Science & Technology-Based Recommendations to Further Economic Development Goals Presented by Keith Aspinall

Arizona’s Economy 2002 – First decrease in employment in 20 years FY $300 billion budget deficit FY $1 billion budget deficit – Tax increases unlikely – Services to be cut

How to promote economic development? Key is strategic deployment of resources 1. Fostering public-private partnerships 2. Increasing educational funding at all levels 3. Expanding the R&D Tax Credit 4. Receiving additional federal research funding 5. Attracting additional venture capital 6. Financing and building additional research facilities

Public-Private Partnerships Diminishes burdens on any single group. Recruiting T-Gen and IGC Georgia Research Alliance NSF Engineering Research Center Governor's Strategic Partnership for Economic Development

Education funding Arizona ranks low in 8 th grade math and science proficiency. Arizona’s low high school graduation rates call into question the quality of native workforce. Arizona ranks 41 st in per capita spending on higher education. However… Scientific and technological advancement drives more than 50% of economic growth

R&D Tax Credit Credit went into effect in 1994—Private research surged. Industry now provides 54% of Arizona’s research funding Raise the limit of the credit?

Federal Research Funding U of A & ASU both Research I universities Amount of research funding tied to economic growth Federal research dollars a shrinking part of the pie Federal dollars still heavily in military research

Attracting Venture Capital Arizona has above average levels of innovation Arizona has very low levels of venture capital investment – just 0.2% of state GDP -- Need more university research -- Need legislative action

Building Research Facilities Arizona has few non-university affiliated research facilities Additional facilities can broaden research goals Must look into municipal bonding and capital improvement programs.

Conclusion Use partnerships to meet needs – To get support for education funding – To attract investment – To build facilities – To receive research funding *Initiate action, share the costs, reap the rewards*