Idaho slips in national tech ranking -study builds case for higher ed, research funding – Montana slips 4 places to 38th

State’s support for industry drops in 3 of 5 key categories

Idaho lost ground in a national ranking of how well it supports its science and technology industry.

The Milken Institute in California today releases its National Technology & Science Index, ranking Idaho 30th in the nation. The state fell four spots from its 2002 ranking of 26th, dropping in three of five major categories studied.

Julie Howard
The Idaho Statesman

http://www.idahostatesman.com/Business/story.asp?ID=64364

Massachusetts, California and Colorado again made up the top-ranked states in the report. Mississippi ranked 50th.

The report´s premise is that states do better economically if they also do well in attracting and expanding technology and science assets.

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• Overall ranking http://www.idahostatesman.com/Business/story.asp?ID=64359

• Where Idaho did well http://www.idahostatesman.com/Business/story.asp?ID=64355

• Where Idaho did poorly http://www.idahostatesman.com/Business/story.asp?ID=64356

• Milken Institute http://www.milkeninstitute.org/

For the full report from Milken: http://www.milkeninstitute.org/publications/publications.taf?function=detail&ID=304&cat=ResRep

• High Tech http://www.idahostatesman.com/Business/HighTech/?S=15

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All in all, the numbers showed Idaho´s performance in each area to be middling to below average.

Idaho´s performance dropped in its investment in developing knowledge workers (39th), an area the report called “the most important intangible asset of a regional or state economy.”

The state also fell in its percentage per capita of technology firms (22nd), and in venture capital funds put to use (24th).

It gained slightly in research and development investment (31st), and having a skilled work force (34th).

“I think this is fairly reflective of where we stand,” said Karl Tueller, director of Idaho´s recently launched Office of Science and Technology. “I think for a small state, we do quite well.”

Tueller said this year´s formation of the science and technology office demonstrates a commitment at the state level to improve Idaho´s standings. The Milken study will be used over time to track his office´s success, he said.

“We have strong potential,” he said. “Once we start pulling our oars together statewide, then we can accomplish a lot.”

The report, published first in 2002 to track California´s competitive advantages in the tech industry, focuses mainly on that state. The index compares California to other states.

“The new engine of regional economic prosperity is based upon how successful a given location is in attracting and expanding technology and science assets and leveraging them for economic development,” the report said.

Rob Koepp, a Milken research fellow, said Idaho´s leaders can benefit by looking at the report´s details.

For instance, he pointed out that in 2002, Idaho ranked first in venture capital funding but dropped to 45th place in the updated report.

“That´s to be expected with the cresting and bursting of the technology bubble,” said Koepp. “But your state should look at finding a way to get more sustainable venture capital in the state so you´re not at the whim of the peaks and busts.”

He said Idaho leaders should be concerned but not alarmed by the report.

“There´s some learning that can go on here,” said Koepp. “Mid-ranking states are not confined to staying in that realm. They can break out and improve.”

To offer story ideas or comments, contact Julie Howard
[email protected] or 373-6618

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Our View: Tech study builds case for higher ed, research funding

What does Idaho need to do to support its high-tech businesses?

http://www.idahostatesman.com/Opinion/story.asp?ID=64489

While there, you can check in on our other message boards.

If Idaho really wants to support high-tech, it needs to invest more money in higher education and academic research.

That´s where good workers and great ideas come from.

The Milken Institute, a national think tank, gave Idaho mediocre grades for supporting its science and technology industry. The state´s overall ranking was a luckluster No. 30, down from 26 two years ago. Here are a few startling numbers that contribute to Idaho´s grade:

• Idaho ranked a pitiful 48th in the nation for higher education funding. That´s because Idaho cut its higher ed spending in 2003 and, according to the report, only Missouri and Oregon made deeper cuts.

In fairness, this ranking reflects extraordinary conditions. The economy went south in 2001 and took tax collections with it, so the 2002 Legislature took the uncommon step of cutting the higher ed budget by more than $20 million. Trouble is, the subsequent budgets haven´t been all that great either; this year´s budget puts barely $5 million of new general fund money into higher ed, a 2.5 percent increase.

• Idaho ranked 44th in academic research per capita. Even more telling is the kind of research going on — and not going on. The state ranks 41st in math and computer science research per capita, 44th in biomedical sciences, 45th in physical sciences. In agricultural sciences research, Idaho ranks fourth in the nation.

Of course, the problem is not that Idaho has ag research, supporting one of the state´s traditional economic mainstays. The problem is a dearth of research that supports Idaho´s $9.35 billion-a-year science and technology industry, which already is worth more to the state than its natural resource industries.

The economy is changing, and Idaho´s research portfolio has to change with it. “That´s where true innovation comes from,” said Mark Solon, managing partner with Highway 12 Ventures, a Boise venture capital fund.

And without the innovation, the high-tech businesses just won´t start up in Idaho. The investors — “like sharks to blood,” said Solon — will gravitate to the research universities with marketable ideas.

Investors will also set up companies where they can find the best workers available. That´s why a stable and adequate higher education budget is important.

The middle-of-the-pack ranking shows Idaho isn´t starting from scratch. The University of Idaho, the state´s research institution, has grown its research portfolio rapidly in recent years by working with industry, and new President Bob Kustra wants to grow research at Boise State University. “That takes some time to do that,” said Shirl Boyce, vice president of the Boise Metro Economic Development Council.

Solon also is optimistic, despite the “dismal” research numbers. Micron and Hewlett-Packard give Idaho two strong high-tech “anchor tenants,” he said, and Boise has a strong core of people with corporate management experience.

Some people in Idaho´s high-tech community grumble that the Legislature really doesn´t understand what it takes to grow their industry. One way lawmakers can show they really get it, and improve the state´s lukewarm Milken Institute ranking, is by supporting higher education in general and research in particular.