 50 percent of new and expanding projects.       Licensing assistance.
74 . Technology Innovation, and Regional Economic Development: Background Paper-Census of State Government Initiatives

Description:                                                  or for expansion. Although it receives no State funding
  This office is responsible for a significant amount of      at this time, it works closely with the Wyoming Office
the State effort in attracting targeted high-technology in-   of Economic Development. The State does boast the low-
dustry by providing services they need. These services        est tax structure in the Nation, and there is a concen-
include information about State resources, and helping        trated effort at the community level to attract new in-
business use them. Although established as a general in-      dustry. This is usually traditional manufacturing in-
dustrial development effort, this office is now targeting     dustry, but it is hoped that it will provide a foundation
advanced technology industries for special services.          for future high-technology growth.
Wisconsin Department of Development                           General industrial development
Ms. Kay Plantes                                                 Wyoming Economic and Planning Development
Division Administrator                                           Commission
Wisconsin Department of Development
P.O. Box 7970
Madison, WI 53707                                             Wyoming Economic and Planning
(608) 266-1018                                                Development Commission
Date of establishment: 1980
Annual State funding (millions): N/A                          Mr. John Logan
                                                              Chief, Industrial Division
Program type:                                                 Economic and Planning Development Commission
  General industrial development.                             Barrett Bldg., 3rd Floor
Program services:                                             Cheyenne, WY 82002
  Link industry with university resources.                    (307) 777-7285
  Tax-favorable business climate.                             Date of establishment: 1969
Description:                                                  Annual State funding (millions): $1.14

  This office is charged with guiding coordinated and         Program type:
economically efficient development of the State’s general       General industrial development.
industrial development. Recently, however, the State has      Program services:
recognized the importance of high-technology develop-
                                                                Tax—favorable business climate,
ment, and is pursuing a number of strategies to encourage
                                                                Information dissemination.
such development: through university-industry ties, re-         State resources promotion.
search and development tax credits, matching State funds
for university-industry consortia, and other tax incen-       Description:
tives to draw equity and/or venture capital investments          This office is responsible for providing technical assist-
into the State.                                               ance to existing industries in the State considering ex-
                                                              pansion, and to outside firms for possible location to
                                                              Wyoming. The State labor force is predominately skilled
                      Wyoming                                 to semiskilled, with some shortages in professional and
                                                              management areas. State infrastructure dictates that con-
   High-technology industry is part of Wyoming’s agen-        centration is placed on smaller manufacturing firms that
da for economic development, but thus far the State leg-      will hire up to 500 employees. The State Industrial Divi-
islature has taken a cautious approach. There is valid con-   sion and those active local economic development coun-
cern about the secondary effects of development, par-         cils work together to attract industry and diversify the
ticularly for the environment, and there is a natural con-    economic base, emphasizing smaller high-technology
straint in the lack of water. In addition, there is high      firms.
unemployment in the State but the existing work force            The University of Wyoming has expanded its research
is not trained in high-technology skill areas.                and development centers to include state-of-the-art skills
   The Wyoming Industrial Development Corp., estab-           and machinery in high-technology areas. Training pro-
lished by the legislature in 1967, is authorized to pro-      grams are also being established throughout the State
vide financing to Wyoming businesses as venture capital       through efforts of the Division of Manpower Planning.

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